Eskay Mining (ESK.V): Discovers a New VMS Center at Jeff North and Intercepts Polymetallic VMS Mineralization in Two Areas Along TV-Jeff Corridor

TORONTO, ON / ACCESSWIRE / August 9, 2022 / Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV:ESK)(OTCQX:ESKYF)(Frankfurt:KN7) (WKN:A0YDPM) is pleased to announce discovery of a new volcanogenic massive sulfide (“VMS”) center at Jeff North as well as recent drill intercepts of polymetallic mineralization in two areas along the TV-Jeff corridor, part of its 100% controlled Consolidated Eskay project, British Columbia. As of this release, over 13,000m of diamond drilling has been undertaken in numerous drill holes along 3.7km of strike at TV-Jeff. Diamond drilling also continues at the Scarlet Ridge area, subject of a Company news release dated July 27, 2022. To date, the Company has completed approximately 15,600m of diamond core drilling, approximately 52% of the 30,000m planned to be completed in 2022. Drill production remains on target to reach this aggressive goal with four drills fully operational.

“As with the Scarlet Ridge-Tarn Lake VMS corridor, the TV-Jeff VMS corridor is proving itself to be another large VMS complex with sulfide mineralization focused along multiple syn-volcanic fault structures each closely associated with intense hydrothermal alteration of volcanic rocks”, commented Dr. John DeDecker, Eskay Mining’s VP of Exploration. “The discovery of Jeff North now extends the strike length of the known TV-Jeff VMS corridor to 3.7km. Importantly, recent drill holes completed in two areas have yielded intercepts of polymetallic sulfide mineralization with abundant chalcopyrite and sphalerite. Spot XRF readings taken from core indicates promising pathfinder element support including silver from this style of mineralization. Also encouraging, anomalous geochemical results recently received from soil samples collected at the very start of the 2022 exploration season indicate mineralization potentially extends another 2 km further north from Jeff North. We are optimistic that multiple other VMS targets we have recently identified along the TV-Jeff trend will prove mineralized, and we continue to grow confident about the potential for the Consolidated Eskay project to host an entire VMS district.”

Jeff North

Drilling at Jeff North targeted a large conductive SkyTEM anomaly coincident with a ridge of silicified peperitic basalt displaying strong Ag-in-soil anomalies from samples collected during the 2021 program. Strong VMS stockwork mineralization encountered in recent drilling at Jeff North lies 600m north of Jeff and extends at least 700m northwards along strike remaining open to the north. Some stockwork intervals are distinctly polymetallic displaying abundant sphalerite and chalcopyrite in addition to the ubiquitous pyrite. This mineralogy coupled with the presence of strong pathfinder elements including Ag, As, Sb, Cu, Zn, and Pb as detected by handheld XRF provide encouragement for presence of Au and Ag, both of which must be assayed for accurate measurement.Core is being logged, split and sampled in preparation for submittal for assaying.

Jeff North Drilling Highlights

• At present, drilling at Jeff North has ceased and the focus has moved onto TV, the area between TV and Jeff (Figures 1 and 2), and Scarlet Ridge. This said, Eskay is prepared to follow up with drilling at Jeff North late-season should assays confirm this to be a significant new discovery.
• Jeff North represents a new VMS discovery beginning 600m north of Jeff and extending at least 700m northwards. Sulfide mineralization is hosted by intensely silicified peperitic basalt and andesite flows (Figures 3 and 4). Mineralization remains open to the north as well as down-dip.
• J22-118 intercepted a 12.7m interval of polymetallic sulfide mineralization hosted within a silica-rich hydrothermal breccia and surrounding silicified mudstone (Figures 5 and 6). Sulfide mineralization includes abundant chalcopyrite and sphalerite. The presence of chalcopyrite with intense silicification suggests the proximity to a higher temperature VMS feeder zone than those encountered at TV and Jeff.
• Handheld XRF analyses of sulfide mineralization in several drill holes from Jeff North show high concentrations of the pathfinder elements Ag, As, Sb, Cu, Zn, and Pb.
• Early results from the 2022 soil sampling program show Ag and Hg anomalism extends 2km further north than hole J22-99 (Figure 9), the northernmost drill hole completed at Jeff North. Given that the Jeff North target was recognized as a SkyTEM conductivity high with an accompanying soil geochemical anomaly, Eskay’s exploration team is optimistic that the Jeff North VMS system extends further northward. Soil sampling over a large SkyTEM conductive high approximately 1.8km north of Jeff North is currently underway.
• J22-122 intercepted a 9.0 m interval of polymetallic sulfide mineralization hosted by intensely silicified andesitic peperite and associated mudstone (Figures 7 and 8). Polymetallic mineralization in both J22-118 and J22-122 occur at an equivalent horizon to the lower stockwork zone at Jeff 125 m south of J22-122.

Commencement of Drilling at TV

• Drilling has commenced at TV focusing on expanding upon the core body of mineralization identified in 2021 drilling. Planned drill holes will test extensions of TV mineralization further down-dip, along strike to the north and south, and up stratigraphic section.
• Testing of nearby IP-resistivity and SkyTEM targets is also scheduled. Based on past success of targeting VMS mineralization using SkyTEM and soil data at Jeff North, Jeff, and TV, the Eskay team is optimistic that a cluster of SkyTEM conductivity highs surrounding TV will lead to discovery of additional VMS mineralization.
• The first 2022 drill hole at TV, TV22-84, intercepted approximately 40m of stockwork sulfide mineralization 65m down-dip from TV21-54, a very promising indication the system remains open in this direction (Figures 10 and 11).

To date, Eskay Mining has completed approximately 15,600m of diamond core drilling, approximately 52% of the 30,000m planned for 2022. Thus far, drilling has occurred around the area called Jeff North, Scarlet Ridge and now, at TV. At present, four drills are fully operational and drill production is on track to reach Eskay’s aggressive goal of 30,000 m.

Dr. Quinton Hennigh, P. Geo., a Director of the Company and its technical adviser, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.

About Eskay Mining Corp:

Eskay Mining Corp (TSX-V:ESK) is a TSX Venture Exchange listed company, headquartered in Toronto, Ontario. Eskay is an exploration company focused on the exploration and development of precious and base metals along the Eskay rift in a highly prolific region of northwest British Columbia known as the “Golden Triangle,” 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (52,600 hectares).

All material information on the Company may be found on its website at www.eskaymining.com and on SEDAR at www.sedar.com.

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.

(Figure 1: Property-wide SkyTEM and BLEG maps with locations of VMS showings.)(Figure 2: Progress of the 2022 drill program at Jeff North, Jeff, and TV. Labeled drill holes are completed, white drill traces show holes remaining to be drilled, drilling from 2020-2021 is noted. The three major SkyTEM anomalies coincident with Jeff North, Jeff, and TV all correspond with VMS mineralization. Results from the 2021 soil sampling program show broad Ag anomalism coincident with the TV-Jeff VMS system.)Fig. 3: Geological map of TV, Jeff, and Jeff North. VMS mineralization is closely associated with intensely altered packages of andesite, basalt, and dacite.(Figure 4: Representative sulfide intercepts from several drill holes at Jeff North. Sulfide mineralization at Jeff North is closely associated with silica alteration of the host rock, and contains more chalcopyrite, sphalerite, and galena than mineralization at Jeff and TV. J22-118 is located at the southern end of this trend of mineralized intercepts.)(Figure 5: J22-118 220.3-241.8 m showing stockwork sulfide mineralization with hydrothermal silica, hosted by an intensely silicified mudstone. This intercept is polymetallic, with abundant chalcopyrite and sphalerite filling fractures within pyrite. Investigations with handheld XRF show consistently high values of the pathfinder element Ag, particularly in chalcopyrite-rich zones. Gold concentrations cannot be reliably measured with handheld XRF.)(Figure 6: Detail photos from the interval shown in Figure 5. Chalcopyrite, sphalerite, and pyrite are closely associated with hydrothermal silica. The host mudstone is intensely silicified. The presence of chalcopyrite and hydrothermal silica suggest close proximity to the higher temperature core of a VMS system. Investigations with handheld XRF show consistently high values of the pathfinder element Ag, particularly in chalcopyrite-rich zones. Gold concentrations cannot be reliably measured with handheld XRF.)(Figure 7: Polymetallic sulfide mineralization in J22-122 hosted by an intensely silicified mudstone and andesitic peperite. Pyrite, chalcopyrite, and sphalerite are the dominant sulfide minerals. Handheld XRF indicates high concentrations of the pathfinder elements Ag, As, Sb, Cu, and Zn.(Fig 8: A close up of polymetallic sulfide mineralization in J22-122. Chalcopyrite, sphalerite, and pyrite are associated with intense silica alteration of the host rock.)(Figure 9: Soil sample results from the 2022 program showing an extension of Ag and Hg anomalism 2 km northwards of Jeff North. Based on the Company’s discovery of Jeff North using a combination of SkyTEM and geochemical anomalism, we are optimistic additional VMS mineralization will be found along the TV-Jeff corridor.(Figure 10: A 50 m thick cross-section along line 6266900 N showing the extent of stockwork sulfide mineralization intercepted by TV22-84 from 274-213 m, Au assay results from 2020-2021 drilling are shown. The sulfide mineralization intercepted by TV22-84 is a 50 m down-dip extension of the stockwork mineralization intercepted by TV20-40, TV21-54, and TV21-59.)(Figure 11: Representative mineralized intercepts from TV22-84 showing stockwork sulfide mineralization associated with hydrothermal silica and hosted by an altered dacite breccia. The sulfide intercepts in this drill hole confirm the presence of VMS sulfide mineralization similar to and 60 m down-dip from that intercepted by TV21-54.)

SOURCE: Eskay Mining Corp.

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