Eskay Mining: Encounters Massive Sulfide with Assays up to 5.5 gpt Au and 507 gpt Ag in First Drill Hole at the TV Target; Adds Second Drill

Highlights:

• Hole TV20-35 encountered volcanogenic massive sulphide mineralization grading 210.0 gpt Ag and 1.23 gpt Au (4.11 gpt Au eq) over 11.24 m beginning at a down hole depth of 193.94 m (Figure 1; Table below). Notable sub-intervals include 1.16 m grading 182.0 gpt Ag and 5.46 gpt Au (7.99 gpt Au eq) beginning at 195.78 m and 5.48 m grading 324.5 gpt Ag and 0.70 gpt Au (5.21 gpt Au eq) beginning at 199.70 m including 0.99 m grading 507.0 gpt Ag and 1.32 gpt Au (8.36 gpt Au eq) beginning at 201.20 m. (Au eq = Au + Ag/72). Bedding dips moderately eastward at TV and this hole drills westward at a near orthogonal direction to bedding. Therefore, true widths are believed to be close to drill widths in all reported intervals.
• Additional drill holes completed by Eskay Mining over the past few weeks have encountered further massive sulphide intercepts. Assays are awaited.
• Data from a recent Skytem electromagnetic survey conducted over the area, and overseen by Thomas Weis, geophysicist and director of Eskay Mining, suggest numerous near surface conductive targets are present within a two kilometer long N-S corridor centered on TV and the nearby Jeff target. A much more robust mineralizing system appears present in this area than previously perceived.
• Eskay Mining is highly encouraged by early indications from drilling that suggest the presence of a significant precious metal-bearing VMS system at TV and Jeff. A second drill has been mobilized to increase the planned 2020 drill program.
• Pathfinder elements including arsenic (163-3150 ppm), mercury (15-60 ppm), antimony (239-1115 ppm), thallium (10-144 ppm) and selenium (4-11 ppm) are all highly anomalous indicating this system is genetically similar to the Eskay Creek deposit approximately 13 km north of the TV target.
• This discovery confirms the presence of new Eskay Creek like massive sulphide deposits within the highly propsective Eskay graben, or geologic trough, that extends southward from the Eskay Creek deposit. Approximtely 85% of this belt occurs within Eskay Mining’s tenure.
• At the TV target, massive sulphide occurs associated with mudstone similar to that which hosts multiple mineralized horizons at Skeena Resources Eskay Creek project. At least two mineralized horizons have been identified at TV to date. Assays from the upper mineralized interval encountered in hole TV20-35 have not yet returned.
• No drilling has occurred in the vicinity of the TV and Jeff targets since the mid 1990’s, approximately 25 years. Early interpretations of mineralization discovered in this area were not well formulated and lacked a clear sense of appreciation for the VMS nature of the system. Eskay Mining’s team, led by Dr. John DeDecker and Dr. Thomas Monecke of the Colorado School of Mines, has extensive experience with VMS systems. Interpretations of data returning from recently completed drill holes and geophysics is providing critical insight into key vectors that are expected to help Eskay Mining hone in on higher grade mineralization within the system.

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