THH – Eskay Mining (ESK.V): “I Have no Rivals”

To say that I am impressed by Eskay Mining on the back of the recent news release would be an understatement…

Lets begin with the drilling highlights from the early stage, “semi-blind” exploration drilling so far at the stacked “TV” and “Jeff” VMS systems:

(Note that I have focused on the bulk intercepts since these are shallow hits)

“TV” target: 

• 4.01 gpt Au eq over 117.32m
  • within 2.35 gpt Au eq over 238.87m
• 5.2 gpt Au eq over 47.77 m
  • within 140.28m grading 2.6 gpt Au eq
• 4.7 gpt Au eq over 44.41 m
  • within 92.3m grading 2.7 gpt Au eq
• 10.62 gpt Au eq over 14.58m
  • within 2.96 gpt Au eq over 81.60m
• 4.7 gpt Au eq over 30.41m 
• 3.4 gpt Au eq over 40.07m
• 2.5 gpt Au eq over 53.86m
• 3.5 gpt Au eq over 29.92 m 
• 7.0 gpt Au eq over 12.09m
• 3.67 gpt Au eq over 27.49m
• 4.76 gpt Au eq  over 15.60m
• 2.8 gpt Au eq over 34.03m
• 2.5 gpt Au eq over 35.50m
• 2.2 gpt Au eq  over 40.80m
• 1.8 gpt Au eq over 40.74 m
• 2.5 gpt Au eq over 20.53 m
• 3.3 gpt Au eq over 17.46 m

“Jeff” target:

• 10.6 gpt Au eq over 35.5 m
• 33.4 gpt Au eq over 5.08 m
• 1.8 gpt Au eq over 50.36 m 
• 61.3 gpt Au eq over 1.00m
  • within 8.1 gpt Au eq over 8.53m
• 18.3 gpt Au eq over 1.08m
  • within 7.1 gpt Au eq  over 3.67m 
• 5.08 m grading 33.4 gpt Au eq
  • including 1.59 meters grading 83.8 gpt Au eq
• 4.9 gpt Au eq over 7.66 m 
• 2.3 gpt Au eq over 32.83 m

I think 42 holes are still outstanding from TV, Jeff, C10 and Vermillion. Some will hit. Some will miss.

(Note: Double check the results yourself and do your own due diligence)

The “TV” and “Jeff” targets are stacked VMS systems with multiple Feeder Zones and expected VMS mounds. TV is open up and down strata, Jeff is at least open up strata. Both systems are wide open along strike and might even connect:

Total strike potential “just” between “TV” and “Jeff” is 1.6 km and again Jeff is open up strata and TV is open both up and down strata still:

“TV” and “Jeff” are two VMS targets along a much longer “string of pearls” in terms of geophysical anomalies that stretches some ~6 km along the eastern flank of the central (aka “Eskay”) Anticline:

… As you can see in the slide above there are numerous such anomalies on the western flank as well. And that slide just covers the central portion of the central Anticline (one out of three anticlines)…

Approximate area of the previous geophysics slide that focuses on the immediate ground around “TV” and “Jeff”:

… Additional known target areas are numbered and some specific targets are labeled like “Spearhead”. And again, “TV” and “Jeff” is just two VMS systems on the right flank, of the central part of the central Anticline (one out of three):

Total blue sky potential in the entire 56,000 Ha land package is abnormally large as evidenced by the gold BLEG sample (right picture) results which highlights multi-kilometer trends that align well with the geophysics (Highlighting prospective rock packages and potential sulfide bodies seen in left picture):

To put things into perspective I will finish with this next slide that shows areas with anomalous gold BLEG results on top of the geophysics. You can also see the footprint of the legendary “Eskay Creek” mine + the “remnant deposit”  now being developed by Skeena (NPV of C$1.4 B using a gold price of $1,550/oz) in the top left corner:

… Note that that little “speck” which was worth multiple billions of dollars contained around 9 Moz AuEQ.

To sum up:

• “TV” and “Jeff” are still open vertically
• TV and Jeff are wide open laterally
• The mineralization seen at TV and Jeff is not present in the same age of rocks as original Eskay Creek
  • Opens up the potential to find Eskay Creek aged rocks and mineralization at both
  • Ups the total potential in the district enormously given that there has been confirmation of SIX different units hosting VMS mineralization
  • … Original Eskay Creek mine was hosted by just one out of these SIX
• Distance between TV and Jeff is 1.6 km and may connect
• TV and Jeff makes up two targets along a ~6 km string of pearls which makes up a small part of one side of one out of three anticlines
• Eskay has more additional VMS targets than I can count
• Eskay has some 48 holes left to report from TV, Jeff, C10 and Vermillion
• Scarlet Ridge is a new target that might be hosted in the original Eskay Creek package of rocks

… Almost nobody can possibly grasp the total blue sky potential since it is so abnormally large and there are few if any juniors to compare it with.

Must listen interview with Quinton Hennigh where he discusses the latest news release

Note: This is not investing advice and I am not a financial advisor. I own a lot of shares of Eskay Mining and the company is a banner sponsor. Thus consider me biased and do your own due diligence.

Best regards,

The Hedgeless Horseman