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Eskay Mining Expands the TV-Jeff Precious Metal-Rich VMS System and Demonstrates Its Connectivity with the Eskay Creek System on the Western Limb of the Eskay Anticline

TORONTO, ON / ACCESSWIRE / December 15, 2022 / Eskay Mining Corp. ("Eskay" or the "Company") (TSX-V:ESK)(OTCQX:ESKYF)(Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce it has expanded the TV-Jeff precious metal-rich volcanogenic massive sulfide ("VMS") mineralized corridor with new discoveries north of the Jeff deposit and in proximity to the TV deposit. Recent data analysis also points to a link between the TV-Jeff system on the east side of the Eskay Anticline with the Eskay Creek-SIB-Lulu system on the west. Assays from the Scarlet Ridge, Scarlet Valley, Scarlet Knob and Tarn Lake are awaited from the laboratory.

Highlights:

  • The first assays to return from holes completed in areas in proximity to the TV deposit have yielded strong results including:
    • 3.36 gpt Au and 109.50 gpt Au (4.76 gpt Au eq) over 2.00m within 1.14 gpt Au and 30.58 gpt Ag (1.53 gpt Au eq) over 30.56m in hole TV22-97
    • 1.03 gpt Au and 173.12 gpt Ag (3.25 gpt Au eq) over 5.65m within 1.28 gpt Au and 87.92 gpt Ag (2.41 gpt Au eq) over 14.95m in hole TV22-109.
  • Wide-spaced drilling approximately 800m north of Jeff encountered a new zone of mineralization that yields high-grade Au-Ag results, some within longer intervals of lower grade mineralization. Results include:
    • 15.44 gpt Au and 28.20 gpt Ag (15.80 gpt Au eq) over 1.59m within 1.06 gpt Au and 2.24 gpt Ag (1.09 gpt Au eq) over 43.96m in hole J22-89
    • 8.50 gpt Au and 11.88 gpt Ag (8.65 gpt Au eq) over 1.75m in hole J22-97
    • 10.75 gpt Au and 31.00 gpt Ag (11.15 gpt Au eq) over 0.60m within 1.03 gpt Au and 6.20 gpt Ag (1.11 gpt Au eq) over 7.85m in hole J22-98.
  • VMS mineralization along the TV-Jeff corridor, hosted by Lower Hazleton Group volcanic rocks, is now confirmed over a strike length of 3.1 km.
  • Eskay's geologic team has recently gathered strong evidence pointing to a physical connection between the TV-Jeff VMS system on the east side of the Eskay Anticline with the Eskay Creek-SIB-Lulu system on the west thus opening up considerable opportunity for further exploration discoveries.

Summary of Exploration along the TV-Jeff VMS Corridor:

Eskay Mining's 2022 diamond drilling program predominantly focused on exploring new areas deemed favorable for discovering precious metal-rich VMS deposits across its Consolidated Eskay property. Widely spaced fences of drill holes, approximately 300m apart, tested a corridor of prospective ground extending 1.3 km north of the Jeff deposit, and multiple holes tested prospective areas in proximity to the TV deposit. In both areas, significant mineralization was encountered (significant mineralized drill intercepts as well as drill hole coordinate data are summarized in tables presented at the end of this new release).

The first assays from a series of drill holes completed in proximity to TV have yielded significant intercepts of Au-Ag mineralization including 3.36 gpt Au and 109.50 gpt Au (4.76 gpt Au eq) over 2.00m within 1.14 gpt Au and 30.58 gpt Ag (1.53 gpt Au eq) over 30.56m in hole TV22-97 and 1.03 gpt Au and 173.12 gpt Ag (3.25 gpt Au eq) over 5.65m within 1.28 gpt Au and 87.92 gpt Ag (2.41 gpt Au eq) over 14.95m in hole TV22-109 (Figure 1).

Hole TV22-97 intercepted stockwork sulfide mineralization 25 m north of hole TV21-54 drilled last year. Assays are still pending for additional drill holes that encountered sulfide-bearing stockwork in areas further north from TV22-97. Multiple holes, most awaiting assaying, encountered the Upper Massive Sulfide Zone discovered at TV in late 2021 in an area up to 100m north from the discovery hole, TV21-78, thus confirming that massive sulfides cap most of the 180 m strike length of the stockwork feeder at TV. TV22-109 is currently the only hole with complete assays from this zone (Figure 2).

In an area approximately 800m north of Jeff, three widely spaced drill holes encountered significant Au and Ag values including 15.44 gpt Au and 28.20 gpt Ag (15.80 gpt Au eq) over 1.59m within 1.06 gpt Au and 2.24 gpt Ag (1.09 gpt Au eq) over 43.96m in hole J22-89, 8.50 gpt Au and 11.88 gpt Ag (8.65 gpt Au eq) over 1.75m in hole J22-97 and 10.75 gpt Au and 31.00 gpt Ag (11.15 gpt Au eq) over 0.60m within 1.03 gpt Au and 6.20 gpt Ag (1.11 gpt Au eq) over 7.85m in hole J22-98 (Figure 3). Given the wide spaced nature of these drill holes, the Company sees significant potential to expand this new discovery along strike to the north, south and down dip.

Several drill holes located immediately adjacent to Jeff and up to approximately 600m north display intervals of appreciable base metal-rich VMS mineralization (Figures 4 and 5). Eskay geologists interpret this mineralization as a higher temperature part of overall VMS system based on the abundance of chalcopyrite and sphalerite (Figures 6 and 7). Results include 3.45% Zn, 0.25% Pb and 0.22% Cu over 2.20m in hole J22-112, 1.37% Cu over 4.16m in hole J22-118 and 2.43% Zn, 0.76% Pb and 0.34% Cu over 2.10m in hole J22-122. Such high base metal values are not common in the Eskay Creek district, and Eskay's geologic team is assessing the full significance of these results.

Connecting East and West Limbs of the Eskay Anticline:

Drilling, geological mapping, and soil sampling along the eastern limb of the Eskay anticline suggests that precious metal-rich VMS mineralization along the TV-Jeff corridor may extend further to the north towards the Betty Creek Formation (Lower Hazelton Group)-hosted Hexagon-Mercury thus forming a connection with the western limb which hosts the Eskay Creek, SIB and Lulu deposits (Figures 8-10). This concept is supported by a trend of historic anomalous Au-bearing rock chip samples coincident with a zone of conductivity seen in SkyTEM data that projects from Jeff North towards Hexagon-Mercury. Historic drilling at Hexagon-Mercury intercepted Betty Creek Formation (Lower Hazelton Group)-hosted sulfide mineralization with grades up to 8.08 g/t Au over 2 m in drill hole 03-127 (Heritage Explorations Limited, Eskay Project Assessment Report 2002-2003 Volumes 1-4). Upon reviewing numerous outcrops in this area in 2022, Eskay Mining's geologic team considers the ground between Jeff North and Hexagon-Mercury to be highly prospective for additional VMS mineralization and intends to conduct extensive field work in this under-explored area in 2023. In preparation, two helipads were constructed between Jeff North and Hexagon-Mercury during the latter part of the 2022 program to provide access to this rugged area.

In addition to the potential connection between the east and west limbs of the Eskay Anticline at Hexigon-Mercury, analyses from soil sampling in 2022 now defines strong Ag- and Au-in-soil anomalism connecting the eastern and western limbs at Excelsior (Figures 8 and 9). This geochemical anomalism was observed to be associated with Eskay Rhyolite breccia (Upper Hazelton Group) on the western limb of the Eskay Anticline making this occurrence similar to Lulu situated approximately 7 km further north (Figure 9). Eskay Mining's geologic team feel confident that Excelsior and underexplored ground to the north and west could prove to be yet another VMS discovery and intends to drill in this area in 2023.

"Our 2022 program has shown that TV and Jeff are components of a larger trend of VMS mineralization extending at least 3.5 km along strike along the eastern flank of the Eskay anticline." commented John DeDecker, VP of Exploration for Eskay Mining Corp. "VMS mineralization continues at least 1.3 km north of the Jeff deposit, some of which is polymetallic in character. Precious metal grades are strongly anomalous in three holes completed in an area approximately 800m north of Jeff representing discovery of a new precious metal-bearing VMS system called Jeff North which displays significant room to grow. Drilling at TV has expanded the zone of massive sulfide mineralization discovered in 2021 northwards by nearly 100 m. More assays from this exciting area have yet to return. With our "boots-on-the-ground" approach to exploration, we are now seeing a clear picture emerge where long trends of VMS mineralization along both the eastern and western limbs of the Eskay anticline are geologically connected to the world-class Eskay Creek Mine. We are eager to expand our exploration work into these new areas in 2023. In the meantime, we anxiously await assays from maiden drilling in the Scarlet Valley-Tarn Lake area where several new VMS occurrences were drill tested in 2022."

"Our 2022 Exploration Program advanced our goal of finding new VMS discoveries, commented Mac Balkam, CEO and director of Eskay Mining. "We firmly believe in the potential of the Consolidated Eskay project to deliver new discoveries similar to the high-grade Eskay Creek deposit. Beginning in 2020, we set about focusing on identifying new precious metal-rich VMS systems, a style of mineral deposit customarily found in district scale clusters. Our geologic team has advanced the goal by making several new discoveries along the TV-Jeff corridor on the eastern limb of the Eskay Anticline. But now, they see compelling evidence that TV-Jeff connects with SIB-Lulu located on the western limb of the anticline across a geologic bridge at Hexagon-Mercury. They also see exciting potential in other areas along the western limb of the Eskay Anticline such as at Excelsior, 7 km south of Lulu. In short, these advancements in the understanding of the project suggest our discoveries tie together all the way back to Skeena's 21 zone, part of the Eskay Creek deposit. We are very eager to see results come in from the Scarlet Ridge-Tarn Lake area to see if we have made more discoveries there. We clearly already see a lot of new VMS targets in need of follow up work in 2023."

2022 Exploration Program

The fundamental goal of the 2022 exploration program was to identify new precious metal-rich VMS deposits across the Consolidated Eskay project through early-stage work such as mapping and geochemical sampling, and more advanced work including systematic widely spaced drilling. Much of the focus was on defining the extent of VMS systems along the eastern and western limbs of the Eskay anticline. During the 2022 exploration season, Eskay Mining successfully completed 29,500m of diamond drilling along the TV-Jeff corridor and along the Scarlet Ridge-Tarn Lake trend.

Drill results discussed in this news release come from holes drilled along the TV-Jeff corridor, especially north of the Jeff deposit. Significant assays from the forty-two drill holes that are part of this release are tabulated in the three tables below at the bottom of this release. Holes with no significant results are not listed in these tables.

Considerable analytical data is expected back over the next few months. This includes assays from drill holes at Scarlet Ridge, Scarlet Valley and Tarn Lake as well as analyses from substantial numbers of soil, surface rock chip, and infill BLEG samples. These will be presented to the market as they become available.

Au eq and Ag eq Calculations and True Width:

Note on use of Au eq (Au eq=Au+Ag/78) and Ag eq (Ag eq=Au*78+Ag): Mineralization at the TV and Jeff deposits displays similar characteristics and mineralogy to the Eskay Creek deposit and therefore for Au eq, and Au:Ag, a ratio of 78:1 is used and Au eq and Ag eq values are deemed to be reasonable based on assumed gold recovery (84.2%) and silver recovery (87.3%) as reported in the Eskay Creek Project NI 43-101 Technical Report and Prefeasibility Study, British Columbia, Canada, Effective Date: 22 July, 2021, Prepared for: Skeena Resources Ltd., Prepared by: Absence Engineering Canada Inc.

True widths of reported intercepts are not fully understood at this time but given the moderately dipping tabular nature of these deposits and the steep angle of drilling, Eskay geologists estimate true widths represent approximately 70-90% of the reported drill intercept lengths.

QA/QC, Methodology Statement:

Halved HQ drill core samples are submitted to ALS Geochemistry in Terrace, British Columbia for preparation and analysis. ALS is accredited to the ISO/IEC 17025 standard for gold assays. All analytical methods include quality control standards inserted at set frequencies. The entire sample interval is crushed and homogenized, 250 g of the homogenized sample is pulped. All samples were analyzed for gold, silver, mercury, and a suite of 48 major and trace elements. Analysis for gold is by fire assay fusion followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) on 30 g of pulp. Analysis for silver is by fire assay and gravimetric analysis on 30 g of pulp. Mercury is analyzed using the trace Hg Inductively Coupled Plasma Mass Spectroscopy (ICP-MS) method. All other major and trace elements are analyzed by four-acid digestion followed by ICP-MS.

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.

For further information, please contact:

Mac Balkam T: 416 907 4020
President & Chief Executive Officer E: Mac@eskaymining.com

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.

Table of Significant Au and Ag Results from Holes Drilled in Areas South of the TV Deposit

Hole

From (m)

To (m)

Length (m)

Au (gpt)

Ag (gpt)

Au eq (gpt)

Ag eq (gpt)

TV22-88

133.30

135.00

1.70

2.07

2.07

2.10

163.53

TV22-97

95.44

126.00

30.56

1.14

30.58

1.53

119.50

including

114.00

116.00

2.00

3.36

109.50

4.76

371.58

TV22-99

88.72

103.34

14.62

0.95

16.70

1.16

90.80

TV22-109

50.05

65.00

14.95

1.28

87.92

2.41

187.76

including

57.58

63.23

5.65

1.03

173.12

3.25

253.46

Au eq and Ag eq values have all been adjusted to the silver-to-gold ratio of 78:1 for this news release.

Table Summarizing Significant Au and Ag Results from Holes Drilled in Areas North of the Jeff Deposit

Hole

From (m)

To (m)

Length (m)

Au (gpt)

Ag (gpt)

Au eq (gpt)

Ag eq (gpt)

J22-89

227.04

271.00

43.96

1.06

2.24

1.09

84.92

including

227.04

228.63

1.59

15.44

28.20

15.80

1232.52

J22-94

118.20

122.00

3.80

1.09

4.58

1.15

89.60

including

121.00

122.00

1.00

3.32

10.00

3.45

268.96

J22-97

24.00

25.75

1.75

8.50

11.88

8.65

674.88

250.00

254.10

4.10

0.78

2.09

0.81

62.93

J22-98

35.65

43.50

7.85

1.03

6.20

1.11

86.54

including

35.65

36.25

0.60

10.75

31.00

11.15

869.50

J22-112

42.31

44.31

2.00

0.91

14.00

1.08

84.59

J22-113

42.00

43.80

1.80

1.93

34.78

2.38

185.32

J22-115

105.92

112.25

6.33

0.71

3.86

0.76

59.24

J22-117

311.80

313.50

1.70

1.64

10.15

1.77

138.07

329.40

334.25

4.85

0.41

42.23

0.95

74.21

J22-118

228.30

232.46

4.16

0.16

49.43

0.79

61.91

J22-122

132.15

133.40

1.25

0.71

59.00

1.47

114.38

Au eq and Ag eq values have all been adjusted to the silver-to-gold ratio of 78:1 for this news release.

Table Summarizing Significant Base Metal Results from Holes Drilled in Areas North of the Jeff Deposit

Hole

From (m)

To (m)

Length (m)

Zn (%)

Pb (%)

Cu (%)

J22-104

161.00

185.30

24.30

0.77

-

-

including

171.57

182.76

11.19

1.06

-

-

J22-109

118.50

132.95

14.45

0.61

-

-

J22-112

132.80

135.00

2.20

3.45

0.25

0.22

J22-117

149.98

153.00

3.02

0.85

0.71

0.30

329.40

330.80

1.40

1.52

1.32

-

J22-118

164.80

165.80

1.00

2.07

3.37

-

228.30

232.46

4.16

-

-

1.37

234.50

238.40

3.90

0.73

-

-

J22-120

149.15

155.00

5.85

0.65

-

-

J22-122

117.68

135.50

17.82

0.77

-

-

132.15

133.40

1.25

-

-

1.08

172.00

174.10

2.10

2.43

0.76

0.34

Table of Drill Hole Locations and Orientations

Hole_ID

Easting (m)

Northing (m)

Elevation (m)

Azimuth

Dip

Total Depth (m)

J22-89

410021

6268908

428

270

60

601

J22-90

410131

6268693

484

270

45

691

J22-91

410021

6268908

428

-

90

382

J22-92

410131

6268693

484

-

90

359

J22-93

410051

6269137

415

270

45

345

J22-94

409816

6268745

416

270

45

294

J22-97

409799

6268911

357

270

45

298

J22-98

409799

6268911

357

-

90

385

J22-100

409799

6268911

357

315

50

333

J22-101

410344

6269179

356

-

90

535

J22-102

409990

6269350

360

-

90

355

J22-104

409748

6268460

426

-

90

359

J22-105

410051

6269137

415

245

60

395

J22-106

409748

6268460

426

270

60

294

J22-107

409720

6267660

436

270

45

313

J22-108

409546

6269071

280

270

45

302

J22-109

409748

6268460

426

235

60

296

J22-110

409720

6267660

436

-

90

301

J22-111

409546

6269071

280

-

90

281

J22-112

409748

6268460

426

315

60

301

J22-113

409664

6269185

286

270

45

304

J22-114

409706

6267497

432

270

45

681

J22-115

409816

6268745

416

-

90

343

J22-116

409791

6269349

492

270

45

369

J22-117

409816

6268745

416

315

70

379

J22-118

409816

6268745

416

225

50

344

J22-119

409687

6267238

423

270

45

377

J22-120

409719

6268139

414

270

45

382

J22-121

409668

6267086

444

270

45

369

J22-122

409719

6268139

414

-

90

279

J22-123

410077

6267479

530

270

52

485

TV22-84

409724

6265908

813

270

60

276

TV22-85

409724

6265908

813

260

80

312

TV22-86

409724

6265908

813

245

60

330

TV22-87

409431

6265580

860

282

45

258

TV22-88

409501

6266788

439

282

45

384

TV22-89

409431

6265580

860

-

90

213

TV22-90

409554

6266116

670

282

45

454

TV22-97

409590

6265980

727

217

45

234

TV22-99

409590

6265980

727

190

45

186

TV22-104

409590

6265929

750

-

90

160

TV22-109

409590

6265851

792

240

55

189

space

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 1: Leapfrog viewer image looking down on TV and showing intercepts form the Stockwork and Upper Massive Sulfide Zone at TV. Drill traces of additional as of yet un-assayed 2022 drill holes are shown in black.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 2: Massive sulfide mineralization intercepted by TV22-109. This is one of several intercepts of the Upper Massive Sulfide Zone at TV that extends this zone nearly 100 m North of where massive sulfide was discovered in 2021. Assays for additional intercepts of this zone are pending.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 3: Leapfrog Viewer image looking eastward at -30 degrees. The Upper and Lower Jeff deposits are located in the areas of high-density drilling on the right. Fences of widely spaced drill holes completed in 2022 are scattered over a distance of 1.3 km to the left. Trends of anomalous Au mineralization are displayed by the colored assay flags and highlighted by white lines. The best Au (and Ag) intercepts occur in three holes labeled in white.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 4: Leapfrog Viewer image looking eastward at -30 degrees. The Upper and Lower Jeff deposits are located in the areas of high-density drilling on the right. Fences of widely spaced drill holes completed in 2022 are scattered over a distance of 1.3 km to the left. Trends of anomalous Cu mineralization are displayed by the colored assay flags and highlighted by white lines. The best Cu intercepts occur in two holes labeled in white.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 5: Leapfrog Viewer image looking eastward at -30 degrees. The Upper and Lower Jeff deposits are located in the areas of high-density drilling on the right. Fences of widely spaced drill holes completed in 2022 are scattered over a distance of 1.3 km to the left. Trends of anomalous Zn mineralization are displayed by the colored assay flags and highlighted by white lines. The best Zn intercepts occur in two holes labeled in white.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 6: Representative Zn and Cu VMS mineralization intercepted J22-118 showing chalcopyrite and sphalerite associated with intense silicification of the host mudstone. The presence of these minerals indicates higher temperature mineralization than that found at Jeff and TV.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 7: Representative Cu VMS mineralization intercepted by J22-122 showing chalcopyrite associated with intense silicification of the host mudstone.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 8: Geologic map showing a new interpretation for the distribution of mineralized stratigraphy of the Eskay Creek area with gold in surface samples. Map displays extensions of the Eskay Anticline to the south at SIB-Lulu, Hexagon-Mercury to TV-Jeff and Excelsior. Also labeled are correlative domains where upper Hazelton rhyolite is host to VMS mineralization along the Scarlet-Tarn trend.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 9. SkyTEM conductivity map of the central and southern Eskay anticline showing legacy rock chip Au concentrations (squares), and 2021-2022 soil sample Ag concentrations (circles). These data in combination with drilling along the TV-Jeff and the Eskay Creek-Sib-Hexagon-Mercury trends suggest that VMS systems occur within the Lower Hazelton Group along the length of the Eskay anticline. Soil sampling and prospecting at Excelsior in 2021-2022 show that Ag anomalism in soils and a Au BLEG anomaly is associated with Eskay rhyolite, suggesting VMS mineralization within the Upper Hazelton Group also extends well south of the Eskay Creek mine.)

Eskay Mining Corp., Thursday, December 15, 2022, Press release picture

(Figure 10: SkyTEM conductivity maps focusing on the underexplored area between Jeff North and Hexagon-Mercury. Results from soil sampling in 2021 and 2022 show Ag, Zn, and Hg anomalies extending northwards along the east limb of the Eskay anticline. SkyTEM data shows stratiform conductors extending from Jeff North towards Hexagon-Mercury. Historic rock chip samples indicate the presence of Au along these conductors. Historic drill holes at Hexagon-Mercury are noted, and intercepted Au and Ag mineralization, as well as Hg values up to 100 ppm.)

SOURCE: Eskay Mining Corp.



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