Eskay Announces Completion of 2017 SIB Property Drill Program and Preliminary Results and Interpretations

Toronto, Ontario (FSCwire) - Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) is pleased to announce the completion of a 9,336 m, 12 hole diamond drill program on its SIB property.  SSR Mining Inc. (formerly Silver Standard Resources Inc.) (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) has the option to earn a 51% undivided interest in the property by spending an aggregate of $11.7 million in exploration expenditures over three years with an option to earn a further 9% undivided interest by either delivering a preliminary economic assessment or completing an aggregate of 23,000 meters of diamond drilling (See April 26^th, 2017 news release).  The 2017 drill campaign was completed by SSR Mining to satisfy its commitment to spend $3.7 million over the first year of the option. The property under option to SSR Mining represents approximately 9% of the Company’s land package in the Golden Triangle in British Columbia.

The drill program was designed to test for precious metals enriched massive sulphide mineralization and prospective lithologies beneath the Coulter Creek Thrust Fault (CCTF), immediately south-southwest along strike from Barrick Gold Corp.’s (“Barrick”) past-producing Eskay Creek mine.  The CCTF is a north-south trending, east dipping structure that separates Eskay rhyolite and interbedded sedimentary rocks of the Salmon River Formation to the east, from Bowser Lake Group sedimentary rocks to the west (figs. 1-3).  Ten drill holes targeted CCTF footwall rocks, while two holes targeted a potential northern extension of known mineralization in the CCTF hanging wall (LULU Zone).  Holes testing the CCTF footwall were drilled on 100-250 m centers over a strike length of approximately 1 km on a north-south trend.  Hanging wall holes were drilled off a single pad approximately 150 m to the northeast of the LULU Zone.  Bore-Hole-Transient-Electro-Magnetic (BHTEM), IP, magnetic and optical televiewer surveys were performed upon the completion of drill holes.

All of the 2017 diamond drill holes targeting the CCTF footwall intersected Salmon River Formation stratigraphy that bears strong lithologic similarities to those found on the Eskay Creek mine property, down-section from Bowser Lake Group sedimentary rocks.  Chlorite-sericite alteration consistent with volcanogenic massive sulphide (VMS) footwall alteration was also present in every hole drilled, and local sulphide-bearing veining was intersected in a number of holes (see Table 1 for highlights of the drilling).  The assays to date, although low grade, do show mineralizing systems are present (see Table 2).  Once the remaining 50% of the assays are received and the geophysical data is analyzed, targeting for next year’s drill program will be completed. Final results are expected midway through the fourth quarter of 2017.  Preliminary BHTEM interpretation has outlined a number of weak off-hole conductors, all located to the west of the drill holes by 25-100 metres. These are likely hosted by prospective rhyolitic or basaltic rocks of the Salmon River Formation.  Details of each plate model are provided in Table 1, and the BHTEM anomalies are illustrated in Figure 4.

Table 1:  Drill Highlights and BHTEM Anomalies

The lithologic and stratigraphic data obtained during the 2017 drill program has greatly improved our understanding of the footwall geology of the CCTF, and has helped to better constrain both the surface location and sub-surface orientation of the fault.  Lithological associations in the footwall, most notably mafic pillows and interbedded spherulitic mudstone, overlying intensely silicified rhyolite, bear a strong resemblance to rocks which host the nearby Eskay Creek deposit.  These rock types are interpreted to extend well beyond the limits of the area tested in the 2017 program, and in particular to the south and west, and present promising and surprisingly shallow future exploration drill targets.

Table 2: 2017 SIB drilling program with preliminary assay results

Current work is focused on finalizing geological interpretations, integrating the geochemical and geophysical data with the geology, and incorporating structural information from the optical televiewer downhole survey with the other data.  The ultimate goal is to generate a 3D geological model of the drill area, and beyond, for continued targeting.  Geochemical samples have been submitted to ALS Canada Ltd. (Minerals) (“ALS”), which is independent from the Company, with sample preparation carried out at the ALS facility in Terrace, BC, and assays at the North Vancouver laboratory. Results for the remainder of the program are expected midway through the fourth quarter, 2017.

Charles J. Greig, P. Geo., a member of the Company’s Advisory Team, is a Qualified Person under the definition of National Instrument 43-101.  Mr. Greig has reviewed and approved the technical information in this press release.

For further information regarding the SIB property, see the Company’s Press Releases of October 17, 2016, August 8, 2016, May 9, 2016 and January 23, 2013.

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 in British Columbia in a highly prolific, poly metallic area known as the Eskay Rift Belt located in the “Golden Triangle”, 70km northwest of Stewart, BC.  The Company currently holds mineral tenures in this area comprised of 177 claims (130,000 acres).

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:

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: Overview map of 2017 drill program, showing geology and revised CCTF interpretation

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Figure 2: Vertical cross-section of holes EK17-150 and EK17-152, striking 117 degrees

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Figure 3: Vertical cross-section of holes EK17-151 and EK17-148, striking 117 degrees

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Figure 4: 3D perspective view of 2017 drillholes, showing CCTF and EM plate anomalies

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