Corporate Presentation August 2013

FOCUSING
THE
SEARCH
August 2013
Legal Statement
The data contained herein is provided for information purposes only. Certain information has been compiled from sources believed to be
reliable. No information in this presentation is to be construed as an offer to buy or sell securities.
Some statements contained in this presentation are forward-looking and, therefore, involve uncertainties or risks that could cause actual results
to differ materially. Such forward-looking statements include among other things, comments regarding mining and milling operations, mineral
resource statements and exploration program performance. They may also include statements with respect to Eskay Mining's mineral
discoveries, plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend",
"estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.
Factors that could cause actual results to differ materially include, but are not limited to, metal price volatility, economic and political events
affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration
programs and future results of exploration programs, future profitability and production, the ability to raise sufficient capital to fund exploration,
litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational
difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully
and readers should not place undue reliance on such forward-looking information. The Company disclaims any intention or obligation to update
or revise forward-looking information, whether as a result of new information, future events or otherwise. The reader agrees to hold the
Company and its subsidiaries, and their respective officers, employees and agents harmless against any claims for damages or cost or any
loss of any kind arising out of the access to or use of this presentation or any information contained in or obtained through this presentation.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: These tables use
the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and
required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral
Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that
all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or
any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also
cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
James Rogers, P.Geo. is a qualified person as defined by NI43-101 and has reviewed the contents of this presentation.
People: Directors and Officers
Hugh M. (Mac) Balkam, President/CEO, Director - Mr. Balkam served 13 years with the RCMP, many of those involved
in the investigation of stock market related fraud. In 1981, he become a financial consultant with a major brokerage firm, where he
managed investments for retail clients. Since 2004, Mr. Balkam has been involved in raising venture capital and consulting for junior
mining companies. In that capacity, he served as a consultant for the Company, assisting in it's past capital raising and market
awareness programs. Mr. Balkam holds a BA from the University of Toronto.
Carmelo Marrelli, Chief Financial Officer - Mr. Marrelli serves as the Corporation’s Chief Financial Officer. Mr. Marrelli
holds a Bachelor of Commerce degree from the University of Toronto and is qualified as a Chartered Accountant and as a Certified
General Accountant in Canada. In addition to acting as the Corporation’s Chief Financial Officer, Mr. Marrelli has been a principal of
Marrelli Support Services Inc., a firm providing administration services to Canadian public companies, since February, 2009 and, prior
to February, 2009, a partner with Marrelli & Drake Corporate Services (formerly Duguay & Ringler Corporate Services) (a firm providing
administration services to Canadian public companies). Mr. Marrelli also serves as the Chief Financial Officer of several publicly-listed
junior mining companies and as a director of Odyssey Resources Limited (TSX-V: ODX).
Robert Myhill, Director, Audit Committee Head & Compensation Committee - Mr. Myhill is the Chief
Executive Officer and Chairman of ThinDesk Inc., an IT Managed Services company. He is a director of six privately held companies
operating in transportation and venture capital in B.C., Alberta and Ontario. From 1991 until 2006, Mr. Myhill was the President of
Canadian Investors Corporation, an investment company focused on financing corporate re-organizations. Mr. Myhill actively
participated in directorship and management of the investee companies. From 1985 to 1991, he invested in and raised capital for small
companies in Ontario. From 1976 to 1984, Mr. Myhill was President of national companies within Southam Inc. Group and Jim Pattison
Industries. He earned an HBA and MBA from the Ivey School of Business Administration at the University of Western Ontario and
qualified as a Chartered Accountant with Price Waterhouse.
J. Gordon McMehen, Director, Compensation Committee Head & Audit Committee - In 2000, Mr.
McMehen co-founded Conundrum Capital Corporation, a private equity real estate fund management firm which today has several
sectoral real estate funds under its administration. Mr. McMehen now serves as Chairman of Conundrum Capital Corporation. From
1998 to 2000, Mr. McMehen served as Executive Vice-President, Chief Operating Officer and director of Central Park Lodges Ltd.,
helping to manage one of North America’s pre-eminent providers of seniors housing, long-term care and ancillary health care services.
At the law firm of Gardiner Roberts, Mr. McMehen practiced corporate and commercial law from 1978 to 1998, specializing in mergers
and acquisitions, corporate structure and finance. He acted as Managing Partner of the firm from 1994 to 1998. Mr. McMehen
completed his undergraduate studies at the University of Toronto in 1972 and obtained an LL.B from the University of Ottawa in 1976.
He was called to the Ontario Bar in 1978, and is a member of the Law Society of Upper Canada.
People: Technical Advisory Team
P&E Mining Consultants Inc. is an established geological and mine engineering consulting firm specializing in the
areas of NI 43-101 geological reports, resource estimate technical reports, preliminary economic analysis and pre-feasibility
studies. In addition, the are affiliated with major Toronto based consulting firms for the purposes of joint-venturing with them in
completion of definitive feasibility studies. Their experience covers diamonds, GMS and iron for both open pit and underground
deposits. Software packages utilized include Gemcom, Surpac, MineSight, Whittle, AutoCad, Photoshop, Corel Draw,
Illustrator, Excel and Word.
P&E Mining Consultants’ staff and associates have experience in geological interpretation, 3D geologic modeling, technical
report writing, resource and reserve estimates, property evaluations, mine design, production scheduling, operating and capital
cost estimates and metallurgical engineering.
P&E Mining consultants inc. operates under certificates of Authorization:
•Association of Professional Geoscientists Ontario
•Professional Engineers Ontario
•Association of Professional Engineers and Geoscientists Saskatchewan
•Professional Engineers and Geoscientists Newfoundland and Labrador
James A. Rogers, P. Geo - Mr. Rogers is a registered Professional Geoscientist (Ontario & BC) with over 30 years of
experience in the Canadian mining industry. Until recently, Mr. Rogers was a Director, President and CEO of Mega Precious
Metals Inc. and prior to that, he was the Regional Exploration Manager for Goldcorp Inc. located in Ontario's Red Lake Gold
Camp. Mr. Rogers was awarded the CIM Professional Proficiency medal in 1988 when he was Chief Mine Geologist at
Dickenson Mine, predecessor to the current Red Lake Gold Mines. The first exploration drill holes into what ultimately became
Goldcorp's High Grade Gold Zone were drilled on Mr. Rogers' watch. From 1994 to 2003, Jim was Chief Geologist at the
Eskay Creek Mine where he was part of the team that received the E.A. Schultz Award for Mine Development.
Mr. David Mallo, B.SC, P. Geo - Mr. Mallo holds a Bachelor of Science (Specialist) degree from Brandon University
and has worked as a Geologist and Exploration Manager with numerous international exploration/mining companies since
1981. He is Vice-President of Exploration (Minerals) with Oromin Explorations Ltd., and has played an integral part in the
initiation, discovery, exploration and current full feasibility stage of development at the Sabodala Gold Project in Senegal, West
Africa. David was the Manager-Advanced Projects with Prime Explorations Ltd., the organization that was involved in the
discovery, exploration and development of the original Eskay Creek deposits. He subsequently served as Executive VicePresident of Exploration for Adrian Resources Ltd., and was involved with various mineral deposit discoveries, exploration and
development of the Petaquilla copper-gold and Molejon gold deposits in Panama. Mr. Mallo is a member of the Prospectors
and Developers Association of Canada. "
Share Information
Symbol: ESK - TSX Venture Exchange
Share Holders, %
Recent Price:
52 Week High:
52 Week Low:
Shares outstanding:
*Options Outstanding
Shares Fully Diluted:
*at exercise prices from $0.15 to $0.30 per share
$0.055
$0.105
$0.035
95,423,555
5,900,000
101,323,555
5 3.5 8
Institutional
Dir. & Officers
Public
74
SAS
Why Eskay? Investment Opportunity
•Large prospective property (130,000 acres)
•Multiple gold and silver showings (+Cu, Pb, Zn)
•Located in the Heart of British Columbia's Golden Triangle
•Politically stable Canada,
•New infrastructure and mines being developed
•*“One of the richest mineral belts in the world”
•Surrounds the world-class, very high grade Eskay
Creek gold-silver VMS Mine deposit
•Produced >3m ounces of gold (48.4g/t) and >160m ounces of silver (2221g/t)
•Value at today’s prices of > $7 billion
•Beside Seabridge’s (SEA-TSX) KSM gold-copper and
Pretium’s (PVG-TSX) Brucejack and Snowfield gold
Projects
•Combined contained metal >90 million ounces of gold, > 430 million ounces
of silver and 20 billion pounds of copper (+Molly)
•Value at today’s prices of > $200 billion (and growing!)
•News Release July 23/13: “Pretium drills 5.8 m of 2,567 g/t Au at Cleopatra”
*Lawrence Roulston, Resource Opportunities, Volume 15, #10 August 2012-1,
Property: 130,000 acres
Eskay Creek
Road
Eskay Creek Mine
Ironcap
Mitchell
100%
Snowfields
Red Lightning Sulphurets
- GFJ
Kerr
C-10
Brucejack
Valley of the Kings
Big Red
Pretium
Road
Property: Neighboring Giant Ore Deposits
995 g/t Au, 167 g/t Ag
995 g/t Au
Eskay Creek Mine
Pretium Resources Inc
Total Proven and Probable Reserves of 7.3 million ounces of gold @ 12.0 g/t Au
and 35.3 million ounces of silver @ 58.0 g/t Ag contained in 19.0 million
tonnes.
Total Measured and Indicated Resources of 9.5 million ounces of gold @ 13.9
g/t Au and 49.2 million ounces of silver @ 139.3 g/t Ag contained in 21.0
million tonnes.
Total Inferred Resources of 3.7 million ounces of gold @ 12.5 g/t Au and 13.3
million ounces of silver @ 43.9 g/t Ag contained in 9.4 million tonnes.
Seabridge Gold
Total Proven and Probable Reserves of 38.2 million ounces of gold @ 0.55 g/t
Au and 191.0 million ounces of silver @ 2.74 g/t Ag (+Copper & Molly)
contained in 2.164 billion tonnes.
Total Measured and Indicated Resources of 49.0 million ounces of gold @ 0.55
g/t Au and 261.3 million ounces of silver @ 2.9 g/t Ag (+Copper & Molly)
contained in 2.779 billion tonnes.
Total Inferred Resources of 14.98 million ounces of gold @ 0.41 g/t Au and
108.6 million ounces of silver @ 3.0 g/t Ag (+Copper & Molly) contained in
1.13 billion tonnes.
Big
Red
The Evolution of Ideas and Discovery
•Exploration to date on the Eskay Mining ground has been mainly focused on
finding another Eskay style VMS deposit
•Eskay Mining is taking a systems approach to exploration, focusing on 4
key points that incorporate all deposit types and is a simple way to look at
exploration, the key points are:
•Source of Metals, Extended period of hydrothermal metal leaching and deposition
•Transport, Deep seated structures that tap the metal source (steeply dipping rift faulting)
•Physical Trap(s), Physical porosity, permeability, stratigraphy and faults etc…(Present)
•Chemical Trap(s), Chemical precipitation of metal, sulphur, ph, etc… (Present)
•Recent discoveries by Seabridge and Pretium have demonstrated that the
early Jurassic rocks are very prospective for porphyry and high grade vein
style gold-silver and copper-gold deposits
•The size and value of these adjacent discoveries continues to grow
•The role of stratigraphy and structure is beginning to be understood
•Litho-structural patterns suggest steep faults controlling rifting resulting in up /down
displacements and the potential for stratigraphic repetition: ie.... Big Red seems to line up
with the KSM and Ironcap almost like footsteps in a NE trend.
•Favorable stratigraphy, structures and metal leakage all suggest the potential to form:
More Kerr and Jack style (Valley of the Kings) deposits on ESKAY MINING’s Ground
Property: Neighboring Giant Ore Deposits
Eskay Creek Mine
Eskay Creek Mine
Eskay
Mining
ESK
Seabridge
Ironcap
Mitchell
ESK
Snowfields
Sulphurets
Pretium
Red Lightning - GFJ
Brucejack
Kerr
C-10
Valley of the Kings
Big Red
Pretium Road
Eskay Mining – The Right Rocks in the Right Place!
“Most metal deposits are derived from hydrothermal systems. That is, superheated water,
circulating kilometers deep in the crust, gathers metal atoms and then deposits them in
particular zones, creating concentrations of metals. Typically, such a system would remain
active for hundreds of thousands of years to as much as perhaps a couple of million years. For
reasons not yet well understood, the hydrothermal processes in the Golden Triangle were active
for much longer, in some areas for perhaps 10 million years. Few areas on the planet have seen
such long-lived geological conditions.” *Lawrence Roulston, Resource Opportunities, Volume 15, #10 August 2012-1
Age
(Ma)
170
180
Eskay Mining – Comparative Geochronology
Jurassic
Eskay Creek
Anyox
Historical
Exploration
Focus
Mt. Milligan
190
Katie
Kerr, Sulphurets, Mitchell
Premier-Silbak, Snip
Exploration
Opportunity
200
210
220
Red Mountain
Mt. Polley, Copper Mtn., Iron Mask
Red Chris, Afton/Ajax
Triassic
Granduc
Legend
VMS Deposit
Alkaline Cu-Au
Porphyry
Transitional Alkaline
Porphyry-related
Eskay Mining
Volcano-sedimentary
sequence
Pretium / Brucejack
Valley of the Kings
mineralization
VISION – Using What We Have Learned
•The numerous showings confirmed by reconnaissance sampling
(slide 15) (& 21-22 in Appendix) directly to the west of the SEA and PVG deposits
clearly demonstrate the potential for, and in some cases may be the
top of, or leakage from undiscovered deposits on ESK ground
•Based on SEA and PVG website information and map interpretation,
it seems that multiple deep seated NNW to NNE (structures & faults)
are feeder structures
• Observations from the multiple showings on the Eskay ground
describe steeply dipping high grade veins potentially feeding
porphyry and other bulk mineable structures
•Understanding the stratigraphic sequences and the fault structures is
key to understanding and targeting this potential
•.
•The Jack formation that hosts the Pretium Valley of the Kings deposit is prevalent and has never
been tested on the Eskay ground
•The 2011 deep geophysical survey outlines numerous untested anomalies that fit with the belief
that there will be future discoveries on the Eskay ground.
Focusing the Search for Gold & Silver Deposits
Below New and Historical Showings
Spearhead
(behind ridge)
HSOV
Red Lightning
Seabridge and
Pretium directly to
Big
east
Mt. Madge
Red
C10
South Unuk area
Big Red
New Discovery
Corey Property Focus
High Grade Vein and Porphyry Targets
•TM Showing
•GFJ Area
•C-10 Area
•HSOV Showing
•Spearhead Showing
•Red Lightning Showing
•Big Red
-High grade Au / Ag / Cu
-High grade Au / Ag
- Au / Ag / Cu
-Au / Ag / Cu
/ Cu
HSOV
Showing
Tet
Showing
C-10
Area
Red Lightning
Showing
GFJ
Area
-Au
-Au / Ag / Cu
TM
Showing
-Au / Ag / Cu
•The TM showing is the eastern-most part of the
GFJ zone, north of Big Red. It is essentially the
same mineralization as GFJ, but in a vertical
vein exposed in a cliff face, rather than the usual
flat-lying veins of the GFJ proper area. It also
contains proper arsenopyrite with tetrahedrite
(and significant gold), as opposed to silver-rich
tenantite that is common in the GFJ veins.
•Horizontal veins seemed to come out of the TM
vein, or were cut by it. It seems that the TM
showing is the "mother" vein of the GFJ zone
veins. Big Red is a new and untested target that
consists of 100’s of Quartz/pyrite/Cpy/Au
stockwork veins
Spearhead
Showing
Big Red
Big Red
The Top of something BIG?
Historical Assay Highlights
Assay highlights for Prospecting samples taken on ESK ground to
the west of SEA and PVG during the 2004 through 2006 Programs
Area
Cu%
Pb%
Zn%
Ag g/t
Au g/t
TM
0.20
0.48
0.05
204.0
173.60
TM
1.95
0.01
0.02
143.0
39.65
GFJ
1.14
0.02
0.10
22.7
112.00
GFJ
2.48
0.07
0.04
175.0
94.50
*Red Lightning
0.50
0.02
0.17
3.2
6.90
Spearhead
0.01
0.02
0.06
0.0
4.10
Big Red
0.05
0.01
0.09
0.0
3.20
Big Red
0.02
0.01
0.07
0.1
2.30
C10
0.16
0.01
0.13
3.8
20.30
Tet Showing
6.30
-
0.37
37,366
1.02
Smitty
0.905
-
8.01
271.0
-
*Minimal shallow drilling done previously
Drill Ready Geophysical Targets (Corey)
As an example, the figure below shows a plan view of the
Interpreted Chargeability (ms) over the C-10, GFJ and Red
Lightning Grid:
Eskay Mining Interpreted Chargeability (ms)
Plan View
Eskay Mining Interpreted 3D Inversion
Model (C-10 and GFJ) (Corey)
Resistivity (ms)
Section View
Chargeability (ms)
Section View
Summary and Conclusions
•Large prospective property (130,000 acres)
•Located in Politically stable Canada, the Heart of British Columbia's
Golden Triangle
•Multiple gold and silver showings (+Cu, Pb, Zn)
•Surrounds the world-class Eskay Creek gold-silver VMS Mine deposit
and is beside Seabridge’s (SEA-TSX) KSM gold-copper and Pretium’s
(PVG-TSX) Brucejack and Snowfield gold Projects
•Adjacent to new infrastructure and mines being developed
•The Jack formation that hosts the Pretium (Valley of the Kings)
deposit is prevalent and has never been tested on the Eskay ground
•The 2011 deep geophysical survey outlines numerous untested
anomalies that fit with the belief that there will be future discoveries on
the Eskay ground.
•Litho-structural patterns, stratigraphic repetition, steep rift related
metal tapping structures and metal leakage all suggest the potential
for more Kerr and Jack style deposits on ESKAY MINING’s Ground
Eskay Mining - On the Edge of Discovery
INVESTMENT OPPORTUNITY
1. “Elephant Deposit Potential”, Not just an Area Play
•
•
Eskay Mining believes that the numerous showings, geological and
geophysical drill targets represent a compelling opportunity for focused
exploration to duplicate the results of Seabridge and Pretium Valley of the
Kings discoveries! “High Value Targets in Politically stable Canada”
*“One of the richest mineral belts in the world”
*Lawrence Roulston, Resource Opportunities, Volume 15, #10 August 2012-1
2. Market Cap – Exponential Upside!
“B.C.’s Golden Triangle, An Awakening Gold Rush”
• Eskay current market cap: 101m shares x $0.06 = $6 million
• Pretium current market cap: 110m shares x $8.70 = $965 million
• Seabridge current market cap: 49m shares x $13.50 = $662 million
2. Timing is Now
•
•
Precious metal prices have bottomed and the market is currently in a
consolidation phase
The Quality of ESK assets will be appreciated and understood soon!
Eskay Mining - On the Edge of Discovery
Appendix
Historical Assay Highlights
Area
Cu%
Pb%
Zn%
Ag g/t
Au g/t
TM
1.59
0.1
0.04
110.0
36.80
Spearhead
0.01
0.01
0.06
0.0
2.50
Spearhead
0.01
0.02
0.11
0.0
3.20
*Red Lightning
0.50
0.02
0.17
3.2
6.90
*Red Lightning
0.43
0.02
0.12
0.0
5.10
JoJo
1.59
0.01
0.03
15.8
0.51
Big Red
0.05
0.01
0.09
0.4
4.10
Corey/Other
3.81
0.28
0.04
145.0
51.2
Corey/Other
0.06
0.05
0.08
14.2
19.50
Corey/Other
1.32
0.02
0.10
0.4
10.30
GFJ
3.24
0.02
0.11
13.1
78.90
GFJ
0.42
0.03
0.12
10.9
52.80
Battlement
0.25
0.16
0.04
109.5
0.03
*Minimal shallow drilling done previously
Historical Assay Highlights continued…
Area
Cu%
Pb%
Zn%
Ag g/t
Au g/t
Smitty
0.377
-
9.38
267.0
-
Smitty
0.791
-
9.46
141.0
-
Smitty
0.713
0.15
7.18
132.0
-
Smitty
0.617
0.14
4.32
159.0
-
Smitty
0.683
0.17
8.71
356.0
-
Smitty
1.10
0.28
13.75
188.0
-
South Unik
>1.0
0.002
0.003
>100.0
10.64
South Unik
>1.0
0.008
0.003
>100.0
-
South Unik
>1.0
0.002
0.02
>100.0
26.96
Eva Creek
0.06
-
0.003
24.7
41.97
*C10
0.03
0.04
0.07
2.3
17.20
*C10
>1.0
0.005
-
>100
4.82
*C10
>1.0
-
0.45
>100
3.55
*C10
>1.0
-
0.34
>100
2.42
*Minimal shallow drilling done previously
Brief Eskay History
1900: Unuk River Mining & Dredging Company drives adits at Cumberland claim.
1932: Eskay Creek property first prospected by Tom Mackay.
1980: Du Pont of Canada and E&B Explorations conduct regional heavy mineral
stream sediment surveys in Mt. Madge, Sulphurets Ck. and Unuk R. areas.
1986 - 1990: Kenrich Mining & Ambergate Explorations acquire most of Corey
claims and perform basic assessment work. Companies merge in 1994.
1988: Murray Pezim agrees to finance drilling at Eskay Creek.
1989: Calpine Resources drills 27.2 g/t Au and 30.2 g/t Ag over 208 m in DDH
109 at Eskay Creek
1989-1991: Extensive drilling at Lulu zone amid frenzy of Eskay Creek discovery.
1991: Placer Dome performs mapping, soil sampling and geophysics on C-10.
1993-1996: Continued exploration by Kenrich. Drilling at TV and Sheila Ck.
showings.
1994: Eskay Creek mine commences production.
Brief Eskay History
2001/2002: Heritage Explorations commences work with compilation, validation,
interpretation, modeling and targeting followed by mapping, drilling (SIB) and stream
sediment sampling. Highlights: 24 m @ 10.8 g/t Au, 766.15 g/t Ag at Lulu & several
stream geochemistry anomalies are identified including the Hexagon Zone
2003: Re-interpretation of geology, SIB modeling followed by prospecting, sampling,
mapping and drilling at SIB & Hexagon zone. Large alteration zone identified at
Hexagon and 2 m @ 8.09 g/t Au drilled at Southern Hexagon Zone.
2004/2005: Detailed time domain airborne electro-magnetics survey. Drill test
highest priority EM targets. Further mapping at Hexagon zone.
2008: Kenrich-Eskay Mining options SIB property from St. Andrew Goldfields.
Drills three holes at SIB.
2009: Company management change and name change from Kenrich to Eskay Mining
2010: Eskay Mining drills five holes on the SIB property.
2011: Eskay Mining conducts 300m + deep geophysical survey across the SIB and
Corey properties and a 3 D Model is constructed by Mira Geoscience.
Sib – Lulu Historical Results
A focus on integrated exploration has been lacking in the Eskay mining camp
except over areas within a few kilometers of the Eskay mine itself. Continuing
exploration between 2000 and 2007 resulted in the following discoveries:
1.
Extensive drilling in the 22 Zone area has yielded promising results on the Eskay property.
Barrick had planned to extend a ramp into the hanging wall of this zone to stage diamond
drilling programs.
2.
Further south on Prout Plateau, Heritage Exploration has drilled the SIB property, based on a
comprehensive synthesis of all historical data, geological mapping and stream sediment
sampling. In 2002, Heritage intersected the extension of the Lulu Zone on the SIB property.
An intersection in diamond drill Hole 2-113 encountered 11.7m of 19.5 g/t Au and
1,602.9 g/t Ag. Extensions to the zone were not found due to a large displacement, east
dipping thrust fault that passes close to the surface under the Lulu zone.
3.
Also on the SIB property, the new Hexagon zone was discovered in 2003. Work there was
prompted by following anomalies encountered in a high energy stream sediment program. As
follow up, Heritage drilled 8 holes over a strike length of nearly 4 km. The best holes
encountered “mineralization hosted in moderate to highly altered and sheared pyritic-sericite
rocks, accompanied by variable silicification.” The altered sections have estimates up to
10%-15% pyrite content. Gold values of up to 1.51 g/t and silver values of 15.18 g/t were
also encountered. The Hexagon zone is interpreted as a mineralized structure related to synvolcanic faulting bounding the prospective Eskay – Corey Belt. It is in direct line with the
bounding faults to the Eskay orebodies, but is cutting rocks deep in the footwall to the Eskayrift sequence.
Drill Ready Geophysical Targets
(Lulu-Mercury-Hexagon)
Targets
Missed by
Previous
drilling
Drill Ready Geophysical Targets
(Lulu-Mercury-Hexagon)
Resistivity (ms) Section View
Untested Targets
Chargeability (ms) Section View
Search for Eskay II
Eskay Creek-age
mineralization at
Cumberland &
Smitty zones:
1.6% Cu
15.0% Zn
6.4% Pb
49.9 g/t Au
5,980 g/t Ag
Cross section through the Eskay Creek
deposit (modified from Roth, 2002)
4.0 g/t Au, 68 g/t Ag, 0.4% Cu, 6.7% Zn
over 7.7m
Expanded Search for Gold & Silver Deposits
C10 zone:
• CR05-17 returned 99.4 g/t
Au over 1.5m with V.G.
For Further Information Contact:
Mac Balkam, Pres. & CEO – 416.907.4020
James Rogers, P. Geo, Consultant -807-577-9599
Thank You