Eskay Mining Finds Eskay Creek 2.0
Mac Balkam has pretty much carried Eskay Mining (ESK-V) on his back for the last ten years because he believed in the story. Many times he had to belly up to the bar to fork over some money to keep going. He never lost his faith that somewhere on the property was another Eskay Creek deposit. Eskay Creek was famous for being the highest-grade gold mine in the world with an average grade of 45.6 g/t gold and 2,231 g/t Ag.
The company plodded along year after year until he brought Quinton Hennigh on board in September a year ago. Quinton agreed that it was prime territory for finding another Eskay Creek VMS deposit since they tend to occur in clusters. Quinton came up with an exploration plan and a 20-hole 4,355-meter drill program. The first results came out on December 22 and all the reported 9 holes hit. Another 11 holes are at the lab waiting for assay. Those results will be out in a month.
The price of Eskay Mining shares are up and down like a bride’s nighty today but if you want to see where they are going to go, look at Skeena. Eskay Mining has higher grades while Skeena has a 3-4 times larger market cap.
It looks from the technical data that Jeff and the TV targets join up. That would make it a lot bigger than Eskay Creek 1.0. Obviously we are in the very early stages of a discovery but nobody ever hits nine holes in a row without being onto a hell of a project.
Mac Balkam deserves all the credit for standing his ground in spite of many set backs but when his ship came in, he was standing on the dock with a bottle of champagne. Once again Quinton Hennigh has participated in a major discovery. He does it so often it’s getting boring.
The company has over 15 million warrants at an average price of $.475. When exercised that will bring in an additional $7.3 million in cash. Eskay Mining is sitting on about $15 million right now. There is an excellent chance they may never need to do another financing. The majors are going to jump on this like white on rice once there are enough holes to determine continuity.
I own Eskay Mining shares and am biased but they are not an advertiser.
Eskay Mining Corp