Government stupidity gone wild in this mass hysteria we call Covid has had a terrible effect even in areas having nothing to do with Bioweapons of mass murder and totalitarian regimes. For two years getting assays on a reasonable basis has been impossible. Like every other junior, Eskay Mining Corp. (ESK:TSX.V; ESKYF:OTCQB) is just now starting to receive data from drilling done early last summer.
For tactical reasons mining companies virtually never release results from the middle of December until after the first week of January because frankly no one is interested in something as boring as drill results when the grog is flowing and mistletoe is hanging over the doorway. But come mid-January the results come flowing in.
For Eskay the wait was well worth it.
Many investors and even most geologists have forgotten or never knew in the first place what the purpose of drilling a project is. Geologists tend to believe mining is all about spending money. That is utter rubbish. At the end of the day mining has to be about making money. We drill projects to determine if (1) it is a mine or (2) it is not a mine. And the sooner we can fill or kill a project, the better off we are.
Eskay Mining released incredible results on January 19th. Since mining is supposed to be about making money, the most important hole reported of the eight latest holes reported in the TV Zone all showed significant mineralization. The best and most important hole showed an incredible 238.87 meters of US$142.61 rock in TV21-67.
But investors like to see flashy bonanza grade numbers and TV21-67 also delivered 11.93 meters of US$639.80 rock in one of the subintervals.
Eskay had announced twenty-five of thirty-eight holes so far from the TV Zone. Between the TV Zone and Jeff, the company drilled 98 holes with a total of 23,500 meters of core.
Eskay has proven so far they have a mine. Obviously they would love to find a sweet spot where the ore was as rich as it was in the original Eskay Creek Mine with 45.57 g/t Au and 2,231 g/t Ag on average but they aren’t there yet. But they have found a lot more tonnage of lower grade rock.
The company has 20,741,000 warrants at an average of $1.18 that expire between June 2022 and March of 2023. That will bring in an additional $24.4 million in cash. I see no reason Eskay would want to do another raise and I think they are fully funded for an aggressive program in 2022.
Eskay Mining is an advertiser on 321gold. I have participated in private placements in the past and bought shares in the open market. I am thrilled to be a shareholder and naturally I am as biased as I can be. Please do your own due diligence.
Eskay Mining Corp.
ESK-V $3.07 (Jan 19, 2022)
ESKYF OTCQB 163 million shares
Eskay Mining website
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
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