Eskay Mining Corp stock

Eskay Mining Corp (CVE: ESK) has a significant land package in the Eskay Creek region of British Columbia.

The company’s recent discovery is being referred to as “Eskay Creek 2.0” because it is right next door to the historic Eskay Creek mine. Eskay Creek is the largest precious metals deposit in Canadian history and was the highest grade mine on Earth for decades.

ESK completed their first drill program of 20 holes in 2020 and the assay results have all been received. Out of the 20 holes drilled, high-grade mineralization was found in 18 which supports the premise that Eskay Mining has discovered a significant VMS mineral deposit.

A mining stock investor seeking exposure to the potential of the Eskay Creek region has at least two choices:

Eskay Mining Corp (CVE: ESK) (OTC: ESKYF)
Skeena Resources Ltd (TSX: SKE) (OTC: SKREF)

Skeena is mining the leftovers from Barrick’s Eskay Creek mine. They have a known resource and cashflow as a producing miner.

Eskay Mining is advancing what appears to be an unmined VMS deposit to production.

One company offers a relatively low-risk opportunity with limited growth potential.

The other offers blue-sky potential with a commensurate level of risk. Note, however, that this risk is being continually reduced as ESK marches down the road to production. Drill results published in early-2021 are an example of this de-risking process.

Investing in mining stocks successfully Reaping the rewards from Mining stock investments sometimes requires patience. It will take time for Eskay Mining to bring their discovery into production. Value investors are likely to be well rewarded, but the payoff isn’t going to happen overnight.

Eskay Creek Mine Location

According to Wikipedia, the Eskay Creek region is a rich Gold and Silver mining area in British Columbia.

Based on results, that would appear to be an accurate description.

This historic mining district has produced more than 3 million ounces of Gold and over 160 million ounces of Silver since its discovery in 1988.

Barrick Gold mined their Eskay Creek VMS deposit from 1995 to 2008 before turning it over to Skeena Resources.

Dr. Quinton Hennigh, geological advisor for Eskay Mining, points out that VMS mineral deposits tend to occur in clusters.

Based on assay results from the first 20 hole drill program, it appears that Dr. Hennigh’s premise is correct and Eskay Mining (CVE: ESK) has discovered another VMS mineral deposit next door to Barrick's historic mine. Of the 20 holes drilled, high-grade mineralization was found in 18.

VMS deposits can be company-makers because of their size and high-grade ore.