Mac Balkam, CEO of Eskay reports that several existing shareholders have exercised existing share purchase warrants at $0.10 to provide the Company with $146,600 of additional working capital. The Company will utilize the proceeds for general corporate purposes. No commissions were paid on this transaction. The Company thanks those shareholders as this provides Eskay with sufficient working capital for the short term.
Eskay is currently seeking a joint venture partner to explore our 130,000 acre project in NW British Columbia's Golden Triangle. The project is adjacent to those of Seabridge Gold with the Deep Kerr deposit and Pretium Resources with the Valley of the Kings high grade deposit. On the north portion of the project, we surround the now closed Eskay Creek mine of Barrick Gold which ceased production in 2008.
Work this season will include completing the 3D data compilation by Mira Geoscience of Vancouver. The new modeling will include available geological data from neighboring projects. After reviewing all geological data to date, management and its consultants concluded that previous exploration on the project only focused on one geological model, being the Eskay Creek VMS high grade mine model. As a result, little work tested other geological structures or tested any deeper known older rocks which host the deposits at Deep Kerr and Valley of the Kings. Areas on the Corey project where outcrop grab samples were previously reported with 3 and 5.5 ounces of gold per ton respectively have never been researched or drilled. The new modeling will incorporate new ideas from other neighboring deposit models not investigated on the Eskay ground. It is very clear that the geological models of Seabridge and Pretium are different from the Eskay Creek Mine and deserve a thorough explanation as to the sources of metals occurring on surface. The Valley of the Kings deposit was only discovered in 2009 after that project had been explored since the early 1960's. New interpretation of the geology led to that discovery. The same is true for the Deep Kerr deposit of Seabridge. Both stories may be viewed on the respective corporate web sites for Pretium and Seabridge.
Following the completion of the 3D model, the Company intends to revisit the project to map plans for ultimate drilling of many untested targets both near surface and at depth. Investors are advised that there is no guarantee that a joint venture partner will be identified in the near term. However, management is of the belief that success by neighboring projects will bring necessary interest from potential partners.
James Rogers, P. Geo., a consultant to the Company, is a Qualified Person under the definition of National Instrument 43-101. Mr. Rogers has reviewed and approved the technical information in this press release.