Eskay Mining Corp (TSX-V:ESK, OTCQX:ESKYF) is a stock to watch, according to analysts at Noble Capital Markets.
The firm reiterated an ‘Outperform’ rating and issued a price target of US$2 in a note published Tuesday. Shares of Eskay traded at US$0.51 Tuesday morning.
Noble analysts are bullish on the potential of the Eskay Mining District, noting that the company's volcanogenic massive sulfide (VMS) project encompasses 52,600 hectares of highly prospective property and is located near several world-class gold deposits. That includes the producing Eskay Creek Mine, a high-grade gold-silver rich VMS deposit considered the world's most precious metal-rich volcanogenic massive sulfide deposit.
READ: Eskay Mining reports promising results from extensional drilling at TV Deposit on its consolidated Eskay project in the Golden Triangle
“Based on Eskay’s exploration program, a new model of the tectonic architecture of the Eskay Mining District has identified three anticlines that wholly or partially underlay Eskay Mining's property,” analysts said. “The company's new model suggests the flanks of each of these three anticlines are prospective for Eskay Creek-style VMS mineralization.”
The firm also pointed to recent drill results, which included 1.51 grams of gold per tonne and 25.39 grams of silver per tonne over 43.1 meters and 2.84 grams of gold per tonne and 22.17 grams of silver per tonne over 16.4 meters in extensional drilling at the TV deposit.
Meanwhile, assay results from the maiden drill program at Tarn Lake have defined an 80-meter-long open-ended trend of gold mineralization that dips in a west-northwestern direction.
“We think Eskay is on its way toward demonstrating that trends of VMS mineralization along both the eastern and western limbs of the Eskay Anticline are geologically associated with the historic and prolific Eskay Creek Mine,” analysts said. “We expect significant breakthroughs in 2023 which could help narrow the company’s focus and drive investor interest.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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