Investors should keep Eskay Mining Corp (TSX-V:ESK, OTCQX:ESKYF)’s 2023 exploration program on their radar, according to analysts at Noble Capital Markets.
The firm gave Eskay an Outperform rating and price target of US$1.50. As of Friday morning, the OTC-listed stock was up 4.7% to $0.40.
Noble analysts pointed to Eskay’s focus on geophysics, citing the appointment of Simcoe Geoscience Limited founder Riaz Mirza as a geophysical advisor in March. Mirza and Simcoe reviewed geophysical data from its Consolidated Eskay project area with the goal of drawing direct comparisons to the original Eskay Creek precious metal-rich volcanogenic massive sulfide deposit.
“The Eskay Mining and Simcoe teams quickly identified compelling similarities,” the analysts wrote. “The same distinct magnetic signatures observed at the Eskay Creek deposit are visible at numerous locations across the Consolidated Eskay property.”
Noble’s analysts are confident in Eskay’s 2023 drilling program. Its primary drill targets include Maroon Cliffs, located a few kilometers to the east of the Eskay Creek Mine, and Hexagon-Mercury which is a few kilometers south of the Eskay Creek Mine, the firm noted.
The plan also includes geological work and potential drilling at previously identified areas including the newly discovered VMS system at Scarlet Knob and Tarn Lake.
“Informed by robust geophysical analysis, we think the highly focused 2023 exploration program offers significant potential for discovery and puts the company closer to its goal of proving that its property package offers the potential to host multiple high-grade gold deposits similar to the historic high-grade Eskay Creek deposit,” analysts wrote.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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