Eskay Mining Corp (TSX-V:ESK, OTCQX:ESKYF)’s 2023 exploration program in the Golden Triangle of British Columbia has impressed analysts at Noble Capital Markets thus far.
The firm issued an Outperform rating and US$1.30 price target. Eskay shares traded at US$0.51 Friday morning in New York.
“The company's Eskay precious metal rich VMS project encompasses 52,600 hectares, or 26 square kilometers, of highly prospective property within proximity to several world class gold deposits, including the adjacent past-producing Eskay Creek Mine, a high-grade gold-silver rich VMS deposit considered among the world's most precious metal-rich volcanogenic massive sulfide deposits,” the analysts wrote.
Noble expects the 2023 program, which includes newly identified geophysical targets at Maroon Cliffs and Hexagon Mercury, to entail roughly 6,000 to 7,000 meters of drilling.
“Compared to 2022, Eskay is conducting a more focused 2023 drill program and we have reduced our fiscal year 2024 loss estimate to C($5.4) million or C$(0.03) per share based, in part, on lower exploration expenditures of C$4 million,” the analysts wrote. “We think funding for the drill program will be internally generated and do not foresee the need for private placement equity financing.”
They continued, “In our view, Eskay Mining’s consolidated VMS project is one of the best positioned and geologically prospective properties in British Columbia's prolific Golden Triangle. Informed by robust geophysical analysis, we think the highly focused 2023 exploration program offers significant discovery potential and we believe the current share price offers an attractive entry point for investors.”
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