Eskay Mining Corp (TSX-V:ESK, OTCQX:ESKYF) recently kicked off a diamond drill campaign at its Consolidated Eskay Gold project in British Columbia, and analysts at Noble Capital Markets are bullish.
The firm issued an "Outperform" rating in a note to clients Friday.
Eskay’s 6,500-meter drill program is looking for precious metal-rich volcanogenic massive sulfide (VMS) deposits at eight distinct targets.
“We think this year's drill program offers the potential for significant new discoveries based on robust geophysical analysis and the inclusion of new high-quality targets,” the analysts wrote. “In our view, we believe the current share price offers an attractive entry point for investors.”
The analysts are particularly excited by Stone Creek.
“Upon review of historic soil data dating back to the early 1990s, Eskay Mining geologists identified two areas where high silver-in-soil values occur indicating that Storie Creek gossanous outcrops over a 4-kilometer strike length are likely associated with mineralization,” they wrote.
Two drill holes are planned at Storie Creek beginning in late August or early September, the firm noted.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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