Noble Capital Partners have initiated coverage on Eskay Mining Corp (TSX-V:ESK, OTCQX:ESKYF) with an Outperform rating and US$2.25 target price.
Eskay Mining is focused on the exploration and development of precious metal volcanogenic massive sulfide (VMS) targets along the Eskay rift in a prolific region of northwest British Columbia known as the Golden Triangle.
“In our view, the Eskay precious metal rich VMS project represents a district scale opportunity with Eskay Mining becoming a promising candidate for acquisition by a senior gold producer interested in establishing a presence in the prolific Golden Triangle,” analysts at Noble Capital wrote in a note to clients.
READ: Eskay Mining discovers more VMS targets and kicks off drilling at Scarlet Ridge in British Columbia
The company’s Eskay precious metal rich VMS project is comprised of 177 claims encompassing 52,600 hectares of highly prospective property within proximity to several world class gold deposits, including the past-producing Eskay Creek mine, which is considered the world’s most precious metal-rich VMS deposit.
Eskay's 2022 driling program is in full swing, Noble noted. Drilling began on June 1 along a five kilometre-long corridor encompassing the TV and Jeff precious metal-rich VMS targets. To date, the company has completed 5,370 metres of diamond core drilling in 13 holes, or roughly 18% of the 30,000 metres planned to be drilled in 2022.
Other targets to be drill-tested this season include Scarlet Ridge, Excelsior, and C10-Vermillion.
Noble also listed a number of catalysts for the stock, including the receipt of assay results from the 2022 drilling program, greater understanding of TV-Jeff's size potential, discovery of new VMS systems at Scarlet Ridge, and development of new targets within the project area. "While the company is still in exploration mode, we believe resource definition and infill drilling, leading to an initial resource estimate at TV-Jeff and Scarlett Ridge, could coincide with the 2023 exploration program," analysts wrote.
Noble added that the "superlative" management team, led by CEO Hugh Balkam, along with its board of directors and group of advisors, has deep technical bench strength to advance the project.
Shares of Eskay were trading around C$1.96 on Wednesday.
Contact the author at susie@proactiveinvestors.com