Noble Capital Markets analysts released a research update on Eskay Mining Corp (TSX-V:ESK, OTCQX:ESKYF), writing that the work by the company’s prospecting and mapping team is quickly identifying new volcanogenic massive sulfide (VMS) targets at Scarlet Ridge and Scarlet Valley in British Columbia, which has advanced them from areas of interest into drilled targets that are now delivering significant sulfide-bearing mineralized intercepts.
“In our view, the company’s expertise related to VMS systems is leading to a very productive exploration and drilling program,” the Noble Capital analysts said.
“Catalysts for the stock include 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 Scarlet Valley, and development of new targets within the project area which can be followed up with a larger and more focused drill program next year,” they added.
READ: Eskay Mining commences Scarlet Valley drilling
The analysts also noted that mineralization and hydrothermal alteration at Scarlet Ridge and Scarlet Valley are intense and widespread throughout areas drilled to date.
As well, they wrote that a second drill has been deployed to help define the extent of a highly prospective area of extensive surface exposures of a VMS feeder zone at Scarlet Valley before the onset of winter weather, with management expecting to drill nine holes.
To date, drilling has occurred at Jeff North, Scarlet Ridge, TV, and Scarlet Valley and two drills are conducting step-out drilling of the upper stock work zone at TV, while two drills are beginning to define the extent of the intensely mineralized Scarlet Valley target, with Eskay intending to drill the Tarn Lake target immediately following Scarlet Valley, the analysts said.
Noble Capital Markets analysts currently have an ‘Outperform’ rating and a US$2.60 per share, or roughly C$3.40 per share, target price on Eskay Mining’s stock, implying potential upside of more than 100% from current levels.
Contact Sean at sean@proactiveinvestors.com