Eskay Mining (ESK-V) perhaps like other shareholders, the SSRM Mining (SSRM-T) decision to drop our third-year exploration program came as a huge disappointment. On reflection, and digging deeper into that decision, it is our conclusion this is excellent for Eskay and our shareholders.
SSRM entered their JV to earn 60% of Eskay's 80% holding in the SIB claims. This represented about 9% of our total holdings. Eskay's existing JV partner, Kirkland Lake Gold holds the other 20% interest with Eskay being the project operator. At the time we entered the discussion on this JV with SSRM, our share price was approximately 20 cents. So, Eskay gained $8 million of exploration value with a zero cost to our company and our share price is now half of the earlier mentioned number. Eskay has now placed our total land package in good standing until 2027, and once we file this year's work, we will advance to 2028. In junior mining circles, this is a huge advantage, as we are not "forced" to do work to keep these claims.
Eskay will have all data gained from the SSRM exploration. However, the question that is the elephant in our room, "Is the SIB search for Eskay Two dead?" Keep in mind, this is a small fraction of our many known targets to develop going forward. As I'm not a geologist, I can only offer an opinion that SIB is very much alive and remains a valuable opportunity. Junior mining is all about opportunity and leverage to discovery, the sweet spot of mining. We read the miners are running out of metal ore to mine in the gold and silver space. Time will tell if that is fact or fiction. I think it is a fact, all easy mines have been located and are mined out or are getting mined out. Not many junior companies could host a massive VMS target such as our Eskay Mine Two atSIB, which is why SSRM advised that it was a number one target in their realm to explore. Why they left is a question only they may answer.
Now that SSRM has officially notified Eskay of their withdrawal, what shareholders are anxious to see is this season's work and to what context could the SIB be advanced or conversely, sent to exploration heaven, another useless target. We will let you be the judges once we Press Release the results shortly.
To our American shareholders, we wish you a Happy Thanksgiving. To all of us shareholders, perhaps this seasons turkey will be great tomorrow and into the future of this company.
Attached is John Kaiser's take on the SIB as well as other Golden Triangle stories.
howestreet.com
Regards
Mac Balkam
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