Kenrich-Eskay Mining KRE --
This is my favorite silver company. Why?
First reason is Location, Location, Location (Canada and next to one of the largest producing silver mines ever)
Second reason is IMHO the geologist for the company is a genius.
The property is key and the geologist is also.
KRE is next to the fifth largest silver producer in the WORLD and the second-richest producing gold mine in CANADA.
The Company holds a 100% interest in thirty-two contiguous mining claims in the Eskay Creek area of north-western BC. The Kenrich-Eskay, Corey mining claims have a high potential of hosting massive Eskay Creek types of transitional mineralization eg; Gold, Silver, Copper, Lead & Zinc.
Barrick's Eskay Creek Mine Site
Barrick Gold's Eskay Creek deposit is the most important mineral deposit in the entire region and the fifth largest silver producer in the world.
By the end of 2002, the Eskay Creek mine had produced 2.25 million ounces gold, and 104.7 million ounces silver (grading 1.50 ounces per tonne of gold, and 68.3 ounces per tonne of silver). The Eskay Creek deposit also contains approx 3.2 % Pb, 5.2 % Zn, 0.7 % Cu.
The Kenrich-Eskay Corey claims, are 7 km due south of the operating Barrick Gold Eskay Creek mine and contain the same strike extensions of stratigraphic units present at Eskay Creek.
Ranking: It is the fifth largest silver producer in the world and the second-richest producing gold mine in Canada.
Low-Cost Production: The Cash Cost of gold production has been below $60 US dollars an ounce for the life of the Eskay Creek mine.
Here is another key---Barrick is running out of economic ore at Eskay !!----imagine all the "idle" infrastructure sitting next to KRE's property???????? Millions and Millions of $$$$. The following was copied concerning Barrick:
"NO INCREASE IN SILVER MINING PRODUCTION
One nugget contained in the Barrick report that I wasn’t looking for, was their projection for silver production for 2006. Barrick was the 5th largest company producer of silver in the world last year.
goldsheetlinks.com. Unless I’ve missed something, the 10 million ounce estimated silver production for 2006 is more than 50% less than the combined Barrick and Placer Dome 2005 production of almost 21 million ounces. I think this is due to the depletion at a number of their mines, most notably the Eskay Creek (acquired when Barrick bought out Homestake Mining)."
The key is KRE's geologist. He believes that Barrick's Eskay is merely a fragment of the total deposit.
"Kenrich-Eskay’s own geological team, along with other independent Government Geological Departments, have concluded from the data obtained in the 2004 and prior work programs; that the geological belt and events that formed the world-class Eskay Creek mine, are present and in fact, run right through the Kenrich-Eskay, Corey property."
Website:
kenricheskay.com
stockhouse.ca
David Pescod Stock Talk Late Edition May 10, 2006
KENRICH-ESKAY MINING CP. (V-KRE) $1.84 +0.09
One thing we found interesting as we walked around Joe
Martin’s latest Cambridge House Resource Conference was
to ask “grey hairs” for their opinions on the Kenrich-Eskay
play. We found that the vast majority of them would have
nothing to do with it.
We had featured Kenrich-Eskay on January 13th and their
play is a big one, just south of one of Canada’s richest mining
discoveries ever. It was the Eskay Creek mine whose
grades are so rich that it’s been one of most profitable mines
around since its discovery back in 1990.
We refer to them as “grey hairs”, those are the experienced
mining guys, many of whom run their own companies
or have been in the mining business for years and can remember,
back to the days of the discovery of Eskay. After it
was discovered promoters such as Murray Pezim, with his
huge portfolio of mining companies totally surrounded the
Eskay discovery and drilled the area like it was a pin cushion.
No one could come up with anything. So many of the “grey
hairs” remember that and suggest that the area has just been
totally explored with nothing to show for it.
As Wally Boguski, president of Kenrich-Eskay reminds us
today, “The huge Kenrich property wasn’t drilled because of
legal problems at the time. From the discovery of Eskay to
1995, legal problems meant nothing got done. When the legal
problems were finally taken care of, they did get to work
and had a small program in 1996.”
Then of course he reminds us that Bre-X hit in 1997 and no one cared about mining
and it was hard to get money to go explore anywhere.
With low commodity prices for much of the rest of the decade,
no one has been looking in the area.
Now commodity prices are through the roof and Kenrich is
going to get a huge look-see this year and Boguski says,
“Crews are currently being mobilized for what could be a 100-
hole drill program.” Yes, that’s a good look-see.
Up until recently, Kenrich-Eskay was a one-trick pony with
only this near Eskay property to show for itself, but Boguski
pointed to the recent acquisition of a large interest in the
Coastal Copper project, a former significant producer in the
Stewart area of B.C. Kenrich, with its recent financings
which now means there is lots of money in the bank does
currently have fully-diluted with approximately 58 million
shares outstanding.
_________________
The Barrick' Eskay has a very rich history dating back to the 1980's. Here is part of that story:
Kenrich-Eskay Mining Corp. (KRE.V) -Toronto Venture Exchange.
(Company History and information)
Kenrich-Eskay Mining Corporation is a junior mining exploration company which has a large land holding (over 25,000 plus acres), adjacent to Barrick Gold Corp’s, world-class “Eskay Creek Mine” in northern British Columbia, Canada. The Eskay Creek mine is approximately 50 air miles north of the town of Stewart, in British Columbia, Canada.
Kenrich-Eskay’s own geological team, along with other independent Government Geological Departments, have concluded from the data obtained in the 2004 and prior work programs; that the geological belt and events that formed the world-class Eskay Creek mine, are present and in fact, run right through the Kenrich-Eskay, Corey property.
The operating Eskay Creek mine just to the north of the Kenrich Eskay property, is now owned by Barrick Gold Corp. This mine was discovered in the late 1980’s by the efforts of two junior exploration company’s; Calpine Resources and Stikine Resources. These companies later merged with Prime Resources Inc. Prime Resources was subsequently taken over by Homestake Mining. The current Eskay Creek mine was acquired by Barrick Gold Corp. in December 2001, through its merger with Homestake Mining.
This most important mine discovery at Eskay Creek British Columbia, resulted in the birth of one of the North America’s; if not one of the world’s greatest Gold and Silver mines. The discovery was rewarded by a great appreciation of share prices in both penny stock companies, culminating in a final buyout at approximately $70.00 per share.
In 2004, Barrick’s Eskay Creek mine produced 289,568 ounces of gold and 15,751 million ounces of silver, at an average total cash cost of $31 per ounce of gold.
The low-cost (under $60.00 per ounce production cost), high-grade resource is considered to be the big Kahuna of British Columbia gold mines, and like all world class deposits, it tends to provoke the perennial question, who’s going to discover the next Eskay Creek? As a further indicator, these Massive Sulphides mineralization deposits commonly occur in Clusters of more than one.
In an article about Kenrich-Eskay Mining Corp., in the “Canadian Miner Newspaper” (autumn 2003 edition), the paper referred to the Kenrich-Eskay property, as “the Son of Eskay Creek”.
Kenrich-Eskay Mining Corp. (KRE.V), started exploration in the Eskay Creek area in 1989, working on the Eunich and the Sulphurets ground with New Hawk Minerals and Placer Dome.
Exploration was at the far eastern end of the valley by the Sulphurets Creek on the Kerr, and at Bruce Jack Lake. Kenrich-Eskay subsequently took over the Big Horn and Katear property titles, and finally in 1995, obtained 100% clear title to Corey property.
Few exploration companies today can boast a longer history in their principal area of interest, namely the unique Eskay-type geological structure evident on both the Kenrich-Eskay Corey property and at Barrick Gold’s Eskay Creek mine site.
With the opening of the Eskay Creek mine so close by, this now provided road access to the Kenrich property, reducing exploration costs considerably and adding value to the Kenrich ground. In December 1998, Kenrich-Eskay signed a joint venture agreement with Prime Resources/Homestake Mining. Homestake Mining who were the largest shareholder of Prime Resources at that time; stepping up to the plate and providing the needed exploration funding. (The joint venture agreement would enable Homestake Mining to earn 70% of the Corey Property by spending about $34 million dollars).
Homestake who urgently needed ounces in the ground results, bought the Pluto Mine in Australia and also took over the Eskay Creek Mine for proven reserves in the ground. They then dropped all their world exploration efforts, including the joint venture with Kenrich-Eskay Mining in the year 1999. This left Kenrich with about $1.5 million worth of qualified work on the Corey property.
KRE filed all the necessary documents and permits along with up to 10 years of assessment against the whole block. This bought time and secured the Eskay Creek property until 2008. Now there is a renewed interest in the gold and silver market, Kenrich-Eskay Mining’s Corey property is now front and centre again.
The Kenrich-Eskay Mining Corp. strategy has been to diamond drill and generate meaningful results to court the attention of the major gold and silver producers. To accomplish that goal, Kenrich-Eskay financially secured the Corey property through 2008, well into and possibly past, the remaining life of Barrick’s Eskay Creek mine.
Kenrich-Eskay’s main focus has always been on its Eskay Creek property which it has controlled for fifteen years. Barrick Gold will eventually run out of ore at their Eskay Creek mine, possibly within five years. When Barrick Gold Corp. runs out of ore, their choice is to either shut down a state of the art mining and processing facility, or to start looking in the immediate area for similar deposits to extend the mine life. When Barrick Gold secures additional deposits nearby, they can utilize their already existing mining infrastructure, thus retaining their current exceptionally low cost of production.
The Eskay Creek area is bisected by the Inskut river, which is the traditional boundary dividing the lands of the Haida and Taltan. Both these indigenous peoples are enthusiastic about mining development because it has generated jobs and revenues for them in the past. The Taltan Indian people have always been business oriented and have signed economic development agreements with previous mining companies. Kenrich employs Taltan field assistants to help on the Eskay Creek Corey property during exploration.
Mining is now making a strong come back in British Columbia because of world shortages in gold and base metals due to increased consumption by China and other manufacturing nations. Kenrich-Eskay Mining Corp. intends to aggressively uncover the locked-in gold and silver resources on its key 100% owned Corey property in Eskay Creek British Columbia.
Based on the breakthrough results of the 2004/2005 exploration program, (full reports on the website www.kenrich-eskay.com) the company believes it now has a clear technical and geological understanding of its Corey property and the Eskay-type rock structure. Kenrich-Eskay recently financing (raised $5.8 Million dollars in 2004/2005 season and completed about a $7 million for 2006) which will permit the company to aggressively pursue the Eskay-type geological targets during the 2006 exploration season which will be up to a $7,000,000 program The 2006 field program will commence in the very near future. It is important to note that these type of Polymetallic Massive Sulphide deposits very commonly and almost always occur in clusters, and so far only the one, the Eskay creek mine deposit has being discovered. Others are waiting to be discovered…
The company has recently made an acquisition in Northern B.C. (Coastal Copper property) which they can work on year round. |
