Eskay Mining Corp. press release
Coastal Copper Project: Phase 2 Drilling Expands Double Ed Massive Sulphide Deposit
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VANCOUVER, Oct. 31 /CNW/ - KENRICH-ESKAY MINING CORP. (the "Company") has now received assays from an additional eleven diamond drill holes from Phase 2 of its 2006 exploration program on the Coastal Copper Project, near Anyox, BC. Phase 2 diamond drilling has focused on expanding the Double Ed copper-rich volcanogenic massive sulphide deposit and on testing numerous geophysical anomalies revealed by the 2006 AeroTEM II airborne geophysical survey.
Drilling continues to expand the Double Ed deposit
Results of drillholes DE06-01 to -11 from the Double Ed deposit were reported in previous news releases of July 14 and August 15, 2006; results of holes DE06-12 to -19 are reported herein. The 19 diamond drill holes reported to date are located on three cross-sections at Double Ed and define a massive sulphide zone with dimensions of 150 metres north-south by up to 300 metres down dip, with true thicknesses from 2 metres to greater than 15 metres. The zone remains open in all directions; along strike to the north and south as well as up and down dip. Notably all three cross-sections of drilling have shown two steeply dipping and roughly parallel massive sulphide lenses. Geological mapping and observations from drillcores suggest that these may in fact be the same mineralized horizon that has been folded. This is a positive scenario as this folding effectively increases the amount of massive sulphide mineralization in any one cross section. Ongoing geological and lithogeochemical studies are attempting to enhance this structural interpretation. Massive, semi-massive and/or stringer sulphides were intersected in drillholes DE06-13, -14, -16, -17, and -18. The most significant results were returned from holes DE06-14, -16 and -19 that intersected wide intervals of semi-massive to massive copper-rich massive sulphides. For example, hole DE06-14 returned 11.0 metres grading 1.26% Cu; this interval included a higher grade section grading 2.97% Cu over 3.0 metres. The major sulphide minerals observed are pyrite, pyrrhotite and chalcopyrite with lesser sphalerite. The results of these nine holes are summarized in the table below. While hole 12 did not intersect any significant mineralization, subsequent drilling in holes 13 and 14 demonstrated that hole 12 may have stopped short of the mineralized horizon; attempts will be made to extend this hole in the next drill program. Previous exploration programs outlined an historic resource of about 2 million tonnes grading 1.3% Cu and 0.6% Zn at Double Ed (these historical calculations predate National Instrument 43-101 and cannot yet be verified by Kenrich geologists and cannot be relied upon by the reader). It is the Company's goal is to establish a NI 43-101 compliant estimation of the resource at Double Ed and furthermore, to test for extensions to the massive sulphide deposit.
<< DDH From(m) To(m) Int.(m) Est. True Cu(%) Zn(%) Ag(g/t) Thickness
DE06-12 no significant results(1) DE06-13 no significant results(2) DE06-14 213.5 231.5 18.0 unknown 0.60 0.02 1.03 incl. 213.5 216.5 3.0 1.86 0.02 3.40 240.5 251.5 11.0 unknown 1.26 0.01 1.62 incl. 244.5 247.5 3.0 2.97 0.03 3.57 359.8 382.5 22.7 12m 0.72 0.15 6.50 incl. 369.8 373.8 4.0 2.1m 1.22 0.21 14.10 and 377.5 381.5 4.0 2.1 1.25 0.08 12.48 DE06-15 hole lost and abandoned at 257.3m depth; did not test the target mineralized horizon DE06-16 373.4 384.4 11.0 8.0m 0.47 0.12 3.96 422.6 436.7 14.1 unknown 0.16 0.13 0.76 436.7 446.3 9.6 8.0m 0.73 0.06 15.62 465.5 481.1 15.6 10.0m 0.61 0.04 4.72 incl. 468.5 470.5 2.0 1.3m 1.16 0.04 11.30 DE06-17 no significant results(3) DE06-18 no significant results(4) DE06-19 432.0 453.0 21.0 unknown 1.01 0.23 3.74 incl. 441.0 442.3 1.3 3.88 0.73 13.70
(1) results of subsequent drilling suggest hole 12 stopped prematurely; hole should be extended in '07 program (2) stringer pyrite-pyrrhotite intersected from 219.8-242.1m (3) stringer pyrite-pyrrhotite intersected from 17.0-27.5m and 234.8-251.0m (4) stringer pyrite-pyrrhotite intersected from 280.0-294.0m >>
Encouraging results received from the Double Ed West area
An AeroTEM II airborne electromagnetic survey was conducted by the Company in March 2006. Conductive responses with co-incident magnetic-high responses occur west of the known Double Ed deposit discussed above, in an area now termed the Double Ed West. Three diamond drill holes were completed in the initial follow-up to the airborne survey. Holes DW06-01 and DW06-02 intersected weak pyrite-pyrrhotite stringers, while hole DW06-03 intersected a 14.0 metre wide interval from 137.0 to 151.0 metres depth containing strong stringer mineralization containing pyrite, pyrrhotite and trace chalcopyrite that graded 0.1% Cu and 0.7% Zn. The stringer mineralization was accompanied by moderate to strong biotite and chlorite alteration. The alteration, mineralization and host geology are all very similar to those at the main Double Ed deposit. The Company's geologists are very encouraged by these initial results that highlight the potential for discovering significant extensions to the mineralized zone at Double Ed. The results also demonstrate the sensitivity and effectiveness of the AeroTEM technique for detecting even low-grade sulphide mineralization. It has been a very productive and exciting year for the Company having completed a total of over 85,000 feet (about 25,914 metres) of drilling from over 100 drillholes from the two projects combined. Of the 51 drillholes completed at the Coastal Copper project in 2006, results have been released for 22 of these holes, including the results in this release. Of the 54 holes drilled at Corey in 2006, results from only 11 holes have been released to date. The primary reason for the slow release of information is the delay in receiving results from the analytical laboratories. These backlogs at the labs are largely due to the large increase in mineral exploration activity in 2006. The Company regrets this unavoidable situation and they will continue to release results as soon as they become available and have been adequately interpreted by the geological team.
The information contained in this document has been reviewed by Paul McGuigan, P.Geo., a Qualified Person as defined by National Instrument 43-101.
Legal Proceedings Ruling and Settlement to complete satisfaction of the Company
In September, 2006, the British Columbia Supreme Court struck down proceedings brought by Sean Morriss against Kenrich Eskay Mining Corporation, Wally Boguski and Paul McGuigan. Despite this, there remained matters of dispute between the Company and Sean Morriss. Kenrich-Eskay is pleased to advise that it has now settled all claims arising between the company, Mr. Boguski, Mr.McGuigan and Sean Morriss, to the complete satisfaction of the Company.
<< On behalf of The Board of Directors of Kenrich-Eskay Mining Corporation.
"Wally E. Boguski"
Wally E Boguski, President, CEO, Director >>
This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements.
"TSX Venture Exchange" does not accept responsibility for the adequacy or accuracy of this news release.
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