Eskay’s base metal potential growing says Stikine director

“It’s starting to look like a true massive sulphide the farther north we go,” Ronald Netolitzky told 60-70 investment analysts. The area being drilled , the 21 zone, trends northwest and as the zone opens up, mineralization containing lead, zinc and copper values is being picked up along with gold and silver.

Two rigs are working on the property but the plan is to add two additional rigs for the winter months, Netolitzky said.

The Eskay Creek property of Stikine (known formerly as Consolidated Stikine Silver) and 50% project partner Calpine Resources (VSE) came into prominence this past summer following the release of spectacular drilling results.

A couple of step-out holes, in particular 89-109, returned 682.2 ft (between 134.5 ft and 816.7 ft) of (uncut values) 0.875 oz gold per ton, 0.97 oz silver per ton, 1.12% lead and 2.26% zinc. Included is a 200.1-ft interval of 2.877 oz gold.

More recently, hole 89-126 returned 141.5 ft of 0.515 oz gold, 11.03 oz silver, 1.76% lead, 5.08% zinc and 0.5% copper.

“Most of the holes I’ve looked at are well mineralized,” Netolitzky said, adding that more drilling is needed to better define the 21 zone.

The minimum strike length of the 21 zone is estimated to be 3,600 ft. The zone is open to the northwest and is partially open down- dip. Five other smaller zones have been identified on the property.

The isolated nature of the property, the focus of a summer staking rush, may make development of the find an expensive proposition. Currently, a helicopter is being used to transport workers, equipment and supplies.

Netolitzky said it may take a year to complete a road, cost estimates for which run as high as $20-30 million. The work would involve construction of a main Iskut River road passing within 12 miles of the Eskay Creek project, and the building of a spur road to the property.

The Eskay Creek project is about 50 miles north-northwest of the town of Stewart and about 22 miles east of another promising gold project, the SNIP deposit of Prime Resources and Cominco Ltd. Prime controls a major shareholding in Calpine.

]]>