Eskay grabs Kirkland Lake Gold interest in SIB project
(Kitco News) - Eskay Mining (TSX-V:ESK) (OTCQB: ESKYF) announced today that it has acquired a 100% interest in the SIB property, located in British Columbia, which was subject to a joint venture (80% Eskay/20% St Andrew) with St. Andrew Goldfields, a wholly-owned subsidiary of Kirkland Lake Gold.
The company said that pursuant to the terms of the joint venture agreement, the joint venture has been terminated and St Andrew has been converted to the holder of a 2% net smelter returns royalty. Eskay has the right, exercisable at any time, to purchase one half of the 2% NSR held by St Andrew for $3 million and has the right of first refusal to purchase the remaining 1% net smelter returns royalty.
This project encompasses some 33,000 hectares of land adjoining the previously mined rich VMS deposit known as Eskay Creek mine. In the approximate 15-year mine life, this small tonnage deposit yielded a grade of 1.5 ounces of gold and 70 ounces of silver per ton of rock mined and processed. This mine sits at the top of all VMS deposits in the world for grade.
Eskay Mining is an exploration company focused on the exploration and development of precious and base metals along the Eskay rift in a highly prolific region of northwest British Columbia known as the "Golden Triangle," approximately 70km northwest of Stewart, BC. The company currently holds mineral tenures in this area comprised of 177 claims (130,000 acres).