Kenrich-Eskay Mining Corp (C-KRE) - News Release
Kenrich-Eskay receives geological report on Corey
2005-02-04 12:51 ET - News Release
Shares issued 28,475,354
KRE Close 2005-02-03 C$ 0.72
Mr. Wally Boguski reports
COREY PROPERTY, ESKAY MINING CAMP 2004 REPORT SHOWS EXCEPTIONAL ESKAY-TYPE DRILL TARGETS
Kenrich-Eskay Mining Corp. has received its 2004 progress report from its independent geological consultants on the Corey property, located in the Eskay Creek mining camp in northwestern British Columbia, Canada.
The company's geologists report that the Eskay rift is a north-south-trending structural feature that localized the gold-silver-rich vein and massive sulphide deposits at Barrick Gold's Eskay Creek mine, situated 10 kilometres north of the Corey. Regional-scale folding and later faulting obscured the southward continuation of the Eskay rift. Company researchers developed a robust regional exploration "signature" for Eskay-type deposits from geological, lithogeochemical and stream geochemical data. To augment its research, the company also joined the Eskay/Hazelton research project of the mineral deposit research unit (MDRU) at the University of British Columbia. The combined expertise refined the signature, and was employed to aggressively explore the prospective horizons on the Corey for Eskay-type massive sulphide deposits.
Previously announced by the company was the 2004 discovery in outcrop of the Smitty and Angela Creek massive sulphides within a very favourable Eskay-rift geological succession. The Cumberland and the HSOV zones are confirmed as genuine massive sulphide showings. The geology, lithogeochemistry and stream sediment geochemistry map a band of first-priority targets for Eskay-type massive sulphides on the Corey, encompassing over 15 kilometres of surface trace. Within those trends are zones of Salmon River formation mudstones that are enclosed by felsic volcanics and basalt, delineating areas requiring special attention. These results demonstrate that mineralized mudstones, massive sulphides, and altered and veined footwall rocks analogous to the Eskay deposit occur in several zones on the Corey property, in areas that are yet to be assessed in detail or diamond drilled.
Confidence in the exceptional potential of the Eskay rift on the Corey property is strongly boosted by the following reported results.
* The Eskay rift at Corey is subaqueous, and contains many horizons of base and precious metal anomalous Eskay mudstones.
* The rift succession at Corey is reported to contain a complete range of felsic of mafic composition volcanic rocks that accumulated over a greater time period and a greater thickness than Eskay creek.
* Pb isotope analyses by independent researchers at the MDRU have clearly demonstrated that the massive sulphide mineralization at both the Smitty and Cumberland showings are of Jurassic age on a plot of 206 Pb/204Pb versus 207Pb/204Pb and the Smitty mineralization lies well within the age range of the Eskay Creek deposit.
The Cumberland and the Smitty are the only known volcanogenic massive sulphide showings outside of the Eskay Creek property to have the characteristics of Eskay volcanogenic massive sulphide deposits. Importantly, these occurrences are on surface rock exposures. Drilling promises to extend these showings and to test their hosting mudstones along strike, where five kilometres of strong multielement geochemical anomalies (Ag-Au-Cu-Zn-Pb-As-Sb) extend south-eastward along the strike of a sequence of Eskay-equivalent mudstones, basalts and felsic volcanic rocks. These numerous geochemical anomalies suggest additional buried targets for Eskay-type massive sulphides.
Further to the news release in Stockwatch of Jan. 7, 2005, the company's private placement is proceeding and expected to close shortly.
The geological information herein has been reviewed and approved by Paul J. McGuigan, PGeo, who is the company's qualified person.