Junior miners Seabridge and Eskay Mining on Monday announced that they would jointly fund the C$12-million construction of the first segment of the Coulter Creek access road, in British Columbia’s Golden Triangle.

The initial segment would provide Seabridge with a lower elevation staging site closer to the KSM camp, thereby reducing Seabridge's helicopter costs and improving safety and certainty of access to KSM, while at the same time providing cost-saving logistical benefits for Eskay Mining's planned exploration activities.

“Cooperation between neighbouring companies will help facilitate the emergence of BC's Golden Triangle as one of Canada's most important new mining camps,” said Seabridge chairperson and CEO Rudi Fronk.

Coulter Creek is one of two main access roads planned and permitted for its KSM project. The first 9 km segment will connect KSM with the existing Eskay mine road to the northwest. Nearly 3 km of the first segment of Coulter Creek is situated on Eskay tenures.

Fronk said constructing the initial segment now would also shorten the time needed to establish early site access to the KSM deposits, enabling more rapid development of the project once Seabridge had consummated its anticipated joint venture.

Once the first segment of the access road is complete, Eskay will  have use of the stretch for at least 15 years pursuant to a road access agreement subject to payment of its pro rata share of maintenance costs.

“This will provide Eskay Mining with a tremendous benefit as it continues exploration on its 100% owned Consolidated Eskay precious metals-rich volcanogenic massive sulphide project in the Golden Triangle,” said Eskay president and CEO Hugh (Mac) Balkam.

This summer, Eskay Mining plans to drill at least 30 000 m of diamond core at multiple targets across its 526 km² of land holdings commencing with focussed drilling at its Jeff and TV targets to follow up on encouraging gold/silver mineralisation, some high-grade, encountered by 18 of 20 holes completed in 2020.

This is the most aggressive drill campaign yet conducted by Eskay Mining.

To fund Eskay Mining's share of costs under the cost sharing agreement, Seabridge has agreed to purchase a C$6-million convertible debenture and 1.35-million warrants from Eskay Mining.

Construction of the road would begin this month.