Kenrich-Eskay Mining Corporation Financial News

Babine (Babs) Drilling Program Commences

Vancouver, BC - KENRICH-ESKAY MINING CORPORATION is pleased to announce that it has begun its work program on its Babs Property (Babine Lake near Smithers BC). An exploration program of MMI soil geochemical surveys and a diamond drilling will commence to target a Granisle/Bell type copper-molybdenum porphyry deposit. The soil survey would include a
topographically low area northwest of the boulder train from which the boulder train may have originated. Up to a 2,500 meter diamond drill program would be initiated to test to confirm the previously reported drill results and to test any prime soil anomalies that may be delineated. This 1st stage program is estimated to cost $550,000.

The Babs property lies seven km southeast of the Granisle copper mine, a past producer within the Babine porphyry camp where two past producing mines, Bell and Granisle, with respective mineral resources of 400Mt+, grading 0.44% Cu, and 125Mt+grading 0.44% Cu, were located.

On the Babs property a float train of angular, glacially transported boulders of biotite feldspar porphyry (BFP) contain chalcopyrite and magnetite in veinlets and disseminations. Some 100 boulders, similar to the Babine intrusions which host mineralization at the Granisle, Bell and Morrison deposits, are concentrated in an area measuring 300 by 150 metres and elongated south-easterly. Samples from the boulders reportedly assayed up to 1.2% copper and 1.3 gm/tonne gold (Northern Dynasty Minerals- Pacific Sentinel Gold Corp. press release, Dec. 7, 1995). The management team is pleased that work programs on the Babs property may be conducted on a year round bases.

Anomalous copper in soil values occur within a roughly circular area 800 meters in diameter and centered on the boulder train which occurs within a northwest trending fault block that is indicated as a south-eastern continuation of the Morrison graben that provided a favourable setting for porphyry copper mineralization at Granisle, Bell and other deposits.

Previous exploration results on the ground covered by the Babs property included drilling completed by Equity in 1992 and Noranda in 1994. The best drill intersection was in Noranda drill-hole NB94-10 which was drilled just north of the stripped area and intersected core assays of up to 0.64% Cu with the longest interval reported as 0.19% copper over 77.3 metres.

The geological portion of this release has been approved by Laurence Sookochoff, P. ENG. Kenrich's Qualified Person for the Babs project.

On behalf of The Board of Directors of Kenrich-Eskay Mining Corporation.

"Wally E. Boguski"

Wally E.  Boguski, President, CEO, Director