SIG:CC - Sitka Continues to Intercept Visible Gold and Expand Mineralization with Further Step Out Drilling at its Blackjack Gold Deposit in Yukon

(TheNewswire)

VANCOUVER, CANADA – TheNewswire - July 10,  2023 - Sitka Gold Corp. (“Sitka” or the “Company”) (CSE:SIG) (FSE:1RF) (OTC:SITKF) is pleased to provide an update on the diamond drilling programcurrently underway at its RC Gold Project (“RC Gold” or the“Project”) located within Yukon’s Tombstone GoldBelt, approximately 100 kilometres east of Dawson City. Theongoing drilling program of up to 10,000 metres is primarily focusedon step out drilling designed to expand the 1,340,000 ounce goldinitial mineral resource estimate (1) that was announced this year (see news release datedJanuary 19, 2023) which is comprised of two at/near surface golddeposits: the Blackjack and Eiger deposits, both of which remain openin all directions.

Step out drilling at the Blackjack gold deposit,hosting an inferred, pit-constrained 900,000 ounces of gold at a gradeof 0.83 g/t, is currently underway and has been the initial focus ofthe summer drill program. Four drill holes, DDRCCC-23-043 to -046,have been completed to date this summer with DDRCCC-23-047 drilling inprogress (see Figure 1). Each drill hole has been successful inexpanding the known mineralization of the deposit and visible goldoccurrences have been observed in all holes that have beenlogged so far (Holes 043, 044 and 045; seeFigure 2). Analytical results are currentlypending for all summer drill holes completed to date.

“The first drill holes completed during the summerdrilling campaign at RC Gold continue to highlight the expansionpotential at our Blackjack gold deposit with additional visible goldoccurrences observed in every hole logged to date”, comments CorCoe, CEO and Director of Sitka Gold. “Part of this drilling includedthe deepening of Hole 043 where the entire 422 m hole had returned0.74 g/t gold from surface, including 112 m of 1.24 g/t gold and 14 mof 3.28 g/t gold (see news release dated June 21, 2023). This hole wasextended with an additional 104.6 m of mineralization observed to atotal depth of 526.4 m. The mineralization with visible gold observedin these drill holes has the potential to add significant tonnage tothe known mineralization at Blackjack and we look forward to receivingthe analytical results of these holes as we continue our drill programat RC Gold.”

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Figure 1: Plan map of drillhole locations at the Blackjack Zone

The 2023 summer drilling season began with the continuation andcompletion of drill hole DDRCCC-23-043, which had terminated in 111.7m of 1.24 g/t Au starting from 315 m (see news release dated June 21,2023). To date, an additional 3 holes, DDRCCC-23-044 to 046, have beencompleted for a total of 1353.3 m drilled during the summer drillingcampaign.

DDRCCC-23-043 continued in similar appearing megacrystic quartzmonzonite (MQZMN) hosting quartz sulfide veins until 476 m where a 6 mlamprophyre dyke, a known and expected marker unit in the BlackjackDeposit, was intersected. From the 482 m to the end of the hole at526.4 m the hole intersected moderately altered metasediments intrudedby metre scale MQZMN dykes, with both units cross-cut by quartzsulfide veins.

Holes DDRCCC-23-044 and DDRCCC-23-045 with an azimuth of 040 degreesand dips of – 55 and -65 respectively, were drilled from the samelocation to extend the current resource to the south and at depth (seeFigure 1). Both holes intersected moderately to strongly alteredmetasediments intersected by metre scale MQZMN dykes throughout theirlength. Quartz vein density with locally massive development ofarsenopyrite generally increased downhole in both holes and both holesalso encountered visible gold. Holes DDRCCC-23-044 and 045 aresignificant as they intersected the strongest alteration and quartzsulfide development seen in the metasediment unit in drilling on theRC Project to date and indicate the potential of the metasedimentaryunit to host significant gold mineralization (see Figure 3).

Hole DDRCCC-23-046 was targeted to extend the margin of the currentresource to the northeast. Logging has yet to be completed on thishole. Hole 47 (in progress) was targeted to extend the southern marginof the current resource. Analytical results are pending for all holescompleted to date during the ongoing summer drilling campaign.

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Figure 2: Examples of visible goldobserved in Holes 43, 44 and 45

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Figure 3: Drill core fromDDRCCC-23-044 showing strong quartz sulphide veining in themetasediments

About the RC Gold Project

The RC Gold Project (RC Gold) consists of a 376 square kilometrecontiguous district-scale land package located in the newly roadaccessible Clear Creek, Big Creek, and Sprague Creek districts in theheart of Yukon's Tombstone Gold Belt. The project is locatedapproximately 100 kilometres east of Dawson City and is accessed via asecondary gravel road from the Klondike Highway an approximate 2 hourdrive from Dawson. It is the largest consolidated land packagestrategically positioned mid-way between Victoria Gold's Eagle GoldMine - Yukon’s newest gold mine which reached commercial productionin the summer of 2020 - and Sabre Gold Mine’s Brewery Creek GoldMine. The RC Gold Project land package comprises five underlyingproperties, namely, the RC, Bee Bop, Mahtin, Clear Creek, and BarneyRidge properties*. The planned 10,000 metre drill program for 2023 iscurrently underway and is focused on expanding the Blackjack and Eigergold deposits, both of which remain open in all directions.

On January 19, 2023 Sitka Gold announced an InitialMineral Resource Estimate prepare d in accordancewith National Instrument 43-101 (“NI 43-101”) guidelines for theRC Gold  Property of 1,340,000 ?ounces of gold (1) . The roadaccessible, pit constrained Mineral Resource isclassified as inferred and is contained in two near/on-surface zones:The Blackjack and Eiger deposits. The Mineral Resource estimate ispresented in the following table at a base case cut-off grade of 0.25g/t Au:

Table 1: RC Gold Inferred MineralResource Estimate

Notes

1. Mineral resource estimate prepared by Ronald G.Simpson of GeoSim Services Inc. with an effective date of January19,

2023. Mineral Resources are classified using the 2014CIM Definition Standards.

2. The cut-off grade of 0.25 g/t Au is believed toprovide a reasonable margin over operating and sustaining costs foropen-pit

mining and processing

3. Mineral resources are constrained by an optimisedpit shell using the following assumptions: US$1800/oz Au price; a45°

pit slope; assumed metallurgical recovery of 85%;mining costs of US$2.00 per tonne; processing costs of US$8.00per

tonne; G&A of US$1.50/t.

4. Mineral resources are not mineral reserves and donot have demonstrated economic viability.

5. Totals may not sum due to rounding.

The InitialMineral Resource Estimate of 1,340,000 ounces of gold at the RC Gold Project is comprised of two deposits: theBlackjack deposit containing 900,000 ounces of gold at a grade of 0.83g/t gold and the Eiger deposit containing 440,000 ounces of gold at agrade of 0.50 g/t gold (see news release dated January 19, 2023). Bothof these deposits are at/near surface, are potentially open pitminable and amenable to heap leaching, with initial bottle roll testsindicating that the gold is not refractory and has high gold recoveries of up to94% with minimal NaCN consumption (see NewsRelease July 13, 2022).

The Blackjack and Eiger deposits are in close proximityto highway and power infrastructure, are road accessible year-round,remain open in all directions and are respectively located at thewestern and eastern end of a large, 500 metre by 2 kilometre intrusionrelated gold system that was recently discovered on the Property. Todate, just 41 diamond drill holes have been drilled into this system for a total ofapproximately 14,500 metres with results of up to 201.0 m of 1.26 g/t gold from surface,including 82.0 m of 2.04 g/tgold and 19.5 m of 4.87 g/t gold at Blackjack (drillhole DDRCCC-22-040; see news release datedJanuary 11, 2023) and 354 m of0.41 g/t gold including 72 m of 0.72 g/t gold atEiger (drill hole DDRCCC-21-09; see news release date August 19,2021).

Several high priority intrusion related gold targets exist at RC Goldwith nine outcropped intrusions identified to date over the 376 sq kmproperty, however Sitka’s main focus at the RC Gold Project has beenon the underlying Clear Creek Property where a large 500 metre by 2000metre intrusion related gold system covering the area over theBlackjack, Saddle and Eiger zones was identified. Prior to the onsetof the 2023 winter drilling program, the Company had drilled 38diamond drill holes into this system for a total of approximately13,000 metres. This drilling culminated in the discovery of theBlackjack and Eiger deposits with an initial inferred mineral resourceestimate of 1,340,000 gold ounces (1) .

Sitka Gold inherited a wealth of historical and current data fromthese properties from work spanning the last 40 years. Recentexploration work and the compilation of historical data have definedseveral mineralized zones with both bulk tonnage, intrusion-relatedgold deposit targets and high-grade, vein- and breccia-hosted goldtargets. The RC Gold Project also has a common border with VictoriaGold’s Clear Creek property at its western boundary and FlorinResources’ Florin Gold property at its northern boundary.

(1)  Simpson, R.  January 19, 2023. Clear Creek Property, RC Gold Project, NI43-101 Technical Report, Dawson Mining District, Yukon Territory.

*For more detailed information on the underlyingproperties please visit our website at www.sitkagoldcorp.com .

Deposit Model

Exploration on the Property has mainly focused on identifying anintrusion-related gold system (“IRGS”). The property is part ofthe Tombstone Gold Belt which is the prominent host to IRGS depositswithin the Tintina Gold Province in Yukon and Alaska. Notable depositsfrom the belt include: Fort Knox Mine in Alaska with current Provenand Probable Reserves of 230 million tonnes at 0.3 g/t Au (2.471million ounces; Sims 2018) (1) ; Eagle Gold Mine with current Measured and IndicatedResources of 233 million tonnes at a grade of 0.57 g/t Au at the EagleMain Zone (4.303 million ounces; Harvey et al, 2022) (2) ; the Brewery Creek depositwith current Indicated Mineral Resource of 22.2 million tonnes at agold grade of 1.11 g/t (0.789 million ounces; Hulse et al. 2020) (3) ; the Florin Gold deposit,located adjacent to Sitka’s RC Gold project, with a current InferredMineral Resource of 170.99 million tonnes grading 0.45 g/t (2.47million ounces; Simpson 2021) (4) and the AurMac Project with an InferredMineral Resource of 312.90 million tonnes grading 0.61 gram per tonnegold (6.18 million ounces; Jutras 2023) (5) .

(1)    Sims J. Fort Knox Mine Fairbanks North StarBorough, Alaska, USA National Instrument 43-101 Technical Report. June11, 2018. https://s2.q4cdn.com/496390694/files/doc_downloads/2018/Fort-Knox-June-2018-Technical-Report.pdf

(2)    Harvey N., Gray P., Winterton J., Jutras M.,Levy M.,Technical Report for the Eagle Gold Mine, Yukon Territory,Canada. Victoria Gold Corp.  December 31, 2022.

https://vgcx.com/site/assets/files/6534/vgcx_-_2023_eagle_mine_technical_report_final.pdf

(3)    Hulse D, Emanuel C, Cook C. NI43-101 TechnicalReport on Mineral Resources. Gustavson Associates. May 31, 2020.

https://www.goldenpredator.com/_resources/Brewery-Creek_NI-43-101-05OCT2020-File.pdf

(4)    Simpson R.  Florin Gold Project NI43-101Technical Report. Geosim Services Inc.  April 21, 2021. https://sedar.com/GetFile.do?lang=EN&docClass=24&issuerNo=00005795&issuerType=03&projectNo=03236138&docId=4984158

(5 ) Banyan Gold News Release Dated May 24,, 2023 (TechnicalReport to be filed within 45 days of news release)https://banyangold.com/news-releases/2023/banyan-announces-6.2-million-ounce-gold-resource-estimate-for-the-aurmac-property-yukon-canada/

About Sitka Gold Corp.

Sitka Gold Corp. is a mineral exploration companyheadquartered in Canada. The Company is managed by a team ofexperienced industry professionals and is focused on exploring foreconomically viable mineral deposits with its primary emphasis ongold, silver and copper mineral properties of merit. Sitka currentlyhas an option to acquire a 100% interest in the RC, Barney Ridge,Clear Creek and OGI properties in the Yukon and the Burro Creek Goldproperty in Arizona. Sitka owns a 100% interest in its Alpha Goldproperty in Nevada, its Mahtin Gold property in the Yukon and itsCoppermine River project in Nunavut.

The Company recently announced an NI 43-101 compliant Initial Mineral ResourceEstimate of 1,340,000 ounces of gold (1) beginning atsurface and grading 0.68 g/t at its RC Gold Project in Yukon (see newsrelease dated January 19, 2023). A resource expansion diamond drillingprogram is currently underway.

The Company is also planning additional drilling at itsAlpha Gold Property in Nevada where a new Carlin-type gold system wasrecently discovered. The Company is focused on vectoring towards thehigh-grade core of this system, which is located on the Cortez Trendjust 40 km southeast of the Cortez Mine Complex ofBarrick/Newmont.

(1)    Simpson, R.  January 19, 2023. Clear Creek Property, RC Gold Project, NI43-101 Technical Report, Dawson Mining District, Yukon Territory.

Upcoming Events

Sitka Gold will be attending and/or presenting at thefollowing events:

• YMA Property Tours, Dawson City, Yukon: July 16-22,2023

• Precious Metals Summit, Beaver Creek,Colorado: September 12 - 15, 2023

All events are subject to change.

The scientific and technical content of this newsrelease has been reviewed and approved by Cor Coe, P.Geo., Directorand CEO of the Company, and a Qualified Person (QP) as defined byNational Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS OF

SITKA GOLD CORP.

“Donald Penner”

President and Director

For more information contact:

Donald Penner

President & Director

778-212-1950

dpenner@sitkagoldcorp.com

or

Cor Coe

CEO & Director

604-817-4753

ccoe@sitkagoldcorp.com

Cautionary andForward-Looking Statements

This news release containsforward-looking statements and forward looking information within themeaning of applicable securities laws. These statements relate tofuture events or future performance. All statements other thanstatements of historical fact may be forward-looking statements orinformation. Forward-looking statements and information are often, butnot always, identified by the use of words such as “appear”,“seek”, “anticipate”, “plan”, “continue”,“estimate”, “approximate”, “expect”, “may”,“will”, “project”, “predict”, “potential”,“targeting”, “intend”, “could”, “might”, “should”,“believe”, “would” and similar expressions.

Forward-looking statements andinformation are provided for the purpose of providing informationabout the current expectations and plans of management of the Companyrelating to the future. Readers are cautioned that reliance on suchstatements and information may not be appropriate for other purposes,such as making investment decisions. Since forward-looking statementsand information address future events and conditions, by their verynature they involve inherent risks and uncertainties. Actual resultscould differ materially from those currently anticipated due to anumber of factors and risks. These include, but are not limited to,the expected timing and terms of the private placement, use ofproceeds, anticipated work program, required approvals in connectionwith the work program and the ability to obtain such approvals.Accordingly, readers should not place undue reliance on theforward-looking statements, timelines and information contained inthis news release. Readers are cautioned that the foregoing list offactors is not exhaustive.

The forward-looking statements andinformation contained in this news release are made as of the date ofthis news release and no undertaking is given to update publicly orrevise any forward-looking statements or information, whether as aresult of new information, future events or otherwise, unless sorequired by applicable securities laws or the CSE. The forward-lookingstatements or information contained in this news release are expresslyqualified by this cautionary statement.

Neither the CSE nor its RegulationServices Provider (as that term is defined in the policies of the CSE)accepts responsibility for the adequacy or accuracy of this release.No stock exchange, securities commission or other regulatory authorityhas approved or disapproved the information contained herein.

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