SIG - Sitka Gold Prepares Mobilization for a Winter Diamond Drilling Program at its RC Gold Project Yukon
(TheNewswire)
VANCOUVER, CANADA – TheNewswire - February 16, 2023 - Sitka Gold Corp.(“Sitka” or the “Company”) (CSE:SIG) (FSE:1RF) (OTC:SITKF) is pleased to announcethat it has secured a drilling contractor to complete winter andsummer diamond drilling programs at its RC Gold Project (“RC Gold”or the “Project”) located in the prolific Tombstone Gold Belt inthe Yukon. Preparation of crew and equipment is currently underway andmobilization for the winter drilling program is anticipated to beginnext month.
Kluane Drilling Ltd., a highly experienced drillingcompany based in Whitehorse, Yukon with over 30 years of experiencediamond drilling in the Yukon and around the world, has beencontracted to complete up to 10,000 metres of drilling at theCompany’s flagship RC Gold Project. Kluane D rilling is dedicated to providingquality drilling services based on technical innovation and humantalent and specializes in achieving high drilling production inchallenging conditions. As a provider of diamond drilling services toother operators in Yukon’s Tombstone Gold Belt, Kluane Drilling hasproven to be an exceptional contractor with experience drilling inboth summer and winter conditions and Sitka looks forward to workingwith them as the Company continues to advance RC Gold.
Cor Coe, Director and CEO of Sitka, comments: “We arevery pleased to have secured the services of Kluane Drilling Ltd. forour 2023 drilling programs. Kluane is a well established, Whitehorsebased drilling company with a proven track record of completingsuccessful and cost-effective diamond drilling programs in all terrainand weather conditions during both the summer and winter seasons inthe Yukon. We look forward to working with Kluane as we plan to beginour winter drilling program at RC Gold.”
The 2023 winter and summer diamond drill programs at RCGold will follow up on the successful results from 2022 where a stepout drilling campaign returned up to 201.0 m of 1.26 g/t gold, including 82.0 mof 2.04 g/t gold (see news release dated Jan 11,2023) and culminated in the production of a 43-101 compliant Initial Mineral ResourceEstimate of 1,340,000 ounces of gold beginningat surface and grading 0.68 g/t (see news release dated January 19,2023). The Initial Mineral Resource Estimate comprises the BlackjackDeposit ( 900,000 ounces ofgold grading 0.83 g/t gold ) and the EigerDeposit (440,000 ounces of gold grading 0.50 g/t gold), both of whichremain open in all directions. The Blackjack and Eiger Deposits arelocated approximately 2 kilometres apart, along a mineralized corridorwhere minimal drilling has demonstrated that gold mineralizationcontinues across the Saddle Zone, located midway between these newlydiscovered deposits (see Figure 1). The main focus of drilling thisyear will be on adding resources to both theBlackjack and Eiger deposits with drilling designed to expand theknown mineralization of these deposits laterally and at depth.Drilling is also anticipated along the mineralized corridor betweenthese deposits in and around the Saddle Zone, which remains relativelyuntested but contains significant mineralization with the potential toadd additional resources, as demonstrated by drill hole DDRCCC-20-01which returned 0.52 g/t gold over 84.8 m from surface and DDRCCC-21-19which intersected 80.0 mgrading 0.59 g/t gold from 48.0 m depth (seenews releases dated November 23, 2020 and January 20, 2022). Drillingcontinues to add to the geological model of this intrusion relatedgold system and the Company expects information from this year’sdrilling campaign will significantly expand the initial resourceestimate recently announced and enhance its understanding of thislarge and robust mineralized gold system that appears to have a strikelength of at least 2 kilometres and includesseveral higher grade structures that have returned up to 2.0 m of 31.2 g/t gold (see news release dated January 11, 2023).
Figure 1: Blackjack and EigerDeposits
On January 19, 2023 Sitka Gold announced an Initial Mineral ResourceEstimate prepared in accordance with National Instrument 43-101 (“NI43-101”) guidelines for the RC Gold Property of 1,340,000 ?ounces of gold. Theroad accessible, 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:
About the RC Gold Project
The RC Gold Project consists of a district-scale, 376 square kilometrecontiguous land package located in the year-round road accessibleClear Creek, Big Creek, and Sprague Creek districts in the heart ofYukon's Tombstone Gold Belt. It is the largest consolidated landpackage strategically positioned mid-way between Victoria Gold's EagleGold Mine - Yukon’s newest gold mine which reached commercialproduction in the summer of 2020 - and Sabre Gold Mine’s BreweryCreek Gold Mine. The RC Gold Project land package comprises fiveunderlying properties, namely, the RC, Bee Bop, Mahtin, Clear Creek,and Barney Ridge properties*.
?The Company recently announced an Initial Mineral Resource Estimate of 1,340,000 ounces of gold at the RC Gold Project comprised of two deposits: the Blackjackdeposit containing 900,000 ounces of gold at a grade of 0.83 g/t goldand the Eiger deposit containing 440,000 ounces of gold at a grade of0.50 g/t gold (see news release dated January 19, 2023). Both of thesedeposits are at/near surface, are potentially open pit minable andamenable to heap leaching, with initial bottle roll tests indicating that the gold is not refractoryand has high gold recoveriesof up to 94% with minimal NaCN consumption (seeNews Release July 13, 2022).
The Blackjack and Eiger deposits are in close proximity to highway andpower infrastructure, are road accessible year-round, remain open inall directions and are respectively located at the western and easternend of a large, 500 metre by 2 kilometre intrusion related gold systemthat was recently discovered on the Property. To date, just 38 diamonddrill holes have been drilled into this system for a total ofapproximately 13,000 metres with results of up to 201.0 m of 1.26 g/t gold fromsurface, including 82.0 m of 2.04 g/tgold and 19.5 m of 4.87 g/tgold at Blackjack (drill hole DDRCCC-22-040; see news releasedated January 11, 2023) and 354 m of0.41 g/t gold including 72 m of 0.72 g/t gold at Eiger (drillhole DDRCCC-21-09; see news release date August 19, 2021).
Sitka Gold inherited a wealth of historical and current data from workspanning the last 40 years across the underlying properties at RCGold. Recent exploration work and the compilation of historical datahave defined several mineralized zones with both bulk tonnage,intrusion-related gold deposit targets and high-grade, vein- andbreccia-hosted gold targets. The RC Gold Project also has a commonborder with Victoria Gold’s Clear Creek property at its westernboundary.
*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 Proven and ProbableReserves of 155 million tonnes at a diluted grade of 0.65 g/t Au atthe Eagle and Olive deposits (3.261 million ounces; Goodwin et al.2019) (2) ; the BreweryCreek deposit with current Indicated Mineral Resource of 22.2 milliontonnes at a gold grade of 1.11 g/t (0.789 million ounces; Hulse et al.2020) (3) ; the Florin Golddeposit, located adjacent to Sitka’s RC Gold project, with a currentInferred Mineral Resource of 170.99 million tonnes grading 0.45 g/t(2.47 million ounces; Simpson 2021) (4) and the AurMac Project with an InferredMineral Resource of 207.0 million tonnes grading 0.60 gram per tonnegold (3.99 millon ounces; Jutras 2022) (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) Goodwin R, Gray P, Jutras M, Tang S, Wilbur S. Technical Report for the Eagle Gold Mine, Yukon Territory, Canada.JDS Energy & Mining Inc. December 6, 2019.
https://vitgoldcorp.com/site/assets/files/6480/jds-vit-eagle-gold-ni-43-101-fs-report-20191206.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 17, 2022 (Technical Reportto be filed within 45 days of news release)https://www.banyangold.com/news-releases/2022/banyan-announces-4-million-ounce-gold-mineral-resource-estimate-for-the-aurmac-property-yukon-canada/
About Sitka Gold Corp.
Sitka Gold Corp. is a well-funded 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.
In late 2022 Sitka completed a drilling program at the Company’sAlpha 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 newly discovered system which is located inthe Cortez Trend only 40 km southwest of the Cortez Mine Complex ofBarrick/Newmont. Results from the last two drill holes of the 2022drilling program are pending.
The scientific and technical content of this news release has beenreviewed and approved by Cor Coe, P.Geo., Director and CEO of theCompany, and a Qualified Person (QP) as defined by National Instrument43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
“ DonaldPenner ”
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 and Forward-LookingStatements
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 or information. Forward - looking statements and information are often, but not 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 statements and information address future events andconditions, by their very nature they involve inherent risks anduncertainties. Actual results could differ materially from thosecurrently anticipated due to a number of factors and risks. Theseinclude, but are not limited to, the expected timing and terms of theprivate placement, use of proceeds, anticipated work program, requiredapprovals in connection with the work program and the ability toobtain such approvals. Accordingly, readers should not place unduereliance on the forward - looking statements,timelines and information contained in this news release. Readers arecautioned that the foregoing list of factors is not exhaustive.
The forward - looking statements and information contained in this news releaseare made as of the date of this news release and no undertaking isgiven to update publicly or revise any forward - looking statements or information, whether as a result of newinformation, future events or otherwise, unless so required byapplicable securities laws or the CSE. The forward-looking statementsor information contained in this news release are expressly qualifiedby this cautionary statement.
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