SITKF - Sitka Intercepts Visible Gold in Second Step Out Diamond Drill Hole of 2024 at its RC Gold Project in Yukon
(TheNewswire)
VANCOUVER, CANADA – TheNewswire- April 9, 2024: Sitka Gold Corp. (“Sitka”or the “Company”) (TSX-V:SIG) (FSE:1RF) (OTCQB:SITKF ) is pleased to announce it hasintercepted visible gold within sheeted veining in megacrystic quartzmonzonite intrusive rock in the second 2024 winter diamond drill hole(DDRCCC-24-58 or Hole 58) at its flagship RC Gold Project (“RCGold” or the “Project”) located in Yukon’s prolific TombstoneGold Belt. A total of 1085.1 m has been drilled to date this year aspart of a planned 15,000 m diamond drilling for 2024.
Hole 58 was collared approximately 70 metres north of recentlycompleted DDRCCC-24-057, which also intersected visible gold insheeted veining within megacrystic quartz monzonite (see press releasedated March 28, 2024). Hole 58 was drilled to a depthof 534.9 metres at an azimuth of 60 degrees and dip of -60 degrees(see Figure 1) and is currently being logged and cut inpreparation for delivery to the assay lab.
The winter drilling program is focused on stepping out from Hole 47that was drilled in 2023 south of the current Blackjack gold deposit( 900,000 ounces of gold at a grade of 0.83 g/t ;see news release dated January 19, 2023). Hole 47 contained the bestgold mineralized intersection to date on the property, returning 219.0 m of 1.34 g/t gold including 124.8 m of 2.01 g/t gold and 55.0 m of3.11 g/t gold . Hole 58 was drilled to test the down dipextension of the well mineralized quartz monzonite intrusionintersected in hole DDRCCC-23-047 (see news release dated September26, 2023).
“Observations of visible gold within significantintervals of megacrystic quartz monzonite (intrusive rock) in thefirst two step out drill holes of our winter diamond drilling campaignat RC Gold are very encouraging and further support that robust goldmineralization remains persistent in this area, which is still open inall directions,” said Cor Coe, Director and CEO of SitkaGold. “These successful step outs show thatmineralization encountered in Hole 47 continues in Hole 57 and 58 anddemonstrates the significant potential to expand higher grade goldmineralization to the south and southeast of the current Blackjackdeposit, which remains open in all directions, and we are eagerlyawaiting the assay results.
“Our team has done a wonderful job getting an earlystart on the planned 15,000 metre diamond drilling program for thisyear. As the only company drilling in the Tombstone Gold Belt thiswinter, the advantages of having proximity to existing infrastructure,including year-round road access, are hard to ignore and bode well forcurrent and future development of RC Gold. The Blackjack gold depositis a strong example of the geological potential of the district-scaleand still largely underexplored land package where over 1.3 millionounces of gold has been defined and nineoutcropped intrusions associated with gold mineralization have beenidentified to date. With a gold resource that is poised forsignificant growth and several additional high priority intrusionrelated gold targets across the 386 square kilometre property, Sitka is very well positioned tocapitalize on a strengthening gold market as we continue with ourfully funded 2024 diamond drilling program at RC Gold.”
Hole 58 has confirmed that the well mineralized quartz monzoniteintrusion intersected in hole DDRCCC-23-047 and in Hole 57 continuesto depth. It intersected two broad zones of feldspar megacrystic andvari-textured, quartz monzonite and feldspar porphyry (6.0 - 114.2 mand 455.3 - 509.8 m, Figures 2 and 5) within a large package ofbiotite schist, phyllite, and quartzite of the Late ProterozoicYusezyu Formation (Hyland Group). The intersection correlates wellwith the expected geology encountered in previous drill holes in thearea including the lamprophyre dyke commonly associated with goldmineralization that was intersected from 509.9 - 528.2 m. Theintrusions were cut by abundant 1-2 cm sheeted quartz veins,quartz-arsenopyrite veins, and arsenopyrite veins. Visible gold wasnoted at 476.9 m within the deepest intersection of the intrusiondrilled to date (Figure 5). Several occurrences of bismuthinite, whichis commonly associated with gold mineralization within the Blackjackgold deposit, were also observed in various intervals throughout thedrill hole.
The key objectives of drilling this year will be to further expand anddefine targets within the well-endowed Clear Creek Intrusive Complexarea, which currently hosts the Blackjack and Eiger gold deposits -both of which remain open in all directions. This initial drilling hasfocused on expanding the mineralization hosting the Blackjack depositto the south and to depth and that objective has been achieved. Themineralization remains open and when drilling recommences this areawill continue to be a focus for expansion of the high-grade Blackjackdeposit resource. Drilling will also target expansion of the resourceat the Eiger deposit and continue drilling of the Saddle zone, midway between the Blackjack and Eiger deposits,where drilling has indicated excellent potential for anotherresource (see Figure 3). Additionally, the drilling aims to advance the drill-ready targetselsewhere on the district -scale, 386 squarekilometre property which hosts nine known intrusions withassociated gold mineralization. The winter phase of the15,000 m diamond drill program planned for 2024 has now beencompleted. The drill remains on site and the drilling will recommenceafter a brief hiatus as the spring thaw has begun in the Yukon.
Figure 1: Workmap showing drill hole locations at theBlackjack gold deposit .
Figure 2: Cross section of DDRCCC-24-058 where visiblegold was intercepted within the deepest intersection of the intrusiondrilled to date.
Figure 3: Plan map of theNorthern Extent of the Clear Creek Intrusive Complex where severaldrill intervals and surface samples have demonstrated the high-gradenature of the Reduced Intrusion Related Gold System present. Yellowstars indicate where outcrop rock samples of drill hole intervals havereturned >10 g/t gold. Several additional targets with thepotential to host intrusion related gold deposits of significant sizeand grade have yet to be drilled within this approximately 3 km x 5 kmarea. The Saddle Zone target area remains largely untested by drillingand contains the largest and strongest gold-in-soil anomaly on theproperty.
Figure 4: Example of visible gold observed inDDRCCC-24-058 at 476.9 m
Figure 5: Drill core, ranging from 470.5 to 479.5 metres in DDRCCC-24-058, consists of variably altered and intenselyveined, multi-phase, megacrystic quartz monzonite, where visible goldwas observed in a quartz veinlet at a depth of 476.9 metres.
About the flagship RC Gold Project
The RC Gold Project consists of a 386 square kilometrecontiguous district-scale land package located in the heart of Yukon'sTombstone Gold Belt. The project is located approximately 100kilometres east of Dawson City with a 5,000 foot paved runway and isaccessed via a secondary gravel road from the Klondike Highway whichis usable year-round and is an approximate 2 hour drive from Dawson.It is the largest consolidated land package strategically positionedmid-way between Victoria Gold's Eagle Gold Mine- Yukon ’ s newest goldmine which reached commercial production in the summer of 2020 - andVictoria Gold’s former producing Brewery Creek Gold Mine.
On January 19, 2023 Sitka Goldannounced an Initial Mineral Resource Estimate prepared in accordancewith National Instrument 43-101 (“NI 43-101”) guidelines for theRC Gold Property of 1,340,000 ounces of gold (1) . The road accessible, pit constrained Mineral Resource isclassified as inferred and is contained in two near/on-surface zones:The Blackjack and Eiger deposits. Both of these deposits are at/nearsurface, are potentially open pit minable and amenable to heapleaching, with initial bottle roll tests indicating that the gold isnot refractory and has high gold recoveries ofup to 94% with minimal NaCN consumption (seeNews Release July 13, 2022). The Mineral Resource estimate ispresented in the following table at a base case cut-off grade of 0.25g/t Au:
RC Gold Inferred Mineral Resource Estimate
| COG g/t Au |
| Blackjack Zone |
| Eiger Zone |
| Combined |
| Tonnes 000's |
| Au g/t |
| 0z Au 000's |
| Tonnes 000's |
| Au g/t |
| 0z Au 000's |
| Tonnes 000's |
| Au g/t |
| 0z Au 000's |
| 0.20 |
| 35,798 |
| 0.80 |
| 921 |
| 32,523 |
| 0.45 |
| 471 |
| 68,321 |
| 0.63 |
| 1,391 |
| 0.25 |
| 33,743 |
| 0.83 |
| 900 |
| 27,362 |
| 0.50 |
| 440 |
| 61,105 |
| 0.68 |
| 1,340 |
| 0.30 |
| 31,282 |
| 0.88 |
| 885 |
| 22,253 |
| 0.55 |
| 393 |
| 53,535 |
| 0.74 |
| 1,279 |
| 0.35 |
| 29,065 |
| 0.92 |
| 860 |
| 17,817 |
| 0.60 |
| 344 |
| 46,882 |
| 0.80 |
| 1,203 |
| 0.40 |
| 26,975 |
| 0.96 |
| 833 |
| 14,506 |
| 0.66 |
| 308 |
| 41,481 |
| 0.86 |
| 1,140 |
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.
To d ate, 5 6 diamond drill holes have been drilledinto this system for a total of approximately 19, 962 metres including 16 drill holestotalling 6,515 metres completed in 2023 focused on expanding theinitial resource. The drilling in 2023 produced results of up to 219.0 m of 1.34 g/t gold including 124.8 m of 2.01 g/t gold and 55.0 m of 3.11 g/t gold in drill holeDDRCCC-23-047 at Blackjack (see news release dated September 26,2023).
*For more detailed information on the underlyingproperties please visit our website at www.sitkagoldcorp.com
RC Gold Deposit Model
Exploration on the Property has mainly focused onidentifying an intrusion-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 deposit withcurrent Indicated Mineral Resource of 22.2 million tonnes at a goldgrade 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 anInferred Mineral Resource of 347.49 million tonnes grading 0.63 gramper tonne gold (7.00 million ounces) (5) .
(1) Sims J. Fort Knox MineFairbanks North Star Borough, Alaska, USA National Instrument 43-101Technical Report. June 11, 2018.https://s2.q4cdn.com/496390694/files/doc_downloads/2018/Fort-Knox-June-2018-Technical-Report.pdf
(2) Harvey N., Gray P., WintertonJ., Jutras M., Levy M.,Technical Report for the Eagle Gold Mine, YukonTerritory, 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.NI 43-101 Technical Report 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 GoldProject NI 43-101 Technical 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 ReleaseDated February 7, 2023 (Technical Report to be filed within 45 days ofnews release)https://banyangold.com/news-releases/2024/banyan-announces-7-million-ounce-gold-updated-mineral-resource-estimate-aurmac-project-yukon-canada/
Upcoming Events
Sitka Gold will be attending and/or presenting at thefollowing events*:
-
Redcloud Virtual 1:1 Precious Metals Conference,Toronto, ON, April 11, 2024
-
121 Mining Investment Conference, London, England:May 15 - 16, 2024
-
Yukon Mining Alliance Property Tours, Dawson City,Yukon: June 20 - 26, 2024
-
Takestock Investor Forum, Stampede Event, Calgary,Alberta: July 3, 2024
-
Precious Metals Summit, Beaver Creek, Colorado:September 10 - 13, 2-024
*All events are subject to change.
About Sitka Gold Corp.
Sitka Gold Corp. is a well-funded mineral explorationcompany headquartered in Canada with approximately $7 million in thetreasury. The Company is managed by a team of experienced industryprofessionals and is focused on exploring for economically viablemineral deposits with its primary emphasis on gold, silver and coppermineral properties of merit. Sitka is currentlyexploring its flagship RC Gold Project within the Tombstone Gold Beltin the Yukon Territory. The company is advancing the Alpha GoldProject in Nevada and has drill permits for its Burro Creek Gold andSilver Project in Arizona and the Coppermine River Project inNunavut.
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 GOLDCORP.
“ Donald Penner ”
President and Director
For more information contact:
Donald Penner President & Director778-212-1950
or
Cor Coe
CEO & Director 604-817-4753
Cautionary and Forward-Looking Statements
This release includes certain statements andinformation that may constitute forward-looking information within themeaning of applicable Canadian securities laws. Forward-lookingstatements relate to future events or future performance and reflectthe expectations or beliefs of management of the Company regardingfuture events. Generally, forward-looking statements and informationcan be identified by the use of forward-looking terminology such as“intends” or “anticipates”, or variations of such words andphrases or statements that certain actions, events or results“may”, “could”, “should”, “would” or “occur”. Thisinformation and these statements, referred to herein as"forward - lookingstatements", are not historical facts, are made as of the date ofthis news release and include without limitation, statements regardingdiscussions of future plans, estimates and forecasts and statements asto management's expectations and intentions with respect to, amongother things, the use of the proceeds raised under the Offering andthe Company’s anticipated work programs.
In making the forward-looking statements in this newsrelease, the Company has applied several material assumptions,including without limitation, that the Company will complete itsanticipated work programs and use the proceeds of the Offering ascurrently anticipated.
These forward - looking statements involve numerous risks and uncertaintiesand actual results might differ materially from results suggested inany forward-looking statements. These risks and uncertainties include,among other things, market uncertainty, the results of the Company’santicipated work programs and that the Company will not use theproceeds of the Offering as currently anticipated.
Although management of the Company has attempted toidentify important factors that could cause actual results to differmaterially from those contained in forward-looking statements orforward-looking information, there may be other factors that causeresults not to be as anticipated, estimated or intended. There can beno assurance that such statements will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on forward-looking statements and forward-lookinginformation. Readers are cautioned that reliance on such informationmay not be appropriate for other purposes.
The Company does not undertake to update anyforward-looking statement, forward-looking information or financialout-look that are incorporated by reference herein, except inaccordance with applicable securities laws. We seek safeharbor.
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