(TheNewswire)
VANCOUVER, CANADA – TheNewswire - December 19, 2023 - Sitka Gold Corp.(“Sitka” or the “Company”) (CSE:SIG) (FSE:1RF) (OTC:SITKF) is pleased to announce that it has acquired 100% ownership inthe Clear Creek Property that is one of the underlying properties inthe Company’s contiguous, road accessible 386 square kilometre RCGold Property (“RC Gold” or the “Property”) in Yukon, andcontains the recently announced Blackjack and Eiger Gold Deposits (seenews release dated January 19, 2023). The Company has completed allthe exploration requirements and has made all property cash and sharepayments pursuant to the option agreement (see news release dated June26, 2020) subject to an amended agreement dated December 12, 2023whereby the Company made a final payment of $90,000 cash and theissuance of 650,000 shares, to acquire the 100% interest. The companyhas also staked an additional 59 Yukon Quartz Mining claims to coverrecently identified highly prospective ground. These claims arecontiguous to the existing RC Gold Property claim block and increasedthe size of the Property to 386 square kilometres.
The Blackjack and Eiger deposits contain a pit-constrained, initialmineral resource estimate of 900,000 ounces of gold grading 0.83 g/tgold and 440,000 ounces of gold grading 0.50 g/t gold respectively andcontain a combined total of 1.34 million ounces of gold with anaverage grade of 0.68 g/t gold (see Table 1). Both these depositsremain open laterally and to depth. Since the initial resource ofthese deposits was announced in January of this year, the Company hascompleted an additional 6500 metres in 16 drill holes on the ClearCreek Property.
“ Completing our requirements toobtain 100% ownership of the Clear Creek Property, which hosts theBlackjack and Eiger deposits, is an important milestone in Sitka’sadvancement of the RC Gold Project, ” stated Cor Coe, CEO andDirector. “ The drilling completedthis year has further highlighted the potential to add significanttonnage with higher gold grades to our existing resource at RC Gold,with our best drill hole to date returning 219.0 m of 1.34 g/tgold, including 124.8 m of 2.01 g/tgold and 55.0 m of 3.11 g/tgold, in drill holeDDRCCC-23-047 at Blackjack (see news release dated September 26,2023). The Clear CreekProperty also covers the Northern Extent of the Clear Creek IntrusiveComplex where several additional targets with the potential to ho st intrusion related gold deposits ofsignificant size and grade have yet to be drilled (see Figure 1). The contribution ofprospectors in the discovery of mineral deposits cannot be overstatedand we are pleased to have an excellent relationship with theunderlying Clear Creek Property vendor, well-known Yukon prospectorBernie Kreft, whom we wish continued success in all his futureprospecting endeavours. Withthis prospective ground nowunder Sitka’s 100% ownership, w e are eagerly looking forward tocontinuing our exploration efforts as we grow the initial mineralresource estimate and pursue additional new discoveries. ”
Figure 1: Plan map of the NorthernExtent of the Clear Creek Intrusive Complex. Yellow stars indicatewhere outcrop rock samples or drill hole intervals have returned>10 g/t gold.
About the RC Gold Project
The RC Gold Project (RC Gold) consists of a 386 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 which is usableyear-round and is an approximate 2 hour drive from Dawson. It is thelargest consolidated land package strategically positioned mid-waybetween Victoria Gold's Eagle Gold Mine - Yukon ’ s newest gold mine which reached commercialproduction in the summer of 2020 - and Victoria Gold’s Brewery CreekGold Mine. The RC Gold Project land package comprises five underlyingproperties, namely, the RC, Bee Bop, Mahtin, Clear Creek, and BarneyRidge properties. Sitka currently owns 100% of the Clear Creek, Mahtinand other independently staked claims which comprise 86% of the total386 square kilometre land package that comprises the RC Gold Project.The Company has an option to earn a 100% interest in the Barney Creek,Bee Bop and RC properties which comprise the remaining 14% of the RCGold Project.*
On January 19, 2023 Sitka Goldannounced an Initial Mineral Resource Estimate prepare d in accordance with National Instrument 43-101 (“NI43-101”) guidelines for the RC Gold Property of 1,340,000 ?ouncesof 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. 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
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.
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 0.83 g/t gold and the Eiger deposit containing 440,000 ounces of gold at a grade of 0.50g/t gold (see news release dated January 19,2023). Both of these deposits are at/near surface, are potentiallyopen pit minable and amenable to heap leaching, with initial bottleroll tests indicating that the gold is notrefractory and has high goldrecoveries of up to 94% with minimal NaCNconsumption (see News Release 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 located within the Clear CreekIntrusive Complex. The deposits are located with a large, 500 metre by5 kilometre intrusion related gold system that was recently discoveredon the Property. To date, 54 diamond drill holes have been drilled into this systemfor a total of approximately 18,877metres with results of up to 219.0 m of 1.34 g/t gold including 124.8 m of2.01 g/t gold and 55.0 m of 3.11 g/t gold in drill hole DDRCCC-23-047 at Blackjack (see news releasedated September 26, 2023).
Several high priority intrusion related gold targets exist at RC Goldwith nine outcropped intrusions identified to date over the 386 sq kmproperty, however Sitka ’ s main focus at the RCGold Project has been on the underlying Clear Creek Property where alarge 500 metre by 2000 metre corridor hosting an intrusion relatedgold system covering the area over the Blackjack, Saddle and Eigerzones was identified. Additional surface work has extended the goldcorridor an additional 3000 metres east and now encompasses theJosephine intrusion. Prior to the onset of the 2023 winter drillingprogram, the Company had drilled 38 diamond drill holes into thissystem for a total of approximately 13,000 metres. This drillingculminated in the discovery of the Blackjack and Eiger deposits withan initial inferred mineral resource estimate of 1,340,000 goldounces (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 westernboundary and Florin Resources ’ Florin Goldproperty at its northern boundary.
(1) Simpson, R. January 19, 2023. Clear Creek Property, RC Gold Project, NI43-101 Technical Report, Dawson Mining District, YukonTerritory.
*For more detailed information on the underlyingproperties please visit our website at www.sitkagoldcorp.com .
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 andIndicated Resources of 233 million tonnes at a grade of 0.57 g/t Au atthe Eagle Main Zone (4.303 million ounces; Harvey et al,2022) (2) ; the Brewery Creek deposit with current Indicated MineralResource of 22.2 million tonnes at a gold grade of 1.11 g/t (0.789million ounces; Hulse et al. 2020) (3) ; the FlorinGold deposit, 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 theAurMac Project with an Inferred Mineral Resource of 312.90 milliontonnes grading 0.61 gram per tonne gold (6.18 million ounces; Jutras2023) (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., LevyM.,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 NI43-101 TechnicalReport. 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(Technical Report 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 well-funded mineral exploration companyheadquartered in Canada with approximately $8 million in the treasuryand no debt. 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 currently has an option to acquirea 100% interest in the RC, Bee Bop, Barney Ridge, and OGI propertiesin the Yukon and the Burro Creek Gold and Silver property in Arizona.Sitka owns a 100% interest in its Clear Creek and Mahtin property inYukon, Alpha Gold property in Nevada, and the Coppermine River projectin Nunavut.
The Company recently announced an NI 43-101 compliant initial inferred Mineral Resource Estimateof 1,340,000 ounces of gold (1) beginning at surface and grading 0.68 g/t at its RC GoldProject in Yukon (see news release dated January 19, 2023). A total of6515 metres of additional diamond drilling within 16 drill holes hasbeen completed at RC Gold since the announcement of the MineralResource Estimate.
(1) Simpson, R. January 19, 2023.Clear Creek Property, RC Gold Project, NI 43-101 Technical Report,Dawson Mining District, Yukon Territory
Upcoming Events
Sitka Gold will be attendingand/or prese nting at the followingevents:
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AME Roundup January 22 - 25, 2024
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Tombstone Gold Belt Breakfast - Fireside Chat -Vancouver, January 22, 2024
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VRIC, Vancouver, BC: January 21 - 22, 2024
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PDAC, Toronto, ON: March 3 - 6, 2024
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Swiss Mining Institute, Zurich, Switzerland: March20-21, 2024
All events are subject to change.
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
Neither the Canadian SecuritiesExchange nor its Regulation Services Provider (as that term is definedin the policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
This release includes certainstatements and information that may constitute forward-lookinginformation within the meaning of applicable Canadian securities laws.Forward-looking statements relate to future events or futureperformance and reflect the expectations or beliefs of management ofthe Company regarding future events. Generally, forward-lookingstatements and information can be identified by the use offorward-looking terminology such as “intends” or“anticipates”, or variations of such words and phrases or statements that certainactions, events or results “may”, “could”, “should”,“would” or “occur”. This information and these statements,referred to herein as "forward ? looking statements", are not historical facts, are made as ofthe date of this news release and include without limitation,statements regarding discussions of future plans, estimates andforecasts and statements as to management's expectations and intentions with respect to,among other things, the use of the proceeds raised under the Offeringand the Company’s anticipated work programs.
In making the forward-lookingstatements in this news release, the Company has applied severalmaterial assumptions, including without limitation, that the Companywill complete its anticipated work programs and use the proceeds ofthe Offering as currently anticipated.
These forward ? looking statements involve numerous risks and uncertainties andactual results might differ materially from results suggested in anyforward-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 Companyhas attempted to identify important factors that could cause actualresults to differ materially from those contained in forward-lookingstatements or forward-looking information, there may be other factorsthat cause results not to be as anticipated, estimated or intended.There can be no assurance that such statements will prove to beaccurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readers shouldnot place undue reliance on forward-looking statements andforward-looking information. Readers are cautioned that reliance onsuch information may not be appropriate for other purposes. TheCompany does not undertake to update any forward-looking statement,forward-looking information or financial out-look that areincorporated by reference herein, except in accordance with applicablesecurities laws. We seek safe harbor.
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