(TheNewswire)
VANCOUVER, CANADA – TheNewswire - December 15, 2023 - Sitka Gold Corp.(“Sitka” or the “Company”) (CSE:SIG) (FSE:1RF)(OTC:SITKF) is pleased to announce that theCompany has closed its previously announced non-brokered privateplacement for aggregate gross proceeds of approximately $2,602,858 (the “ Offering ”) throughthe issuance of 13,014,289 charity flow-through units (the“ Charity FT Units ”) at aprice of $0.20 per Charity FT Unit.
Each Charity FT Unit was issued as part of a charityarrangement and is comprised of one “flow-through” common share inthe capital of the Company and one-half of one common share purchasewarrant (each whole warrant, a “ Warrant ”). EachWarrant entitles the holder to purchase an additional common share inthe capital of the Company (a " Common Share ")at a price of $0.37 for a period of 24 months from the date ofissuance.
Both Crescat Capital LLC and Dr. Quinton Hennighpersonally have subscribed to this financing. Dr. Hennigh is thetechnical and geologic director of Crescat Capital and is aworld-renowned exploration geologist with more than 30 years ofexperience, including with major gold mining firms Homestake Mining,Newcrest Mining and Newmont Mining.
“Crescat Capital and I aredelighted to become new shareholders of Sitka Gold,” commented Quinton Hennigh, Technical and Geologic Director ofCrescat. “The RC Goldproject is yet another new discovery of a very large scale reducedintrusion related gold system in the prolific Tintina Province. I havebeen watching this story develop over the past couple years, and itwas some deeper higher grade gold intercepts announced by Sitkaearlier this year that were compelling. I think they might have a wellpreserved high grade system like Snowline’s Valley deposit startingto take shape at RC Gold. The geochemistry, geology and grades allpoint in this direction. We look forward to working with the Companyas they undertake further drilling to test this deeper area as well asother targets across the RC Gold project.”
Cor Coe, P. Geo., director and chief executive officer of Sitka Gold,stated: “Sitka is very pleased towelcome Crescat Capital as a strategic investor and Dr. QuintonHennigh himself as an investor. Crescat and Dr. Hennigh bring a proventrack record of both financial and technical strength that willfurther enable Sitka to unlock the full potential of its assets andbuild significant value for shareholders. Given their success inrecognizing the potential of Snowline Gold’s Valley target early on,among many other notable success stories, this investment andstrategic partnership is a substantial endorsement of our RC Goldproject and we look forward to working closely with Crescat and Dr.Hennigh as we continue to advance this exciting project.”
The securities offered pursuant to the Offering aresubject to a statutory hold period of four months and a day from thedate of issuance. No finder’s fees were paid on the gross proceedsof the Offering.
The Offering, as announce d in the Company’snews release dated December 8, 2023 (“Sitka Gold Announces up to $2M Private Placement” )wa s oversubscribed. The Company intends to use the netproceeds of the Offering on its exploration and related programs onthe Company’s Yukon gold properties, which expenditures will qualifyas “Canadian Exploration Expenses” as such term is defined inparagraph (f) of the definition of “Canadian exploration expense”in subsection 66.1(6) of the Income Tax Act (Canada) (the “ Tax Act ”) and“flow through mining expenditures” as defined in subsection 127(9)of the Tax Act, which will be incurred on or before December 31, 2024and renounced with an effective date no later than December 31, 2023,to the purchasers of Charity FT Units.
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 reachedcommercial production in the summer of 2020 - and Victoria Gold’sBrewery Creek Gold Mine. The RC Gold Project land package comprisesfive underlying properties, namely, the RC, Bee Bop, Mahtin, ClearCreek, and Barney Ridge properties*.
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:
RC Gold Inferred Mineral ResourceEstimate
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 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 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 376 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. 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.
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 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.
“ 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 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 andintentions with respect to, among other things, the developmentpotential of the RC Project and the use of the proceeds raised underthe Offering.
In making the forward-lookingstatements in this news release, the Company has applied severalmaterial assumptions, including without limitation, about: generalbusiness and economic conditions; the nature and location of theCompany’s mineral exploration projects and the timing of the abilityto commence and complete the planned exploration programs; theanticipated terms of the consents, permits and authorizationsnecessary to carry out the planned exploration programs and theCompany’s ability to comply with such terms on a cost ? effective basis; the Company’s ability to secure the necessaryconsulting, drilling and related services and supplies on favorableterms; the timing of the receipt of regulatory and governmentalapprovals, permits and authorizations necessary to implement and carryon the Company’s planned exploration programs; and the Company usingthe proceeds of the 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 uncertainty of the resultsof the Company’s anticipated work programs, risks related to thetiming and cost of planned exploration programs of the Company, andthe timing of the receipt of the results therefrom; risks related tothe timing of decisions regarding the strategy and costs ofexploration programs with respect to, and the issuance of thenecessary permits and authorizations required for, the Company’sexploration programs; and that the Company will not use the proceedsof 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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