VANCOUVER, CANADA – September 26, 2023: Sitka Gold Corp. (“Sitka” or the “Company”) (CSE:SIG) (FSE:1RF) (OTCQB:SITKF) is pleased to announce the results of drill hole DDRCCC-23-47 (“Hole 47”), the fifth hole completed during the 2023 diamond drilling program at the Company’s 376 square kilometre, road accessible RC Gold Project (“RC Gold” or the “Project”) located in Yukon’s Tombstone Gold Belt (“TGB”), approximately 100 kilometres east of Dawson City. Hole 47 produced the best gold intercepts drilled to date at RC Gold and significantly extends the known gold mineralization from the southern extent of the current Blackjack deposit, returning 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 (see Table 1). Analytical results for an additional 9 diamond drill holes completed at RC Gold are currently pending.
DDRCCC-23-047 Highlights:
- 219.0 m of 1.34 g/t Au from 190.0 m including:
- 124.8 m of 2.01 g/t Au from 233.0 m including;
- 55.0 m of 3.11 g/t Au from 276.0 m including:
- 14.0 m of 5.53 g/t Au from 311.0 m
“Hole 47 is our best drill hole to date, returning 219 meters of 1.34 g/t gold including very significant sub-intervals such as 124.8 metres of 2.01 g/t gold and 14.0 meters of 5.53 g/t gold,” commented Cor Coe, Director and CEO of Sitka, “What is particularly noteworthy is that, while Hole 47 is the best hole drilled to date when looking at interval length and grade, its location is in a wide open area at the southern extent of the Blackjack zone, whereas the previous reported Hole 46 was drilled 405 m to the northeast and returned the highest grade interval ever drilled in the Clear Creek Intrusive Complex (1.2 m of 108.00 g/t gold; see news release dated September 11, 2023 and Figure 2). Both of these drill holes are wide open step outs from the maiden resource at the Blackjack deposit investigating the gold mineralization within the metasediments and the intrusive rocks, and underscore that this deposit and the Clear Creek Intrusive Complex area are just beginning to reveal the true potential they have to develop significant ounces. We are very pleased to see the persistent gold mineralization being exhibited within the quartz arsenopyrite veining in the metasediments, in addition to the intrusive units, and believe that this will ultimately contribute to a very large gold endowment within the cluster of intrusive rocks and surrounding metasediments that make up the Clear Creek Intrusive Complex.”
DDRCCC-23-047
DDRCCC-23-047 intersected the longest sections of multi-gram gold mineralization seen in drilling to date on the RC property. Gold mineralization occurred in quartz and quartz – arsenopyrite veins within both the metasediments and the megacrystic quartz monzonite (MQZM) units. Analytical results demonstrate that localized high grade gold values in quartz arsenopyrite veins often occur in the metasediments, such as 2.0 m of 10.5 g/t Au from 249.0 m, while longer more consistently mineralized intervals generally occur in quartz and quartz-arsenopyrite veinlets in the MQZM, such as 55.0 m of 3.11 g/t Au 276.0 m. In the latter 55.0 m interval, only one 1.9 m sample (from 284.0 to 285.9 m) returned an assay less than 1.00 g/t Au, while the highest assay in the interval was 2.0 m of 7.70 g/t Au (from 321.0 to 323.0 m).
DDRCCC-23-047 was located at the south margin of the current Black Jack resource, approximately 60 m southeast of the most southerly holes drilled in the area to date (RCCC23-044 and 045) and drilled to the northeast at an azimuth of 040 degrees and a dip of -55 degrees. The hole intersected metasediments intruded by metre scale granodiorite and MQZM to 75 m; MQMZ and granodiorite until 131 metres; dominantly metasediments to 224 metres; and MQZM to 371 m and then metasediments to the end of the hole at 422.15 metres. Quartz arsenopyrite veins and massive arsenopyrite veinlets occurred throughout the hole, with the most intense development of the veins occurring with the MQZM unit from 224 to 371 metres. Visible gold was noted in a quartz sulphide vein within the MQZM at 280 metres (Figure 4). Significant mineralized intervals are summarized below in Table 1 and examples of drill core intervals are displayed in Figure 5.
Figure 1: Plan map of the Northern Extent of the Clear Creek Intrusive Complex. Yellow stars indicate where outcrop rock samples or drill hole intervals have returned >10 g/t gold.
Figure 2: Plan Map Showing the Location of DDRCCC-23-047
Figure 3: Cross-section A showing DDRCCC-23-047
Figure 4: Examples of visible gold in drill hole DDRCCC-23-047
Figure 5: Drill Core from DDRCCC-23-047
Table 1 – Assay Highlights for DDRCCC-23-047
| HoleID | Azimuth (°) | Dip (°) | From (m) | To (m) | Length (m) | Au (g/t) |
| DDRCCC-23-047 | 040 | -55 | 190.0 | 409.0 | 219.0 | 1.34 |
| including | 223.7 | 409.0 | 185.3 | 1.50 | ||
| including | 223.7 | 359.0 | 135.3 | 1.89 | ||
| including | 233.0 | 357.8 | 124.8 | 2.01 | ||
| including | 237.0 | 259.6 | 22.6 | 2.13 | ||
| including | 249.0 | 259.6 | 10.6 | 3.49 | ||
| including | 249.0 | 251.0 | 2.0 | 10.50 | ||
| and | 276.0 | 331.0 | 55.0 | 3.11 | ||
| including | 302.0 | 329.4 | 27.4 | 4.24 | ||
| including | 311.0 | 325.0 | 14.0 | 5.53 |
*Intervals are drilled core length, as insufficient drilling has been completed at this time to determine true widths
The Company has completed 16 drill holes totaling approximately 6515 metres as part of its 2023 diamond drill program at RC Gold. Analytical results for the remaining 9 drill holes completed to date will be released once they have been received and compiled.
About the RC Gold Project
The RC Gold Project (RC Gold) consists of a 376 square kilometre contiguous district-scale land package located in the newly road accessible Clear Creek, Big Creek, and Sprague Creek districts in the heart of Yukon’s Tombstone Gold Belt. The project is located approximately 100 kilometres east of Dawson City and is accessed via a secondary gravel road from the Klondike Highway an approximate 2 hour drive from Dawson. It is the largest consolidated land package strategically positioned mid-way between Victoria Gold’s Eagle Gold Mine – Yukon’s newest gold mine which reached commercial production in the summer of 2020 – and Victoria Gold’s Brewery Creek Gold Mine. The RC Gold Project land package comprises five underlying properties, namely, the RC, Bee Bop, Mahtin, Clear Creek, and Barney Ridge properties*.
On January 19, 2023 Sitka Gold announced an Initial Mineral Resource Estimate prepared in accordance with National Instrument 43-101 (“NI 43-101”) guidelines for the RC Gold Property of 1,340,000 ounces of gold(1). The road accessible, pit constrained Mineral Resource is classified as inferred and is contained in two near/on-surface zones: The Blackjack and Eiger deposits. The Mineral Resource estimate is presented in the following table at a base case cut-off grade of 0.25 g/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 January 19, 2023. Mineral Resources are classified using the 2014 CIM Definition Standards.
2. The cut-off grade of 0.25 g/t Au is believed to provide a reasonable margin over operating and sustaining costs for open-pit mining and processing
3. Mineral resources are constrained by an optimised pit shell using the following assumptions: US$1800/oz Au price; a 45° pit slope; assumed metallurgical recovery of 85%; mining costs of US$2.00 per tonne; processing costs of US$8.00 per tonne; G&A of US$1.50/t.
4. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
5. Totals may not sum due to rounding.
The Initial Mineral Resource Estimate of 1,340,000 ounces of gold at the RC Gold Project is comprised of two deposits: the Blackjack 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 0.50 g/t gold (see news release dated January 19, 2023). Both of these deposits are at/near surface, are potentially open pit minable and amenable to heap leaching, with initial bottle roll tests indicating that the gold is not refractory and has high gold recoveries of up to 94% with minimal NaCN consumption (see News Release July 13, 2022).
The Blackjack and Eiger deposits are in close proximity to highway and power infrastructure, are road accessible year-round, remain open in all directions and are located within the Clear Creek Intrusive Complex. The deposits are located with a large, 500 metre by 5 kilometre intrusion related gold system that was recently discovered on the Property. To date, 52 diamond drill holes have been drilled into this system for a total of approximately 18,275 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/t gold and 19.5 m of 4.87 g/t gold at Blackjack (drill hole DDRCCC-22-040; see news release dated January 11, 2023) and 72 m of 0.72 g/t gold at Eiger (drill hole DDRCCC-21-009; see news release date August 19, 2021).
Several high priority intrusion related gold targets exist at RC Gold with nine outcropped intrusions identified to date over the 376 sq km property, however Sitka’s main focus at the RC Gold Project has been on the underlying Clear Creek Property where a large 500 metre by 2000 metre corridor hosting an intrusion related gold system covering the area over the Blackjack, Saddle and Eiger zones was identified. Additional surface work has extended the gold corridor an additional 3000 metres east and now encompasses the Josephine intrusion. Prior to the onset of the 2023 winter drilling program, the Company had drilled 38 diamond drill holes into this system for a total of approximately 13,000 metres. This drilling culminated in the discovery of the Blackjack and Eiger deposits with an initial inferred mineral resource estimate of 1,340,000 gold ounces(1).
Sitka Gold inherited a wealth of historical and current data from these properties from work spanning the last 40 years. Recent exploration work and the compilation of historical data have defined several mineralized zones with both bulk tonnage, intrusion-related gold deposit targets and high-grade, vein- and breccia-hosted gold targets. The RC Gold Project also has a common border with Victoria Gold’s Clear Creek property at its western boundary and Florin Resources’ Florin Gold property at its northern boundary.
(1) Simpson, R. January 19, 2023. Clear Creek Property, RC Gold Project, NI 43-101 Technical Report, Dawson Mining District, Yukon Territory.
*For more detailed information on the underlying properties please visit our website at www.sitkagoldcorp.com.
Deposit Model
Exploration on the Property has mainly focused on identifying an intrusion-related gold system (“IRGS”). The property is part of the Tombstone Gold Belt which is the prominent host to IRGS deposits within the Tintina Gold Province in Yukon and Alaska. Notable deposits from the belt include: Fort Knox Mine in Alaska with current Proven and Probable Reserves of 230 million tonnes at 0.3 g/t Au (2.471 million ounces; Sims 2018)(1); Eagle Gold Mine with current Measured and Indicated Resources of 233 million tonnes at a grade of 0.57 g/t Au at the Eagle Main Zone (4.303 million ounces; Harvey et al, 2022)(2); the Brewery Creek deposit with current Indicated Mineral Resource of 22.2 million tonnes at a gold 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 Inferred 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 Inferred Mineral Resource of 312.90 million tonnes grading 0.61 gram per tonne gold (6.18 million ounces; Jutras 2023)(5).
(1) Sims J. Fort Knox Mine Fairbanks North Star Borough, Alaska, USA National Instrument 43-101 Technical 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., 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 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 Gold Project NI43-101 Technical Report. Geosim Services Inc. April 21, 2021. https://sedar.com/GetFile.do?lang=EN&docClass=24&issuerNo=00005795&issuerType=03&projectNo=03236138&docI d=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 company headquartered in Canada. The Company is managed by a team of experienced industry professionals and is focused on exploring for economically viable mineral deposits with its primary emphasis on gold, silver and copper mineral properties of merit. Sitka currently has an option to acquire a 100% interest in the RC, Barney Ridge, Clear Creek and OGI properties in the Yukon and the Burro Creek Gold property in Arizona. Sitka owns a 100% interest in its Alpha Gold property in Nevada, its Mahtin Gold property in the Yukon and its Coppermine River project in Nunavut.
The Company recently announced an NI 43-101 compliant Initial Mineral Resource Estimate of 1,340,000 ounces of gold(1) beginning at surface and grading 0.68 g/t at its RC Gold Project in Yukon (see news release dated January 19, 2023).
The Company is also planning additional drilling at its Alpha Gold Property in Nevada where a new Carlin-type gold system was recently discovered. The Company is focused on vectoring towards the high-grade core of this system, which is located on the Cortez Trend just 40 km southeast of the Cortez Mine Complex of Barrick/Newmont.
(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 attending and/or presenting at the following events:
- 121 Mining Investment; New York: October 23 – 24, 2023
- Yukon Geoscience Forum, Whitehorse, Yukon: November 19 – 22, 2023
All events are subject to change.
The scientific and technical content of this news release has been reviewed and approved by Cor Coe, P.Geo., Director and CEO of the Company, and a Qualified Person (QP) as defined by National 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 and Forward-Looking Statements
This news release contains forward-looking statements and forward looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements 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 and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the expected timing and terms of the private placement, use of proceeds, anticipated work program, required approvals in connection with the work program and the ability to obtain such approvals. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking statements and information contained in this news release are made as of the date of this news release and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the CSE. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
Neither the CSE nor its Regulation Services 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 authority has approved or disapproved the information contained herein.
