News release
NEWS RELEASE
June 06, 2023
NR 23-14
www.sitkagoldcorp.com
SITKA DRILLS 215.1 METRES OF 1.00 G/T
GOLD, INCLUDING 30.7 METRES OF 2.19 G/T
GOLD AT ITS RC GOLD PROJECT, YUKON
VANCOUVER, CANADA – June 06, 2023: Sitka Gold Corp. (“Sitka” or the “Company”)
(CSE:SIG) (FSE:1RF) (OTCQB:SITKF) is pleased to announce assay results from diamond
drill hole DDRCCC-23-042 (the “drill hole” or “Hole 42”), the second diamond drill hole of the
2023 drill program which is focused on expanding the recently announced initial resource at
the RC Gold Project (“RC Gold” or the “Project”) in the prolific Tombstone Gold Belt in the
Yukon Territory. Hole 42 was drilled to expand the Blackjack deposit at depth and to the
southeast and was stepped 80 m to the west of DDRCCC-23-041 (see news release dated
May 24, 2023). Hole 42 intersected 180.2 m of 1.15 g/t Au within a larger interval of 215.1 m
of 1.00 g/t Au. Assay results for DDRCCC-23-043, completed during the 2023 winter drilling
program, are pending.
Assay highlights from DDRCCC-23-042 include:
●
215.1 metres (m) of 1.00 g/t Au from 273.71 m to 488.9 m including:
○
180.2 m of 1.15 g/t Au from 308.6 m,
○
2.35 m of 17.63 g/t Au from 311.0 m,
○
43.5 m of 1.66 g/t Au from 381.5 m,
○
30.7 m of 2.19 g/t Au from 381.5 m.
Cor Coe, Director and CEO of Sitka Gold, states, “Step out drilling continues to demonstrate
the significant expansion potential at our Blackjack gold deposit with Hole 42 further
extending gold mineralization below Hole 41. This season is focused on further delineation
of this major gold system with the objective of adding ounces to both the Blackjack and Eiger
deposits while investigating the potential to link these deposits together through the 1.5 km
mineralized corridor and across the Saddle zone (see Figure 3).”
DDRCCC-23-042 (“Hole 42”), the second drill hole completed in 2023, was collared 215
metres south of discovery drill hole DDRCCC-21-021 (see news release dated December
13, 2021) and was drilled at a northeast azimuth with a -60 degree dip (see Figures 1 and 2).
The drill hole was designed to test for an extension of higher-grade gold mineralization at
depth and southeast of drill holes DDRCCC-22-025, DDRCCC-22-038 and beneath
DDRCCC-23-041) (see news releases dated June 13, 2022, November 30, 2022 and May
24, 2023).
From surface to 464 m RCCC23-042 intersected moderately to strongly altered
metasediments cut by metre scale megacrystic quartz monzonite (MQMZ) and feldspar
porphyry (FP) dykes and sills. From 464.0 m to the end of the hole at 527.3 m the hole
intersected
dominantly
MQMZ
with
metre
scale
inclusions
of
metasediments.
Quartz-sulphide (arsenopyrite +/- pyrrhotite +/- bismuthinite) veins occurred throughout the
hole, with the highest density noted from 280 m to 488 m generally but not always
associated with the MQMZ and FP units. Multiple occurrences of visible gold with
bismuthinite were noted in the quartz veins (see Figures 4 and 5).
Widespread gold mineralization occurred throughout the latter half Hole 42 with the interval
from 273.71 m to 488.9 m returning 215.1 m of 1.00 g/t Au, including 180.2 m of 1.15 g/t Au
from 308.6 m and 30.7 m of 2.19 g/t Au from 381.5 m. The highest grade gold encountered
in the hole was 2.35 m of 17.63 g/t Au from 311.0 m within a FP dyke.
Table 1 – Assay Highlights for DDRCCC-23-042
Drillhole ID
Azimuth
(°)
Dip
(°)
Length (m)
From (m)
To (m)
Interval (m)*
Au (g/t)
DDRCCC-23-042
28
-60
527.3
273.7
489.9
215.1
1.00
Including
308.6
488.9
180.2
1.15
Including
308.6
311.0
2.35
17.63
Including
381.5
488.9
107.4
1.34
Including
381.5
425.0
43.5
1.66
And
381.5
412.2
30.7
2.19
*Intervals are drilled core length, as insufficient drilling has been completed at this time to determine true widths
Quality Assurance/Quality Control
On receipt from the drill site, the HQ-sized drill core was systematically logged for geological
attributes, photographed and sampled at Sitka’s 2022 field camp. Sample lengths as small
as 0.3 m were used to isolate features of interest, otherwise a default 2 m downhole sample
length was used. Core was cut in half lengthwise along a predetermined line, with one-half
(same half, consistently) collected for analysis and one-half stored as a record. Standard
reference materials, blanks and duplicate samples were inserted by Sitka personnel at
regular intervals into the sample stream. Bagged samples were placed in secure bins to
ensure integrity during transport. They were delivered by Sitka personnel or a contract
expeditor to ALS Laboratories' preparatory facility in Whitehorse, Yukon, with analyses
completed in North Vancouver.
ALS is accredited to ISO 17025:2005 UKAS ref. 4028 for its laboratory analysis. Samples
were crushed by ALS to over 70 per cent passing below two millimetres and split using a
riffle splitter. One-thousand-gram splits were pulverized to over 85 per cent passing below 75
microns. Gold determinations are by fire assay with an inductively coupled plasma mass
spectroscopy (ICP-MS) finish on 50 g subsamples of the prepared pulp (ALS code:
Au-ICP-22). Any sample returning over 10 g/t Au was re-analyzed by fire assay with a
gravimetric finish on a 50 g subsample (ALS code: Au-GRA21). In addition, a 51-element
analysis was performed on a 0.5 g subsample of the prepared pulps by an aqua regia
digestion followed by an inductively coupled plasma mass spectroscopy (ICP-MS) finish
(ALS code: ME-MS41).
Figure 1: Plan map of drill hole locations at the Blackjack Zone
Figure 2: Cross Section of DDRCCC-23-042
Figure 3: Plan map across Blackjack, Saddle and Eiger Zones
Figure 4: Examples of Visible Gold Observed in DDRCCC-23-042
Figure 5: Example of Drill Core and Sample Intervals for DDRCCC-23-042
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 Sabre Gold Mine’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*. The planned 10,000 metre drill program for 2023 will
resume in early June after a brief hiatus to allow for spring breakup in the Yukon.
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:
Table 2: RC Gold Inferred Mineral Resource Estimate
COG g/t Au
0.20
0.25
0.30
0.35
0.40
Blackjack Zone
Tonnes
0z Au
Au g/t
000's
000's
35,798
0.80
921
33,743
0.83
900
31,282
0.88
885
29,065
0.92
860
26,975
0.96
833
Eiger Zone
Tonnes
000's
32,523
27,362
22,253
17,817
14,506
Au g/t
0.45
0.50
0.55
0.60
0.66
Combined
0z Au
000's
471
440
393
344
308
Tonnes
000's
68,321
61,105
53,535
46,882
41,481
Au g/t
0.63
0.68
0.74
0.80
0.86
0z Au
000's
1,391
1,340
1,279
1,203
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
respectively located at the western and eastern end of a large, 500 metre by 2 kilometre
intrusion related gold system that was recently discovered on the Property. To date, just
41 diamond drill holes have been drilled into this system for a total of approximately
14,500 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 354 m of 0.41 g/t gold including 72 m
of 0.72 g/t gold at Eiger (drill hole DDRCCC-21-09; 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 intrusion related gold system covering the area over the Blackjack, Saddle
and Eiger zones was identified. 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 207.0 million tonnes grading 0.60 gram per
tonne gold (3.99 million ounces; Jutras 2022)(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 17, 2022 (Technical Report to be filed within 45 days of news release)
https://www.banyangold.com/news-releases/2022/banyan-announces-4-million-ounce-gold-mineral-resource-estimate-f
or-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.
Sitka recently announced a 43-101 compliant Initial Mineral Resource Estimate of
1,340,000 ounces of gold(1) beginning at surface and grading 0.68 g/t (see news
release dated January 19, 2023). A resource expansion diamond drilling program is
currently underway.
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 newly discovered system, which is
located in the Cortez Trend just 40 km southeast of the Cortez Mine Complex of
Barrick/Newmont, and plans for a 2023 drilling program at Alpha are currently underway.
(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:
● TakeStock Calgary Capital Event, Calgary, AB: July 5, 2023
● YMA Property Tours, Dawson City, Yukon: July 16-22, 2023
●
Precious Metals Summit, Beaver Creek, Colorado: September 12 - 15, 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
or
Cor Coe
CEO & Director
604-817-4753
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
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“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
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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
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Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies
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