News release
NEWS RELEASE
September 5, 2023
NR 23-24
www.sitkagoldcorp.com
SITKA DRILLS 449.0 METRES OF 0.74 G/T
GOLD FROM SURFACE, INCLUDING 138.0
METRES OF 1.14 G/T GOLD AT ITS RC GOLD
PROJECT, YUKON
VANCOUVER, CANADA – September 5, 2023: Sitka Gold Corp.
(“Sitka” or the
“Company”) (CSE:SIG) (FSE:1RF) (OTCQB:SITKF) is pleased to announce assay results
from the first three diamond drill holes (DDRCCC-23-043, 044 and 045) of the Company’s
2023 summer drill program on 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. A diamond drilling program of up to
10,000 metres is currently underway at RC Gold where an Initial Mineral Resource Estimate
of 1,340,000 ounces of gold beginning at surface and grading 0.68 g/t was announced
earlier this year (see news release dated January 19, 2023).
Assay highlights include:
●
●
Drill Hole 043
o 449.0 metres (m) of 0.74 g/t Au from 4.0 m (surface) including:
o
28.0 m of 0.91 g/t Au from 4.0 m,
o
40.0 m of 1.02 g/t Au from 81.0 m,
o
138.0 m of 1.14 g/t Au from 315.0 m,
o
14.0 m of 3.28 g/t Au from 345.0 m.
Drill Hole 044
o 161.8 m of 0.71 g/t Au from 107.2 m including:
o
24.0 m of 1.10 g/t Au from 143.0 m
●
o
34.0 m of 1.66 g/t Au from 235.0 m,
o
16.0 m of 2.36 g/t Au from 253.0 m.
Drill Hole 045
o 52.5 m of 0.51 g/t Au from 57.0 m including:
o
14.0 m of 0.80 g/t Au from 57.0 m and,
o
2.0 m of 1.87 g/t Au from 161.0 m,
o
1.4 m of 2.08 g/t Au from 221.6 m,
o
13.7 m of 0.90 g/t Au from 327.3 m,
o
6.0 m of 1.02 g/t Au from 377.0 m.
“The results from the first three drill holes completed during our summer drill program at RC
Gold continue to illustrate just how consistent and well-endowed the gold mineralization is at
our expanding Blackjack deposit”, commented Cor Coe, Director and CEO of Sitka Gold.
“Extending Hole 43 added another 30 metres of 0.78 grams per tonne gold to the end of that
drill hole (see news release dated June 21, 2023) resulting in an impressive 449.0 metre
interval grading 0.74 grams per tonne gold beginning at surface. Drill holes 044 and 045
continue to expand this gold deposit to the south with several additional intervals of greater
than one gram per tonne gold encountered (see Table 1). Step out drilling and fieldwork to
expand both the Blackjack and Eiger gold deposits, both of which remain wide open, have
been the primary focus of our 2023 summer field season at RC Gold along with additional
exploration work in preparation to drill test other high priority gold targets within the Clear
Creek Intrusive Complex (see Figure 4).
DDRCCC-23-043 was collared at the same location as DDRCCC-21-021 (see news release
dated December 13, 2021) and drilled at an azimuth of 005 degrees and a dip of -85
degrees (see Figures 1 and 2). The purpose of the hole was to fill in a gap of data in the
current resource model and to extend the higher-grade mineralization in the current resource
to depth. The hole was started in the winter drilling program, and encountered significant
mineralization, but was terminated in mineralized megacrystic quartz monzonite (MQZMN)
at 426.7 m due to the onset of spring thaw conditions (see news release dated June 21,
2023). The hole was re-entered at the start of the summer drill program and extended to
526.4 m.
DDRCCC-23-043 continued in similar appearing megacrystic quartz monzonite (MQZMN)
hosting quartz sulphide veins until 476 m where a 6 m lamprophyre dyke, a known and
expected marker unit in the Blackjack Deposit, was intersected. From the 482 m to the end
of the hole at 526.4 m the hole intersected moderately altered metasediments intruded by
metre scale MQZMN dykes, with both units cross-cut by quartz sulphide veins.
DDRCCC-23-043 was variably mineralized throughout most of its length, including several
instances of visible gold (see Figure 5), with the interval from 4.0 m to 494.7 m returning
493.8 m of 0.70 g/t gold. Significant intervals of higher-grade mineralization include 40.0 m
of 1.02 g/t gold from 81.0 m; 138.0 m of 1.14 g/t gold from 315.0; 28.0 m of 1.99 g/t gold
and 14.0 m of 3.28 g/t gold from 345 m. Narrower intervals of multi-gram gold
mineralization include 1.0 m of 6.95 g/t gold from 27.0 m; 1.0 m of 7.09 g/t gold from 53.5
m and 2.0 m of 5.00 g/t gold from 241.0 m.
Holes DDRCCC-23-044 and DDRCCC-23-045 with azimuths of 040 degrees and dips of –
55 and -65 respectively, were drilled from the same location to extend the current resource
to the south and at depth (see Figure 1 and 3). Both holes intersected moderately to strongly
altered metasediments intersected by metre scale MQZMN dykes throughout their length.
Quartz vein density with locally massive development of arsenopyrite generally increased
downhole in both holes and both holes also encountered visible gold (see Figure 6).
Hole DDRCCC-23-044 returned 161.8 m of 0.71 g/t gold from 107.2 m, including 24.0 m of
1.10 g/t gold from 143.0 m, 34.0 m of 1.66 g/t gold from 235.0 m and 16.0 m of 2.36 g/t
gold from 253.0 m.
DDRCCC-23-045 returned several mineralized intervals including 52.5 m of 0.51 g/t gold
from 57.0 m with 14.0 m of 0.80 g/t gold from 57.0 m.
The Company has completed 14 drill holes totalling approximately 6,000 metres as part of its
ongoing 2023 diamond drill program at RC Gold where up to 10,000 metres of drilling is
planned. Analytical results for remaining drill holes completed to date will be released once
they have been received and compiled.
Figure 1: Plan map of drill hole locations at the Blackjack Zone
Figure 2: Cross section of DDRCCC-23-043
Figure 3: Cross section of DDRCCC23-044 and -045
Figure 4: Plan map across Northern Extent of Clear Creek Intrusive Complex
Figure 5: Examples of Visible Gold Observed in DDRCCC-23-043
Figure 6: Examples of visible gold from DDRCCC-23-044 and -045
Table 1 – Assay Highlights for DDRCCC-23-043 to -045
Azimuth (°)
Dip (°)
From
(m)
To (m)
Length
(m)
Au (g/t)
005
-85
4.0
497.8
493.8
0.70
including
4.0
453.0
449.0
0.74
including
4.0
32.0
28.0
0.91
including
27.0
28.0
1.0
6.95
including
53.5
54.5
1
7.09
including
81.0
121.0
40.0
1.02
including
173.0
203.0
30.0
1.38
including
241.0
273.0
32.0
0.67
including
241.0
243.0
2.0
5.00
including
315.0
453.0
138.0
1.14
including
320.0
331.0
11.0
2.39
including
345.0
373.0
28.0
1.99
including
345.0
359.0
14.0
3.28
including
391.0
453.0
62.0
1.07
including
423.0
453.0
30.0
0.78
107.2
269.0
161.8
0.71
including
107.2
129.0
21.8
0.91
including
143.0
167.0
24.0
1.10
including
192.2
200.8
8.7
0.66
including
235.0
269.0
34.0
1.66
including
255.0
260.7
5.7
5.65
including
253.0
269.0
16.0
2.36
and
279.3
281.7
2.4
0.72
and
290.8
295.0
4.3
0.60
HoleID
DDRCCC-23-043
DDRCCC-23-044
040
-55
and
304.4
317.1
12.6
0.72
57.0
109.5
52.5
0.51
including
57.0
71.0
14.0
0.80
including
77.0
85.0
8.0
0.49
including
79.0
85.0
6.0
0.58
and
95.0
116.8
21.8
0.54
including
100.7
113.4
12.7
0.80
and
122.6
131.0
8.7
0.81
and
161.0
163.0
2.0
1.87
and
193.0
194.9
1.9
0.80
and
221.6
223.0
1.4
2.08
and
255.0
260.5
5.5
0.92
and
272.5
276.5
4.0
0.51
and
293.0
293.9
0.9
1.88
and
317.4
321.8
4.3
0.77
and
327.3
341.0
13.7
0.90
and
350.6
357.0
6.4
0.75
and
377.0
383.0
6.0
1.02
and
399.0
401.0
2.0
0.69
and
420.9
423.0
2.1
0.73
and
425.0
440.0
15.0
0.76
DDRCCC-23-045
040
-65
*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 NQ-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).
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 is
currently underway and is focused on expanding the Blackjack and Eiger gold deposits, both
of which remain open in all directions.
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, 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 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 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&d
ocI 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-aur
mac-property-yukon-canada/
About Sitka Gold Corp.
Sitka Gold Corp. is a 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). A diamond
drilling program of up to 10,000 metres is currently underway at RC Gold.
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:
●
Precious Metals Summit, Beaver Creek, Colorado: September 12 - 15, 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
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
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
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the information contained herein.