Sitka Acquires GOLD Deposit IN Arizona
Sitka Gold Corp.
1500 - 409 Granville Street
Vancouver, BC, V6C 1T2
NEWS RELEASE
CSE: SIG
September 21st, 2018
NR 18-18
www.sitkagoldcorp.com
SITKA ACQUIRES GOLD DEPOSIT IN ARIZONA
Vancouver, B.C. – September 21st, 2018 – Sitka Gold Corp. (CSE: SIG) ("Sitka" or the "Company")
is pleased to announce that it has entered into an option agreement with Coelton Ventures Ltd.
(“Coelton”) to acquire a 100% interest in the Burro Creek Property (the “Property”) which contains the
Burro Gold Deposit (the “Burro Deposit”) located in Mohave County, Arizona, USA.
The Burro Deposit contains a Historical Mineral Resource Estimate as summarized below:
INDICATED RESOURCE:
AuEq (g/t)* Gold Silver Gold Equivalent
Cut-Off Tonnes Grade (g/t) Ounces Grade (g/t) Ounces Grade (g/t) Ounces
0.5 g/t 2,331,871 1.01 75,567 36.77 2,756,778 1.63 122,491
INFERRED RESOURCE:
AuEq (g/t)* Gold Silver Gold Equivalent
Cut-Off Tonnes Grade (g/t) Ounces Grade (g/t) Ounces Grade (g/t) Ounces
0.5 g/t 2,247,069 0.60 43,243 30.95 2,236,113 1.13 81,304
*AuEq metal prices: US$846.00/oz gold, US$14.40/oz silver (3-year average as at January 31, 2011)
About the Burro Creek Property
The Burro Creek Property is located 1.6 km off of Stat e Highway 93 in Mohave County, Arizona,
approximately 265 km southeast of Las Vegas, Nevada and 200 km north of Phoenix, Arizona. The
210 acre property is accessible via dirt road and consists of four patented mineral claims (situated on
private land) and 8 surrounding lode mineral claims. The Property is situated in an active mining belt
that includes Freeport McMoran Copper & Gold Inc.’s neighbouring Bagdad Mine (www.fcx.com).
Northwest Arizona also hosts other gold & silver development properties such as Northern Vertex
Mining Corp.’s Moss Gold-Silver project (www.northernvertex.com).
The Property covers a low-sulphidation epithermal vein system (the “Burro Vein”) that hosts gold and
silver Indicated and Inferred Historical Mineral Resource Estimates. The Burro Vein has been traced
for over 1.7 km with reported widths of up to 45 meters and remains open for expansion along strike
near surface and at depth. Results from a Mobile Metal Ion (MMI) soil survey conducted in 2013 by
the last operators on the Property returned an anomalous gold and silver trace across the basalt
cover that is interpreted to be the buried portion of the Burro Vein over a strike length of
approximately 1.0 km (See Figure 1 below). This anomaly provides immediate drill targets to test the
continuity of the Burro Vein and potentially expand the known Historical Mineral Resource Estimate.
Parallel high-tension power lines lie within 1.6 km of the Burro Deposit and water rights on the
Property have been secured, providing the projec t with excellent infrastructure for future
development.
Figure 1: 2013 MMI Soil Sampling Results
The Burro Deposit
The Burro Deposit hosts a Historical Mineral Resource Estimate as defined by the National Instrument
43-101 Standards for Disclosure for Mineral Projects and is not considered by the Company to be a
Current Mineral Resource, as Sitka Qualified Persons have not completed sufficient work to classify it
as a Current Mineral Resource. The Indicated and Inferred Resources referenced above are taken
from a technical report filed on SEDAR titled “ TECHNICAL REPORT on the BURRO CREEK
PROJECT, Sections 10, 11, 14, 15, Township 14N, Range 12W , Kaiser Spring 7.5 minute
Quadrangle Latitude 34°32.5’N Longitude 113°29.5’W, Greenwood Mining District, Arizona” for
Northern Freegold Resources Ltd. by Jean Pautler, P.Geo., Allan Armitage, Ph. D., P. Geol. and Joe
Campbell, P. Geo., January 31, 2011.
The Historical Mineral Resource Estimate of the Burro Deposit is based on 87 reverse circulation (RC)
and diamond drill holes and 9 sampled adits totalling 6,672 m and 2,682 assays. Mineralization was
constrained within a 3-dimensional geological solid created using Gemcom software. Practices
consistent with CIM (2005) were applied to the generation of the Historical Mineral Resource Estimate
and the parameters of the modeling are fully described in the NI 43-101 report referenced above.
The Company considers the NI 43-101 report to be relevant and reliable given that no additional work
of significance has been completed since the issuance of the Historical Mineral Resource Estimate.
Acquisition Terms
Sitka Gold Corp. has negotiated an agreement (the “Agreement”) with Coelton Ventures Lt d.
(Coelton) whereby the Company can acquire 100% of Coelton’s interest in the Burro Creek Property
by issuing 5 million shares, making cash payments totaling $1,000,000 USD and incurring exploration
and development expenditures totaling $4,000,000 USD ove r a seven year period. Coelton has
acquired 100% of the mineral, water and geothermal rights on the Burro Creek Property patented
claims (consisting of two patented mining claims and two patented millsite claims). The property also
consists of 8 unpatented mining claims which are contiguous with the patented mining claims. The
underlying vendors will retain a 3% NSR (2% of which can be purchased by making cash payments
totaling $1,100,000 USD) and will receive a payment of $500 USD per month to be included in and
not in addition to, the royalty payments. This Acquisition is considered a related-party transaction
pursuant to Multilateral Instrument 61-101, as Coelton is controlled by Cor Coe, the chief executive
officer and a director of Sitka. The acquisition is exempt from the need to obtain minority shareholder
approval and a formal valuation as required by and under the applicable provisions of MI 61-101. The
Agreement is subject to regulatory approval.
Donald Penner, President of Sitka Gold Corp., comme nts: “The acquisition of the Burro Creek
Property provides Sitka with a great opportunity to further expand on a Historical Mineral Resource
with the potential for near term production”.
This news release has been reviewed and approved by Donald Penner, P. Geo., President of Sitka
Gold Corp., a “Qualified Person” under National Instrument 43 -101 Standard for Disclosure for
Mineral Projects.
About Sitka Gold Corp.
Sitka Gold Corp. is a mineral exploration company headquartered in Canada and managed by a team
of experienced mining industry professionals. The Company is focused on exploring for economically
viable mineral deposits with its primary emphasis on gold and copper mineral properties of merit.
Sitka currently has an option to acquire a 100% interest in the Adobe gold property in Nevada and
owns a 100% interest in its Coppermine River project in Nunavut and the Alpha Gold property in
Nevada.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
“Donald Penner”
President and Director
For more information contact:
Donald Penner
President & Director
or
Cor Coe
CEO & Director
604-817-4753
or
Peter MacLean
Director
604-781-8513
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Cautionary Statements Regarding Forward Looking Information
Certain statements included herein may constitute “forward-looking statements”. All statements included in this
press release that address future events, conditions or results, including in connection with exploration activity,
future acquisitions and any financing, are forward-looking statements. These forward-looking statements can be
identified by the use of words such as “may”, “must”, “plan”, “believe”, “expect”, “estimate”, “think”, “continue”,
“should”, “will”, “could”, “intend”, “anticipate” or “future” or the negative forms thereof or similar variations. These
forward-looking statements are based on certain assumptions and analyses made by management in light of
their experiences and their perception of historical trends, current conditions and expected future developments,
as well as other factors they believe are appropriate in the circumstances. These statements are subject to
risks, uncertainties and assumptions, including those mentioned in the Company’s continuous disclosure
documents, which can be found under its profile on SEDAR (www.sedar.com). Many of such risks and
uncertainties are outside the control of the Company and could cause actual results to differ materially from
those expressed or implied by such forward-looking statements. In making such forward-looking statements,
management has relied upon a number of material factors and assumptions, on the basis of currently available
information, for which there is no insurance that such information, will prove accurate. All forward -looking
statements are expressly qualified in their entirety by the cautionary statements set forth above. The Company
is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward -
looking statements, whether as a result of new information, future events or otherwise, except as expressly
required by applicable law.