Sitka Continues to Intersect Visible Gold and Expand Mineralization at Its Blackjack Gold Deposit in Yukon
NEWS RELEASE
May 08, 2023
NR 23-11
www.sitkagoldcorp.com
Sitka Continues to Intersect Visible Gold and
Expand Mineralization at Its Blackjack Gold
Deposit in Yukon
VANCOUVER, CANADA – May 08, 2023: Sitka Gold Corp. (“Sitka” or the
“Company”) (CSE:SIG) (FSE:1RF) (OTCQB:SITKF) is pleased to announce it has
completed the winter phase of its 2023 diamond drill program at the Company’s 376
square kilometre, road accessible RC Gold Project (“RC Gold” or the “Project”) located
in Yukon’s prolific Tombstone Gold Belt (“TGB”), approximately 100 kilometres east of
Dawson City. Three diamond drill holes (DDRCCC-23-041 to -043) totalling
approximately 1500 metres were completed during this phase of drilling with multiple
occurrences of visible gold observed in each drill hole (see Figures 4 - 6). Core samples
for all three drill holes have been submitted to the lab for analysis and the Company is
currently awaiting assay results.
News Release Highlights
● Multiple occurrences of visible gold grains observed in all three drill holes
● Significant quartz vein densities observed in all three drill holes
● Confirmation that mineralization of the Blackjack gold deposit extends further to the
east and to depth
“We are very encouraged by the visual observations of the drill holes completed during
this initial phase of 2023 drilling at RC Gold,” stated Cor Coe, P.Geo., CEO and Director
of Sitka. “An early start to this year’s diamond drilling at the Company’s year-round, road
accessible RC Gold Project has provided us with a nice jump on the 2023 summer field
season with approximately 1500 metres of our planned 10,000 metre drilling program
already completed this year. With visible gold and significant vein densities observed in
every drill hole completed so far this year, we are eager to see what the assay results
produce as we continue to systematically define this gold rich corridor. This corridor
includes the recent discovery of two NI 43-101 compliant gold deposits situated 1.5
kilometres apart and totaling 1.34 million gold ounces, as announced earlier this year.”
DDRCCC23-042 was drilled on a northeast azimuth with a -60 degree dip (Figures 1 and 2).
The hole was designed to further test for an extension of high-grade material at depth below
and to the west of drill holes DDRCCC-22-025 and DDRCCC-22-038 (see news releases
dated June 13, 2022 & November 30, 2022). The hole was a step out 81 metres SSW from
DDRCCC23-041, which had encountered significant densities of quartz sulphide veins and
visible gold (see news release dated April 12, 2023). From surface to 464 m RCCC23-042
intersected moderately altered metasediments cut by metre scale megacrystic quartz
monzonite (MQMZ) dykes. From 464 m to the end of the hole at 527.3 m the hole
intersected dominantly MQMZ with metre scale inclusions of metasediments.
Quartz-sulphide veins occurred throughout the hole, with the highest density noted from 280
m to 488 m. Multiple occurrences of visible gold with bismuthinite was noted in quartz veins
within the core of the drill hole (see Figures 5 and 7).
DDRCCC23-043 was collared at the same location as DDRCCC21-021 (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 3). 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 intersected dominantly MQMZ from surface to 111.25 m, metasediments
intruded by metre scale MQMZ dykes to 318.45 m, dominantly MQMZ with metasediments
to 382.1 m and then granite dykes with inclusions of MQMZ xenoliths to the end of the hole
at 426.7 m. Quartz sulphide veins intersected all units with the highest intensity of veining
occurring from 250 m to the end of the hole at 426.7 m. Visible gold was noted multiple times
in quartz – bismuthinite veins. (see Figures 6 and 8).
Figure 1: Plan Map of Drill Hole Locations and Surface Geochemistry across the
Blackjack, Saddle and Eiger Zones
Figure 2: Cross Section of DDRCCC-23-041 and -042
Figure 3: Cross Section of DDRCCC-23-042 and -043
Figure 4: Visible Gold Observed in DDRCCC-23-041 (see news release dated April
12, 2023)
Figure 5: Examples of Visible Gold Observed in DDRCCC-23-042
Figure 6: Examples of Visible Gold Observed in DDRCCC-23-043
Figure 7: Example of Drill Core Containing Visible Gold From DDRCCC23-042
Figure 8: Example of Drill Core Containing Visible Gold From DDRCCC23-043
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. 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*.
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 1: 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 hashigh
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 to201.0 m of 1.26 g/t gold from surface, including82.0
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) and354 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). Assays are pending for the 3 diamond drill holes totaling approximately 1500
metres drilled during the winter of this year (2023).
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.