Sitka Expands Mineralized GOLD Corridor Hosting the Blackjack and Eiger GOLD Deposits to over 5 Km at Its Rc GOLD Project, Yukon
NEWS RELEASE
June 26, 2023
NR 23-16
www.sitkagoldcorp.com
SITKA EXPANDS MINERALIZED GOLD
CORRIDOR HOSTING THE BLACKJACK AND
EIGER GOLD DEPOSITS TO OVER 5 KM AT ITS
RC GOLD PROJECT, YUKON
VANCOUVER, CANADA – June 26, 2023: Sitka Gold Corp. (“Sitka” or the “Company”)
(CSE:SIG) (FSE:1RF) (OTCQB:SITKF) is pleased to announce results from the compilation
of data obtained from a high-resolution airborne magnetic survey (the “MAG survey”) that
was flown over the Saddle, Eiger, Pukelman and Jospehine intrusions in 2022 at its RC Gold
Project (“RC Gold” or the “Project”) located in the Yukon Territory, Canada where the
Company recently announced a 1,340,000 ounce initial gold mineral resource estimate
comprised of the newly discovered Blackjack and Eiger intrusion related gold deposits (see
news release dated January 19, 2023). Three dimensional inversion modelling and
interpretation of the MAG survey and coincident gold-in-soil anomalies indicates that the
gold bearing intrusive bodies present at surface and that host these intrusion-related gold
deposits could be much larger than previously defined and appear to be part of a major,
gold-enriched intrusive system that is connected at depth. The MAG survey and coincident
geochemical data also demonstrates that the gold mineralized extensional corridor that
spans across the Blackjack and Eiger gold deposits appears to be over 5 kilometres in
length (see Figures 1 through 3).
Key Points
●
Sitka has compiled recently interpreted geophysical data from a high resolution
airborne magnetic survey with geochemical data from drilling and surface sampling in
the area hosting the Blackjack and Eiger gold deposits.
●
3D modelling shows that intrusive rocks with known gold mineralization coincide with
areas of higher magnetic susceptibility which are associated with the hornfels
alteration zones caused by the emplacement of intrusive rocks (see Figures 1 and 2).
●
Areas of higher magnetic susceptibility in the model extend well beyond current
areas of defined gold mineralization and support previous interpretations of the
geology in the Clear Creek area that suggest that the Saddle, Eiger, Josephine and
Pukelman intrusions coalesce at depth (see Figure 3).
●
Mag highs along with coincident geochemical data have significantly expanded the
length of an extensional mineralized corridor from approximately 2 km to over 5 km
that encompasses the Saddle, Eiger and Josephine intrusions. A similar extensional
corridor that is associated with elevated geochemical data along the northern margin
of the Pukelman intrusive stock remains untested (see Figures 1 and 2).
●
Gold mineralization along these expanded corridors appears to be much more
extensive than previously considered.
Figure 1: Magnetic Susceptibility and Intrusive Stocks
“The results from this MAG survey have significantly expanded the size and scale of the
intrusion-related gold system present at our Blackjack and Eiger gold deposits,” stated Cor
Coe, CEO and Director of Sitka Gold. “The magnetic highs, as seen in Figures 1 and 3,
appear to correlate well with the known intrusions identified on surface and show the
potential of a massive intrusive body at depth that reaches the surface in several locations,
including the Blackjack, Eiger, Pukelman, and Josephine intrusive stocks, which we believe
may ultimately host a major gold system that connects the intrusives found at surface. This
newly interpreted data also expands the mineralized corridor, which was previously
represented by just the historical gold-in-soil anomalies and surface rock grab samples, to
over 5 kms laterally from west of the Blackjack deposit to well beyond the Josephine Stock
(see Figures 1 and 2). While the results from the resource expansion drilling program
currently underway at the Blackjack deposit, where our latest results produced an interval of
0.74 g/t gold over the entire length of a 422.7 m long drill hole from surface to depth,
including 111.7 m of 1.24 g/t gold (see news release dated June 21, 2023), continue to
demonstrate the persistent and higher-grade nature of this intrusion-related gold system, the
data gathered from this MAG survey further demonstrates the potential this system has to
host an overall gold resource that is multiples larger than the current initial mineral resource
estimate of 1,340,000 ounces of gold that was delineated with just 13,000 metres of drilling.
While we will continue to focus on the systematic step out drilling designed to expand both
the Blackjack and Eiger deposits, both of which remain open in all directions, we are also
very excited to test the potential world-class scale of this robust gold system with additional
exploration along this 5 km long mineralized corridor.”
Figure 2: Surface Geochemical Results and Intrusive Stocks
Figure 3: 3D Modelling of Magnetic Susceptibility
Gold mineralization at the RC project is hosted in quartz veins that occur in broad zones
within both intrusive and metasedimentary rocks, with higher grade gold mineralization
generally occurring in the intrusive rocks near the contact with the metasedimentary rocks.
As with all intrusion-related gold systems, the source of the gold mineralization is considered
to be a large, underlying magmatic system, therefore intrusions both at surface and at depth
are critical targets for gold mineralization.
Three-dimensional modelling of the MAG survey flown over the Blackjack, Saddle and Eiger
zones in 2022 demonstrates that the intrusive rocks associated with the known gold
mineralization at these zones (the Saddle and Eiger intrusives) coincide with areas of higher
magnetic susceptibility in the model (Figures 1 and 3, adapted from Trent Pezzot, 2022
Memorandum - Interpretation of Airborne Magnetic Survey on the Clear Creek Property,
Yukon). Sitka interprets the higher magnetic responses to indicate large hornfels alteration
zones that surround the known intrusions. The hornfels zones as mapped on surface
encompass the Saddle, Eiger, Josephine and Pukelman intrusions and are far more
extensive than expected given the surface extent of these known intrusions.
Figures 2 and 3 also demonstrate that the areas of higher magnetic susceptibility extend
considerably beyond areas of currently defined gold mineralization and mapped intrusions,
indicating both that the intrusive bodies could be larger than previously defined and that
associated gold mineralization could be much more extensive than currently known.
The 3D modelling also suggests that the higher magnetic susceptibility features associated
with the Saddle and Eiger intrusions coalesce at depth, indicating that these bodies and
associated gold mineralization are part of a much larger gold enriched intrusive system. This
possibility is further supported by the large 100 ppb gold in soil anomaly that extends
continuously from the Saddle intrusion (Blackjack deposit) through the Eiger intrusion (Eiger
deposit) and Pukelman intrusion and, discontinuously to the Josephine intrusion. Both the
Jospehine and Pukelman intrusions are high priority, intrusion-related gold targets that have
not yet been tested by Sitka.
These interpretations support conclusions of previous explorers, including Newmont
Exploration Limited, who in 1998 suggested that the Saddle, Eiger, Josephine and Pukelman
intrusions coalesce at depth. Additional Newmont data, including airborne radiometrics,
supported this theory however Newmont withdrew from the project before drill-testing the
theory.
New and historical interpretation of geophysical, geochemical and geology data supports the
theory that a large gold mineralized intrusion may underlie and contribute to the near surface
deposits and surface mineralization discovered to date.
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, 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 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 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 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:
● 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
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