Sitka Expands Yukon Gold Property to 32,842 Contiguous Hectares with Mahtin Gold Property Acquisition
NEWS RELEASE
January 14th, 2020
NR 20-01
www.sitkagoldcorp.com
Sitka Expands Yukon Gold Property to 32,842 Contiguous
Hectares with Mahtin Gold Property Acquisition
VANCOUVER, CANADA – January 14th, 2020 Sitka Gold Corp. (CSE: SIG) (FSE: 1RF) (the “Company”
or “Sitka”) is pleased to announce that it has e nt er ed int o an a gr e e m ent wi t h
S t r ike Po i nt G ol d In c. t o acquire the newly road accessible Mahtin Gold Property (the
“Property”), located in the Clear Creek, Big Creek and Sprague Creek districts in the heart of the
Yukon's Tintina Gold Belt and within the Tombstone Gold Belt, mid-way between Victoria Gold's
Eagle Gold Project, which went into production in September, 2019, and Golden Predator's
Brewery Creek Gold Mine, which recently received Government and First Nation’s support for re-
starting production (Figure 1).
Mahtin Property Acquisition Highlights:
• Acquisition creates a district scale contiguous land package totaling 1,579 mining claims
within the fertile highly prospective Tombstone Gold Belt region. This belt hosts Victoria
Gold’s Eagle Deposit (3.6 million ounces Au) (1), Golden Predators’ Brewery Creek Deposits
(1.5 million ounces gold)(2) and AM Gold’s Red Mountain Deposit (1.9 million ounces gold)(3)
as well as numerous placer gold deposits. The Tombstone Gold Belt is within the larger
Tintina Gold Belt (Figure 1), which also hosts Kinross Golds’ Fort Knox deposit in Alaska (3
million ounces of gold)(4).
• The Mahtin property comprises 1447 quartz mining claims covering 30,242 hectares and is
contiguous to the east with Sitka’s 132 claim, 2,600 hectare RC Gold Property (Figure 1).
• Similar geology and regional proximity to several intrusion related gold deposits.
• Located at the headwaters of Clear Creek, an active prolific placer mining district,
Sprague Creek, a past producer, and Big Creek, a newly discovered gold bearing drainage
that recently went into production.
• Active Class 3 exploration permit which allows for a variety of expl oration on the property,
including drilling.
• Minimal carrying costs as most claims are credited with several years assessment work.
• In addition to the exploration work, Strikepoint also conducted several water sampling and
ecological surveys on site to est ablish preliminary baseline data. The local First Nation of
the Na-Cho Nyak Dun was also engaged on several occasions.
• Recent work done on the property (2017) confirmed a gold anomaly identified in 2012, with
gold grades from trace to 9.2g/t in the 2017 sampling campaign(5).
Cor Coe, Director and CEO of Sitka Gold, states: “This acquisition creates a district scale land
package within the fertile highly perspective Tombstone Gold Belt that enables the Company to
proceed with a much larger exploration prog ram and reflects the Company’s strategic focus on
finding high quality gold projects in positive mining jurisdictions with the potential to host large-
scale gold deposits. With this acquisition, Sitka is well positioned within the Tombstone Gold Belt
where several intrusion related gold deposits have been discovered and where the only active
gold mine in the Yukon became operational in September, 2019.”
Figure 1. Sitka Gold RC Gold and Mahtin Gold Property Location
About the Mahtin Gold Property
Exploration activity has been occurring on the Mahtin property since the early 1900’s with almost all of
this work focusing on skarn style silver, tin and base metal mineralization on the margins of the
Sprague Creek and Bos stocks, two mid Cretaceous intrusion s similar in age and composition to the
intrusions which host the Eagle (Victoria Gold), Brewery Creek (Golden Predator), Red Mountain (AM
Gold) and Fort Knox (Kinross) deposits. The Yukon Geological Survey has documented 8 Minfile
occurrences on the prope rty and $3.3 million of assessment expenditures (including $588,000 spent
by Strikepoint in 2017).
The most extensive recent exploration programs carried out on the property were completed by Ryan
Gold from 2010 to 2013 and Strikepoint in 2017. Ryan Gold completed mapping, Candig trenching,
ground and Airborne Geophysics and collected 18,400 soil samples. The majority of exploration work
done on the Property was mapping and soil sampling with only limited follow up drilling tota lling 20
drill holes and 2049 metres comprised of RC, RAB and diamond drilling over the property.
Several gold in soil anomalies exist on the property and are shown in Figures 2 and 3 below. Soil
sample results of over 1,000 ppb gold occur in these areas. Grab rock sample results are shown in
Figures 4 and 5 and range from below detection limit to 9.2 g/t gold. Of particular note on Figure 5 are
two grab samples from sheeted quartz veins within the Bos stock that returned 3.37 and 2.74g/t Au
respectively. These samples provide some of the best evidence to date of the potential for intrusive
hosted gold mineralization within the Bos stock, but have not yet been followed up with detailed
exploration including drilling.
Figure 2. Gold in soil results May-Qu(5)
Figure 3. Gold in soil anomaly Mahtin North(5)
Figure 4. Rock samples (grab) Mahtin North(5)
Figure 5. Surface Grab Samples May-Qu(5)
The Company intends to complete a full compilation of the extensive historic data including the 18,400
soil samples collected by Ryan Gold in order to design a 2020 exploration program to fully test the
intrusion related gold potential of the Bos and Sprague creek stocks.
(1) https://www.vitgoldcorp.com/projects/development/eagle-gold-project/
(2) http://www.goldenpredator.com/projects/brewery-creek-mine/
(3 ) http://resourceclips.com/2012/03/08/am-gold-reports-yukon-red-mountain-property-gold-resource/
(4) https://www.kinross.com/operations/#americas-fortknox
(5) https://www.strikepointgold.com/mahtin/
Acquisition Terms
The Mahtin Gold Property comprises claim groups totaling 1447 quartz mining claims from one
vendor, Strikepoint Gold Resources. Sitka Gold Corp has entered into a purchase agreement to
acquire a 100 % interest in the Property subject to certain underlying agreements.
The purchase price for the property is 2.0 million common shares of Sitka Gold Corp. at a deemed
price of $0.20 / share. Underlying royalties tallying 3% NSR exist on the property and can be reduced
to 2% by the purchase of 1 % for $1,000,000. The agreement is subject to all necessary regu latory
approvals and third party consents. Closing is expected to occur on or about January 31, 2020.
Bonus payments are payable to an underlying royalty holder if exploration expenditures (“Exploration
Expenditures”) for the Property Area reach $7,500,00 0, $15,000,000 or $25,000,000, for an
aggregate Bonus Payment of $2,250,000 in respect of any Property area, with $750,000 payable on
any one of these expenditure targets being met. Exploration Expenditures on the Property at the time
of execution of this Assignment and Assumption Agreement total $1,868,988.
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, silver and copper
mineral properties of merit. Sitka currently has an option to acquire a 100% interest in the RC
Gold property in the Yukon, an option to acquire a 100% interest in the Burro Creek Gold
property in Arizona and owns a 100% interest in its Coppermine River project in Nunavut and
the Alpha Gold property in Nevada. Directors and Management own approximately 25% of the
outstanding shares of Sitka Gold, a solid indication of their alignment with shareholders’
interests.
The technical content of this news release has been reviewed by Greg Dawson, P.Geo, Director the
Company, and a Qualified Person (QP) as defined by National Instrument 43-101. The technical data
has been obtained from public sources and company websites and is believed to be correct as
presented, although the QP has not reviewed the original data sources.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.