VANCOUVER, CANADA - TheNewswire - April 13, 2021 - Sitka Gold Corp. (“Sitka” or the “Company”) (CNSX:SIG.CN) (FSE:1RF) (OTC:SITKF) is pleased to announce that it has secured New Age Drilling Solutions Inc. an established drill contractor based in Whitehorse, Yukon, to complete up to 10,000 metres of diamond drilling at its district scale, 376 square kilometer RC Gold Project (“RC Gold” or the “Project”) located in Yukon’s prolific Tombstone Gold Belt (Figure 1).
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Figure 1 - RC Gold Project Regional Location Map
The majority of drilling at RC Gold this season will be focused on the Saddle-Eiger zone where a major intrusion-related gold system was discovered during the initial drill program completed in 2020 (see news release dated December 16, 2020). Every drill hole completed within this area last year encountered gold mineralization from surface to depth with intercepts and grades comparable to similar intrusion-related gold deposits in the region, including Victoria Gold’s Eagle and Olive gold deposits. These deposits contain a combined 4.7 million ounces of gold(1) and are located approximately 40 kilometres to the east of the Project. These initial drill holes, which were spaced up to 800 metres apart and spanned a distance of over 1800 metres, were strategically positioned to test a large, overlying >100 ppb to >500 ppb gold-in-soil anomaly that is approximate 2 km x 500 m and open in all directions (Figure 2). Planning is currently underway for the 2021 drill program at RC Gold and mobilization is anticipated to commence at the end May.
Highlights from the Eiger-Saddle Zone
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- 287.0 metres of 0.52 g/t gold from 9.0 to 296. metres (the entire hole) in DDRCCC20-002 including:
231.0 metres of 0.61 g/t gold from 65 to 296 metres and
100.8 metres of 0.82 g/t gold from 156.4 to 257.2 metres
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- 2.0 metres of 16.10 g/t gold from 294 to 296 metres (end of hole DDRCCC20-002 and not included in the above intercepts)
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- 139.1 metres of 0.61 g/t gold from 131.9 metres to 271 metres in DDRCCC20-004 including:
59.0 metres of 0.88 g/t gold from 212 to 271 metres and
37.0 metres of 1.05 g/t gold from 234 to 271 metres and
6.6 metres of 1.27 g/t gold from 131.9 to 138.5 metres
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- Previous rock samples from trace up to 319.5 g/t gold(2) and previous soil samples from trace up to 4,384 ppb gold(3).
“With our recently closed and oversubscribed $6.4 million financing and a highly experienced and local drill contractor now secured, we are in an excellent position to further delineate the impressive gold discovery at the Saddle-Eiger zones”, stated Cor Coe, CEO and Director of Sitka. “The exceptional drill results from 2020, including 100.8 metres of 0.82 g/t gold in drill hole DDRCCC20-002 which ended in a separate interval of 16.1 g/t gold over 2.0 metres, demonstrates the enormous potential present at the Saddle-Eiger zone and confirms that the area hosts significant gold mineralization, open both laterally and at depth within a target area that is over 2 km by 500 m. The intercepts and grades we are discovering in this area are very compelling when you consider Victoria Gold’s nearby producing Eagle Gold mine has an average resource grade of 0.63 g/t gold. We believe the results from these inaugural drill holes at the Saddle-Eiger Zones reflect the grades and scale necessary for hosting an economic gold deposit. We are looking forward to a major 2021 drilling program at the Saddle-Eiger zones as well as continuing exploration efforts at other target areas within the 376 square kilometer district scale property.”
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Figure 2 - Saddle-Eiger Zones Gold-In-Soil Anomaly and 2020 Drill Holes
Sitka is also please to announce it has received a Class 3 Mining Land Use Permit (the “Permit”) for the RC Gold and Mahtin claim blocks, which comprise part of the 376 square kilometre RC Gold Project (Figure 3). This permit is in addition to the Class 3 Permits already in hand for the Clear Creek and Barney’s Ridge claim blocks.
The Class 3 Permit, valid until November 19, 2025, will allow Sitka to complete advanced exploration activities across the RC Gold and Mahtin claim blocks, including 100 drill holes, 10 km of new road access construction, 5 km of new trail access, 3 km of temporary trail access and the construction of a 30 person camp. The new Class 3 Land Use Permit will allow Sitka to aggressively move forward to drill test several priority targets across the district scale RC Gold Project in 2021 and beyond.
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Figure 3 - RC Gold Project Regional Location Map
About the RC Gold Project
The RC Gold Project is a 376 square kilometer, 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 Tintina Gold Belt and within the Tombstone Gold Belt. It is the largest consolidated land package strategically positioned mid-way between Victoria Gold's Eagle Gold Mine, which just reach commercial production in July 2020, and Golden Predator's Brewery Creek Gold Mine, which recently received Government and First Nation’s support for re-starting production. The RC Gold Project land package is comprised of five underlying mining properties, namely; the RC, Bee Bop, Mahtin, Clear Creek and Barney Ridge Properties*.
Sitka Gold has inherited a wealth of historical and current data from these properties that span the last 40 years. Recent exploration work and the compilation of historical data has 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.
*For more detailed information on the underlying properties please visit our website at www.sitkagoldcorp.com.
Deposit Model
Exploration on the Property has predominately been 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 reserves of 282 million tonnes at 0.37 g/t Au (3.4 million ounces, not including 7.5 million ounces of past production; Fairbanks Gold Mining Inc.); Eagle Gold mine with 155 million tonnes at a diluted grade of 0.65 g/t Au (3.26 million ounces; Victoria Gold Corp., 2020); the Brewery Creek epizonal deposit with 17.17 million tonnes at a gold grade of 1.45 g/t (0.726 million ounces; Barr, 2013); and the Florin Gold deposit, located adjacent to Sitka’s RC Gold project, with 170.99 million tonnes grading 0.45 g/t (2.47 million ounces; St James Gold Corp.; Simpson, R., 2021).*
*The disclosure above is strictly for deposit model comparisons and the mineralization hosted on these properties is not indicative of mineralization hosted on the Company’s property.
(1) Victoria Gold Corp. Reserve & Resource Statement (https://vgcx.com/development/eagle-gold-project/reserve-resource-statement/)
(2) Huber, M. (November 10, 2018) 2018 Technical Report on the Clear Creek Property
(3) O'Brien, E. and Kreft, B., (2010): 2010 diamond drilling program Clear Creek property.
About Sitka Gold Corp.
Sitka Gold Corp. is a mineral exploration company headquartered in Canada that is fully funded for its planned 2021 exploration programs with the recent completion of a $6.37 million financing. 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 Yukon and the Burro Creek Gold property in Arizona. Sitka owns a 100% interest in its Alpha Gold property in Nevada, it’s Mahtin Gold property in the Yukon and it’s Coppermine River project in Nunavut.
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
For more information contact:
President & Director
778-212-1950
dpenner@sitkagoldcorp.com
or
CEO & Director
604-817-4753
ccoe@sitkagoldcorp.com
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.
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