{kanada_flagge}With a price increase of more than 8% and significantly increased trading volume, investors yesterday welcomed the news that Sitka Gold (CSE SIG / FRA 1RF / OTCQB SITKF) has started the winter part of its drill program at the RC Gold Project in the Yukon.
The winter portion of the drill program at the promising gold project, located in the resource-rich Tombstone Gold Belt, is expected to focus on the newly named Black Jack Zone (previously Saddle West) – Blackjack presumably, as Sitka’s final drill hole of the 2021 campaign (DDRCCC-21-021) encountered a spectacular 220.1 meters at 1.17 g/t gold from surface!
The newly discovered gold zone, over which the Company also recently flew a geophysical survey to provide further data for drilling, is open both laterally and to the depth. Hole 21 was the first hole to intersect this gold mineralization interval. The first hole in the new program, DDRCCC-22-022, is now being drilled southeast of hole 21 and will be set at an angle of -45 degrees to test for mineralization approximately 100 metres below last year’s successful hole. Sitka then intends to systematically advance further to the northeast and southwest of the current drill hole with subsequent drilling.
Newsflow as a unique selling point
Cor Coe, CEO of Sitka Gold sees this winter drill program as a real milestone and, following the outstanding results from last summer, hopes to gain a large amount of information to further enhance the understanding of the geological model – and thus support plans for an aggressive drill program on this newly discovered zone. A not insignificant factor: winter drilling on RC Gold is expected to yield some exciting news – at a time when most other projects in the region are hibernating until the start of summer.
Drilling in winter is not really common in the Yukon, but the low snowfall typical of the region where Sitka operates, plus the existing access road and proximity to a highway, make RC Gold an ideal candidate for winter operations. As Cor Coe points out, the ability to work year-round gives Sitka the advantage of moving the project forward much faster than if they were limited to the traditional summer season. The CEO and geologist is understandably excited and hopes to improve his understanding of the parameters of this “impressive intrusion-related gold system”.
Bottom line: The reaction to the result from hole 21, and now the market reaction to the announcement that Sitka Gold is starting more drilling there, show that investor interest in prospective gold explorers is still there. However, the companies have to deliver, as Sitka Gold has done so far in the Yukon, in order to be convincing in the long term. We are delighted that Sitka will not have to wait until the summer for more news from the RC Gold project and we are staying close to this exciting story. Of course, exploration is a risky business as further hits are never guaranteed. But this risk is “payment” for the great potential that exists on the other hand .
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According to §34b WpHG and § 48f Abs. 5 BörseG (Austria) we would like to point out that GOLDINVEST Consulting GmbH and/or partners, principals or employees of GOLDINVEST Consulting GmbH hold shares of Sitka Gold and therefore a conflict of interest exists. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares of the company at any time. Furthermore, GOLDINVEST Consulting GmbH is remunerated by Sitka Gold for reporting on the company. This is another clear conflict of interest.
