{kanada_flagge} Amid the din of sell-off sentiment currently prevailing among gold juniors, the latest news from Sitka Gold (TSXV: SIG; FRA: 1RF) is likely to be slightly lost. Nevertheless, we note for completeness and for the record that the company has completed its drilling planned for this year at the Carlin-type Alpha project in Nevada and all drill core has been delivered to the lab. Sitka could thus be on the verge of a significant discovery in the best case scenario. Upcoming analyses will tell.
In total, Sitka has drilled five holes totaling 1553 m (Figure 1). This five-hole drill program has defined the first 1800 m of strike length of a very large, strong Carlin-type gold system. This provides evidence of the existence of a system that is nearly blind at surface. None of the drill holes have encountered the boundaries of the alteration system. All of the expected features of a Carlin-type alteration system are present, including strong silicification, decalcification, sooty arsenopyrite, strong and widespread Carlin pathfinder elements, and altered Eocene dikes and sills.
Highlights of the previously disclosed gold intercepts on the property are the northernmost, 93 m at 0.105 g/t from drill hole AG21-02 (see press release dated May 6, 2021) and the southernmost, 12.19 m at 0.41 g/t Au received to date from drill hole AG21-05 (see press release dated September 16, 2021). These two intercepts are 1.3 km apart. The last two holes, AG21-07 and 08, were aimed at testing below stronger, newly identified alteration zones at surface, with the objective of searching for grades and obtaining a more three-dimensional view of the trend.
Pending drill holes are eagerly awaited
These three holes with pending assays have good intercepts of carbonaceous and pyritic silicification and decalcification, particularly AG21-08, which has the highest sooty gravel concentration of all holes. Results from these drill holes are eagerly awaited. Results to date have provided a significant amount of newly acquired and very encouraging geochemical information, including significant gold intercepts with strong pathfinder elements. Sitka now has an excellent geological base from which to plan further drilling. There are numerous targets that can be followed up within the current drill holes at wide intervals, deeper into the underlying proven target horizons, in the Denay and McColley Canyon formations, and along strike to the south.
Cor Coe, P.Geo., CEO and Director of Sitka, commented, “Results to date and visual reconnaissance of our recent drill holes continue to demonstrate the excellent potential for Alpha Gold to host one or more Carlin-type gold deposits. While we eagerly await the results of these latest holes, we would like to thank the technical team and drill team responsible for completing this phase of drilling during these challenging operating times.”
Figure 1 – Drill hole locations
Sitka Gold wholly owns the Alpha gold project. The project is located along the southeast foothills of the prolific Cortez gold trend in Eureka County, approximately 135 kilometers southwest of Elko, Nevada. The project consists of two claim blocks totaling 114 lode claims covering an area of approximately 2280 acres (923 hectares), accessible by a dirt road approximately 2 kilometers west of Nevada State Highway 278.
The project was originally staked after the site was recognized as an intersection of the regional Pine Valley anticline with northeast-trending folding trends in the Roberts Mountains. Of greatest significance to the Alpha Gold site is that the rocks have been significantly depressed by late extensional fracturing. Prior to extension and during the critical Carlin-type mineralization event (36-42 million years ago), the fold crest at Alpha Gold would have been a regional high point among nearby mountain ranges. Well-exposed “lower plate windows” near Alpha Gold have been extensively surveyed for Carlin-type gold deposits, with a number of deposits found along the limbs.
Bottom line: at Sitka Gold, we always emphasize that the Company is not a one-trick pony. The main project is last year’s discovery around the Saddle Zone at the RC Gold Project in the Yukon. There, including the four discovery drill holes from 2020, 19 diamond drill holes totaling more approximately 6500 meters have now been drilled. Results from only 6 drill holes have been released from this year’s season. The bulk of the results are therefore still pending. In contrast, the Alpha project is more like the experimental kitchen or the famous icing on the cake. The bet there is that while it is extremely risky to explore for Carlin-type deposits, it can be a lottery win if successful, because such systems are sought after by the majors for their suitability for industrial mining. The technical work of the Sitka team is impressive. However, unsurprisingly, the results are currently of interest mainly to specialists. But that may change completely with the release of the next set of drill results. That’s what’s so interesting about Sitka. We will stay tuned.
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According to §34b WpHG and according to paragraph 48f paragraph 5 BörseG (Austria) we would like to point out that principals, partners, authors and employees of GOLDINVEST Consulting GmbH hold or may hold shares of Sitka Gold and therefore a possible conflict of interest exists. We also cannot exclude that other stock letters, media or research firms discuss the stocks we recommend during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between Sitka Gold and GOLDINVEST Consulting GmbH, which means that there is a conflict of interest, especially since Sitka Gold remunerates GOLDINVEST Consulting GmbH for reporting on Sitka Gold.
