{kanada_flagge}Good news for Sitka Gold (CSE:SIG; FRA:1RF). The Canadian gold explorer has received approval from the Bureau of Land Management (BLM) to amend its existing drill permit for the Alpha Gold project in Nevada. This means CEO Cor Coe’s company can now drill in highly geologically prospective areas that lie within claims Sitka staked just last fall.
As the company explained, the excellent results from the last drill program at Alpha Gold had steered exploration toward exploring structures and areas of strong alteration in typical Carlin style along a north-northwest to south-southeast trending structural trend. This, however, required the additional permits.
With the permits issued, these exciting structures can now be tested in the new claim block. In particular, the company plans to focus on the Frazer Creek area, where Carlin-style alteration is particularly strong at surface. It seems as if Sitka is in a hurry to get this drilling underway, as they are already defining the location and number of drill holes to be included in the next drilling program.
One of the reasons Alpha is so interesting to Sitka is that they have intersected strong Carlin-type alteration with all of their previous drilling, demonstrating significant gold values and indicator elements. The project also lies within the projection of the prolific Cortez Trend, where more than 50 million ounces of gold have already been discovered to date. The key now is to better define the gold mineralization patterns and to prove up higher gold grades in the Northwest Alpha area with further drilling. According to the company, compiling last year’s drill results and geological mapping is developing increasingly attractive targets for this purpose. The information gathered to date at Northwest Alpha is expected to assist in identifying promising targets and successful drilling, particularly in the newly staked Frazier Creek area.
As Sitka CEO Cor Coe explained, drilling from last year has again demonstrated the area’s potential to host a significant Carlin-type gold deposit. In such deposits, gold mineralization is usually buried, making it virtually “invisible.” The largest deposit of this type is the Goldstrike deposit in Nevada with 35 million ounces of gold.
Sitka’s CEO considers it extremely encouraging that with only eight drill holes it has been possible to identify intervals with more than one gram of gold in a large, newly discovered area. Higher gold grades in each new phase of sampling and drilling on Alpha, according to Coe, underscore the importance of a disciplined exploration approach in following up on Carlin-type exploration targets.
Sitka has now doubled the size of the project by staking claims in continuation of existing claim areas and has identified additional highly prospective areas with the exploration work completed to date. The Company is well funded and in a good position to advance Alpha Gold with further drilling. Currently, drills are also already turning at Sitka’s RC Gold project in the Yukon. They have been able to kick off a winter drilling program there, unusual for the region, with Sitka looking to further explore the area around the spectacular DDRCCC-21-021 hole, which returned 220.1 meters at 1.17 g/t gold from surface. So, the company has at least two strings to its bow.
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