{kanada_flagge}With each additional drill result, Sitka Gold Corp (CSE:SIG; FRA:1RF) grows more confident that the newly discovered Blackjack Zone (discovery drill hole 21 completed in the fall of 2021) at the RC Gold Project in the Yukon “could host a viable multi-million ounce gold deposit.” With these words Sitka’s CEO, Cor Coe, can be quoted today upon publication of the exceptional results of drill hole 24 – only one day after the publication of drill hole 23 had already provided a decent boost for the share price.
Sitka considers the drill hole 24 results so significant that the stock was briefly halted while they distributed the news. Gold assay highlights from DDRCCC-22-024 include: 107.5 m of 1.44 g/t Au from 4.5 m to 112.0 m, including: 66.0 m of 2.11 g/t Au from 16.0 m, including 11.0 m of 3.76 g/t Au over 24.0 m, 1.0 m of 7.92 g/t Au from 66.0 m, and 2.0 m of 35.60 g/t Au from 80.0 m. The real significance of drill holes 22, 23 and 24 from the winter drill program is likely to be that they confirm the underlying exploration model for understanding the Blackjack Zone and its expansion potential. This bodes particularly well for drill hole 25 with its assays still pending.
Drill hole 24 is the third of four diamond drill holes (DDRCCC-22-022 to DDRCCC-22-025) drilled during the winter season. So all that is missing is the result of drill hole 25 from the total 1,200 meter program. In addition, Sitka reportedly plans to continue drilling to the west and east of Blackjack shortly to complete its total 10,000 meter drill program for this season.
Figure 1: Overview map of diamond drilling at the Blackjack zone of the RC Gold Project. Drill holes 21, 23 and 24 were drilled from the same location. Drill hole 25 is located approximately 80 meters to the east.
Cor Coe, P.Geo., CEO and Director of Sitka commented, “With over 100 meters of nearly 1.5 grams per tonne gold drilled from surface, including 2 meters of over 1 ounce per tonne gold, hole 24 has confirmed that gold bearing mineralization in this zone extends at least 100 meters west of our first discovery hole (hole 21) and remains open. In addition, we have now confirmed that gold mineralization also extends 100 meters to the south (where hole 22 was drilled) and is continuous along the vertical section (depth) from hole 23 to hole 22 (see news releases dated April 26 and May 17, 2022). This gold-bearing zone remains open in all directions and we eagerly await results from hole 25 (DDRCCC-22-025), drilled approximately 80 meters east of hole 21. Our plan is to continue step-out drilling to extend this gold mineralization east and west along interpreted strike while establishing tonnage for an initial resource estimate.”
Hole 24 was drilled from the same location as holes 21 and 23, but in a westerly direction with an azimuth of 277 degrees and an inclination of -48 to a depth of 204 meters. The hole intersected multiphase intrusive rocks associated with the most consistent mineralization encountered to date in the BlackJack Zone to a depth of 52.4 meters where it intersected the BlackJack Fault. Below the fault, a mixed sequence of well-mineralized metasedimentary rocks and multiphase intrusive sills was encountered to a depth of 114.6 meters before transitioning to weakly mineralized metasedimentary rocks. Visible gold was also observed throughout the hole.
Figure 2: Cross section through drill hole 24.
The Blackjack zone lies within what is known as the Saddle West zone (see Figure 3), where the Blackjack fault obliquely intersects an east-west trending corridor defined by numerous veins and a large gold-in-soil anomaly with values of >100 ppb and >500 ppb covering an area 2 km by 500 m between the Saddle West, Blackjack, Saddle and Eiger zones (Figure 3). This corridor is the source of the Saddle and Eiger intrusive deposits. The large gold-in-soil anomaly is still open in all directions and drilling to date within this corridor has shown the potential for a continuous zone of gold mineralization.
Figure 3: Overview map of Saddle Eiger zones at the RC Gold Project Figure 3:
The RC Gold Project is the largest consolidated land package between the Eagle Gold Mine and the Brewery Creek Gold Mine in the heart of the Tintina Gold Belt in Yukon and the Tombstone Gold Belt, covering 376 square kilometers. So the Blackjack discovery, with a footprint of just 500 by 2,000 meters, is only a tiny part of the overall project. So far, 24 holes have been drilled there. Accordingly, the project is still in the discovery phase. Crucially for further exploration, Sitka has identified the Blackjack Fault as a control structure for mineralization.
Conclusion: It appears to be paying off for Sitka that the company has continued to work during the winter months. All results released to date confirm the underlying model for gold mineralization at the Blackjack Zone. Sitka’s latest results arguably move it definitively from the “pre-discovery” to the “post-discovery” risk category. Should Sitka succeed in confirming the comparatively high gold grades and high continuity over long intervals along strike, a substantial resource could be drilled as early as this season. Now that the discovery has been made, it is a matter of demonstrating how large the discovery really is. This should make Sitka appeal to a whole new group of investors than in the past.
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