Very well positioned to capitalise on a strengthening gold market
Sitka Gold Corp (TSX-V:SIG; FSE:1RF; OTCQB:SITKF) appears to have found the right geological model for its flagship RC Gold Tombstone gold belt project in Yukon. As expected by geologists, this winter’s second step-out hole DDRCCC-24-58, like the previous hole DDRCCC-24-57 south of the Blackjack gold deposit, intersected visible gold within intrusive rocks. Drill holes 57 and 58 were designed to test the down-dip extension of the well-mineralised intrusion intersected last year in hole DDRCCC-23-047. Hole 47 contained the best gold mineralised intersection on the property to date, returning 219.0m of 1.34 g/t gold, including 124.8m of 2.01 g/t gold and 55.0m of 3.11 g/t gold. The winter phase of the 15,000m diamond drilling programme planned for 2024 is now complete. A total of 1085.1 metres have been drilled so far this season. The drill rig remains on site and drilling will resume after a brief interruption as the Yukon thaw has set in this spring.
Hole 58 was drilled approximately 70 metres north of recently completed hole DDRCCC-24-057, which also returned visible gold in foliated veins. Hole 58 was drilled to a depth of 534.9 metres at an azimuth of 60 degrees and a dip of -60 degrees (see Figure 1) and is currently being logged and cut in preparation for delivery to the assay lab.
Cor Coe, Director and CEO of Sitka Gold, commented: “The observations of visible gold within significant intercepts of megacrystalline quartz monzonite (intrusive rock) in the first two step-out holes of our winter diamond drilling campaign at RC Gold are very encouraging and further evidence that robust gold mineralisation persists in this area, which remains open in all directions. These successful step-outs show that the mineralisation encountered in hole 47 continues in holes 57 and 58 and demonstrates the significant potential for expansion of the high-grade gold mineralisation to the south and southeast of the current Blackjack deposit, which is open in all directions. We eagerly await the assay results.”
The main objectives of the drilling this year are to further expand and define the targets within the Clear Creek Intrusive Complex, which currently hosts the Blackjack and Eiger gold deposits. These initial drill holes (57 and 58) have demonstrated that the mineralisation hosting the Blackjack deposit continues to the south and at depth. Mineralisation remains open and when drilling resumes, this area will continue to be a focus for expansion of the high-grade resource at the Blackjack deposit.
Drilling will also target resource expansion at the Eiger deposit and continue drilling at the Saddle Zone, located midway between the Blackjack and Eiger deposits, where drilling has indicated excellent potential for an additional resource (see Figure 3). In addition, drilling is aimed at advancing drill-ready targets elsewhere on the 386 square kilometre property, which hosts nine known intrusions with associated gold mineralisation.
Summary: It is noteworthy that Sitka Gold was the only company to drill in the Tombstone Gold Belt this winter. This was only possible because the company was able to utilise existing infrastructure and because the project has year-round road access. The good accessibility should also be a lasting advantage for the future development of the project. With a resource of 900,000 ounces averaging 0.83 g/t gold, the Blackjack gold deposit is the best explored part on Sitka’s RC Gold Project to date. The targeted step-out drilling into the heart of the intrusive rock increases the chance that not only the Blackjack resource but also its average grades will continue to increase. It should be noted that Blackjack is only one of nine intrusions identified to date in the otherwise largely unexplored 386 square kilometre contiguous land package in the heart of the Tombstone Gold Belt. With a gold resource poised for significant growth and several additional high priority gold targets associated with intrusions, Sitka is very well positioned to capitalise on a strengthening gold market.
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