{kanada_flagge}With 10,000m of summer drilling well underway at Sitka Gold Corp’s (CSE: SIG; FRA: 1RF; OTCQB: SITKF) RC Gold Project, the company has now released assays from the third and final diamond drill hole from the past 2023 winter season. With 422.7 m averaging 0.74 g/t gold from surface throughout (including 111.7 m at 1.24 g/t gold), hole DDRCCC-23-043 adds to the existing deposit model at a critical location from which too little data was previously available. The result, like the two previous step-out drill holes of the winter, should immediately lead to an increase in size and quality of the previously published resource estimate. As recently as January of this year, Sitka had released its Maiden Resource of 1,340,000 ounces of gold at a grade of 0.68 g/t.
The Eagle Mine has a Measured & Indicated resource of 4.304 million ounces of gold in the form of 233 million tonnes of ore at an average grade of 0.57 g/t gold, according to the latest figures from February this year. Despite these, at first glance, low gold grades, Victoria Gold has calculated an All-in Sustaining Cost (“AISC”) of US$1,114 per ounce, which provides strong margins at today’s gold prices. These values, along with Victoria’s industrial approach, are a good benchmark to rank Sitka’s success. This is because Sitka’s gold grades to date have averaged 30% higher than Victoria’s – although the drill density is not yet sufficient to determine a resource in the M&I category. With the 10,000-meter drill program now underway, Sitka has an excellent chance of quickly adding substantial resources to its 1.3 million ounces of gold. Doubling the resource is not an impossibility, considering that the published resource has historically required only about 13,000 meters of drilling. One thing to keep in mind is that back then Sitka did not know the structure of the deposit as well as it does today, so the current drilling should be more accurate.
{kanada_flagge}With 10,000m of summer drilling well underway at Sitka Gold Corp’s (CSE: SIG; FRA: 1RF; OTCQB: SITKF) RC Gold Project, the company has now released assays from the third and final diamond drill hole from the past 2023 winter season. With 422.7 m averaging 0.74 g/t gold from surface throughout (including 111.7 m at 1.24 g/t gold), hole DDRCCC-23-043 adds to the existing deposit model at a critical location from which too little data was previously available. The result, like the two previous step-out drill holes of the winter, should immediately lead to an increase in size and quality of the previously published resource estimate. As recently as January of this year, Sitka had released its Maiden Resource of 1,340,000 ounces of gold at a grade of 0.68 g/t.
Figure 1: All three winter drill holes are shown in red.
Cor Coe, CEO and Director of Sitka Gold commented, “The results from hole 43 are very notable and demonstrate how consistent and abundant the gold mineralization is at our Blackjack deposit. Gold mineralization was encountered at surface and continued over the entire 422.7 meter length of this hole, which averaged 0.74 g/t gold and had multiple occurrences of visible gold. Hole 43 was designed to add to an area of our deposit model where drill core data was not available and to test mineralization at depth.”
For safety reasons, winter drill hole DDRCCC-23-043 had been stopped after 422.7 m approximately 43 m short of target depth, although mineralization visibly continued. Sitka is now in the process of deepening the hole. Additional step-out drilling to expand the Blackjack and Eiger gold deposits, both of which remain wide open, will be the main focus of RC Gold’s 2023 summer field season, along with additional exploration drilling to test the continuity of the mineralized corridor.
Summary: The RC Gold Project is strategically located midway between Victoria Gold’s Eagle Gold Mine – Yukon’s newest gold mine, which did not reach commercial production until the summer of 2020 – and Sabre Gold Mine’s Brewery Creek Gold Mine. The Eagle Mine has a Measured & Indicated resource of 4.304 million ounces of gold in the form of 233 million tonnes of ore at an average grade of 0.57 g/t gold, according to the latest figures from February this year. Despite these, at first glance, low gold grades, Victoria Gold has calculated an All-in Sustaining Cost (“AISC”) of US$1,114 per ounce, which provides strong margins at today’s gold prices. These values, along with Victoria’s industrial approach, are a good benchmark to rank Sitka’s success. This is because Sitka’s gold grades to date have averaged 30% higher than Victoria’s – although the drill density is not yet sufficient to determine a resource in the M&I category. With the 10,000-meter drill program now underway, Sitka has an excellent chance of quickly adding substantial resources to its 1.3 million ounces of gold. Doubling the resource is not an impossibility, considering that the published resource has historically required only about 13,000 meters of drilling. One thing to keep in mind is that back then Sitka did not know the structure of the deposit as well as it does today, so the current drilling should be more accurate.
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