{kanada_flagge}Sitka Gold Corp. (CSE:SIG; FRA:1RF; OTCQB: SITKF) has demonstrated that it can continue to expand the discovery of its intrusion-related gold deposit at the Blackjack Zone, at its RC Gold Project, at a rapid pace with three targeted drill holes during this winter. The Blackjack Deposit contains the bulk of the 1.34 million ounce resource reported to date (900,000 ounces of gold grading 0.83 g/t gold). In part, the drilling fills data gaps in the existing resource model.
{kanada_flagge}Sitka Gold Corp. (CSE:SIG; FRA:1RF; OTCQB: SITKF) has demonstrated that it can continue to expand the discovery of its intrusion-related gold deposit at the Blackjack Zone, at its RC Gold Project, at a rapid pace with three targeted drill holes during this winter. The Blackjack Deposit contains the bulk of the 1.34 million ounce resource reported to date (900,000 ounces of gold grading 0.83 g/t gold). In part, the drilling fills data gaps in the existing resource model.
Visible gold grains and high quartz vein density were observed in all three holes. Drilling confirms that mineralization at the Blackjack gold deposit extends further to the east and at depth. The total length of the three drill holes (DDRCCC-23-041 to -043) is 1,500 metres. Core samples from all three holes are pending. An additional 8,500 meters of drilling is planned for the summer. By comparison, only 41 diamond drill holes totaling approximately 14,500 meters have been drilled in the system to date.
Sitka CEO Cor Coe stated, “We are very encouraged by the visual observations of the drill holes. The early start to this year’s diamond drilling has given us a good start to the 2023 summer field season. With visible gold and significant vein density noted in every drill hole completed so far this year, we are eager to see the assay results as we continue to systematically define this gold-rich corridor. This corridor includes the recently announced discovery of two NI 43-101 compliant gold deposits located 1.5 kilometers apart and containing a total of 1.34 million ounces of gold.”
Figure 1: Overview map of drill hole locations and surface geochemistry in the Blackjack, Saddle and Eiger zones.
Figure 2: Cross-section of DDRCCC-23-041 and -042.
The RC Gold Project (RC Gold) in the heart of the Tombstone Gold Belt is strategically located midway between Victoria Gold’s Eagle Gold Mine – Yukon’s newest gold mine – and Sabre Gold Mine’s Brewery Creek Gold Mine. Sitka focuses on a 500-meter by 2000-meter gold system covering the three zones of Blackjack, Saddle and Eiger. The Tombstone Gold Belt is known for its intrusion-related gold systems (IRGS deposits). The most significant deposits in the belt include: Fort Knox Mine in Alaska with current proven and probable reserves of 230 million tonnes grading 0.3 g/t Au (2.471 million ounces; Sims 2018); Eagle Gold Mine with current measured and indicated resources of 233 million tonnes grading 0.57 g/t Au in the Eagle Main Zone (4.303 million ounces; Harvey et al, 2022; Brewery Creek Deposit with current indicated mineral resources of 22.2 million tonnes grading 1. 11 g/t (0.789 million ounces; Hulse et al, 2020); and the Florin Gold deposit, adjacent to Sitka’s RC Gold project, with a current inferred mineral resource of 170.99 million tonnes grading 0.45 g/t (2.47 million ounces; Simpson, 2021); and the AurMac project with an inferred mineral resource of 207.0 million tonnes grading 0.60 grams per tonne gold (3.99 million ounces; Jutras, 2022).
CONCLUSION: The Tombstone Gold Belt in the Yukon is known for its large, industrially mineable gold deposits, which can include resources in excess of 200 million tonnes, as at Fort Knox or the Eagle Gold Mine. Economies of scale allow for profitable mining of gold grades, some of which are half a gram or even less. Sitka fits exactly into this picture, but impresses with its high efficiency and comparatively higher grades: After only 38 holes, the company was already at 61 million tons averaging 0.68 g/t (according to the January 19, 2023 resource estimate), with average grades diluted downward by the lower-grade Eiger zone. With the recent three holes in the Blackjack zone again showing visible gold, the weight of the higher-grade Blackjack zone may increase in the upcoming resource estimate. At best, the project could then increase not only by tonnes but also by gold grade. The 8,500 meters of drilling planned for the summer in the 1.5-kilometer corridor between Blackjack and Eiger should add another significant dimension to the project. Sitka is the fastest upcomer in the Tombtone gold belt.
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