Sitka stands out for the high efficiency of its drilling
Sitka Gold (WKN A2JG70 / TSXV SIG) is looking to demonstrate the exceptional value of its newly acquired Clear Creek property this drilling season (see Figure 1). To this end, the company has now announced the first diamond drill hole on the Rhosgobel intrusion. The drilling follows up on historic near-surface reverse circulation drilling from 1995. Almost 30 years ago, two short RC holes, 95-15 and 95-16, intersected 50.3 meters of 1.07 g/t gold and 67.1 meters of 1.03 g/t gold respectively. Both holes ended in mineralization at the time. (see Figure 2)
Concurrent grid geochemical surveys are underway to fill in data gaps south of the Blackjack deposit on the prospective Pukelman West intrusion and the G2 zone on the newly acquired Clear Creek claims. The new geological, geophysical and geochemical datasets will be integrated into Sitka Gold’s existing database. The Company is currently conducting diamond drilling at RC Gold in conjunction with a planned 15,000 metre drill program for 2024.
Cor Coe, Director and CEO of Sitka Gold, commented: “The accumulation of data from several years of systematic exploration by previous operators on the newly acquired Clear Creek property has yielded several high quality exploration targets. The newly acquired claims include at least three intrusion-related gold targets that are geologically similar to our developing Blackjack gold deposit, and the team is very excited to begin evaluating the property by testing the Rhosgobel intrusion, where historical work strongly indicates the potential for the presence of a multi-million ounce gold deposit. Sitka’s initial discovery of the Blackjack and Eiger gold deposits was made through a similar process of reviewing and compiling an extensive historical database, and we see the opportunity to accelerate the discovery of additional gold deposits by leveraging our growing knowledge of the intrusion-related gold systems in the area in conjunction with the comprehensive Clear Creek dataset as we continue our exploration activities in this emerging mining district.”
Figure 1: With the purchase of the Clear Creek property (outlined in yellow), Sitka Gold now owns 100% of the Clear Creek intrusive complex. The new area is approximately 8 km x 15 km and includes several known surface intrusions with associated gold mineralization. The extension of the Blackjack Graben (dashed line) runs through the Rhosgobel property. At the intersection with Rhosgobel, Sitka hopes to repeat its discovery success at the Blackjack deposit.
The newly consolidated project includes four high priority areas where reverse circulation and/or diamond drilling has already been completed and requires additional drilling. These areas are the Rhosgobel intrusion where historical drilling returned up to 1.03 g/t gold over 67.1 meters, the Contact zone with drill results of up to 20.3 g/t gold over 10.7 meters, the Bear Paw Breccia which returned up to 1.87 g/t gold over 42.6 meters, and the Pukelman intrusion with results of 1.20 g/t gold over 10.0 meters. The first target area to be tested is the Rhosgobel intrusion where shallow historic drilling by Kennecott in 1995 outlined a large area of intrusion-related gold mineralization.
Figure 2: Cross section of previous RC drilling at Rhosgobel along holes 15 and 16 that ended in mineralization. Sitka plans to drill the first diamond hole in the Rhosgobel intrusion (PROS-24-A) below holes 15 and 16 to test the width of the mineralized zone intersected in 1995. Previous drilling at Rhosgobel was limited to a vertical depth of approximately 60 meters. The gold mineralization observed at Rhosgobel is similar to gold mineralization at the Blackjack deposit located 5 km north along the recently discovered Blackjack mineralized corridor.
Conclusion: Luck and misfortune are sometimes painfully close in the exploration industry. If not for the “Black Swan event” at Victoria Gold’s Eagle Gold Mine, over 60 km away, the market might be celebrating Sitka Gold’s acquisition of Clear Creek with price fireworks. After all, the new Clear Creek property promises a repeat, or perhaps even several repeats, of the success of the Blackjack discovery due to its rich history and the recent structural findings of Sitka geologists notably the Blackjack Fault. The planned first diamond drilling at the intersection of important structural zones at Rhosgobel has a good chance of leading to a new significant discovery. But currently, the news about Victoria Gold and speculation about the impending insolvency of the producing company is weighing on general sentiment and also on Sitka Gold’s share price. On the plus side, Sitka can claim that the acquisition of Clear Creek in this form would certainly no longer be possible with an ailing Victoria Gold. There is much to be said for interpreting the contract in such a way that Victoria Gold was seeking a partnership with Sitka. This is supported by a number of details, such as the agreement that no payment is due for two seasons. In addition, the agreed royalty can be bought out completely and, last but not least, the largest payment would only be due when Sitka upgrades its future resources on Clear Creek to the “measured & indicated” category. Sitka can therefore first determine as many resources in the “inferred” category as it wishes. We stick to our views: As an explorer, Sitka Gold stands out for the high efficiency of its drilling. The exploration business is ultimately about growing faster with less money than the competition. Sitka has been exemplary in achieving this, partly because Blackjack has significantly higher average grades than other intrusion-related projects. Clear Creek offers the opportunity for one or more successful repetitions of Blackjack-style gold discoveries. Exploration success will ultimately make the difference and bring investors back.
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