15,000 metre drill program underway
As a project developer, Sitka Gold (TSXV: SIG, OTCQB: SITKF, WKN: A2JG70) has a number of projects at various stages of development. Gold and silver projects are being developed as well as properties where interesting copper deposits are suspected. What all projects have in common is that they are located in mining-friendly regions and therefore have the ideal conditions for successful development.
In 2024, the company’s main focus will be on its RC gold project in the Yukon. Here, Sitka Gold recently defined an initial inferred gold resource of 1.34 million ounces of gold. A diamond drilling programme began in the winter, which has not yet been fully completed. It serves to expand the resource. As the resource at RC Gold is still open in all directions, investors can expect that the current drilling will also be successful and that the resource will be expanded.
Sitka Gold plans to drill a total of 15,000 metres at the project in 2024. The current drilling is focussed on the continuation of hole 47, which was drilled in 2023 south of the current Blackjack gold deposit. It contains 900,000 ounces of gold at a grade of 0.83 g/t. 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. Already, the first drill hole of the current program encountered mineralization, apparently the same intrusive rocks that host the Blackjack deposit and that were seen in Hole 47 last year
Drilling in 2024 will continue to focus on expanding the recently discovered Blackjack and Eiger gold deposits. At Eiger, Sitka Gold has delineated 440,000 ounces of gold to date at a grade of 0.50 g/t gold. Both deposits are approximately 1.5 kilometres apart and drilling will also aim to extend the Saddle Zone. It is located halfway between the Blackjack and Eiger deposits. With three attractive deposits, this target zone represents a particularly prospective sub-area within the 386 square kilometre contiguous property.
The results of the latest drilling have already been received for the Alpha Gold project in the US state of Nevada. The project is located 40 kilometres southeast of Nevada Gold Mines’ Cortez Complex and is at the southeast end of the Cortez Trend. Four holes totalling 1027.3 metres were drilled as part of the 2023 work at Alpha Gold. The 2023 drilling, like previous drilling, intersected wide gold intercepts with abundant Carlin pathfinder elements in strong Carlin-style alteration in all holes.
The 2023 drilling and previous widely spaced drilling show that gold mineralisation appears to be continuous along the 2.5 kilometre long segment of the Alpha anticline with encouraging indications of higher grade zones. An additional 4.5 kilometre long segment of the Alpha Anticline that continues south/southeast towards Frazier Creek has not yet been drill tested. Four initial rock chip samples taken at surface at Frazier Creek returned up to 0.775 g/t gold, far exceeding the total surface gold from the Alpha NW area and impressively highlighting the potential of this area. Drilling and geological modelling continues to support a large Carlin-type gold system with highly prospective but as yet untested targets and excellent potential for discovery of a high-grade core zone.
Last but not least, Sitka Gold has meanwhile also received important permits for the planned drilling on the Burro Creek project in Arizona and the Coppermine River project in the Canadian province of Nunavut. These will enable the company to start the first investigations at depth there soon. With a current cash balance of around 7.5 million Canadian dollars (CAD), Sitka Gold is also well capitalised and financially strong enough to carry out the work planned for this year.
“From the beginning, Sitka’s goal has been to assemble a portfolio of prospective mineral properties that provides diversification across key target minerals and mining-friendly jurisdictions,” said Cor Coe, CEO of Sitka Gold, summarising the company’s strategy. “Having achieved this, Sitka has spent the last several years systematically advancing these properties through various phases of exploration. The results of these efforts have led to several discoveries and milestones, the most recent being the advancement of RC Gold from a discovery hole to an initial mineral resource estimate of 1.34 million ounces of gold in just twelve months. Our focus is on growing this resource towards critical mass as we explore several additional drill-ready targets at RC Gold that are ripe for discovery. We also look forward to continuing our exploration efforts at Alpha Gold where we have discovered a large Carlin-style gold system that has the potential to host a substantial gold resource similar to other deposits along the Cortez trend where over 50 million ounces of gold have been discovered to date. With drill permits now in hand for Coppermine River and Burro Creek and funding of approximately $7.5 million, Sitka is well positioned to further unlock the potential of its mineral portfolio and create additional value for its shareholders.”
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