{kanada_flagge}With five more drill holes from its ongoing summer drill program at its Alpha Gold project in Nevada, Sitka Gold Corp. (CSE:SIG, FRA:1RF) has found further evidence of a strong Carlin-type alteration system. Assays are now available from the first two drill holes in the current program. In particular, drill hole AG21-05 (the second drill hole of the summer program by continuous count) is raising high expectations, although the drill did not even penetrate to target depth. AG21-05 encountered highly fractured rock along its entire length in Devonian shale and then encountered karst cavities below. This caused the drill pipe to get stuck and the hole was eventually abandoned at 430 feet (131 meters). However, the last 40 feet (12.19 meters) of drilling returned an average value of 0.41 g/t gold in the upper part of the Horse Canyon Equivalent unit (Figure 2).
At least as important as the gold grades themselves – as much as 100 times the concentration of gold as in drill hole AG21-03 – to geologists is the strong concentration of so-called Carlin-type pathfinder elements. Peak values included 502 ppm arsenic, 3.76 ppm mercury, 544 ppm antimony and 10.4 ppm thallium. Meanwhile, AG21-07 from the same rig tested target zones in the so-called Horse Canyon equivalent and upper Devils Gate limestone. This again recorded strong silicification, decalcification and pyrite throughout the target horizon. Laboratory analysis of this drill hole is pending.
Next three drill holes on Alpha Gold could be decisive
Sitka is now eagerly awaiting the results of three outstanding drill core assays from drill holes AG21-06, 07. Drill hole AG21-08 is also expected to be completed shortly and to go to the laboratory for analysis. The visual appraisal of drill core 06 and 07 to date shows features typical of Carlin deposits such as substantial dike or sill zones associated with strong silica, clay, pyrite and sooty pyrite in both the dikes/sills and wall rocks.
The Alpha Gold Project may be considered a brand new discovery. It was only earlier this year that Sitka had found the first evidence of a Carlin style gold system in holes AG21-02 and 03. To date, all holes have encountered strong silicification, decalcification and pyrite in the lower Horse Canyon Equivalent and upper Devils Gate limestone, with the exception of AG21-05, which was lost in the Horse Canyon Equivalent unit as it entered the target zone.
The drill holes clearly show a strong alteration system of the Carlin type
Cor Coe, P.Geo., Director and CEO of Sitka Gold, commented on the results as follows: “The results at Alpha Gold indicate the potential for a Carlin-type gold deposit in the project area. Although hole AG21-05 was lost, results received from the bottom of this hole showed increasing gold values and returned our best gold intercept to date. AG21-07 successfully intersected the target horizon from the same drill pad as AG21-05 (see Figure 2), so we are very excited to see what the results from this hole will bring along with the rest of the assay results that are still pending. Drilling in drill hole AG21-08 is currently underway as we continue to systematically follow up on the most likely high grade zones of this Carlin-type gold system.”
Figure 1: Location of the total of eight drill holes drilled to date at the Alpha Project. Results from targeted drill holes 6, 7 and 8 are pending.
Figure 2: Cross section of both drill holes AG21-05 and AG21-07. Drill hole 05 was lost at the outset but returned the highest gold values to date. Drill hole 07 was collared from the same drill pad and has advanced to the target zone. Assays from this drill hole as well as drill holes 06 and 08 are pending. Alpha Gold’s understanding of the geology is progressing and evolving rapidly.
Conclusion: The terms “Horse Canyon Equivalent” or upper “Devils Gate Limestone” will hardly mean anything to most investors. In Nevada, however, these names are all the more relatable. They represent the sedimentary layers that elsewhere in the Cortez Trend host multi-million ounce gold deposits of Barrick & Co. These deposits have the advantage for industrial gold recovery of being generally large and contiguous. In some cases, the target zones are so attractive that it pays to go several hundred meters deep in open-pit mines. The advantage of Sitka’s discoveries to date is that the target zones are comparatively close to the surface. There, with the appropriate tonnage, even mining lower grades of gold would be worthwhile. Sitka is systematically approaching the higher gold grades. In particular, the still outstanding drill holes could still provide surprises here. Also, investors should not forget that the direct neighbor to the south is none other than Kinross. We hear that Kinross plans to explore the structure discovered by Sitka on its own property shortly as well. That should bring Sitka some well-deserved attention, which the company hasn’t exactly been blessed with recently. The share price is currently below that of the previous placement at CAD 0.12.
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