Visible gold again: Sitka Gold confirms high potential of Blackjack analogue Rhosgobel

Sitka Gold Corp. (TSXV:SIG; FSE:1RF; OTCQB:SITKF) is apparently on the trail of another significant discovery 5 kilometers south of the known Blackjack gold deposit on its RC Gold Project in the Yukon. Multiple showings of visible gold in core were observed in the first two diamond drill holes ever completed at the Rhosgobel target that was only recently acquired.

11 visible gold occurrences were observed in drill hole DDRCRG-24-002. These latest drill holes indicate a much larger mineralized system with gold intersections at much greater depths than in previous work. The visual results at Rhosgobel indicate that the gold mineralization extends at least 250 metres deeper than the depth of the historic reverse circulation drilling, which ended in mineralization at a depth of 70 metres The historic RC drilling was completed by Kennecott in 1995. Lab assays for the new diamond drilling are pending The Company currently has two drill rigs turning on its RC Gold property and is awaiting assay results for other completed drill holes, including hole DDRCCC-24-068, which intersected over 40 occurrences of visible gold from surface (4 meters) to 680 meters depth.

Figure 1: A cross section of drilling 2024 on the Rhosgobel Intrusion showing the locations of visible gold observed in drill core.

Cor Coe, CEO and Director of Sitka Gold, commented, “The visual results from the first two diamond drill holes ever completed at the Rhosgobel intrusive-related gold target have exceeded our expectations with multiple occurrences of visible gold observed in DDRCRG-24-001 and 002. The visual results from our initial round of drilling at Rhosgobel are very encouraging and highlight the significant potential of the many high priority targets we have yet to drill in the Clear Creek Intrusive Complex. Rhosgobel demonstrates the potential for additional significant intrusion-related gold deposits within the Clear Creek Intrusive Complex, similar to our growing Blackjack deposit. Diamond drilling with oriented core at Rhosgobel has provided Sitka’s technical team with valuable information confirming the similar structural and geological controls on gold mineralization encountered at the Blackjack and Eiger deposits, located approximately 5 kilometers to the north.

The Rhosgobel Intrusion is the largest and southernmost exposed intrusive that is part of the Clear Creek Intrusive Complex (CCIC). The intrusives within the CCIC cover an area of approximately 8 by 15 kilometers and likely have a common magmatic source at depth All of the intrusions are associated with known gold mineralization and form a large mineralized system with the potential to host multiple gold deposits. The Rhosgobel Intrusion, located 5 km south of the Blackjack deposit along the trend of the north-striking Blackjack Fault, has similar structural features to Blackjack itself.

Figure 2: Plan view of 2024 drilling on the Rhosgobel Intrusion showing the locations of visible gold observed in drill core, the 1.5 by 2.0 kilometre gold-in-soil anomaly and mapped intrusion The best historical RC drill holes intersected 50.3 meters grading 1.07 g/t gold and 67.1 meters grading 1.03 g/t gold, with both holes ending in mineralization.

Figure 3: Overview of targets within the newly consolidated Clear Creek Intrusive Complex The Rhosgobel Intrusion is approximately 3 km long and 2 km wide. Drilling is currently in progress to test the projection of higher-grade gold mineralization along the newly identified Blackjack mineralized corridor, which follows the Blackjack fault and extends over 10 kilometers through the Saddle, Pukelman West and Rhosgobel intrusive rocks.

Conclusion: Sitka’s latest discovery at Rhosgobel shows the long cycles that the exploration industry works in. 29 years had to pass before it became clear that the potential of Rhosgobel is much greater than Kennecott could have imagined during its exploration in 1995. At the time, the gold price was trading at less than USD 400. Accordingly, the project was abandoned after a quick 26 RC drill holes to a maximum depth of 70 meters. At the time, it would have taken gold grades of several grams to continue. Today, the Rhosgobel discovery exists in a completely different context. The gold price has increased more than sixfold. But more importantly, the work of Sitka Gold has completely changed the understanding of the drivers of structurally controlled mineralization in the Clear Creek Intrusive Complex. Geologists interpret the results, so far, as indicating that Blackjack and the Rhosgobel target, five kilometers away, are structurally connected and fed by the same gold-mineralized source at depth. In this respect, the Rhosgobel discovery is very much the opposite of a “lucky punch” (although luck is always a factor), but rather further evidence that Sitka’s underlying exploration thesis is actually correct. But still, Sitka Gold has a lot of exploration to do on the Clear Creek Intrusive Complex. We’ll continue to watch closely.