Drill holes AG22-09 and 10 both defined a new zone of strong alteration in a north to NNW trending structure. Both holes encountered strong silicification in the Horse Canyon equivalent stratigraphy with zones of dark, discolored, possibly arsenic-rich pyrite. Original calcareous rocks near the fault zone are decalcified to completely karstified. AG22-10 encountered an 11.5 metre cavity. Drilling results combined with surface mapping indicate significant displacement of this fault along at least two strands. (See Figure 1) AG22-10 started in the footwall of the fault and tested an altered horse canyon equivalent there from 149 to 175 meters. The hole then crossed the fault into the dipping hanging wall and is now in a repeated section of strongly silicified, decalcified, pyritic Horse Canyon stratigraphy from about 232 meters. Drilling continues with the objective of reaching the upper Devils Gate limestone.
Sitka CEO, Cor Coe, commented, "Drilling at Alpha Gold continues to rapidly expand our knowledge of the Carlin-type gold system we discovered last year. We are very encouraged by the visual observation of the new structural zone intersected in holes AG22-09 and -10, which appears to be the primary mineralization control at Alpha Gold, with the most robust alteration and mineralization of the Carlin type observed to date. We eagerly await results from these drill holes as we continue to advance towards the high-grade core of this Carlin-type gold system."
Figure 1 - Location of drill holes -05 to -10 and proposed drill hole AG22-11.
Sitka intends to drill at least 1,500 meters on Alpha this season. The project was originally staked after the site was identified as an intersection of the regional Pine Valley anticline with northeast fold trends in the Roberts Mountains. Overlying NNW folds consistent with the projection of the Cortez trend were later recognized and identified as important alteration and mineralization controls. Of primary importance at the Alpha Gold site is that the rocks were significantly downthrown by late extensional faulting. Prior to extension and during the critical Carlin-type mineralization event (36-42 Ma), the fold crest at Alpha Gold would have been a regional high point among nearby ranges. Well-exposed "lower plate windows" near Alpha Gold have been extensively explored for Carlin-type gold deposits, with a number of deposits found along the limbs.
Since the acquisition of Alpha Gold, three drill programs totaling 2604 meters in 8 holes have been completed, advancing the property from an undrilled geological concept with surface alteration and an anomaly of pathfinder elements to a large, wide-open Carlin-type gold system with thick, low-grade gold intercepts from widely spaced drilling.
Sitka Gold has acquired a 100% interest in the Alpha Gold Project. The project consists of a claim block with a total of 239 lode claims covering an area of approximately 4,780 acres (1,934 hectares), accessible via a dirt road approximately 2 km west of Nevada State Highway 278.
Conclusion: Sitka is active in the Yukon and in Nevada at different speeds. While in the Yukon the focus is on expanding a confirmed discovery as quickly as possible through tonnage, in Nevada they are still in the discovery phase. However, it is easy to see how Sitka is getting closer and closer to the potential sweet spot of the system with each new drill hole. The basic concept of Carlin style mineralization is now confirmed. Sedimentary deposits of this type are ideally suited for large-scale industrial mining. Therefore, drilling success at Alpha would have enormous economic significance. In any case, the big neighbors are taking Sitka very seriously, while the market is not impressed by technical progress and is simply waiting for economic gold grades. The stock market still does not honor Sitka Gold's good work in any way. The price is - due to sentiment - even below the price of the latest financing. The current pressure on the price acts like the cocking of a spring. In the event of success in Nevada or the Yukon, this spring could deflect violently. We are keeping our fingers crossed.
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