The Company has just announced the results of successful drilling AG22-09 and AG22-10: both holes again encountered typical Carlin mineralization similar in geological structure and genesis to Barrick's Goldrush deposit 40 kilometers away. Hole AG22-10 returned 1.21 g/t Au over a 21.3 m interval from 211.8 m, including 13.7 m of 1.52 g/t Au from 217.9 m and 1.5 m of 4.62 g/t Au from 225.6 m. Hole AG22-09 returned 10.7 m at 0.51 g/t Au from 125.0 m. The gold grades measured were the highest grades measured to date on the project and the intervals were the longest measured to date. In addition, there is the huge tonnage potential - characteristic of Carlin deposits - of the host horizon: results from two so-called step-out drill holes AG22-11 and AG22-12 are still pending. Alteration and mineralization observed in these holes suggests that the extent of the Carlin-style gold system could have a strike length of over six kilometers (see Figure 1).
Cor Coe, CEO and Director of Sitka Gold, commented, "The initial results from the Company's ongoing 2022 drill program at Alpha Gold continue to confirm that we are on a very significant Carlin-type gold system. These are the best gold intercepts we have found to date and add to the growing evidence that this system has the potential to host a significant Carlin-type gold deposit. In addition, the alteration and mineralization observed in holes AG22-11 and AG22-12 have significantly expanded the known extent of this system with their massive step-outs of 940 m and 5,600 m SSE of AG22-10, respectively, adding to the exceptional tonnage potential of this target."
Cor called it "extremely impressive" that his team has confirmed that Alpha Gold hosts a large, very robust Carlin-type gold system with comparatively little drilling since the conceptual geological model was first presented in 2020 in this entirely new, undrilled area. Since the discovery of this Carlin-type gold system at Alpha Gold, drilling has progressively returned larger and larger intercepts with increasingly better gold grades. Evaluation of additional data from drill hole surveys, as well as through improved geological interpretation, allows for continued progress toward the core of the system, Cor said.
Geological detective work is successful
The NNW structural zone at Alpha Gold is very subtle at surface and has required a methodical and systematic exploration strategy. Increasingly informative results from AG22-09 and 10 have confirmed the location and orientation of the underground mineralized system. This newly acquired information has been translated into very aggressive step-outs in holes AG22-11 and 12. Alteration and mineralization in the two new holes indicate that the same structure continues along a strike length of over six kilometers from AG21-03 to AG22-12 (see Figure 1). This leads to a wealth of new targets both along strike and at depth in the deeper, even more permeable, down-dip host rock horizons, Cor said. Progress at Alpha Gold has made "an important leap forward" and has produced several new refined targets that will be tested in the search for the strongest parts of this almost entirely coveredCarlin-type gold system, he said.
Figure 1 - Alpha Gold drill hole locations.
Figure 2 - Alpha Gold drill hole locations.
Figure 3 - Cross section of drill holes AG22-08 and AG22-10.
Summary: With minimal expense and maximal efficiency, geologists at Sitka Gold have confirmed the major thesis that Alpha Gold is indeed a Carlin-type project. This deposit type is characterized by finely disseminated gold in sediment bound structures and therefore can form deposits of large tonnage. Barrick's Goldrush project, 40 kilometers away, provides the blueprint, but it is already becoming apparent that the gold-bearing host horizons at the Alpha project are much closer to surface than at Barrick's project. One may assume that the big neighbors have already become alert. After all, Kinross' properties are directly adjacent to the Alpha Project. If the two outstanding holes AG22-11 and AG22-12 confirm the suspected strike length of the system, interest is likely to increase even more. Given the well-deserved, hard-earned success at Alpha, it should not be forgotten that Sitka's flagship project is still its RC Gold Project in the Yukon. Sitka has been extremely successful there as well, having just completed 6,500 meters of drilling. The company is currently awaiting additional assay results for 10 diamond drill holes. At present, the entire company, including a package of other gold and base metal projects, is valued at CAD 20 million on the stock market. One wonders for how much longer.
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