Cor Coe, P.Geo., CEO and Director of Sitka Gold, states, "We are very pleased with these excellent metallurgical test results which demonstrate that the gold mineralization of these two zones is non-refractory and has high gold recovery with minimal NaCN consumption. This is significant in that it confirms the potential for an open pit, heap leach, high gold recovery operation; which is typically the most economically efficient method of recovering gold from a deposit. We are rapidly expanding the known mineralization at the Blackjack Zone as we continue to move aggressively from our initial discovery hole."
Figure 1: McKinsey compares the three types of gold recovery. The most capital-efficient type is heap leaching. Processing refractory ore is the most expensive.
Figure 2: According to McKinsey, the proportion of refractory gold projects is increasing globally, even though they have higher operating costs.
2022 Drilling Program Update
The Company is currently conducting intensive drilling at RC Gold with a focus on further defining gold mineralization laterally and vertically from the 2021 discovery drill hole (Hole 21), which returned 220.1 meters of 1.17 g/t gold, including 50.5 meters of 2.08 g/t gold (see December 13, 2021 news release). So far this year, 13 holes totaling 3,842 metres have been drilled at the Blackjack Zone. Nine holes from the current drilling campaign have been logged, sampled and shipped to ALS Global Labs in Whitehorse, Yukon for analysis.
About the RC Gold Project
The RC Gold Project covers a 376 square kilometer license. It is strategically located midway between Victoria Gold's Eagle Gold Mine - Yukon's newest gold mine, which reached commercial production in the summer of 2020 - and Sabre Gold Mine's Brewery Creek Gold Mine. The RC Gold Project also shares a boundary with Victoria Gold's Clear Creek property on its western boundary and Florin Resources' Florin Gold property on its northern boundary. RC Gold is the largest consolidated land package in the region.
This year's drill program is focused on a large, 500m by 2000m intrusion-related gold system spanning the Blackjack, Saddle and Eiger zones. To date, Sitka has drilled 34 diamond drill holes there with 100% success rates.
Conclusion: By releasing initial metallurgical test results, Sitka Gold allays the concerns of one or two institutional investors who may have been concerned that the good drill results could be due to refractory ore. In terms of investability, Sitka Gold should climb a small rung. For many observers, however, the good metallurgy should not really have come as a surprise, because the neighbor Victoria Gold also benefits from a good gold extraction in its mining operations.
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