Sitka Gold Corp. (CSE:SIG; FRA:1RF) continues to systematically work towards the discovery of a Carlin-type gold deposit at its Alpha project on the southeast end of the Cortez Trend in Nevada. Today, the Company announced the last three of five drill holes (1,553 meters) drilled this season.
The final drill hole of the year, drill hole AG21-08, returned gold intercepts greater than one gram per tonne for the first time over 3.05 meters and reconfirms the underlying geological model of a Carlin-type deposit. Encouraged by this success, Sitka has again significantly expanded its project area, staking 125 additional claims with high priority drill targets. The property now comprises 239 claims totaling approximately 1,934 hectares.
Sitka has succeeded in rapidly developing the Alpha Gold Project with comparatively modest resources. In the beginning, there was only a geological concept with surface alteration. It is now clear that it is a wide-open Carlin-type gold system with thick, low-grade gold intercepts discovered by widely spaced drill holes. As drilling has progressed, gold grades have systematically improved as an understanding of the fundamental controls on the system has begun to be gained.
This is reflected in hole AG21-08 where gold intercepts greater than one gram per tonne were encountered. Given the early stage and relatively blind nature of the target, the strength of mineralization encountered to date and the rate of progression at Alpha are extremely encouraging.
The depth of the main target horizons is considered to be relatively shallow compared to similar, better known, overcovered or blind Carlin-type exploration areas around the Cortez and Carlin trends. The priority is to better define the gold mineralization patterns and find higher grades through further drilling in the current NW Alpha area. The information gained from this will assist in the successful targeting and drilling of the newly staked area where permitting is currently underway.
Figure 1: Alpha Gold's new claims more than double the Sitka license area in one fell swoop. They contain large targets with very high priority.
Cor Coe, P.Geo., CEO and Director of Sitka, stated: "We are very pleased to report positive drill results from this latest phase of drilling at Alpha Gold. The fact that intercepts greater than one gram per tonne of gold were encountered in only eight holes drilled in two phases of drilling in a large newly identified area within the Cortez Trend projection is extremely encouraging. It also underscores the importance of a disciplined exploration approach to follow up on Carlin-type exploration targets in a highly prospective area. The staking of claims adjacent to our existing claims has now doubled the size of our project and allowed us to secure additional highly prospective ground identified in the exploration work conducted to date. With $6.4 million in financing completed this year, Sitka is well positioned to move Alpha Gold forward."
Bottom line: a drill success of 3 meters at 1.1 g/t gold is certainly not a company-maker. More important than the individual result is that the direction is right. Sitka is systematically working its way forward, improving its geological understanding with each drill hole. From this knowledge, the company has now secured additional exploration licenses, more than doubling its original holdings. The implied targets are many and large. The stock market may not appreciate that at this point. The big neighbors will certainly be watching closely to see what little Sitka does. At some point in the development, one could also imagine a joint venture. We're keeping our fingers crossed for Sitka CEO Cor Coe.
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According to §34b WpHG and § 48f Abs. 5 BörseG (Austria) we would like to point out that GOLDINVEST Consulting GmbH and/or partners, principals or employees of GOLDINVEST Consulting GmbH hold shares of Sitka Gold and therefore a conflict of interest exists. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares of the company at any time. Furthermore, GOLDINVEST Consulting GmbH is remunerated by Sitka Gold for reporting on the company. This is another clear conflict of interest.