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Sitka Gold Corp
Symbol SIG
Shares Issued 56,244,396
Close 2020-10-15 C$ 0.22
Recent Sedar Documents

Sitka Gold drills 139.1 m of 0.61 g/t Au at RC

2020-10-15 11:20 ET - News Release

Mr. Donald Penner reports

SITKA DRILLS 139.1 METRES OF 0.61 G/T GOLD INCLUDING HIGH-GRADE INTERVALS AT ITS RC GOLD PROJECT, YUKON

Sitka Gold Corp. has released the first assay results from two of its drill holes on its RC gold project in Yukon. A total of six drill holes totalling approximately 1,500 metres were completed on the district-scale RC gold project this year, testing high-priority targets over a 10-kilometre distance. The company is awaiting results for the remaining four drill holes.

Highlights from these drill holes include:

  • 139.1 metres of 0.61 gram per tonne gold from 131.9 metres to 271 metres in DDRCCC20-004, including:
    • 59 metres of 0.88 gram per tonne gold from 212 metres to 271 metres;
    • 37 metres of 1.05 grams per tonne gold from 234 metres to 271 metres;
    • 6.6 metres of 1.27 grams per tonne gold from 131.9 metres to 138.5 metres;
  • 57.5 metres of 0.50 gram per tonne gold from 243 metres to 300.5 metres in DDRCCC20-003, including:
    • 11.6 metres of 1.20 grams per tonne gold from 251 metres to 262.6 metres;
    • 0.9 metre of 9.57 grams per tonne gold from 251 metres to 251.9 metres;
  • 38 metres of 0.67 gram per tonne gold from 27 metres to 65 metres in DDRCCC20-003.

Cor Coe, chief executive officer of Sitka, commented: "We are very pleased to have received and compiled our first drill results from this season's diamond drilling program at the RC gold project. Visible gold with bismuthinite was observed in DDRCCC20-003 during logging and now is confirmed by these assay results. Drill holes DDRCCC20-003 and -004 returned exceptionally long intersections of up to 139.1 metres of 0.61 gram per tonne gold as well as high-grade intervals of up to 9.57 grams per tonne gold over 0.9 metre and straddles a lateral width of 300 metres of persistent gold values throughout both holes. These holes were drilled at the Eiger zone, where previously released assays earlier this season from surface grab and chip samples returned up to 27.8 grams per tonne gold within a [greater than-500-part-per-billion] gold-in-soil anomaly (see news release dated Sept. 8, 2020). The drilling results at the Eiger zone of [the] RC gold project confirm that the area hosts significant gold mineralization that is open both laterally and at depth within a broad gold-in-soil anomaly and underscores that this zone is an important discovery for follow-up drilling. Our maiden drill campaign targeted areas over a 10-kilometre distance within a massive 345.5-square-kilometre land package that had never been drilled before or where previous drilling had been unsuccessful in reaching target depth. The campaign was successful in intersecting significant gold mineralization within an intrusion-related gold system environment in both drill holes DDRCCC20-003 and DDRCCC20-004. These initial results solidify our belief that the RC gold project is a fertile land package that may host several intrusion-related gold deposits, along with high-grade vein- and breccia-hosted gold. We look forward to compiling the remaining drill holes once assay results are received from the lab."

The company identified the Eiger zone, which contains a large, greater-than-500-part-per-billion gold-in-soil anomaly, as a priority drill target at the RC gold project and submitted 11 rock grab and chip surface for rush analysis while drilling was under way. The samples returned values ranging from 1.56 grams per tonne gold to 27.8 grams per tonne gold (see news release dated Sept. 8, 2020) and identified a strong correlation between high-grade gold and bismuth. Visible gold with bismuthinite was observed in DDRCCC20-003 during logging and is now confirmed by these assay results. The correlation of gold and bismuth in intrusion-related gold systems is a characteristic feature of deeply formed intrusion-proximal gold deposits and is present at the nearby Eagle Creek gold mine and at the Fort Knox gold mine, where it indicates the presence of fine-grained (on the order of 100 microns) free gold (Baker et al., 2005). Sheeted quartz veins mineralized with variable amounts of arsenopyrite, pyrite, chalcopyrite and bismuthinite were encountered throughout the entire length of hole DDRCCC20-003 below the surface projection where the reported samples were taken.

About the RC gold project

The RC gold project is a 345.5-square-kilometre district-scale land package located in the newly road-accessible Clear Creek, Big Creek and Sprague Creek districts in the heart of Yukon's Tintina gold belt and within the Tombstone gold belt. It is the largest consolidated land package strategically positioned midway between Victoria Gold's Eagle gold mine, Canada's newest gold mine, which just reach commercial production earlier this summer, and Golden Predator's Brewery Creek gold mine, which recently received government and first nation support for restarting production. The RC gold project land package comprises five underlying mining properties, namely the RC, Bee Bop, Mahtin, Clear Creek and Barney Ridge properties.

Sitka Gold has inherited a wealth of historical and current data from these properties that span the last 40 years. Recent exploration work and the compilation of historical data have defined several mineralized zones with both bulk-tonnage, intrusion-related gold deposit targets and high-grade vein- and breccia-hosted gold targets. The RC gold project also has a common border with Victoria Gold's Clear Creek property at its western boundary and AM Gold's Red Mountain property at its northern boundary.

Deposit model

Exploration on the property has predominantly been focused on identifying an intrusion-related gold system (IRGS). The property is part of the Tombstone gold belt, which is the prominent host to IRGS deposits within the Tintina gold province in Yukon and Alaska. Notable deposits from the belt include: the Fort Knox mine in Alaska with current reserves of 282 million tonnes at 0.37 gram per tonne gold (3.4 million ounces, not including 7.5 million ounces of past production; Fairbanks Gold Mining Inc.); the Eagle gold mine with 155 million tonnes at a diluted grade of 0.65 gram per tonne gold (3.26 million ounces; Victoria Gold Corp., 2020); the Brewery Creek epizonal deposit with 17.17 million tonnes at a gold grade of 1.45 grams per tonne (726,000 ounces; Barr, 2013); and the Red Mountain gold deposit, located adjacent to Sitka's RC gold project, with 127 million tonnes grading 0.48 gram per tonne gold (1.95 million ounces; AM Gold Corp.; Cole, 2012).

Note: The disclosure herein is strictly for deposit model comparisons and the mineralization hosted on these properties is not indicative of mineralization hosted on the company's property.

Analysis and quality assurance/quality control

Analytical work was carried out by ALS Global Labs. The sample preparation took place in Whitehorse, Yukon, and the analyses were completed in Vancouver, B.C. Each sample was assayed for gold by 30-gram fire assay Au-AA25 with overlimits reanalyzed gravimetrically. Additionally, each sample was analyzed by ICP ME-MS41 for a suite of 51 elements.

The company has a rigorous quality assurance/quality control program in place consistent with National Instrument 43-101 and industry best practices in addition to quality assurance/quality control procedures at the lab. Each batch of 20 samples contains one certified standard reference material and one blank of known unmineralized material.

About Sitka Gold Corp.

Sitka Gold is a mineral exploration company headquartered in Canada and managed by a team of experienced mining industry professionals. The company is focused on exploring for economically viable mineral deposits, with its primary emphasis on gold, silver and copper mineral properties of merit. Sitka currently has an option to acquire a 100-per-cent interest in the RC, Barney Ridge, Clear Creek and OGI properties in Yukon and the Burro Creek gold property in Arizona. Sitka owns a 100-per-cent interest in its Alpha gold property in Nevada, its Mahtin gold property in Yukon and its Coppermine River project in Nunavut. Directors and management own approximately 17 per cent of the outstanding shares of Sitka Gold, a solid indication of their alignment with shareholders' interests.

The scientific and technical content of this news release has been reviewed and approved by Cor Coe, PGeo, a director and the chief executive officer of the company and a qualified person as defined by NI 43-101.

We seek Safe Harbor.

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