VANCOUVER, Nov 23, 2020 -
Sitka Gold Corp. ("Sitka" or the "Company") (CSE:SIG) (CNSX:SIG.CN) (OTC:SITKF) (FSE:1RF) is pleased to announce additional drill results received for two of its drill holes at its RC Gold Project in Yukon ("RC Gold" or the "Project"). A total of six drill holes totalling approximately 1500 metres were completed on the district scale RC Gold Project this year testing high priority targets over approximately 10 kilometres (Figure 1). Results for the remaining two drill holes (DDRCRC-20-005 & DDRCRC-20-006) are pending.
Highlights from these drill holes include*:
in DDRCCC-20-002 including:
-
-
- 231.0 metres of 0.61 g/t gold from 65.0 to 296.0 metres and
- 100.8 metres of 0.82 g/t gold from 156.4 to 257.2 metres and
- 2.0 metres of 16.10 g/t gold from 294.0 to 296.0 metres
*See Table 1.
"These exceptional results demonstrate the enormous potential present at the Saddle-Eiger Zones and confirm that the area hosts significant gold mineralization, open both laterally and at depth, within a broad gold-in-soil anomaly that is over 2 kilometres in length (Figure 2)", stated Cor Coe, Director and CEO of Sitka. "It is very impressive to have an entire drill hole (DDRCCC-20-002) return over 0.52 g/t gold, including 100.8 metres of 0.82 g/t gold, that also ended in 16.1 g/t gold over 2.0 metres. The intercepts and grades we are discovering in this area are quite compelling when you consider Victoria Gold's producing Eagle Gold mine, located about 40km east of our claim block, has a resource grade of 0.63 g/t gold. We believe the results from these inaugural drill holes at the Saddle-Eiger Zones reflect the grades and scale necessary for hosting an economic gold deposit and we are looking forward to a much more aggressive drill program in 2021 to follow up on this important discovery."
Sitka's first ever drill campaign at RC Gold tested four targets over a distance of approximately 10 kilometres 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 (see Figure 1). The campaign was successful in intersecting significant gold mineralization within an intrusion related gold system environment in all four drillholes completed within the Saddle-Eiger Zone area.
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Figure 1: RC Gold Project 2020 Drillhole Locations
These drill holes were strategically positioned to test the large, overlying >100ppb to >500 ppb gold-in-soil geochemical anomaly that stretches over an approximate 2 kilometre x 500 metre area (Figure 2). DDRCCC-20-001 and 20-002 were located approximately 1240 metres and 1830 metres respectively to the west of DDRCCC-20-004 along the trend of this large gold anomaly. DDRCCC-20-003 and 20-004 also returned exceptionally long intersections of up to 139.1 metres of 0.61 g/t gold as well as high grade intervals of up to 9.57 g/t gold over 0.9 metres, and straddle a lateral width of 300 metres of persistent gold values throughout both holes. The results from these four drill holes demonstrate the potential size and robust nature of this mineralized gold zone and solidify Sitka's belief that the RC Gold Project is an incredibly fertile land package capable of hosting several intrusion related gold deposits along with high-grade vein and breccia hosted gold. Sitka is planning a much larger diamond drill program to follow up on these results in the 2021 field season.
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Figure 2: 2020 Drillhole Plan Map at the Saddle-Eiger Zones
The Company identified the Saddle-Eiger Zones, which contains a large >500 ppb gold-in-soil anomaly, as a priority drill target area at the RC Gold Project and submitted eleven rock grab and chip surface samples for rush analysis while drilling was underway. The samples returned values ranging from 1.56 g/t gold to 27.8 g/t gold (see news release dated September 8, 2020) and identified a strong correlation between high grade gold and bismuth.
DDRCCC-20-001 was drilled to test mineralization reported in historical trenches, and a gold-in-soil anomaly at the Saddle zone. The hole encountered a thick package of hornfelsed metasediments and a quartz monzonite intrusion interpreted by Company geologists to be a sill. Significant quartz-sulphide sheeted veins were recorded within the metasediment package in the hanging wall of the intrusive sill, and in the intrusive sill itself.
DDRCCC-20-002 was drilled 625 meters west of hole 20-001 and collared on the margin of the Saddle intrusive stock. The drillhole intersected quartz monzonite, belonging to the Saddle Stock Unit, for nearly the entire length of the hole except for a short section of metasediments near the bottom. Mineralization consisted of sheeted quartz-sulphide veins, and notably an interval of pegmatite and massive arsenopyrite veins at the bottom of the hole which returned 16.1 g/t Au over 2.0 meters between 294.0 and 296.0 meters depth. High-grade gold values throughout the drillholes were found to coincide with higher bismuth values.
DDRCCC-20-003 (results previously announced - see news release dated October 15, 2020) was collared on the margin of the Eiger stock and drilled to the northwest to intersect at depth numerous quartz-sulphide veins sampled at surface which returned values up to 27.8 g/t Au from select grab samples obtained at the beginning of the drill program (see news release dated September 8, 2020). The hole encountered intrusive rocks of the Eiger stock mineralized with sheeted quartz-sulphide veins for its entire length. Mineralization consisted of quartz veins containing pyrite, arsenopyrite and bismuthinite, and massive arsenopyrite veins. Visible gold with bismuthinite was also observed in DDRCCC-20-003 during logging and was confirmed by 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 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 drillhole DDRCCC-20-003 below the surface projection where the reported samples were taken.
DDRCCC-20-004 (results previously announced - see news release dated October 15, 2020) was collared approximately 100 meters north of DDRCCC-20-003 and drilled to the south. The hole was planned to test below mineralization reported from historical trenches and to test the margin of the intrusive stock and the adjoining hornfelsed metasedimentary unit. The hole encountered mineralized sheeted veins throughout its entire length, and a notable increase in grade was observed in the hornfelsed metasediment unit adjacent to the Eiger stock.
Table 1: RC Gold Project Drill Results - Saddle-Eiger Zone
------------------------------------------------------- |Hole ID |From (m)|To (m)|Interval* (m)|Gold (g/t)| |-----------------------------------------------------| |DDRCCC20-001|3.0 |87.8 |84.8 |0.52 | |-----------------------------------------------------| |including |72.1 |85.7 |13.6 |1.63 | |-----------------------------------------------------| |including |69.0 |87.0 |18.0 |1.34 | |-----------------------------------------------------| |and |3.0 |21.0 |18.0 |0.90 | |-----------------------------------------------------| | | | | | | |-----------------------------------------------------| |DDRCCC20-002|9.0 |296.0 |287.0 |0.52 | |-----------------------------------------------------| |including |65.0 |296.0 |231.0 |0.61 | |-----------------------------------------------------| |Including |156.4 |257.1 |100.8 |0.82 | |-----------------------------------------------------| |and |294.0 |296.0 |2.0 |16.10 | |-----------------------------------------------------| | | | | | | |-----------------------------------------------------| |DDRCCC20-003|3.0 |307.4 |304.4 |0.36 | |-----------------------------------------------------| |Including |27.0 |65.0 |38.0 |0.67 | |-----------------------------------------------------| |Including |243.0 |300.5 |57.5 |0.50 | |-----------------------------------------------------| |Including |251.0 |262.6 |11.6 |1.20 | |-----------------------------------------------------| |Including |251.0 |251.9 |0.9 |9.57 | |-----------------------------------------------------| | | | | | | |-----------------------------------------------------| |DDRCCC20-004|2.1 |281.0 |278.8 |0.4 | |-----------------------------------------------------| |Including |187.0 |271.0 |84.0 |0.72 | |-----------------------------------------------------| |Including |131.9 |271.0 |139.1 |0.61 | |-----------------------------------------------------| |Including |212.0 |271.0 |59.0 |0.87 | |-----------------------------------------------------| |Including |234.0 |271.0 |37.0 |1.05 | |-----------------------------------------------------| |Including |131.9 |138.5 |6.6 |1.27 | -------------------------------------------------------
*Intervals are drilled core length, as insufficient drilling has been undertaken to determine true widths at this time.
Cross-sections of these drillholes will be made available on the Company's website (www.sitkagoldcorp.com).
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 mid-way 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's support for re-starting production. The RC Gold Project land package is comprised of 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 has 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.
*For more detailed information on the underlying properties please visit our website at www.sitkagoldcorp.com.
Deposit Model
Exploration on the Property has predominately 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: Fort Knox mine in Alaska with current reserves of 282 million tonnes at 0.37 g/t Au (3.4 million ounces, not including 7.5 million ounces of past production; Fairbanks Gold Mining Inc.); Eagle Gold mine with 155 million tonnes at a diluted grade of 0.65 g/t Au (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 g/t (0.726 million ounces; Barr, 2013); and the Red Mountain gold deposit, located adjacent to Sitka's RC Gold project, with 127 million tonnes grading 0.48 g/t (1.95 million ounces; AM Gold Corp.; Cole, 2012)*.
*The disclosure above is strictly for deposit model comparisons and the mineralization hosted on these properties is not indicative of mineralization hosted on the Company's property.
(1) O'Brien, E. and Kreft, B., (2010): 2010 Diamond Drilling Program Clear Creek Property
Analysis and QA/QC
Analytical work was carried out by Bureau Veritas Labs. The sample preparation took place in Whitehorse, YT and the analyses were completed in Vancouver, BC. Each sample was assayed for Gold by 50 gram fire assay FA450 with over-limits re-analyzed gravimetrically. Additionally, each sample was analysed by ICP ES-MS for a suite of 36 elements.
The Company has a rigorous Quality Assurance/Quality Control (QA/QC) program in place consistent with NI 43-101 and industry best practices in addition to QA/QC procedures at the lab. Each batch of 20 samples contains one certified Standard Reference Material and one Blank of known unmineralized material.
Stock Options
The Company has granted 300,000 incentive stock options to consultants of the Company, exercisable at $0.18 per share for a period of 2 years from the date of issue, and 50,000 incentive stock options to an advisor of the Company, exercisable at $0.18 per share for a period of 5 years from the date of issue.
About Sitka Gold Corp.
Sitka Gold Corp. 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% 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% interest in its Alpha Gold property in Nevada, it's Mahtin Gold property in the Yukon and it's Coppermine River project in Nunavut. Directors and Management own approximately 15% of the outstanding shares of Sitka Gold Corp., 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, P.Geo., Director and CEO of the Company, and a Qualified Person (QP) as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Sitka Gold Corp.
"Donald Penner"
President and Director
For more information contact:
Donald Penner
President & Director
778-212-1950
dpenner@sitkagoldcorp.com
or
Cor Coe
CEO & Director
604-817-4753
ccoe@sitkagoldcorp.com
Cautionary and Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the expected timing and terms of the private placement, use of proceeds, anticipated work program, required approvals in connection with the work program and the ability to obtain such approvals. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
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