press release

Sitka Gold Provides Update on its North American Gold, Silver and Copper Assets

2024-03-14

TSX - Toronto Stock Exchange · Silver · Antimony · Zinc · Tin · Arsenic · Manganese · Lead · Gold · Copper · Tungsten · Cadmium

Canada NewsWire

VANCOUVER, BC , March 14, 2024 /CNW/ - Sitka Gold Corp. ("Sitka" or the "Company") (TSXV:SIG) (FSE:1RF) (OTCQB:SITKF) is pleased to provide project updates for its portfolio of Gold, Silver and Copper properties located in proven, mining friendly jurisdictions in North America (see Figure 1).

Sitka's project portfolio includes the RC Gold project ("RC Gold") and OGI project ("OGI") located in Yukon , the Alpha Gold project ("Alpha Gold") located in Nevada , the Burro Creek project ("Burro Creek") located in Arizona and the Coppermine River project ("Coppermine River") located in Nunavut . Sitka's projects vary from grassroots and discovery stage properties to advanced stage projects that include the recent discovery of a significant gold deposit at its RC Gold project which is open for expansion in all directions. The Company's primary focus for 2024 is on its flagship RC Gold project where an initial inferred gold resource of 1.34 million ounces of gold (1) was recently announced and a winter diamond drilling program focused on expansion of this resource is currently underway. Results from drilling at the Alpha Gold Project in Nevada have been received and key permits have also recently been secured to allow for drilling at the Burro Creek project in Arizona and the Coppermine River project in Nunavut .

Sitka Gold Corp. is a well-funded mineral exploration company headquartered in Canada with approximately $7.5 million in the treasury. The company recently began trading on the TSX Venture Exchange (TSX-V) and delisted from the Canadian Securities Exchange (CSE).

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"Since its inception, Sitka's goal was to curate a portfolio of highly prospective mineral properties that would provide diversification across key target minerals and mining friendly jurisdictions" , said Cor Coe, Director and CEO of Sitka . "Having accomplished that, Sitka spent the past several years systematically advancing these properties through varying stages of exploration. The results of these efforts have led to multiple discoveries and milestones, the most recent being the advancement of RC Gold from a discovery hole to an initial mineral resource estimate of 1.34 million ounces of gold within just 12 months. With our main focus on growing that resource towards critical mass while exploring the several additional drill ready targets at RC Gold ripe for discovery, we are also excited to continue our exploration efforts at Alpha Gold where we have discovered a large Carlin -type gold system that has the potential to host a significant gold resource similar to other other deposits along the Cortez-trend where over 50 million ounces of gold has been discovered to date. With drill permits now in hand for Coppermine River and Burro Creek, along with a treasury of approximately $7.5 million , Sitka is well positioned to further unlock the potential within its mineral portfolio and create additional shareholder value."

RC Gold, Yukon

The Company is currently conducting a winter diamond drilling program at its year-round road accessible RC Gold Project in Yukon as part of a 15,000 metre diamond drilling program planned for 2024. Recently drilled core from DDRCCC-24-057 where drilling is currently underway can be viewed in Figure 4. Current drilling is focused on stepping out from Hole 47 that was drilled in 2023 south of the current Blackjack gold deposit (900,000 ounces of gold at a grade of 0.83 g/t; see news release dated January 19, 2023 ). Hole 47 contained the best gold mineralized intersection to date on the property, returning 219.0 m of 1.34 g/t gold including 124.8 m of 2.01 g/t gold and 55.0m of 3.11 g/t gold . Drilling in 2024 will continue to focus on expanding the recently discovered Blackjack and Eiger gold deposits (with Eiger hosting 440,000 ounces of gold at a grade of 0.50 g/t, see news release dated January 19, 2023 ) that are approximately 1.5 kilometres apart (see Figures 2 and 3). Drilling will also be targeted to expand the Saddle Zone, located midway between the Blackjack and Eiger deposits, where the largest and strongest gold-in-soil anomaly on the property is located (see Figures 2 and 3) along with other prospective areas within the 386 square kilometre contiguous property that hosts 9 known intrusions that are all known to be gold bearing from previous work.

[](https://mma.prnewswire.com/media/2362556/Sitka_Gold_CorpSitka_Gold_Provides_Update_on_its_North_America.html)

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The project is located a two hour drive east of Dawson City and is accessed via the Klondike Highway and a network of industrial roads that service placer mines in the area. The RC Gold Property is located within the Tombstone Gold Belt (TGB) which is host to two producing mines, Kinross's Fort Knox Mine in Alaska and Victoria Gold's Eagle Mine in Yukon located approximately 50 kilometres east of RC Gold. The TGB has produced several significant new gold discoveries in recent exploration including the Blackjack and Eiger deposits at Sitka's RC Gold Project, Snowline Gold's Valley Gold deposit discovery, Banyan Gold's Aurmac deposit discovery and Victoria Gold's Raven deposit discovery.

Alpha Gold, Nevada

The Alpha Gold property lies 40 km SSE of Nevada Gold Mines' Cortez complex, including the Pipeline, Cortez Hills and Goldrush tier one gold deposits and is located at the southeast end of the Cortez trend (Figure 5). Four holes totaling 1027.3 m were drilled in the 2023 program at Alpha (see Figure 6). The 2023 drilling and previous drilling produced broad gold intervals with abundant Carlin pathfinder elements in strong Carlin -type alteration in all drill holes (see Table 1).

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The 2023 drilling and previous widely spaced drilling demonstrate that gold mineralization appears continuous along the 2.5 km segment of the Alpha anticline with encouraging evidence of higher-grade zones. An additional 4.5 km segment of the Alpha anticline continuing SSE to Frazier Creek remains untested by drilling. Four initial surface rock chip samples at Frazier Creek returned up to 0.775 g/t gold, greatly surpassing all surface gold from the Alpha NW area highlighting the potential of this area.. Drilling and geologic modelling continues to support a large Carlin -type gold system with extremely prospective untested targets and excellent potential for discovery of a high-grade core zone.

| Table 1 – Alpha NW Drill Results greater than 0.2 g/t gold 2021 to 2023. Wide spaced drilling at Alpha has continued to intersect broad gold intervals. | | | | | | | | | | | | HOLE ID | FROM (m) | LENGTH (m)* | GOLD (g/t) | COMMENTS | | AG23-13 | 117.3 | 4.57 | 0.34 | This release | | AG23-13 | 135.6 | 6.10 | 0.29 | This release | | AG23-14 | 350.5 | 9.14 | 0.50 | This release | | incl AG23-14 | 353.6 | 3.05 | 0.82 | This release | | AG23-15 | 96.0 | 19.81 | 0.41 | This release | | incl AG23-15 | 100.6 | 7.62 | 0.55 | This release | | AG23-16 | 143.3 | 28.96 | 0.38 | This release | | incl AG23-16 | 160.0 | 10.67 | 0.49 | This release | | AG21-02 | 89.9 | 3.05 | 0.25 | May 6, 2021 News Release | | AG21-02 | 155.4 | 6.10 | 0.24 | May 6, 2021 News Release | | AG21-03 | 65.5 | 1.52 | 0.25 | May 6, 2021 News Release | | AG21-03 | 83.8 | 4.57 | 0.28 | May 6, 2021 News Release | | AG21-03 | 190.5 | 1.52 | 0.36 | May 6, 2021 News Release | | AG21-04* | | | <0.2 | Sep 26, 2021 News Release | | AG21-05 | 118.9 | 12.19 | 0.41 | Sep 26, 2021 News Release | | AG21-06* | | | <0.2 | Nov 16, 2021 News Release | | AG21-07 | 62.5 | 4.57 | 0.28 | Nov 16, 2021 News Release | | AG21-07 | 111.5 | 4.57 | 0.34 | Nov 16, 2021 News Release | | AG21-07 | 125.0 | 6.10 | 0.27 | Nov 16, 2021 News Release | | AG21-07 | 149.4 | 3.05 | 0.29 | Nov 16, 2021 News Release | | AG21-08 | 262.1 | 1.52 | 0.44 | Nov 16, 2021 News Release | | AG21-08 | 333.8 | 3.05 | 0.38 | Nov 16, 2021 News Release | | AG21-08 | 339.9 | 9.14 | 0.60 | Nov 16, 2021 News Release | | incl AG21-08 | 344.4 | 3.05 | 1.10 | Nov 16, 2021 News Release | | AG21-08 | 364.2 | 3.05 | 0.41 | Nov 16, 2021 News Release | | AG22-09 | 115.82 | 3.05 | 0.30 | Oct 6, 2022 News Release | | AG22-09 | 137.2 | 15.24 | 0.42 | Oct 6, 2022 News Release | | AG22-09 | 149.4 | 6.10 | 0.23 | Oct 6, 2022 News Release | | AG22-10 | 202.7 | 3.05 | 0.27 | Oct 6, 2022 News Release | | AG22-10 | 210.3 | 48.77 | 0.70 | Oct 6, 2022 News Release | | incl AG22-10 | 211.8 | 21.34 | 1.21 | Oct 6, 2022 News Release | | incl AG22-10 | 225.6 | 1.52 | 4.62 | Oct 6, 2022 News Release | | AG22-11 | 483.1 | 12.19 | 0.50 | Feb 22, 2023 News Release | | AG22-11 | 483.1 | 1.52 | 2.32 | Feb 22, 2023 News Release | | AG22-12* | | | <0.2 | Feb 22, 2023 News Release |

| *Hole located off anticline axis; Lost hole in mineralization; *Lost hole above target |

| _*Intervals are drilled core length, as insufficient drilling has been completed at this time to determine true widths _ |

The 2023 drilling at Alpha greatly advanced the definition of structural controls to mineralization along the Alpha anticline and highlighted prime areas for targeting the deeper increasingly prospective Wenban 5 correlative host. Sitka has completed 5143.5 m of drilling in 15 holes since 2021 on the northwest end of the 7 km Alpha anticline. A longitudinal section of the 2.5 km segment where the drilling has occurred is shown in Figure 7 with gold and in Figure 8 with arsenic. The Alpha anticline lies in a down-dropped area east of a lower plate window as Goldrush does. All drilling at the Alpha project has occurred in the northwest portion of the project, except AG20-01. Drilling near the Alpha anticline axis has yielded significant gold intercepts, so far testing only the shallow Horse Canyon host stratigraphy. The Horse Canyon is the uppermost of two important carbonate rock units that are host to gold deposits in the Cortez Trend, the deeper carbonate rock unit is the Wenban 5.

Higher gold grades up to 4.62 g/t in Hole AG22-10 (see news release of October 6, 2022 ) close to steep dike-filled structures along Alpha anticline support an interpretation that main stage gold deposition relates to host rock intersecting the anticline hinge and to cross-structures along it. This important relationship and association with higher grades in drilling to date at the project provides many emerging structural/stratigraphic targets in the Horse Canyon Fm and the untested Wenban 5 equivalent host rocks which are highlighted in Figure 7. The Wenban 5 is the equivalent of the horizon that hosts most of the world class Goldrush ore body.

[](https://mma.prnewswire.com/media/2362549/Sitka_Gold_CorpSitka_Gold_Provides_Update_on_its_North_America.html)

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Coppermine River, Nunavut

The Company is pleased to announce that Arctic Copper Corp (ACC), a wholly owned subsidiary of Sitka Gold Corp, has received a Land Use Permit and a water permit to allow diamond drilling on the Company's Coppermine River Project.

Arctic Copper Corp currently holds approximately 12,000 hectares in 2 separate claim blocks in the Coppermine River District of Nunavut. The Copper Leaf showing, a new discovery made in 2015 by Arctic Copper personnel, is located approx. 60 km southwest of Kugluktuk and has never been tested by drilling (see Figure 9 and 11).

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The Copper Leaf showing consists of strong massive and disseminated sediment-hosted copper sulphide mineralization in the Husky Creek Sandstone Formation. The mineralization appears to lie proximal to a major gabbro dyke that trends north-south for more than 12 km. Grab samples from the Copper Leaf showing returned values of up to 13.45% copper and up to 65 g/t silver in sandstone interpreted to be brought to surface by frost heave action (see Figure 11). A single line gravity survey (see Figure 10) was conducted over the Copper Leaf showing in 2015 and revealed a strong gravity anomaly 90 m wide located proximal to the Gabbro Dyke. An expanded gravity survey conducted in 2019 suggested significant strike potential along the east flank of the gabbro dyke for more than 400 m .

[](https://mma.prnewswire.com/media/2362552/Sitka_Gold_CorpSitka_Gold_Provides_Update_on_its_North_America.html)

The mineral occurrences at Copper Leaf display similarities to other major world renown sediment hosted copper deposits such as the Kamoa-Kakula copper deposits in the Democratic Republic of Congo (DRC). The similar stratiform style, similar age, and similar depositional and tectonic environment indicate the potential for large high grade copper deposits to occur at Copper Leaf. The current published mineral resource at Kamoa-Kikula is 1.3 billion Mt grading 2.70% copper yielding 77.4 billion lbs of contained copper (1)(2) . Other analogues to Copper Leaf include the Keweenaw Copper deposits in the United States (3.5 billion pounds of copper Indicated Resource (3) ).

| (1) | Gilchrist, G., Pri.Sci.Nat.SACNASP, and Witley, G., Pri.Sci.Nat.SACNASP (Qualified Person): Kamoa and Combined Kakula Indicated and Inferred Mineral Resource. Effective Date December 31, 2022. | | (2) | These figures are for discussion purposes and do not imply that Arctic Copper Corp. has such copper deposits at this time. | | (3) | Carl Michaud P.Eng. et al, Preliminary Economic Assessment White Pine North Project Michigan, USA, NI43.101 compliant. July 12, 2023. | | (4) | Close, Scott, M.Sc.,P.Geo., Technical Report of the ACG,ACJ and ACRAE Claim Blocks Coppermine River Project for Arctic Copper Corp., December 15, 2015; Available at www.sitkagoldcorp.com |

[](https://mma.prnewswire.com/media/2362553/Sitka_Gold_CorpSitka_Gold_Provides_Update_on_its_North_America.html)

Burro Creek, Arizona

The Burro Creek Gold and Silver Project is located 105 km by road southeast of Kingman, Arizona and is accessed via a 1.6 km dirt road west off Highway 93. The project covers an area of approximately 287 hectares and consists of four centrally located patented mineral claims and an additional 35 lode claims. The Property covers a low-sulphidation epithermal vein system that has been traced for over 1.7 km and exhibits widths of up to 45 metres.

The Company has received its drill permit to further explore its Burro Creek Property where a historical gold and silver resource (indicated and inferred) has been identified (1, 2) (see Table 2 and news releases Nov 12, 2019 ) within the Burro vein which is a low sulphidation epithermal gold-silver vein. Previous drilling by Sitka Gold confirmed the mineralization from the historical resource continues to the southern boundary of the patented mining claims (see Figure 13). The recently received drill permit now enables drill testing south of the historical resource beyond the patented mining claims. Previous work including surface geochemistry (see Figure 11), prospecting and geological mapping indicates the Burro vein continues for at least an additional 1.5 km to the south.

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The historical mineral resource estimate of the Burro deposit is based on 87 reverse circulation (RC) and diamond drill holes and 9 sampled adits totaling 6,672m and 2,682 assays. Mineralization was constrained within a 3-dimensional geological solid created using Gemcom software. Practices consistent with CIM (2005) were applied to the generation of the historical mineral resource estimate and the parameters of the modeling are fully described in the NI 43-101 report referenced below.

Previous reverse circulation, diamond drilling and underground development conducted on the property outlined an historical indicated resource of 2,331,871 tonnes grading 1.01 g/t Au and 36.77 g/t Ag (yielding 122,491 ounces at a 1.63 g/t Au equivalent) and an historical inferred resource of 2,247,069 tonnes grading 0.60 g/t Au and 30.95 g/t Ag (yielding 81,304 ounces at a 1.13 g/t Au equivalent), both using a cut-off grade of 0.50 g/t Au (1) . The historical results reported in the NI 43-101 technical report are considered by management to be reliable and relevant, though not conforming to current NI 43-101 standards (1,2) . The Company is not treating the historical estimate as current mineral resources or mineral reserves.

The Property was fully permitted to commence production in 1988 but the production decision was deferred due to a decline in the price of gold and silver (1) . At that time, the intent was to place the Burro gold and silver deposit into production and continue to expand the resource through exploration funded by the ensuing profits.

| (1) Pautler, J. (October 27, 2018) Technical Report on the Burro Creek Project |

Recent exploration by Sitka in 2020 included 10 drill holes to define the on-strike continuity of the Burro Vein within the bounds of the patented claims (Figure 12). The results confirmed that the vein extends to the southern limits of the patented claims where Mobile Metal Ion (MMI) geochemical surveys conducted in 2013 indicate that the Burro Vein likely continues southward beneath a thin cover of volcanic rocks. Hole 19-56 intersected 1.14 g/t gold and 42.94 g/t silver over a core length of 41.08 m . Drilling is now permitted to test for the extension of the Burro Vein which could add significant potential to the property.

| Table 3: Summary of drill hole highlights from the 2019 through 2020 diamond drilling program | | | | | | | | | | | | | | | | | | Drill Hole ID | | Interval | Core | Gold | Silver | News Release Date | | | | | From (m) | To (m) | Length (m) | (g/t) | (g/t) | Friday, January 17, 2020 | | BC19-56 | | 15.03 | 56.11 | 41.08 | 1.14 | 42.94 | Friday, January 17, 2020 | | | including | 37.34 | 56.11 | 18.77 | 2.20 | 27.79 | Friday, January 17, 2020 | | | including | 42.67 | 43.74 | 1.07 | 17.55 | 33.00 | Friday, January 17, 2020 | | BC19-57 | | 0.00 | 50.63 | 50.63 | 1.10 | 35.97 | Friday, January 17, 2020 | | | including | 10.70 | 22.40 | 11.70 | 3.23 | 72.86 | Friday, January 17, 2020 | | | including | 18.93 | 20.21 | 1.28 | 16.85 | 77.00 | Friday, January 17, 2020 | | BC19-58 | | 29.41 | 54.41 | 25.00 | 0.37 | 83.99 | Friday, January 17, 2020 | | | including | 44.50 | 50.90 | 6.40 | 0.75 | 119.37 | Friday, January 17, 2020 | | BC19-59 | | 26.52 | 53.64 | 27.12 | 0.62 | 79.58 | Friday, January 17, 2020 | | | including | 47.85 | 53.64 | 5.79 | 2.08 | 23.69 | Friday, January 17, 2020 | | BC20-60 | | 36.48 | 48.37 | 11.89 | 1.02 | 66.66 | Thursday, February 20, 2020 | | | including | 36.48 | 39.84 | 3.36 | 1.76 | 52.26 | Thursday, February 20, 2020 | | BC20-61 | | 106.55 | 134.72 | 28.17 | 1.01 | 10.91 | Thursday, February 20, 2020 | | | including | 128.62 | 132.95 | 4.33 | 3.12 | 6.37 | Thursday, February 20, 2020 | | | including | 129.84 | 131.24 | 1.40 | 6.24 | 8.00 | Thursday, February 20, 2020 | | BC20-62 | | 116.73 | 122.77 | 6.04 | 0.94 | 14.16 | Tuesday, April 14, 2020 | | | including | 118.56 | 121.30 | 2.74 | 1.45 | 17.44 | Tuesday, April 14, 2020 | | | | 130.33 | 132.89 | 2.56 | 0.62 | 56.80 | Tuesday, April 14, 2020 | | BC20-63 | | 140.96 | 142.00 | 1.04 | 1.27 | 1.00 | Tuesday, April 14, 2020 | | BC20-64 | | no significant results | | | Tuesday, April 14, 2020 | | | | BC20-65 | | no significant results | | | Tuesday, April 14, 2020 | | |

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