Sitka Gold Corp. (SIG:CSE; SITKF:OTCQB; 1RF:FSE) may have just gone public in 2018, but the company just released drilling results from its RC Gold Project in the Yukon's Tombstone Gold Belt that have put it at the forefront of investors' minds.
Chief Executive Officer and Director Cor Coe, P. Geo., said the company has been undervalued, but he believes that will change after the gold assay results from diamond drill Hole 21 located midway between Victoria Gold's Eagle Gold Mine and the Brewery Creek Mine become more publicly disseminated.
Several intervals of elevated gold values were found from the surface to a depth of 220.1 m from Hole 21 at the RC Gold Project, Sitka Gold said. It was drilled into a deposit target estimated to be 2 km long by 500 m wide that is located 200 m south of any previous drilling and intersects a newly recognized structure called the Blackjack Fault.
Assays found an exceptional interval of 1.17 g/t gold from 6.0 m to 226.1 m, including 50.5 m of 2.08 g/t from 120.0 m and 0.2 m of 35.70 g/t from 80.8 m.
"Sitka Gold is a fairly new company," Coe told Greenshoe Radio recently. "It has not gotten the story out there yet. Not many people know that we have a diverse portfolio of quality assets that cover silver and gold and copper. But I think that's going to change rapidly, especially in light of the impressive results we just released this week."
Results Point to Untapped Potential
The nearest drill hole to Hole 21, Hole 2, which is 200 m to the north, also produced impressive values of 100 m of 0.82 g/t gold and an additional deeper interval of 2 m assaying 16.1 g/t, the company said. To help put these gold grades and intervals into context, Victoria Gold’s newly operational Eagle Gold Mine, located just 40 km east of the RC Gold Project, is an intrusion-related gold deposit that is averaging less than 0.7 g/t gold.
"The huge record volume on the spike … has both medium and long-term bullish implications."
—Tech analyst Clive Maund after Sitka Gold's stock spiked on news of drilling results
"Discovering gold values of this caliber, in what is characteristically a low-grade, bulk-tonnage gold deposit target, exceeded our expectations and further reinforces our belief that this newly discovered gold-rich system has the scale and grades necessary to host an economic gold deposit of significant size," Coe said in a news release. "Visible gold was identified in 21 different sections of Hole 21 during core logging and sample preparation, providing additional evidence for the richness of this gold system."
The company said it has completed just 19 holes across this 2 km by 500 m target so far, leaving much of its potential to still be discovered.
Sitka Gold's stock, which is now CA$0.17, spiked from CA$0.0900 on Dec. 10 to CA$0.1900 on Dec. 13 when the RC Gold drilling results were released.
"The huge record volume on the spike … has both medium and long-term bullish implications," tech analyst Clive Maund said of the results. "In view of the exceptionally positive price/volume action, it is rated a Strong Buy again here, taking advantage of yesterday's dip."
The company also recently closed a non-brokered private placement of 16.6 million flow through units at a price of $0.17 for a gross of CA$2.8 million. Each unit constitutes one flow through common share of the company and one half of one common share purchase warrant with each full warrant exercisable at a price of $0.23 for a period of 24 months. The proceeds will be used to follow up on the impressive results from Hole 21 at its RC Gold Property in the Yukon.
Four Other Projects in the Works
Sitka Gold also has four other projects it is pursuing, including in Nevada and Arizona in the United States.
In Nevada, the company has the Carlin-type Alpha Gold Project at the southeast end of the Cortez Trend, about 135 km southwest of Elko. Recent results from five drill holes showed 15.24 m of 0.46 g/t gold from 333.76 m to 349 m in one hole and 3.04 m of 0.41 g/t from 196.60 m to 199.64 m in another.
"Alpha Gold has come a long way from a conceptual moonshot model to a confirmed large-scale Carlin-type gold deposit model," Coe said.
Coe called the company's Burro Creek property in Arizona its "flagship" property. A 2011 historical resource technical report indicates the site has 5 Moz silver and more than 100 Koz gold, according to the company.
"The property was scheduled to go into production and had all the necessary permits in the early 1980s," Coe said. "But the gold price collapsed, and the company put it on the shelf."
Sitka Gold also has additional Canadian properties with gold, silver and copper targets in the Coppermine River area in Nunavut and in an area 50 km east of Dawson City adjacent to the Brewery Creek Mine in the Yukon.
Several catalysts are on the horizon for the company in the coming year. Results from five drill holes at RC Gold are still pending.
"Exploration efforts at the RC Gold Project continue to deliver impressive results and, with only 19 diamond drill holes completed across this gold system to date, there is plenty more to discover," Coe said. "We look forward to receiving results for the remaining five drill holes and rapidly advancing this along with several other under-explored targets across this district-scale, road accessible property.”
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