Sitka Gold Corp. [SIG-CSE, OTCQB-SITKF, 1RF-FSE] shares advanced Friday after the company said it has commenced a 2023 drill program of up to 10,000 metres at its RC Gold Project in the Canadian Yukon.
The company said the drill program will be primarily focused on step out drilling from the recently announced Blackjack and Eiger intrusion-related gold deposits, which remain open in all directions and have an initial inferred resource of 1.34 million ounces of gold.
Sitka has said the Blackjack zone, discovered in 2021, contains a higher grade resource of 900,000 ounces of gold at a grade of 0.83 g/t at a cut off of 0.25 g/t.
Initial metallurgical testing indicates that the gold is not refractory.
Sitka shares advanced on the drilling news, rising 5.5% or $0.005 to $0.095 in light trading volume. The shares are currently trading in a 52-week range of 27 cents and $0.08.
Sitka has an option to acquire a 100% interest in the RC, Barney Ridge, Clear Creek and OGI properties in the Yukon and the Burro Creek gold property in Arizona. Its asset portfolio also includes a 100% interest in its Alpha gold property in Nevada, its Mahtin gold property in Yukon and Coppermine River project in Nunavut.
The RC Gold Project consists of a 376 square kilometre contiguous district-scale land package located in the newly road accessible Clear Creek, Big Creek and Sprague Creek districts in the hear of Yukon’s Tintina Gold Belt and the Tombstone Gold Belt.
It is the largest land package strategically positioned mid-way between Victoria Gold Corp.’s [VIT-TSXV] Eagle Gold Mine and Sabre Gold Mines Corp. [SGLD-TSX] Brewery Creek Gold Mine. The RC Gold Project land package consists of five underlying properties namely, the RC, Bee Bop, Mahtin, Clear Creek and Barney Ridge properties.
Sitka Gold inherited a wealth of historical and current data from those properties form work spanning 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 has a common border with Victoria Gold’s Clear Creek property at its western boundary.
While expansion of the Blackjack and Eiger deposits will be the main focus of drilling efforts this year, the potential for additional discoveries across the district-scale land package remains robust with several high priority, intrusion related gold deposit targets yet to be tested, the company said.
“With the 2023 winter diamond drilling program underway, the company expect to see meaningful advancement at RC Gold over the coming months,’’ it said.