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VANCOUVER, CANADA - TheNewswire - April 14th, 2020 - Sitka Gold Corp. ("Sitka" or the "Company") (CNSX:SIG) (FSE:1RF) is pleased to announce that it received assay results for the final four drill holes completed during the first phase of drilling at its Burro Creek Gold/Silver Property in Arizona. The program was successful in tracing the mineralized structure to the southern boundary of the patented claims. Ten diamond drill holes were drilled for a total of approximately 1000 metres and assays have been previously released for the first six holes (see news releases dated January 17, 2020 titled "Sitka Gold Intersects 11.70 Metres of 3.23 g/t Gold and 72.86 g/t Silver in Initial Drilling at Burro Creek Gold/Silver Property, Arizona" and February 20, 2020 titled "Sitka Gold drills 28.17 Metres of 1.01 g/t Gold and 10.91 g/t Silver in Step Out Drilling at its Burro Creek Gold/Silver Property, Arizona"). These holes were located to test the southern continuity of the Burro Vein over a 1.3 km long corridor where a mobile metal ion (MMI) geochemical survey has outlined anomalous gold and silver mineralization on surface (the "MMI Anomaly") that corresponds with the southern projection of the Burro Vein (see news release dated September 21, 2018). To date approximately 250 metres along this corridor have been drill tested (see Figure 1).
The next phase of drilling will continue to test the southern extension of mineralization beyond the private patented claims on BLM lode claims. The process to obtain permits to drill on the BLM claims is currently underway with archaeological and biological field assessments having been completed.
Highlights of The Diamond Drilling Results Include:
Drill hole BC20-062 intersects 6.04 m of 0.94 g/t gold and 14.16 g/t silver including:
- 2.74 m of 1.45 g/t gold and 17.44 g/t silver
Table 1: Highlighted Drill Hole Assay Results*
Drill Hole | Azimuth | Dip | Hole Depth (m) | Interval | Core | Gold | Silver | ||
From (m) | To (m) | Length (m) | (g/t) | (g/t) | |||||
BC20-062 | N/A | -90 | 146.00 | 116.73 | 122.77 | 6.04 | 0.94 | 14.16 | |
including | 118.56 | 121.30 | 2.74 | 1.452 | 17.44 | ||||
130.33 | 132.89 | 2.56 | 0.623 | 56.80 | |||||
BC20-063 | N/A | -90 | 158.19 | 140.96 | 142.00 | 1.04 | 1.265 | 1.00 | |
* Intervals are drilled core length, as insufficient drilling has been undertaken to determine true widths at this time. Previous exploration has shown that the mineralized structure has a strike ranging from 330? to 340? Azimuth and a dip ranging from 50? to -75? NE. True widths will be substantially less than the drill core intervals reported above.
Don Penner, President of Sitka, commented: "The results from this first phase of step out drilling supports our thesis that this mineralized system continues south beyond the historical drilling parameters of the Burro Deposit. These last four holes intercepted and support the presence of the Burro Vein to the southern extent of the patented claim block. We look forward to follow up drilling in this area and testing the remainder of the 1.3 km gold and silver anomaly outlined by the mobile metal ion geochemical survey once we have received the required permits from the BLM and restrictions related to current world events are lifted to allow work to resume".
The Burro Vein occurs within a major normal fault with Tertiary volcaniclastic rocks in the hanging wall and Precambrian metamorphic rocks composing the footwall (see Figure 2). Four holes reported here all intercepted calcite and quartz veining within and surrounding that normal fault, supporting the presence of the Burro Vein. BC20-062 and BC20-063 produced gold-silver intercepts noted in Table 1. BC20-064 and BC20-065 hit calcite-quartz veining which did not yield significant assays. The results in these latter two holes are interpreted to reflect the higher elevations of the veining, above the precious metals zone. Gold and silver in low-sulfidation epithermal vein systems are strongly elevation controlled and constraints of drilling on the patented claims resulted in hitting the Burro Vein structure at progressively higher elevations moving south in holes BC20-062 through BC20-065 (see Table 2 and Figure 2). These drill holes lie in an area where the Burro Vein structure traverses the highest elevation terrain along its mapped trace. The vein is exposed at lower elevations to the north, where historical drilling was focused, and strong banded vein outcrops are exposed at the 525 metre elevation, 300 metres south of BC20-065. Therefore, it appears the Burro Vein should be drilled at an elevation below 575 meters in this area to better target the precious metals zone. That must be done east of the patented claim block on BLM lode claims where permitting is currently in progress. The down dip vein projection is open and undrilled there and can be tested once permits have been granted.
Table 2: Drill Collar and Vein Structure Elevations
Hole # | Collar Elev. (m) | Vein Structure Elev. (m) |
BC20-062 | 658 | 541 |
BC20-063 | 670 | 572 |
BC20-064 | 677 | 582 |
BC20-065 | 664 | 594 |
Figure 1 shows the location of all holes drilled during the initial phase 1 drill program now completed including the holes reported above. Figure 2 shows the inferred and mapped portions of the Burro Vein as indicated from the drilling done to date. The holes drilled in this phase lie within the boundaries of the patented claims.
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Figure 1: Burro Creek Phase 1 Diamond Drill Hole Locations
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Figure 2: Geologic Map with Drill Hole Locations
Quality Assurance/Quality Control
Analytical work for this drill program was carried out by ALS Global Labs (USA). The sample preparation took place in Elko, NV and the analyses were completed in Reno, NV. Each sample was assayed for Gold and Silver; Gold samples were fire assayed with AA finish and over-limits re-analyzed gravimetrically. Silver samples were analyzed by four-acid digestion with ICP instrumentation. Over-limits for Silver were re-analyzed by fire assay and gravimetric methods.
The Company has a rigorous QAQC program in place in addition to QAQC procedures at the lab. Each batch of 20 samples contains one certified Standard Reference Material, one certified Blank and one duplicate. All results have passed the QAQC screening at the lab.
The Burro Creek Property
The Burro Creek Property is located 1.6 km off United States Highway 93 in Mohave County, Arizona, 105 km southeast of Kingman, Arizona, and 265 km southeast of Las Vegas, Nevada. The property consists of four patented mineral claims and 35 surrounding unpatented mineral 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.
A NI 43-101 report dated October 27, 2018 titled "Technical Report on the Burro Creek Project" was commissioned by Sitka Gold Corp and has been completed by J. Pautler, P. Geo., an independent qualified person. This report has been filed on SEDAR.
The Property contains an historical mineral resource estimate (the Burro Deposit) as defined by the National Instrument 43-101 Standards for Disclosure for Mineral Projects and is not considered by Sitka Gold Corp. to be a current mineral resource because a qualified person has not completed sufficient work to reclassify it as such. To be a current mineral resource estimate, a qualified person must calculate a new resource estimate based on existing data, following NI 43.101. The indicated and inferred historical mineral resource estimate was prepared for Northern Freegold Resources Ltd. in November, 2010 in compliance with the CIM definition of mineral resources at the time by Dr. A. Armitage, Ph.D., P.Geol., and J. Campbell, B.Sc., P.Geo. of GeoVector Management Inc., an Ottawa, Ontario based consulting firm specializing in resource estimation, project assessment, and project management. The historical resource estimate was contained in an NI 43-101 technical report titled "Technical report on the Burro Creek Project, dated January 31, 2011 by Pautler, J.M., Armitage, A. and Campbell, J. and filed on SEDAR on February 28, 2011 (www.sedar.com) (1).
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 above.
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 (1). 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
Update on the RC Gold Project
Sitka has submitted an application for a Class 3 Mining Land Use Approval to allow for additional exploration and drilling activities at its RC Gold Project, comprised of the recently acquired Mahtin Gold Property and the RC Gold Property, located in Yukon, Canada (see news release dated January 14th, 2020). The Company currently has an active Class 3 permit for exploration and drilling activities on the Mahtin Gold Property. Approval of this newly submitted Class 3 application will provide for exploration and drilling activities across the RC Gold Project as a whole, including on the RC Gold Property. The Company is currently reviewing the large historical data base received upon the acquisition of the Mahtin Gold Property, including over 18,000 soil samples and 20 drill holes, to better identify potential Intrusion Related gold targets and to develop a proposed 2020 work program.
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 Gold property in the Yukon, an option to acquire a 100% interest in the Burro Creek Gold property in Arizona and owns a 100% interest in its Coppermine River project in Nunavut and its Alpha Gold property in Nevada. Directors and Management own approximately 25% of the outstanding shares of Sitka Gold.
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
For more information contact:
President & Director
778-212-1950
or
CEO & Director
604-817-4753
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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