Vancouver-based Sitka Gold (CSE: SIG; US-OTC: SITKF) has outlined an inferred resource of 1.34 million oz. gold at its Blackjack and Eiger deposits, part of the RC project in the Yukon.
The inferred resource for the Blackjack and Eiger deposits combined totals 61.11 million tonnes grading 0.68 gram gold per tonne and was based on a cut-off grade of 0.25 gram gold per tonne.
The resource starts at surface and the two deposits remain open in all directions. It was based on 11,630 metres of drilling in 34 drill holes.
“The production of an initial resource of over 1.3 million ounces of gold with only 34 diamond drill holes marks a major milestone for our flagship project in the Yukon,” Sitka’s CEO Cor Coe noted in a press release.
“Beginning in 2020 with the initial four diamond drill holes that Siktak drilled in the Blackjack-Saddle-Eiger corridor, our team knew we had discovered an area with high potential to produce a discovery of an intrusion related gold deposit.”
The company is planning to drill 10,000 metres at the project this year. The drill program will be focused on Blackjack and Eiger as well as on the Saddle Zone. Saddle is located midway between Blackjack and Eiger and was not included in the resource estimate.
Sitka believes the Saddle Zone contains “significant mineralization” and has reported intercepts there of 0.52 gram gold over 84.8 metres from surface in drill hole DDRCCC-20-01 and 0.59 gram gold over 48 metres from a depth of 48 metres.
The Blackjack discovery was made in the company’s last drill hole of 2021 (DDRCCC-21-021), which intersected 220.1 metres of 1.17 grams gold from surface, including 50.5 metres of 2.08 grams gold.
The drill hole was the westernmost hole in the Saddle-Eiger trend and was drilled beneath a greater than 500 parts per billion (ppb) gold-in-soil anomaly previously identified at surface. Sitka says that soil anomaly is part of a larger 2 km by 500 metre gold-in-soil anomaly that is open in all directions and spans the Saddle and Eiger zones.
The 376-sq.-km RC project is situated in the Yukon’s Tombstone Gold Belt and is positioned between Victoria Gold’s (TSX: VGCX) Eagle gold mine and Sabre Gold Mines’ (TSX: SGLD; US-OTC: SGLDF) Brewery Creek gold mine.
Sitka has an option to acquire 100% of the project.
Over the last year Sitka has traded in a range of 8¢ and 27¢ per share and at presstime was trading at 14.5¢. The junior explorer has about 184 million common shares outstanding for a market cap of roughly $26.6 million.