Sitka more than doubles gold count at RC property in Yukon

Sitka Gold (TSXV: SIG; OTCQB: SITKF) has announced a significant increase in gold resource for the Blackjack deposit in Yukon, including its first in the indicated category, amounting to 1.29 million oz. at a gold grade of 1.01 grams per tonne (from nearly 40 million tonnes).

Additionally, there are approximately 1.04 million oz. in the inferred category grading 0.94 g/t gold (from 34.6 million tonnes), compared to 900,000 oz. at 0.83 g/t from the initial inferred resource estimate of January 2023.

The new resource was calculated from results of drilling in 2023-2024 in addition to the 7,074 metres (21 holes) completed to arrive at the initial estimate.

"With just 11,725 metres of additional diamond drilling since the initial mineral resource estimate was published in 2023, we have substantially increased the number of ounces contained at the Blackjack gold deposit by over 2.5 times while also increasing the overall grade," commented Sitka Gold's CEO Cor Coe.

"This updated resource estimation reflects the quality of this discovery, highlighted by the robust, non-refractory gold mineralization that has a significant core of higher-grade material of 1 g/t or greater that begins at surface and extends to a currently defined depth of 660 metres," he added.

RC property

The Blackjack deposit is part of Sitka's flagship RC property that covers 431 sq. km of land within Yukon's Tombstone gold belt.

Located approximately 100 km east of Dawson City, it represents the largest consolidated land package in Yukon between the Eagle gold mine and the past-producing Brewery Creek mine.

Exploration on the property has mainly focused on identifying an intrusion-related gold system (IRGS), which is a prominent feature of the Tombstone gold belt. Notable deposits from the belt include the aforementioned Eagle and Brewery Creek, as well as the Fort Knox mine in Alaska.

To date, Sitka's team has identified two at/near-surface deposits (Blackjack and Eiger) from the 11 gold-bearing intrusions found on the property. The latest resource update for Blackjack more than doubles the RC project's contained gold, now sitting at about 2.7 million oz., nearly half of which are in the indicated category.

The company also has plans to grow the resource through more drilling. A 30,000-metre program is planned for 2025, focusing on further expansion of the 2 km long Blackjack-Eiger area and follow-up on initial drilling of the Rhosgobel and Pukelman areas.

Shares of Sitka Gold shot up 16.7% at $0.32 apiece by midday Tuesday on the resource update, with a market capitalization of $105.6 million.