Sitka Gold Announces Maiden Resource of 1,340,000 Ounces of Gold for RC Gold Project in the Yukon

Sitka Gold Corp (CSE:SIG; FRA:1RF; OTCQB: SITKF) today reported its maiden 43-101 standard mineral resource estimate: Based on 34 holes (11,630 meters) drilled between 2020 and 2022, the RC Gold Project thereafter comprises a total Inferred Mineral Resource of 1,340,000 ounces of gold, starting at surface. The Blackjack zone, discovered in late 2021, contains a higher-grade resource of 900,000 ounces of gold grading 0.83 g/t gold at a cut-off grade of 0.25 g/t gold.

The Blackjack and Eiger gold deposits are open in all directions. The resource provisionally does not include other areas where drilling has confirmed the presence of additional gold mineralization, namely the Saddle Zone. Preliminary metallurgical tests indicate that the gold is non-refractory and has a high gold recovery of up to 94% with minimal NaCN consumption (see press release dated July 13, 2022).

The Tombstone Gold Belt in the Yukon is considered a rapidly expanding mining district. The Blackjack and Eiger gold deposits are accessible year-round by road and form only a small portion of the 376 square kilometer RC Gold Project. Mineral resources are constrained by an optimized pit shell using the following assumptions: Au price of US$1800/ounce; a pit slope of 45°; assumed metallurgical recovery of 85%; mining costs of US$2.00 per tonne; processing costs of US$8.00 per tonne; overhead costs of US$1.50 per tonne.

Cor Coe, Director and CEO of Sitka commented, "Establishing an initial resource of over 1.3 million ounces of gold with only 34 diamond drill holes represents a significant milestone for our flagship Yukon project. Beginning in 2020 with the first four diamond drill holes drilled by Sitka in the Blackjack Saddle-Eiger corridor, our team knew we had discovered an area with high potential for the discovery of an intrusion-related gold deposit. To advance the project in such a short period of time and produce an initial resource estimate for the Blackjack and Eiger zones is a testament to that potential and the capabilities of Sitka's technical and operational teams. With both the Blackjack and Eiger deposits open in all directions, this initial mineral resource provides a solid foundation on which we can build to add additional resources. The Company is currently planning a two-part winter and summer diamond drill program totaling 10,000 meters at RC Gold for 2023, primarily focused on the Blackjack, Saddle and Eiger zones."

The Blackjack and Eiger zones are characterized by intrusion-related mineralization within the 2 km x 500 m extension corridor that provides a structural and genetic link between the Blackjack zone and Eiger zone intrusions (see Figure 1). The Blackjack and Eiger zones remain open in all directions and have excellent potential for resource expansion. The Saddle Zone, located midway between the Blackjack and Eiger Zones, is characterized by metasedimentary rocks intruded by veins and sills. This zone is relatively untested, but contains significant mineralization with the potential to add additional resources, as demonstrated by drill hole DDRCCC20-01, which returned 0.52 g/t gold over 84.8 m from surface, and DDRCCC21-19, which intersected 80.0 m grading 0.59 g/t gold from 48.0 m depth.

Conclusion: Sitka Gold's speed and determination are second to none: In just over a year after the initial Blackjack discovery at the RC project in late 2021, Sitka now presents a remarkable maiden resource estimate of 1.3 million ounces of gold. Comparatively modest 11,000 meters of drilling (34 holes) have sufficed to achieve this. What is particularly encouraging is that the resource starts from surface and that it contains 900,000 higher grade ounces around Blackjack (just 20 holes) at average grades of 0.83 g/t. This figure is over 30 percent higher than the grades of the nearby Banyan Gold’s resource at Aurmac which now contains 4 Mio. ounces at 0,6 g/t applying a cutoff grade of 0,2 g/t. To get there took Banyan several hundreds of drill holes while Banyan’s initial resource started with 900.000 ounces at 0,5 g/t Gold. The difference in grades is no coincidence because, unlike Banyan, Sitka has hit the higher grade intrusive zone, not just the metasedimentary bedrock. Sitka intends to leverage this structural advantage as it continues to explore, seeking to connect the three individual parts of the project – Blackjack, Saddle and Eiger – into a cohesive resource area. In a best case scenario, the planned 10,000 meters of drilling could again double the now published resource by the end of this year. There are few gold explorers with similar momentum, if any.

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