Vancouver, British Columbia--(Newsfile Corp. - July 31, 2019) - Sitka Gold (CSE: SIG) has acquired the RC Gold Property, located in the Clear Creek district in the heart of the Yukon's Tintina Gold Belt. The property lies within the Tombstone Gold Belt, mid-way between Victoria Gold's Eagle Gold Project, which is scheduled to begin production this September, and Golden Predator's Brewery Creek Gold Mine, which recently received Government and First Nation's support for re-starting production.
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The target at RC Gold, which is newly road accessible, is an Intrusion Related gold deposit such as Victoria Gold's Eagle Gold Mine deposits at 3.6 million ounces, Golden Predator's Brewery Creek Mine deposits at 1.54 million ounces and AM Gold's Red Mountain deposit at 1.95 million ounces, in the Yukon and Kinross' Fort Knox deposit at 3.0 million ounces gold in Alaska.
The large claim block, which covers approximately 2600 hectares, is located at the headwaters of Clear Creek and Big Creek, a prolific placer mining district, and is surrounded by several junior exploration companies, adjoining Strikepoint Gold's Mahtin property on the east and Victoria Gold's Clear Creek property on the west.
Cor Coe, CEO, stated: "The RC Gold property is highly prospective and exhibits many of the same geological characteristics that lead me to stake and later drill the Red Mountain Intrusion Related gold deposit, which has since had a preliminary resource of nearly two million ounces defined. This acquisition reflects the Company's strategic focus on finding high quality gold projects in positive mining jurisdictions with the potential to host large-scale gold deposits. The Yukon is a favourable mining jurisdiction that is seeing renewed interest from both juniors and majors with recent discoveries being made and a new gold mine being built. With this acquisition, Sitka is well positioned within the Tombstone Gold Belt where several Intrusion Related gold deposits have been discovered and where the only developing gold mine in the Yukon is slated to begin production this September. The large, newly discovered gold-in-soil anomalies present on the RC Gold Property could very well represent underlying Intrusion Related gold deposits similar to the existing deposits that have been identified in the Tombstone Gold Belt to date."
The property straddles the Big Creek Stock, a Tombstone Suite granitic body known to be associated with Intrusion Related gold deposits.
Exploration work conducted last year, including geochemical soil sampling, geological mapping and geophysics, identified six strong gold-in-soil anomalies, two of which appear contiguous and cover an area that is approximately 2 kilometres long and 500 metres wide. This reconnaissance soil sampling on the property has produced gold values ranging up to 998 parts per billion. No drilling has been conducted on the property to date and the 2019 exploration work currently underway is focused on further defining the drill targets generated from recent exploration activity.
To acquire its 100% interest, Sitka must pay a total of $400,000, issue 2 million shares, and complete $2.5 million in exploration work over 5.5 years.
The company also staked 28 new claims that are contiguous with the claim block and cover additional highly prospective ground.
Sitka currently has an option to acquire a 100% interest in the Burro Creek Gold property in Arizona, where gold and silver mineralization has been traced for over 1.7 kilometers with vein widths of up to 45 meters and remains open for expansion along strike near surface and at depth. It also owns a 100% interest in its Coppermine River project in Nunavut and the Alpha Gold property located in Nevada's prolific Carlin district, situated where the Garden Valley Anticline intersects with the projection of the 50-Million-Ounce Cortez-Gold trend.
The company is fully funded to complete this season's exploration work on the RC Gold property independent of its current $1,650,000 private placement of $0.11 units which is being allocated for drill advancement of the company's Nevada and Arizona gold properties.
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