Vancouver, British Columbia--(Newsfile Corp. - September 24, 2018) - Sitka Gold (CSE: SIG) has entered into an option agreement to acquire a 100% interest in the Burro Creek Property. The Burro Creek Property is located 1.6 kilometres off State Highway 93 in Mohave County, Arizona, approximately 265 kilometres southeast of Las Vegas, Nevada and 200 kilometres north of Phoenix, Arizona.
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The 210 acre property is accessible via dirt road and consists of 4 patented mineral claims (situated on private land) and 8 surrounding lode mineral claims.The property is situated in an active mining belt that includes Freeport McMoran Copper & Gold Inc.'s neighbouring Bagdad Mine. Northwest Arizona also hosts other gold & silver development properties such as Northern Vertex Mining Corp.'s Moss Gold-Silver project.
The Burro Vein has been traced for over 1.7 kilometres with reported widths of up to 45 meters and remains open for expansion along strike near surface and at depth. Results from a Mobile Metal Ion (MMI) soil survey conducted in 2013 by the last operators on the Property returned an anomalous gold and silver trace across the basalt cover that is interpreted to be the buried portion of the Burro Vein over a strike length of approximately 1.0 kilometre. This anomaly provides immediate drill targets to test the continuity of the Burro Vein and potentially expand the known Historical Mineral Resource Estimate.
The Burro Deposit hosts a Historical Mineral Resource Estimate based on 87 reverse circulation and diamond drill holes and 9 sampled adits totalling 6,672 metres and 2,682 assays. Parallel high-tension power lines lie within 1.6 kilometres of the Burro Deposit and water rights on the property have been secured, providing the project with excellent infrastructure for future development.
Donald Penner, President, stated: "The acquisition of the Burro Creek Property provides Sitka with a great opportunity to further expand on a Historical Mineral Resource with the potential for near term production".
Under the terms of the acquisition, Sitka must issue 5 million shares, make cash payments totalling US$1 million, and incur exploration and development expenditures totalling US$4 million over a 7 year period. The underlying vendors will retain a 3% NSR.
Silka is focused on exploring for economically viable mineral deposits with its primary emphasis on gold and copper mineral properties of merit. The company currently has an option to acquire a 100% interest in the Adobe gold property in Nevada and owns a 100% interest in its Coppermine River project in Nunavut and the Alpha Gold property in Nevada.
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