Vancouver, British Columbia--(Newsfile Corp. - January 15, 2020) - Sitka Gold (CSE: SIG) has entered into an agreement with StrikePoint Gold Inc. to acquire the newly road accessible Mahtin Gold Property, located in the Clear Creek, Big Creek and Sprague Creek districts in the heart of the Yukon's Tintina Gold Belt and within the Tombstone Gold Belt.
The property is mid-way between Victoria Gold's Eagle Gold Project, which went into production in September 2019, and Golden Predator's Brewery Creek Gold Mine, which recently received Government and First Nation's support for re-starting production. The property comprises 1,447 quartz mining claims covering 30,242 hectares and is contiguous to Sitka's 132 claim, 2,600 hectare RC Gold Property.
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Cor Coe, CEO, stated: "This acquisition creates a district scale land package within the fertile highly perspective Tombstone Gold Belt that enables the Company to proceed with a much larger exploration program and 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. 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 active gold mine in the Yukon became operational in September 2019."
The Tombstone Gold Belt hosts Victoria Gold's Eagle Deposit with 3.6 million ounces gold, Golden Predators' Brewery Creek Deposits with 1.5 million ounces gold, and AM Gold's Red Mountain Deposit with 1.9 million ounces gold, as well as numerous placer gold deposits. The Tombstone Gold Belt is within the larger Tintina Gold Belt which hosts Kinross Golds' Fort Knox three million ounce gold deposit in Alaska.
Exploration activity has been occurring on the Mahtin property since the early 1900's. The Yukon Geological Survey has documented 8 Minfile occurrences on the property and $3.3 million of assessment expenditures, including $588,000 spent by Strikepoint in 2017.
The most extensive recent exploration programs carried out on the property were completed by Ryan Gold from 2010 to 2013 and Strikepoint in 2017. The majority of exploration work done on the property was mapping and soil sampling with only limited follow up drilling totalling 20 drill holes and 2,049 metres.
Several gold in soil anomalies exist on the property as shown in the video. Soil sample results of over 1,000 parts per billion gold occur in these areas.
Grab rock sample results range from below detection limit to 9.2 grams per tonne gold. Of particular note are two grab samples from sheeted quartz veins within the Bos stock that returned 3.37 and 2.74 grams per tonne gold respectively. These samples provide some of the best evidence to date of the potential for intrusive hosted gold mineralization.
The company intends to complete a full compilation of the extensive historic data including the 18,400 soil samples collected by Ryan Gold in order to design a 2020 exploration program to fully test the intrusion related gold potential of the Bos and Sprague creek stocks.
The purchase price for the property is 2 million shares of Sitka Gold at a deemed price of $0.20 per share.
The property is subject to royalties and the agreement is subject to all necessary regulatory approvals and third party consents, with closing expected to occur on or about January 31, 2020.
In addition to its option to acquire a 100% interest in the RC Gold property in the Yukon, Sitka has an option to acquire a 100% interest in the Burro Creek Gold property in Arizona and owns a 100% interest in its Coppermine River project in Nunavut and the Alpha Gold property in Nevada.
The shares are currently trading at $0.22, with Directors and Management owning approximately 25% of the outstanding shares, a solid indication of their alignment with shareholders' interests.
For more information, please visit the company's website at www.sitkagoldcorp.com, contact Donald Penner, President, at 778-212-1950 or by email at firstname.lastname@example.org, or Cor Coe, CEO, at 604-817-4753, or email email@example.com.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/51493