Sitka Gold Corp. (CSE:SIG) has begun mobilizing for its upcoming 3,500m drill campaign at the Burro Creek gold and silver property
SmallCapPower | November 19, 2019: In September 2018, Sitka Gold Corp. (CSE:SIG) acquired the Burro Creek gold and silver property located in Arizona, ~265km SE of Las Vegas. Sitka Gold has recently expanded the total area of the project to 750 acres by staking an additional 27 lode claims (adding to the existing 8 lode claims and 4 patented mineral claims) where the majority of future exploration will take place. Of note, the Arizona property hosts a historical mineral resource estimate (2011) of 5M oz silver and 100K oz gold based on a 33-hole 2,565m drilling survey conducted in 2008 that was highlighted by 2.72 g/t Au over 21m. SIG believes the historical resource could be significantly expanded, since only about 5% of the projected vein system has been drilled.
On October 31, 2019, SIG announced that it has closed its current financing of $1.1M. Each unit comprises one common share at $0.11/share and one half of a 2-year warrant with a strike price of $0.16/share. Gross proceeds of the financing are expected to be used towards drill advancement at Burro Creek and Alpha Gold and for general working capital purposes.
On November 12, SIG announced that it has begun mobilizing for its upcoming 3,500m drill campaign at Burro Creek (50-holes). The program is expected to focus on upgrading and expanding the historical deposit, which was recently interpreted over a strike length of ~1.3km. Previous drilling at Burro Creek was highlighted by 4.8m grading 7.99 g/t Au and 192.7 g/t Ag, including 1.0m grading 31.8 g/t Au and 759.0 g/t Ag. The location of the current mineral resource and a 2013 mobile metal ion (MMI)* soil sampling are shown in Figure 1 below. Of note, no historical drilling has taken place over the proposed drill area. We would expect drill results to be released in approximately two months.
Figure 1: 2013 MMI Soil Sampling Results
Source: Company Reports
Figure 2: Sitka Gold Comps Table (Yukon)
Source: Ubika, Capital IQ
About Sitka Gold
Sitka Gold is a junior gold and copper explorer focused on four properties – two in the U.S., Alpha Gold in Nevada and Burro Creek Gold in Arizona; and two in Canada, RC Gold in Yukon and the Coppermine River project in Nunavut. SIG is currently focused on expanding and upgrading the existing historical mineral resource at Burro Creek and drill testing its Carlin-type gold target at Alpha Gold in Nevada, the world’s second most prolific gold producing region with 84M oz/Au produced from the Carlin Trend.
* MMI is a geochemical exploration technique to find mineral deposits to indicate anomalous areas over a large land package. This acts as an important guide for companies to strategize where to drill.
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