Funds raised in a public offering will be used by Golden Sitka Resources for a $2 million(US) exploration and development program on its Chichagof and Hirst mine properties located 50 miles west of Sitka, Alaska.
Work will start in February to evaluate the Big Croppings vein in the Chichagof mine and the Kay vein in the adjacent Hirst- Chichagof mine.
Gold mineralization has been traced 500 ft along surface on the Big Croppings vein and by drilling to 200 and 400 ft below surface. In addition, an old production drift intercepted the vein 600 ft below surface over 290 ft of strike length and across widths of up to 5 ft. Old workings have been reopened allowing access to the Kay vein and drilling has confirmed down-dip extension of the vein.
About $680,000 will be spent on rehabilitation and development of underground workings and diamond drilling on the Big Croppings vein. Further exploration of the Kay vein requires dewatering the Hirst Chichagof mine to the 500-ft level and $700,000 has been allocated for underground work, sampling and diamond drilling. Another $620,000 will be used for shaft sinking, raise boring and property payments.
The property was previously explored by a joint venture between Queenstake Resources (37.5%), Exvenco (32.5%) and Ventures Trident/Vector Mining (30%), but was transferred to Golden Sitka with each partner getting shares of the new company. Golden Sitka shares were called for trading on the Vancouver Exchange on Oct 7. Working capital at Nov 18 was $2.7 million.
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