Sitka Gold assays grow Rhosgobel in Yukon

Drilling by Sitka Gold (TSXV: SIG; US-OTC: SITKF) has expanded the Rhosgobel target at one of the largest projects in Yukon, returning results as high as 162 metres grading 1.02 grams gold per tonne.

That result, from 5 metres depth in hole DDRCRG-25-007 included 71 metres at 1.57 grams gold and 18 metres grading 2.31 grams gold, Sitka reported on Monday.

“The consistency and scale of strong assay results from Rhosgobel are very encouraging, with every drill hole reported to date delivering over 100 gram-metres of gold,” Sitka CEO Cor Coe said in a release. “With mineralization open in all directions within the 2- by 1.5-km gold-in-soil anomaly that outlines this target, Rhosgobel is demonstrating the size and grade potential to host a significant, multi-million ounce intrusion related gold deposit.”

Prolific summer drilling

The results reported Monday at the RC project about 100 km east of Dawson City build on the 11,375 metres of drilling across 38 holes so far at Rhosgobel. Assays sparkled with visible gold from 31 of 34 holes, and add to a summer of high-grade discoveries at RC.

Sitka shares gained 4.8% to 88¢ on Monday morning in Toronto for a market capitalization of $321.5 million. The stock has traded in a 12-month range of 21¢ to 89¢.

RC, the largest consolidated land package between the shuttered Eagle gold mine and the past-producing Brewery Creek Mine. The project on the Tombstone gold belt is comparable to Snowline Gold’s (TSXV: SGD; US-OTC: SNWGF) Valley project and Banyan’s (TSXV: BYN; US-OTC: BYAGF) AurMac.

Other targets at RC include Blackjack and Eiger. The company is exploring a potential link between those deposits called the Saddle zone. Visible gold in the zone makes it a key target area for expansion of mineralization that could be mined in an open pit scenario, according to analyst Michael Gray at Agentis Capital in June.

Another highlight hole, DDRCRG-25-008, cut 168 metres grading 1 gram gold from 28 metres depth, including 12 metres at 2.37 grams gold.

Exceeding drill target

In total, 30,478 metres have been drilled across 84 holes at Rhosgobel, surpassing the 30,000-metre target for the summer, Sitka said. The drilling has traced out gold mineralization beginning at surface and along a strike length of more than 1.1 km and down to over 400 metres depth.

Two rigs are now working at the Rhosgobel intrusion target that remains open in all directions.

RC hosts about 40 million indicated tonnes grading 1.01 grams gold for 1.3 million oz., according to a resource update in January. Inferred resources total 34.6 million tonnes at 0.94 gram gold for 1 million ounces.