Sitka Gold nets $11.8M for Yukon exploration

Sitka Gold (TSXV: SIG) has closed an $11.8-million financing that it plans to spend on exploration at its RC project in west-central Yukon. Shares rose.

The bought deal financing was led by a group of underwriters including Agentis Capital, Paradigm Capital and Cormark Securities, Sitka said in a release on Wednesday.

Company shares gained 3.4% on Wednesday morning in Toronto to a new 52-week high of 61¢ apiece, for a market capitalization of $196 million.

The financing comes almost three months after Sitka released an update that more than doubled gold resources in the Blackjack zone at RC to about 40 million indicated tonnes grading 1.01 grams gold per tonne for 1.3 million ounces. Inferred resources total 34.6 million tonnes at 0.94 gram gold for 1 million ounces. The previous resource was released in 2023.

Open-pit option

In a late January report, Agentis Capital highlighted the 159% increase in total resources to 2.3 million oz. gold. Mining analyst Michael Gray noted a 17% increase in grade and suggested a potential strip ratio of about 5:1, indicating a favourable open-pit mining scenario.

The RC property covers 431 sq. km within Yukon’s Tombstone gold belt and is located about 100 km east of Dawson City.

RC hosts one of the largest gold projects along the belt by resource size, in league with Banyan Gold’s (TSXV: BYN; US-OTC: BYAGF) AurMac and Snowline Gold’s (TSXV: SGD; US-OTC: SNWGF) Valley project. It’s also the largest consolidated land package in Yukon between the shuttered Eagle gold mine and the past-producing Brewery Creek mine.

Sitka plans 30,000 metres of drilling this year at RC.