Sitka Gold results extend Eiger target in Yukon

Recent drilling at Sitka Gold’s (TSX-V: SIG; US-OTC: SITKF) Eiger target in Yukon has expanded the mineralized envelope beyond the resource estimate boundary as high-grade results suggest a stronger section is emerging at depth.

Highlight hole DDRCCC-25-109 cut 121 metres grading 0.75 gram gold per tonne from 248 metres depth, including 26 metres at 1.28 grams gold and 8 metres grading 2.6 grams gold, which was 325 metres outside the resource estimate, Sitka reported Tuesday. Eiger is part of the larger RC project. 

“Drilling continues to outline a large, robust gold system at Eiger, which remains open in all directions, while expanding the mineralized footprint beyond the current deposit model,” Sitka CEO Cor Coe said in a release. “Strong gold intercepts…underscore the potential to add significant ounces to the Eiger deposit where a higher-grade component appears to be developing.”

Busy year

The intersections reported Tuesday come near the end of a productive year for Sitka at RC, where a resource update in January more than doubled the gold resource and several subsequent drill results have shown the strength of the deposit. RC also comprises the Rhosgobel, Blackjack, Saddle, Bear Paw and MayQu targets, located in the Tombstone gold belt, about 100 km east of Dawson City.

Other strong results at Eiger include hole DDRCCC-25-097 that cut 24 metres grading 1.62 grams gold from 100 metres depth, including 11.5 metres at 1.26 grams gold; and hole DDRCCC-25-101 which returned 73 metres grading 0.55 gram gold from 279 metres depth, including 8 metres at 1.52 grams gold.

Drilling this year at Eiger, located 1.5 km east of Blackjack, has covered 4,401 metres across 10 holes, Sitka said. Drills pierced reduced intrusion-related gold style mineralization, including centimetre-scale quartz veins with visible gold and extended mineralization to the east, west, and down dip.

Deeper high grades?

The DDRCCC-25-109 results point to a higher-grade component potentially coming into focus, which Sitka said is characteristic of the more advanced Blackjack target.

There are pit-constrained resources for Blackjack and Eiger.

Blackjack hosts about 40 million indicated tonnes grading 1.01 grams gold for contained metal of 1.29 million oz. gold, and 34.6 million inferred tonnes grading 0.94 gram gold for contained metal of 1.04 million ounces.

Eiger holds about 27.4 million inferred tonnes grading 0.5 gram gold for contained metal of 440,000 ounces.

Sitka shares fell 9% to 93¢ apiece on Tuesday morning in Toronto, along with a decline in the S&P/TSX Composite Index, valuing the company at C$349.5 million. The stock has traded in a 12-month range of 25¢ to $1.36.