Sitka Gold update puts RC among biggest deposits in Yukon’s Tombstone belt

Updated resources for Sitka Gold’s (TSX-V: SIG; US-OTC: SITKF) RC project in the Yukon have more than doubled inferred ounces, putting the property on course to become the Tombstone gold belt’s third-richest.

An initial resource at the newly discovered Rhosgobel deposit and an updated resource for the Eiger deposit show that RC now hosts 1.29 million indicated oz. of gold and 3.8 million inferred oz.  across three deposits, Sitka said Wednesday in a statement.

“The trajectory of advancement at RC Gold has surpassed our expectations,” CEO Cor Coe said in the statement. “Just a few years ago we were announcing our maiden resource estimate for the project. Today we are outlining a district-scale system with multiple gold deposits, each beginning at surface, with attractive grades and the demonstrated potential to grow substantially with additional drilling.”

The update comes just over one year after Sitka released a resource for Blackjack, RC’s third deposit, that more than doubled its gold resources and several subsequent drill results showed the strength of the property. 

Sitka shares rose 1.8% to $1.12 Thursday in Toronto, giving the company a market value of about $416 million (US$303 million). The stock has traded between 35¢ and $1.36 in the past year.

Shallow gold

The indicated ounces are located at Blackjack, which also hosts 34.6 million inferred tonnes grading 0.94 gram gold per tonne for contained metal of 1.04 million ounces.

Rhosgobel, which Sitka discovered in late 2024, holds a pit-constrained inferred resource of 100.7 million tonnes grading 0.7 gram gold for 2.25 million oz. of contained metal beginning at surface. Sitka drilled 72 holes covering 15,400 metres to delineate the resource.

Eiger, meanwhile, holds 32.14 million tonnes grading 0.52 grams gold for 535,000 inferred oz. beginning at surface.

The new contained totals for RC put it behind Banyan Gold’s (TSXV: BYN) AurMac project that hosts about 7.73 million oz., and the Eagle/Dublin Gulch deposit that holds 5.37 million ounces. Victoria Gold mined the Eagle deposit until a heap leach accident in 2024 led to the site’s closure.

Recoveries

Initial metallurgical testing of two composite samples from Rhosgobel showed gold recoveries of 89% and 96%, according to Sitka. This indicates that the gold is not refractory, it said.

Significant tungsten mineralization is present at Rhosgobel, Sitka said. Additional analytical work is being carried out to further define tungsten values and distribution.

“Advancing Rhosgobel from a late 2024 discovery to an initial 2.25-million-oz. gold deposit in a single field season underscores both the strength of the system and the effectiveness of our exploration approach,” Coe said. The deposit “exhibits robust continuity of strong gold mineralization beginning at surface, highlighting its scalability and development potential.”

Some 30,000 metres of drilling have been allocated to Rhosgobel this year, and Sitka is expecting “significant” resource growth at the deposit.

Drill targets

Sitka is planning to drill about 60,000 metres at RC this year, about double the amount of drilling done on the property so far. Drilling will focus on expanding known resources at Blackjack, Eiger and Rhosgobel – all of which remain open – while following up on other high-priority drill targets.

An updated resource estimate is anticipated for Blackjack after the 2026 exploration program has been completed, Sitka also said.

Located in the Tombstone gold belt, about 100 km east of Dawson City, RC is part of a 431 sq. km land package owned by Sitka. It can be reached via a secondary gravel road from the Klondike Highway, which is usable year-round.