New Drilling Results Reveal Further Gold Potential in Yukon Project

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* Disclosure for the quote from the Bob Moriarty article published on October 22, 2024

Sitka is an advertiser. I have participated in a private placements in the past and bought a lot of shares in the open market. I am biased so do your own due diligence. Their presentation is here.

Sitka Gold Corp. (SIG:TSX; SITKF:OTCQB; 1RF:FSE) has announced encouraging assay results from its ongoing 2024 diamond drilling campaign at the RC Gold Project. Located in the Tombstone Gold Belt of Yukon, approximately 100 kilometers east of Dawson City, the project continues to yield significant gold intercepts, further enhancing its potential for a large-scale gold discovery.

The standout result from the recent drilling is from Hole DDRCCC-24-068 ("Hole 68"), which returned a remarkable 678.1 meters of 1.04 grams per tonne (g/t) gold from surface, including 409.5 meters of 1.36 g/t gold, and 93 meters grading 2.57 g/t gold. This impressive intercept also contained a high-grade core of 5.5 meters grading 17.59 g/t (grams per tonne) gold. Hole 68 extended gold mineralization approximately 200 meters deeper than any previously drilled hole at the Blackjack deposit, signaling the potential for continued high-grade mineralization at depth.

The results from Hole 68 underscore the robustness of the Blackjack gold system, showing persistent mineralization throughout the entire 708.7-meter length of the hole. The presence of visible gold in the drill core and increasing grades with depth further suggest the system's potential to host a larger, higher-grade component at greater depths.

Another highlight from the drill campaign is Hole DDRCCC-24-067 ("Hole 67"), which returned 99.2 meters of 1.01 g/t gold, including 2.5 meters of 18.39 g/t gold. This hole confirms the southern extension of the mineralization previously intersected in Holes 58 and 62, indicating the potential for further lateral expansion of the deposit.

In his October 22 article for 321 Gold, Bob Moriarty praised Sitka Gold Corp., stating the company "struck the gold motherlode" with its latest discoveries.

In addition to the results from Holes 67 and 68, the company is awaiting assay results from six more diamond drill holes currently at the lab.

These include the first-ever diamond drill holes completed at the Rhosgobel intrusion, located 5 kilometers south of the Blackjack deposit. Early indications from visible gold observed in the Rhosgobel drill core suggest the potential for new discoveries in this area, which could add significant value to the RC Gold Project.

Sitka's 2024 exploration program is designed to systematically expand known mineralization at Blackjack while testing multiple high-priority targets across the 431 square-kilometer RC Gold Project, which sits within a district known for large intrusion-related gold systems. The company remains optimistic as it continues to unlock the project's potential, with a focus on expanding the resource base and delivering long-term value.

Digging Into The Gold Sector

A Reuters report on October 18 detailed gold's climb to an unprecedented US$2,700 per ounce. The rally was fueled by escalating tensions in the Middle East, particularly the conflict between Israel and Hezbollah. According to Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, "Investors flocked to gold, a traditional safe-haven asset," as geopolitical instability drove risk-averse investors to seek refuge in gold. The report also noted that lower interest rates and global economic uncertainties were adding further momentum to gold's rise, making it one of the best-performing assets in 2024.

As noted by Ahead of the Herd on October 18, gold miners' stocks were on the verge of a psychological tipping point. The publication highlighted that gold stocks have remained undervalued despite record-high gold prices, with potential for "doublings-plus" as traders increasingly turned to gold miners to chase momentum. The report emphasized that, with gold continuing to set new highs, investor interest in gold miners was growing rapidly, a trend that could soon result in significant gains across the sector.

In his October 21 piece for Bonner Private Research, Bill Bonner highlighted the global debt crisis, citing the IMF's warning that public debt is set to reach US$100 trillion this year, driven by China and the U.S. Bonner noted that with inflation becoming a widely recognized issue, the situation feels precarious as even institutions like the IMF are acknowledging the risks. He pointed to the end of the 40-year trend of declining interest rates and noted that, despite stock market rebounds, gold has outperformed, with inflation continuing to erode the value of money.

Dan Denning's accompanying research note reinforced this, revealing a US$1.83 trillion U.S. deficit in 2024, up 8% from last year. Denning explained that while inflation has reduced the real value of debt by 20%, U.S. debt has risen by the same amount, bringing the debt-to-GDP ratio near 130%, a tipping point historically associated with crises like defaults or currency collapses.

Sitka's Golden Catalysts

According to Sitka Gold's investor presentation, the 2024 drill results at the RC Gold Project continue to indicate significant resource expansion potential at the Blackjack deposit. The results from Hole 68 demonstrate that mineralization strengthens at depth, with grades increasing the further down drilling extends, signaling the possibility of a higher-grade gold system at depth. Sitka's 2024 drilling program is aimed at expanding this mineralized zone and further testing additional targets within the Clear Creek Intrusive Complex.

The RC Gold Project is road-accessible and situated in a highly prospective district with potential for several multi-million-ounce gold deposits. With a 15,000-meter diamond drill program underway, the company remains focused on advancing the project and unlocking its full potential. Results from initial drilling at the Rhosgobel and Pukelman targets are expected soon, which could further enhance the project's upside.

Striking the Gold Motherlode

*In his October 22 article for 321 Gold, Bob Moriarty praised Sitka Gold Corp., stating the company "struck the gold motherlode" with its latest discoveries. He emphasized the significance of Sitka's October 21 assay results, noting that the company's RC Gold Project holds considerable potential, especially with the addition of the Clear Creek deposit, which he called a "mandatory addition" to their asset portfolio.

Moriarty acknowledged the challenges with the share structure but remained optimistic about the company's trajectory, suggesting that Sitka could be "bigger than Snowline" and predicting a possible acquisition for "billions in time." He highlighted that Sitka's infrastructure advantage, compared to Snowline's Valley deposit, would be a key factor in its future growth.

Moriarty was also bullish on Sitka's deep drilling strategy, describing their latest successes as a turning point for the company. He added, “There is gold near surface, but the motherlode is down deep,” pointing to the high-grade potential that could transform the project into a significant asset for major mining companies.

Ownership and Share Structure

According to the company, management and insiders own 16.2% of Sitka Gold with Corwin Coe holding the most at 1.82%.

Institutions hold 38.1% with Cox Alvarez del Villar de Gubbins owning 7.95% and Sprott Asset Management LP with 3.82%.

HNW investors have 10%. The rest is retail.

The company's market cap is CA$138.32M with 277.68 million free float shares. The 52 week range is CA$0.13 - 0.57.