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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Sitka Gold Yukon survey finds more gold than previously thought

The MAG survey and geochemical data provide evidence that gold corridor extends over 5 kilometers

Sitka Gold Yukon survey finds more gold than previously thought
Image via Sitka Gold.

Data from a Sitka Gold Corp. (CSE: SIG) (FSE: 1RF) (OTCQB: SITKF) recent survey and inversion modelling suggests that gold-bearing rock bodies found at the RC Gold Project in the Yukon may be larger than previously thought.

The company announced results on Monday from a high-resolution airborne magnetic survey flown over the Saddle, Eiger, Pukelman and Josephine intrusions in 2022 at its RC Gold Project in the Yukon Territory, Canada.

Furthermore, these bodies seem to be part of an intrusive system enriched with gold, which appears to be connected at depth. The magnetic survey (MAG) and geochemical data also provide evidence that the gold mineralized extensional corridor, which encompasses the Blackjack and Eiger gold deposits, extends over a length of more than 5 kilometers.

“The magnetic highs appear to correlate well with the known intrusions identified on surface and show the potential of a massive intrusive body at depth that reaches the surface in several locations, including the Blackjack, Eiger, Pukelman and Josephine intrusive stocks, which we believe may ultimately host a major gold system that connects the intrusives found at surface,” said Cor Coe, CEO and director of Sitka Gold.

The three-dimensional modelling of the MAG survey conducted in 2022 over the Blackjack, Saddle and Eiger zones reveals that the intrusive rocks connected to the known gold mineralization in these areas align with regions exhibiting higher magnetic susceptibility in the model.

The modelling also reveals that the magnetic susceptibility features linked to the Saddle and Eiger intrusions merge together at deeper levels, suggesting that these bodies, along with their associated gold mineralization, are part of a significantly larger intrusive system enriched with gold.

This hypothesis is further supported by a prominent gold in soil anomaly of 100 parts per billion (ppb), which stretches continuously from the Saddle intrusion to the Eiger intrusion and the Pukelman intrusion, with intermittent occurrence reaching the Josephine intrusion. The Josephine and Pukelman intrusions are high-priority targets for intrusion-related gold that Sitka has yet to explore.

These interpretations reinforce the findings of previous explorers, such as Newmont Corporation (NYSE: NEM) (TSX: NGT) subsidiary, Newmont Exploration Limited, which proposed in 1998 that the Saddle, Eiger, Josephine and Pukelman intrusions converge at deeper levels.

Newmont’s theory was supported by additional data, including airborne radiometrics. Unfortunately, Newmont discontinued its involvement in the project before conducting drill tests to verify the theory.

Sitka shares remained flat on Monday at $0.10 on the Canadian Securities Exchange.

Magnetic Susceptibility and Intrusive Stocks. Image via Sitka Gold Corp.

The Yukon has always been a popular mining destination

The Yukon has always been a popular mining destination. It is renowned for its abundance of mineral resources, possessing substantial deposits of gold, silver, zinc, copper, lead and tungsten. The geological setting of the Yukon, characterized by ancient mountain ranges, fault systems and favorable geological structures, creates conditions that are conducive to the concentration of valuable minerals. This geological richness has attracted mining companies and explorers to the region, as it presents significant opportunities for mineral exploration and development.

Another key factor contributing to the Yukon’s appeal as a mining destination is its stable political and regulatory environment. The government of the Yukon has established transparent mining laws, regulations and permitting processes that provide certainty and support for mining activities.

B2Gold Corp. (TSX: BTO) (NYSE American: BTG) (NSX: B2G) recently bumped its ownership in the Yukon Territory-focused gold miner, Snowline Gold Corp. (TSXV: SGD) (OTCQB: SNWGF) to 9.9 per cent. B2Gold’s decision was influenced by the potential of Yukon’s mining jurisdiction.

Klondike Gold Corp. (TSXV: KG) (FRA: LBDP (OTCQB: KDKGF) concluded its prospecting, mapping and rock sampling programs and will use those results to rank targets for future drilling. In the meantime, it intends to begin a 2,000 meter drilling campaign in July.

Earlier this month, Trifecta Gold Ltd. (TSXV: TG) won the Yukon Mineral Exploratory Program (YMEP) grants for target evaluation both its Eureka and Treble projects in the territory.

Under the program, the Yukon Government offers financial support to approved applicants by providing funding for 50 per cent of eligible mineral exploration expenses, up to a maximum of $50,000.


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