ADOBE GOLD PROPERTY
Sitka Gold Corp. has an option to earn a 100% interest in the Adobe Gold Property located 40 km north of the town of Elko in Nevada’s prolific Carlin-type gold domain. The local geology of the Property exhibits structural features within sediments that indicate the potential for Carlin-style gold mineralization to exist. This domain is the second most prolific gold producing region in the world and includes the Carlin Trend, one of the largest concentrations of gold in the western hemisphere. More than 84 million ounces of gold have been produced from the Carlin Trend since Newmont started production at the Carlin Mine in 1965. Many new discoveries have been made since and there are currently about 30 mines operating in the area. Gold mines in Nevada account for about 81.4% of annual U.S. gold production and 5.5% of the world's annual gold production (Nevada Mining Association website - 2016 figures). In addition to hosting an abundance of gold deposits, Nevada continues to be a safe and stable jurisdiction for mining companies to operate and has excellent infrastructure already in place. The Property has very favourable exploration logistics as it is accessible by dirt road and is about a one hour drive from the town of Elko.
Initial reconnaissance of the area has included limited mapping and stream sediment sampling and the results of this has shown anomalous indicator minerals and gold mineralization to be present on the property. The property was previously mapped by the USGS and certain structural features from this mapping have been reinterpreted and confirmed by local geologists familiar with the region. This reinterpretation has shown that the structural features on the property and the sedimentary package of rocks are consistent with those that host known Carlin Style deposits in the area and have heretofore not been recognized. There is no known historic drilling on the property.
The Company’s initial exploration program consisted of gulley and ridge soil sampling and additional mapping and outcrop sampling. A total of 286 soil and 95 rock outcrop samples were taken over a broad reconnaissance target area previously identified as being potentially fertile structurally controlled target areas for Carlin style gold mineralization. Compilation and interpretation of the data has identified structurally controlled areas where anomalous pathfinder minerals and gold results have defined three target areas to be drill tested.
An NI 43-101 report commissioned by the Company has recommended an initial drill testing program that consists of drilling a minimum of 2 holes into each of the three target areas. The Company has recently received approval for its drilling permit application and plans to carry out this drilling program by Q2 of 2018.
The Company is very excited about its potential district scale, Carlin style mineralization target at its Adobe gold property in Nevada. The results from initial reconnaissance exploration have successfully reinforced the potential that this area holds for the discovery of a new Carlin style gold deposit.