News & Media
SITKA acquires gold deposit in arizona
Vancouver, B.C. – September 21st, 2018 – Sitka Gold Corp. (CSE: SIG)("Sitka" or the "Company") is pleased to announce that it has entered into an option agreement with Coelton Ventures Ltd. (“Coelton”) to acquire a 100% interest in the Burro Creek Property (the “Property”) which contains the Burro Gold Deposit (the “Burro Deposit”) located in Mohave County, Arizona, USA.
The Burro Deposit contains a Historical Mineral Resource Estimate as summarized below:
About the Burro Creek Property
The Burro Creek Property is located 1.6 km off of State Highway 93 in Mohave County, Arizona, approximately 265 km southeast of Las Vegas, Nevada and 200 km north of Phoenix, Arizona. The 210 acre property is accessible via dirt road and consists of four patented mineral claims (situated on private land) and 8 surrounding lode mineral claims. The Property is situated in an active mining belt that includes Freeport McMoran Copper & Gold Inc.’s neighbouring Bagdad Mine (www.fcx.com). Northwest Arizona also hosts other gold & silver development properties such as Northern Vertex Mining Corp.’s Moss Gold-Silver project (www.northernvertex.com).
The Property covers a low-sulphidation epithermal vein system (the “Burro Vein”) that hosts gold and silver Indicated and Inferred Historical Mineral Resource Estimates. The Burro Vein has been traced for over 1.7 km with reported widths of up to 45 meters and remains open for expansion along strike near surface and at depth. Results from a Mobile Metal Ion (MMI) soil survey conducted in 2013 by the last operators on the Property returned an anomalous gold and silver trace across the basalt cover that is interpreted to be the buried portion of the Burro Vein over a strike length of approximately 1.0 km (See Figure 1 below). This anomaly provides immediate drill targets to test the continuity of the Burro Vein and potentially expand the known Historical Mineral Resource Estimate. Parallel high-tension power lines lie within 1.6 km of the Burro Deposit and water rights on the Property have been secured, providing the project with excellent infrastructure for future development.
Figure 1: 2013 MMI Soil Sampling Results
The Burro Deposit
The Burro Deposit hosts a Historical Mineral Resource Estimate as defined by the National Instrument 43-101 Standards for Disclosure for Mineral Projects and is not considered by the Company to be a Current Mineral Resource, as Sitka Qualified Persons have not completed sufficient work to classify it as a Current Mineral Resource. The Indicated and Inferred Resources referenced above are taken from a technical report filed on SEDAR titled “TECHNICAL REPORT on the BURRO CREEK PROJECT, Sections 10, 11, 14, 15, Township 14N, Range 12W, Kaiser Spring 7.5 minute Quadrangle Latitude 34°32.5’N Longitude 113°29.5’W, Greenwood Mining District, Arizona” for Northern Freegold Resources Ltd. by Jean Pautler, P.Geo., Allan Armitage, Ph. D., P. Geol. and Joe Campbell, P. Geo., January 31, 2011.
The Historical Mineral Resource Estimate of the Burro Deposit is based on 87 reverse circulation (RC) and diamond drill holes and 9 sampled adits totalling 6,672 m and 2,682 assays. Mineralization was constrained within a 3-dimensional geological solid created using Gemcom software. Practices consistent with CIM (2005) were applied to the generation of the Historical Mineral Resource Estimate and the parameters of the modeling are fully described in the NI 43-101 report referenced above.
The Company considers the NI 43-101 report to be relevant and reliable given that no additional work of significance has been completed since the issuance of the Historical Mineral Resource Estimate.
Sitka Gold Corp. has negotiated an agreement (the “Agreement”) with Coelton Ventures Ltd. (Coelton) whereby the Company can acquire 100% of Coelton’s interest in the Burro Creek Property by issuing 5 million shares, making cash payments totaling $1,000,000 USD and incurring exploration and development expenditures totaling $4,000,000 USD over a seven year period. Coelton has acquired 100% of the mineral, water and geothermal rights on the Burro Creek Property patented claims (consisting of two patented mining claims and two patented millsite claims). The property also consists of 8 unpatented mining claims which are contiguous with the patented mining claims. The underlying vendors will retain a 3% NSR (2% of which can be purchased by making cash payments totaling $1,100,000 USD) and will receive a payment of $500 USD per month to be included in and not in addition to, the royalty payments. This Acquisition is considered a related-party transaction pursuant to Multilateral Instrument 61-101, as Coelton is controlled by Cor Coe, the chief executive officer and a director of Sitka. The acquisition is exempt from the need to obtain minority shareholder approval and a formal valuation as required by and under the applicable provisions of MI 61-101. The Agreement is subject to regulatory approval.
Donald Penner, President of Sitka Gold Corp., comments: “The acquisition of the Burro Creek Property provides Sitka with a great opportunity to further expand on a Historical Mineral Resource with the potential for near term production”.
This news release has been reviewed and approved by Donald Penner, P. Geo., President of Sitka Gold Corp., a “Qualified Person” under National Instrument 43-101 Standard for Disclosure for Mineral Projects.
About Sitka Gold Corp.
Sitka Gold Corp. is a mineral exploration company headquartered in Canada and managed by a team of experienced mining industry professionals. The Company is focused on exploring for economically viable mineral deposits with its primary emphasis on gold and copper mineral properties of merit. Sitka currently has an option to acquire a 100% interest in the Adobe gold property in Nevada and owns a 100% interest in its Coppermine River project in Nunavut and the Alpha Gold property in Nevada.
ON BEHALF OF THE BOARD OF DIRECTORS OF SITKA GOLD CORP.
President and Director
For more information contact:
President & Director
CEO & Director
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward Looking Information
Certain statements included herein may constitute “forward-looking statements”. All statements included in this press release that address future events, conditions or results, including in connection with exploration activity, future acquisitions and any financing, are forward-looking statements. These forward-looking statements can be identified by the use of words such as “may”, “must”, “plan”, “believe”, “expect”, “estimate”, “think”, “continue”, “should”, “will”, “could”, “intend”, “anticipate” or “future” or the negative forms thereof or similar variations. These forward-looking statements are based on certain assumptions and analyses made by management in light of their experiences and their perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. These statements are subject to risks, uncertainties and assumptions, including those mentioned in the Company’s continuous disclosure documents, which can be found under its profile on SEDAR (www.sedar.com). Many of such risks and uncertainties are outside the control of the Company and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. In making such forward-looking statements, management has relied upon a number of material factors and assumptions, on the basis of currently available information, for which there is no insurance that such information, will prove accurate. All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.