Sitka Gold (TSX-V: SIG, OTCQB: SITKF) shares rose on Wednesday after announcing the discovery of multiple instances of visible gold in the first two diamond drill holes completed at the Rhosgobel intrusion-related gold deposit target.
Rhosgobel is located about 5 kilometers south of the Blackjack deposit within the RC Gold Project in Yukon.
The company reported that 2024 drilling at Rhosgobel indicates gold mineralization extends at least 250 meters beyond the depth of previous reverse circulation drilling, which had stopped in mineralization at 70 meters. Assay results for the drill holes are still pending.
Following the release, Sitka Gold’s shares were trading at C$0.41, valuing the company at C$128 million ($93 million).
Currently, Sitka has two drills operating at the RC Gold property and is awaiting results from several drill holes, including DDRCCC-24-068, where more than 40 instances of visible gold were recorded from near-surface (4 meters) to a depth of 680 meters.
“The visual results from the first two diamond drill holes ever completed at the Rhosgobel gold target have exceeded our expectations, with multiple occurrences of visible gold observed,” said Cor Coe, CEO of Sitka Gold.
Sitka Gold’s RC project, located 100 km east of Dawson, spans 423 square kilometers and holds an Initial Inferred Mineral Resource of 1,340,000 ounces of gold contained in the Blackjack and Eiger gold deposits.
