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Sitka Gold Corp V.SIG

Alternate Symbol(s):  SITKF

Sitka Gold Corp. is a Canada-based mineral exploration company. The Company’s principal business activity is the exploration for mineral resources in North America. The Company’s projects include RC Gold, Alpha Gold, Coppermine River, and Burro Creek. The RC Gold Project, comprised of the RC Gold, Mahtin, Clear Creek and Barney Ridge properties, is a district-scale, contiguous land package of 1,891 claims covering approximately 431 square kilometers. Alpha Gold Property, located along the southeast projection of the prolific Cortez Gold Trend in Eureka County, approximately 135 kilometers southwest of Elko, Nevada. The Burro Creek Gold Project is located 105 km by road southeast of Kingman, Arizona. The Company through its wholly owned subsidiary Arctic Copper Corp., holds approximately 7,500 hectares of mining claims in two separate claim blocks in the Coppermine River area in Nunavut that exhibit potential to host economic grades of copper and silver mineralization.


TSXV:SIG - Post by User

Post by Westcoastwalkeron Jul 03, 2024 12:57pm
190 Views
Post# 36116626

Conclusion

ConclusionConclusion: Luck and misfortune are sometimes painfully close in the exploration industry. If not for the “Black Swan event” at Victoria Gold’s Eagle Gold Mine, over 60 km away, the market might be celebrating Sitka Gold’s acquisition of Clear Creek with price fireworks. After all, the new Clear Creek property promises a repeat, or perhaps even several repeats, of the success of the Blackjack discovery due to its rich history and the recent structural findings of Sitka geologists notably the Blackjack Fault. The planned first diamond drilling at the intersection of important structural zones at Rhosgobel has a good chance of leading to a new significant discovery. But currently, the news about Victoria Gold and speculation about the impending insolvency of the producing company is weighing on general sentiment and also on Sitka Gold’s share price. On the plus side, Sitka can claim that the acquisition of Clear Creek in this form would certainly no longer be possible with an ailing Victoria Gold. There is much to be said for interpreting the contract in such a way that Victoria Gold was seeking a partnership with Sitka. This is supported by a number of details, such as the agreement that no payment is due for two seasons. In addition, the agreed royalty can be bought out completely and, last but not least, the largest payment would only be due when Sitka upgrades its future resources on Clear Creek to the “measured & indicated” category. Sitka can therefore first determine as many resources in the “inferred” category as it wishes. We stick to our views: As an explorer, Sitka Gold stands out for the high efficiency of its drilling. The exploration business is ultimately about growing faster with less money than the competition. Sitka has been exemplary in achieving this, partly because Blackjack has significantly higher average grades than other intrusion-related projects. Clear Creek offers the opportunity for one or more successful repetitions of Blackjack-style gold discoveries. Exploration success will ultimately make the difference and bring investors back.
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