Sitka sees possible underground mine at Blackjack deposit

Sitka Gold (TSXV: SIG) said high-grade drill results from its RC Gold project in the Yukon confirm the potential for an underground mine at the property’s Blackjack deposit.

Highlight hole DDRCCC-26-121, the deepest ever drilled at RC Gold, cut 273.8 metres of 1.10 grams gold per tonne from about 642 metres depth, extending high-grade mineralization about 370 metres below the existing resource pit, Sitka said Wednesday in a statement. This included 94 metres of 1.79 grams gold from 697 metres downhole and 19.3 metres of 5.04 grams gold from 756 metres depth.

The results are the first to be published from a 60,000-metre drilling program that Sitka is carrying out at RC Gold, about half of which will target the Rhosgobel deposit.

Initial results “continue to demonstrate the exceptional scale and expansion potential of the Blackjack deposit,” CEO Cor Coe said in the statement. “These results further reinforce our view that RC Gold is evolving into a large, district-scale gold system with long-term growth potential.”

Hole DDRCCC-26-121, which was drilled to a depth of 1,093 metres, is the only drill hole with a complete set of assays received to date, Sitka said. Assay results are pending for all other holes completed so far.

Resource expansion

This year’s drilling program, which is about 20% complete with four diamond drill rigs turning, will double total metres at RC Gold. Work will focus on expanding known resources at the Blackjack, Eiger and Rhosgobel deposits – all of which remain open – while following up on other high-priority targets.

Located in the Tombstone gold belt, about 100 km east of Dawson City, RC is part of a 447 sq.-km land package owned by Sitka that sits between major gold deposits such as the former Eagle mine and the past-producing Brewery Creek mine. It can be reached via a secondary gravel road from the Klondike Highway, which is usable year-round.

Blackjack holds 39.96 million indicated tonnes grading 1.01 grams gold for contained metal of 1.29 million oz. gold, according to a January 2025 resource. Inferred resources are pegged at 34.6 million tonnes grading 0.94 gram gold for 1.04 million oz. gold of contained metal.

Including Blackjack, Rhosgobel and Eiger, RC is estimated to hold 167.4 million inferred tonnes grading 0.72 grams gold for contained metal of 3.83 million oz. gold, according to a February 2026 resource. All three deposits begin at surface and are potentially open-pit minable, Sitka says. 

Sitka shares rose about 1% to C$1.05 Wednesday morning in Toronto, valuing the company at about C$444 million ($322 million).