As consideration, Victoria will receive approximately 21.84 million common shares of Sitka as an initial payment, representing 8% of those outstanding. It will also be owed a total of C$11 million in deferred payments, payable in cash or shares, due in three instalments over the next three years.
Commenting on the acquisition, Sitka Gold’s CEO Cor Coe said: “The purchase of Victoria Gold’s Clear Creek property marks a significant milestone in the evolution of the RC gold project as it consolidates the entire Clear Creek intrusive complex under one owner.”
Historical work on the property targeted the southern portion of the complex, with initial drilling targeted at discovering “Fort Knox” type mineralization. In the 1990s, both Noranda and Kennecott conducted drilling on the property, highlighted by one hole returning 1.03 g/t gold over its entire length of 67.1 metres. Redstar Resources also made a discovery with an intersection of 26.7 metres grading 2 g/t gold.
Under Victoria’s ownership, the Clear Creek property was optioned to Golden Predator between 2009-2012, during which the latter drilled several zones on the property and intersected 42.7 metres of 1.87 g/t gold and 10.7 metres of 20.46 g/t gold.
By acquiring the property, Sitka would add as many as four high-priority targets for intrusion-related gold deposits (for a total of 12) in the heart of Yukon’s Tombstone gold belt. The size of its RC property would also increase from 386 sq. km. to 431 sq. km.
The RC project currently has an estimated inferred mineral resource of 1.34 million oz. (61.1 million tonnes grading 0.68 g/t gold), contained in two near/on-surface zones: the Blackjack and Eiger gold deposits.
“Sitka’s recent discovery of the Blackjack and Eiger deposits has proven that the district hosts very significant gold deposits, with the higher-grade, Blackjack gold deposit being the cornerstone to develop the potential of the region with an initial inferred 900,000 oz. resource from surface grading 0.83 g/t gold,” said Coe.
“With the entire Clear Creek Intrusive Complex now under Sitka’s 100% ownership we will be pushing to unlock value in this target-rich area as we pursue additional discoveries while expanding these wide open deposits,” he added.
