JV Video: Sitka lines up bigger Yukon drill after new find

Key Concepts

• RC Gold: A mineral exploration company focused on gold projects.
• RCQL Project: The company’s primary project located in the Yukon, Canada.
• Blackjack & Iger Deposits: Two established gold deposits within the RCQL project.
• Ross Gobble Discovery: A newly discovered, significant gold zone within the RCQL project.
• Intrusions: Geological formations associated with gold mineralization (11 identified on the property).
• Drill Results: Data obtained from drilling samples, used to assess gold concentration and deposit size.
• Spin-out: A process of creating a new, independent company from a portion of an existing one.
• Epiothermal Vein System: A type of hydrothermal system that forms veins of ore minerals near the Earth's surface.

RC Gold Project Update – Yukon & Beyond

Introduction

This discussion focuses on the recent exploration activities and future plans of Sika Gold, specifically concerning its RC Gold project in the Yukon Territory, Canada, and its other assets in Nevada and Arizona. Mike Burke, VP of Corporate Development, details the company’s progress, financial position, and strategic direction.

Yukon Exploration – RCQL Project

RC Gold has been highly active in the Yukon, completing over 32,000 meters of drilling in the current year. Exploration efforts have been concentrated in three primary areas: expanding the existing Blackjack and Iger deposits, investigating the saddle zone between these deposits, and exploring other areas of the property, most notably the Ross Gobble discovery.

Specifically, 15,000 meters of drilling were dedicated to the saddle zone, while the remaining drilling targeted areas like Ross Gobble, the Contact zone, and the Pukman intrusion. The Ross Gobble discovery is highlighted as a “very significant new discovery” with a surface footprint exceeding one kilometer.

Currently, 38 drill holes are pending results, with 26 of those originating from the Ross Gobble zone. The company anticipates receiving these results around Christmas, though a more realistic timeframe is January of the new year due to lab processing times. All results from the Blackjack, Saddle, and Iger areas have been released.

Financial Position & Capital Allocation

RC Gold is in a strong financial position, holding $43 million in cash with no debt. This capital will be used to significantly expand the drilling program to 50,000-60,000 meters in the coming year. The primary focus will remain on:

• Expanding Blackjack & Iger: Further drilling is planned to fully delineate the size of these established deposits.
• Ross Gobble Discovery: A substantial portion of the drilling will be dedicated to exploring and expanding the Ross Gobble discovery, given its significant surface footprint.
• Additional Property Areas: The company will also continue to explore the remaining 11 known intrusions on the property, all of which exhibit gold mineralization.

Nevada & Arizona Assets – Strategic Outlook

RC Gold also holds projects in Nevada (Alpha Gold) and Arizona (Burough Creek). Alpha Gold is located in the Cortez Hills trend, approximately 40 kilometers from the Four Mile discovery, a notable recent gold find. Burough Creek features a gold-silver epiothermal vein system.

However, the company’s current strategy prioritizes the Yukon project due to the recent successes at RCQL. The Nevada and Arizona assets are being considered for monetization through a potential spin-out or other means to unlock their value for shareholders. Technical reports on these projects have been updated in preparation for this process. As Mike Burke stated, “we have to keep focused on our Yukon project.”

Data & Statistics

• Drilling Completed (Current Year): Over 32,000 meters
• Planned Drilling (Next Year): 50,000 – 60,000 meters
• Cash on Hand: $43 million
• Debt: $0
• Ross Gobble Footprint: Over 1 kilometer
• Intrusions on Property: 11 known gold-bearing intrusions
• Alpha Gold Location: 40 kilometers from the Four Mile discovery (Cortez Hills trend)

Notable Quotes

• Mike Burke: “Ross Gobble discovery is turning out to be a very significant new discovery on the property in addition to those two known deposits that we're growing.”
• Mike Burke: “with the success we're having in the Yukon, we've got to remain focused there.”

Logical Connections

The conversation flows logically from an overview of recent Yukon exploration results to a discussion of the company’s financial strength and future plans. The prioritization of the Yukon project is clearly linked to the promising results obtained there, while the consideration of spin-outs for the Nevada and Arizona assets reflects a strategic decision to focus resources on the most promising opportunities.

Synthesis/Conclusion

RC Gold is demonstrating significant progress at its RCQL project in the Yukon, particularly with the promising Ross Gobble discovery. The company’s strong financial position allows for an aggressive expansion of the drilling program, with a clear focus on expanding existing deposits and exploring new targets. While the company maintains assets in Nevada and Arizona, its immediate strategic priority is maximizing the potential of the Yukon project, potentially unlocking value from its other holdings through a spin-out or similar transaction. Investors can anticipate a substantial flow of drill results in the new year, providing further insight into the potential of the RCQL project.