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Resource World - Dec-Jan 2020- Vol 18 Issue 1

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24 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 2 0 Broker's Picks by Stew Vorberg and Doug Wood A fter topping up its coffers with a $1.1 million financing, Sitka Gold Corp. [SIG-CSE; 1RF-FSE] intends to advance and potentially expand its Burro Creek gold and silver project in Mohave County, Arizona. The company is also looking forward to drill testing the Alpha Gold target in the heart of the Carling District in Nevada. Sitka Gold was formed in 2015 and became public in early 2018. Since that time the company has acquired an excit- ing portfolio of gold and copper projects in North America and we believe that success with the drill bit at any of these projects should reward its investors. With the recent financing completed, Sitka now has about 30 million shares outstanding and a market capitalization of only $4.8 million. We also like the fact that Sitka Gold is led by a veteran management team that has a proven track record of success. The team sold its previous venture, Tundra Copper, to Kaizen Discovery in 2014, for a significant return on investment for its shareholders. Sitka's flagship project is the Burro Creek gold-silver deposit in western Arizona. It is situated only 25 km west of Freeport's Bagdad Mine. Burro Creek has a historical resource that has been defined over only 300 metres of strike length and there is evidence this gold-silver vein sys- tem could be continuous for another 1.3 km to the south. The historical resource estimate includes bonanza-grade drill core intercepts such as 15.1 feet grading 7.99 g/t gold and 192.72 g/t silver, including 3.4 feet of 31.80 g/t gold and 759.00 g/t silver. Drilling this fall will help determine the full extent of this resource. Investors are also keeping a close eye on the company's Alpha Project in Nevada. This property was staked to cover a tar- get that exhibited many geological and structural similarities to that of Nevada's Carlin-Type gold deposits. These deposits represent some of the largest hydrother- mal gold deposits in the world. The Alpha Project lies along the southeast projec- tion of the prolific Cortez gold mine and is a prime target for a potential new dis- covery. Plans are being made to drill the Alpha target for the first time later this year. We believe it is a worthy target for its "Lottery-Ticket" nature (low odds, but potentially high reward). Not to be overlooked is that fact that both the Burro Creek and Alpha projects are situated in mining friendly jurisdic- tions and can be easily accessed by vehicles and are near grid power. Skilled labour is also available in nearby towns. Sitka has two other projects that are worthy of attention; the RC Gold property in the Yukon and the Coppermine River project in Nunavut. The RC property rep- resents an early-stage intrusion-related gold target that has never seen a drill bit. The property lies in the heart of the Tombstone Gold Belt, within the Tintina Gold Belt. This prolific belt hosts several intrusion-related gold deposits such at Kinross' Fort Knox deposit in Alaska and Victoria Gold's Eagle Gold deposit in the Yukon. Preliminary work at RC defined six high-priority gold targets where the gold values, plus the associated pathfinder met- als, are typical of mineralization associated with intrusion-related gold deposits. The Coppermine River Project is a sedimentary-hosted copper showing with surface samples as high as 13.5% copper and 65 g/t silver situated over a coincident gravity anomaly. The project has been held up by potential government policy changes but according to Sitka manage- ment the local government and people are on the pro-development side of the equa- tion. Sitka believes that exploration will continue once the land use plan is settled. Sitka holds a very attractive portfolio of projects that ranges from a lower-risk brownfields gold-silver property in Arizona to higher-risk exploration tar- gets in Nevada, Yukon and Nunavut. We believe this mix of assets and Sitka's proven management team have the poten- tial to reward investors. n Stew Vorberg and Doug Wood are Investment Advisors with Mackie Research Capital Corporation (MRCC). This article was pre- pared, in part, under contract by Thomas Schuster. The opinions, estimates and pro- jections herein are those of the authors and may not reflect that of MRCC. The informa- tion and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or war- ranty, expressed or implied, is made as to their accuracy or completeness. The issuer(s) men- tioned in this article may not be suitable for all investors. Please consult an investment pro- fessional for advice regarding your particular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss aris- ing from any use of this article or its contents. Information may be available to MRCC which is not reflected herein. This article is not to be construed as an offer to sell or a solicitation for an offer to buy any securities. The informa- tion contained in this article is not intended to constitute a research report. Stew Vorberg and Doug Wood are beneficial owners of the com- pany highlighted in this article. Sitka Gold to aim drills at Burro Creek and Alpha Project

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