News Summary
On December 18, 2025, Sitka Gold Corp. announced it has signed a major service contract with Kluane Drilling Ltd. to complete up to 60,000 metres of diamond drilling at its flagship RC Gold Project in the Yukon during the 2026 season. This represents the largest exploration program in the company’s history, effectively doubling the scale of the 2025 campaign. The program is designed to follow up on the 2025 discovery of a third gold deposit at the Rhosgobel intrusion and to expand existing resources at the Blackjack and Eiger deposits. Management confirmed the company is “fully funded” for this massive undertaking, boasting a cash position of over $45 million with zero debt.
Material Impact
The news is materially positive for several reasons:
– Scale of Ambition: Moving from a ~32,000m program in 2025 to a 60,000m program in 2026 indicates high confidence in the scalability of the Clear Creek Intrusive Complex (CCIC).
– Strong Treasury: The $45 million cash position, bolstered by the $28.5 million premium financing closed in October 2025, removes the “going concern” risk and prevents near-term predatory dilution.
– Strategic Continuity: Utilizing the same drilling contractor (Kluane) that has worked on the project since 2023 ensures operational efficiency and continuity of geological data collection.
– High Hit Rate: The focus on the Rhosgobel discovery is significant, as 16 of the first 17 holes at that target in 2025 returned >100 gram-metre gold intersections.
Catalysts
– Assays Pending: Results from 35 diamond drill holes (11,279 metres) from the 2025 season are still outstanding. These will dictate the initial prioritization of the 2026 program.
– Resource Updates: Given the success of the 2025 drilling beyond the current MRE boundaries, a revised Mineral Resource Estimate (MRE) could be a major catalyst in early-to-mid 2026.
– Marketing Blitz: The company is scheduled for three major Vancouver resource conferences in January 2026 (MIF, VRIC, AME Roundup), which often precede significant volume and price moves.
Materiality Conclusion
The announcement is a Material – Positive development. While technically a “planning” release, the scale (60km of drilling) and the fact that it is already fully funded makes it a declaration of intent to move the project from an exploration discovery toward a Tier-1 asset size. The doubling of the drill program suggests that the internal geological model is seeing a much larger system than currently defined in the 2025 MRE.
