Stikine Gold Corporation

Stikine Gold Corporation

October 16, 2006 17:45 ET

Stikine Gold Corporation: Sullivan Deeps SD3 Drilling Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - Stikine Gold Corporation (TSX VENTURE:SKY) ("Stikine") announces that diamond drilling of its third exploration hole at the Sullivan Deeps Project has passed a depth of 402 metres (1,319 feet) as of this morning's shift. The SD3 drill program is designed to further test for SEDEX/Sullivan-type massive and bedded sulphides within the Sullivan sub-basin. Stikine's SD3 drill target is located only 6 kilometres (3.7 miles) north of the historic Sullivan Mine.

Core logging is being conducted by Mr. Paul Ransom, P.Geo., Project Manager to record the intersection of various marker horizons and geologic units at anticipated depths. Mr. Ransom has now confirmed that the "Shaft" and the "Below-Shaft" markers have both been intersected in SD3. Directional surveying is being conducted at regular intervals and indicates that SD3 remains on the planned trajectory.

The SD3 drill program is a continuation of Stikine's exploration for a sister deposit to the legendary Sullivan Mine, located near Kimberley, BC which operated for nearly a century until closing in late 2001. According to the Province of British Columbia, the Sullivan Mine produced approximately 17.5 billion lbs of zinc (Zn), 18.5 billion lbs of lead (Pb) and 298 million ozs of silver (Ag) along with other associated metals. Using current metal prices, Sullivan's life-of-mine production would be valued at over US$40 billion.


Scott E. Broughton, P.Eng. - President and CEO

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