Klondike Gold drills 47 metres of 1.32 g/t gold

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The view north downslope from the old Lone Star Mine at the Lone Star Zone. Source: Klondike Gold Corp.

Klondike Gold Corp. [KG-TSXV] on Wednesday October 31 released assay results from drilling at the company’s Klondike District property near Dawson City, Yukon.

The assays are from a further 12 holes that targeted the Lone Star Zone. It said highlights include 1.32 g/t gold over 47 metres and 1.11 g/t gold over 36.25 metres.

The company said 87 holes were drilled in 2018. So far, final assay results have been received and released from 42 of the 87 diamond drill holes completed in 2018. “Exploration continues to affirm multiple sources of bedrock gold mineralization which explain placer deposits exploited historically within the Klondike District,” the company said.

Ever since the original Klondike discoveries triggered a massive gold rush in 1898, prospectors have been baffled by their inability to find the bedrock source of all the placer gold which has been extracted from the streams and tributaries around Dawson City.

It has been estimated that the Klondike gold fields may have produced as much as 20 million ounces of gold from placer mines.

Yet that same area has yielded only 1,200 ounces of hard rock gold, most of it produced from the Lone Star Mine prior to the start of the First World War in 1914.

Klondike Gold has been working to solve the mystery by assembling a large property position in the Klondike fields south of Dawson City. The company is backed by Vancouver financier Frank Giustra, who holds a 14.6% stake in the company.

Klondike’s exploration efforts are being led by President and CEO Peter Tallman, a geologist with 35 years of experience in the mining industry. Having worked in Canada, Chile, Mexico, and Australia, Tallman is a director of another Giustra company, Fiore Gold Ltd. [F-TSXV, FIOGF-OTCQB], which has assets in Chile.

Klondike Gold is focused on exploration and development of the Lone Star gold target at the confluence of Bonanza Creek and Eldorado Creek, within a district-scale property that is accessible by government-maintained roads and located on the outskirts of Dawson City.

The Lone Star Zone is one of five targets drill tested during the 2018 drill program. Additional drill results from Lone Star and other targets will be steadily released as they are received, evaluated and incorporated into the evolving exploration model, the company said in a press release.

On Wednesday, the company said that within the Lone Star Zone associated with the Bonanza fault, the 12 holes tested in the central portion of the mineralized area. Results from sectional drilling continue to show broad intervals of gold mineralization starting at, or near surface, as well as the presence of gold mineralization at greater depths and continue to demonstrate the auriferous nature of the bedrock mineralizing system.

Klondike shares eased 2.5% or $0.005 to 19.5 cents. The 52-week range is 19 cents and 43.5 cents.

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Filed in: Gold, Resources

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