Klondike drills 83 metres of 0.6 g/t gold

Drill core boxes at Eldorado Creek camp. Source: Klondike Gold

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Klondike Gold Corp. [KG-TSXV; KDKGF-OTC; LBGF-FSE] on Thursday February 13 released more assay results from 2019 drilling at the company’s Klondike District property near Dawson City, Yukon.

The latest assays are from 36 drill holes, plus one area of channel sampling, testing the Lone Star zone along the Bonanza fault on the Klondike property. Highlights include 0.6 g/t gold over 83 metres and 1.45 g/ gold over 20.2 metres at the Lone Star Zone. All channel samples contained gold, with highlight assays including 28.2 g/t gold over 4.0 metres.

Klondike Gold shares were unchanged at 28 cents on Thursday and now trade in a 52-week range of 45 cents and 19 cents.

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 in the Yukon.

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 junior holds a 100% stake in the Klondike District property, which covers 586 km2.

On Thursday, Klondike said the 2019 drill program was designed to test the Bonanza fault for Lone Star style mineralization over an additional 750 metres of strike length to the southeast of the Lone Star Zone, in an area of high gold-in-soil values up to 0.8 g/t gold. It said the program was successful in intersecting broad zones of gold mineralization containing local intervals of high-grade gold.

The company’s latest interpretation, however, suggests the main Lone Star mineralized horizon has been fault offset slightly south and was untested in 2019. It remains a high priority target for 2020 drilling.

Klondike also said mineralization in drill holes reported Thursday extends the known envelope of the Lone Star zone mineralization along the Bonanza Fault for up to 400 metres to the east and provides information for drill targeting further potential expansion in 2020.

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