Klondike Gold advances on latest assay results

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

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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 Monday December 3 reported assay results from another nine drill holes on the Lone Star Zone at its flagship Klondike District property near Dawson City, Yukon. The company said 87 holes were drilled in 2018. So far, final assay results have been received and released from 51 of those holes.

The nine holes announced on Monday (LS18-193 to LS18-201) continued the systematic testing of the Lone Star target at approximately 50-metres spacings with the objective of outlining the character, geometry, and controls of gold mineralization.

Hole LS18-201 intersected 1.02 g/t gold over 91 metres, starting from near surface. LS18-200, located 100 metres east of LS18-201, intersected 0.80 g/t gold over 36.26 metres from 94.5 metres downhole.

These 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 rallied on the news, rising 7.89% or $0.015 to 20.5 cents. The stock is trading in a 52-week range of 17.5 cents and 43.5 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 Lone Star Zone is one of five targets drill tested during the 2018 drill program. Additional drill results from Lone Star holes LS18-202 to LS18-201, the last results pending from the Lone Star target testing, are imminent, the company said.

Results from EC18-215 to EC18-241, which tested other targets, will be released as they are received, evaluated and incorporated into the evolving exploration model.

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