Klondike Gold jumps after positive grab samples

Klondike Gold Corp. (TSX-V.KG) added more than 7% on Friday on higher than usual trading volumes, after announcing exploration results from its Lone Star properties located in the vicinity of the historic Klondike gold fields, near Dawson City, Yukon.

The Vancouver-based explorer highlighted "nugget grab samples of 179 g/t Au with 78 g/t Ag (30g fire assay with gravimetric over limit) and grab samples of up to 98.8 g/t Au with 20.7 g/t Ag."

By early afternoon Klondike Gold was trading up 7.7% at $0.07 on the Toronto venture board, at its highest for the day, compared to a generally flat mining sector with the TSX S&P Global Mining index down a fraction.

Like many gold and mining juniors, the $6 million counter is still showing steep losses for 2012 – it is down 39% year to date.

The company also owns base metal properties in the south east of British Columbia, Canada.