Klondike Gold begins drilling in Yukon

Trenches in the center of the Lone Star zone. Photo by Klondike Gold.

Exploration has begun at Klondike Gold’s (TSXV: KG) wholly owned Klondike District property in the Yukon, the company announced Monday.

Diamond drilling is underway with approximately nine holes targeting the Lone Star zone in phase 1. A phase 2 program targeting the Stander zone and a phase 3 program targeting Stander zone extensions are also planned, Klondike said.

A total of 1,210 soils and 65 prospecting rock samples have been collected and submitted for analysis.

In addition, Dulac Mining has commenced placer mining on ground leased from the company at the Upper Eldorado placer property. Klondike retains a 10% production royalty payable in placer gold.

“We are excited after 5 years to transition from district-scale geoscience surveys and exploration documenting gold and structural controls towards detailed testing of spatial and economic parameters of segments within both Lone Star and Stander zones during 2020,” Klondike Gold president and CEO Peter Tallman said in a press release.

The Klondike District project targets gold associated with district-scale orogenic faults along the 55 km length of the Klondike Goldfields placer district. The company has been actively exploring in the region since 1980.

Shares of Klondike Gold jumped as much as 6.6% by midday Monday. The Vancouver-based mining junior has a market capitalization of C$32.9 million.

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