Klondike Gold stock hits 12-month high on bonanza grade drill results

2006 – Trenching and drilling on Lone Star Zone – Image courtesy of Klondike Gold.

Klondike Gold (TSXV: KG) released on Tuesday results from nine of the 12 drill holes testing the Nugget zone at its Klondike District property in Canada’s Yukon territory, where high-grade gold mineralization has been found.

Klondike’s shares surged by more than 10% Tuesday morning to a 52-week high of C$0.44 per share. The Vancouver-based company has a market capitalization of approximately C$44 million.

Tuesday’s results were highlighted by one drill hole, which intersected bonanza grades of 1,009 g/t gold and 1,035 g/t silver over 1.0 m. This assay was included in a wider interval that graded 404 g/t gold with 415 g/t silver over 2.5 m, representing a new discovery parallel to the Nugget zone.

In May, the company began a $2 million exploration program focusing higher-grade targets at its Yukon property, rather than the low-grade widespread material it had been exploring previously. Most of the work has been focused on the Gay Gulch, Lone Star and Nugget zones to confirm the high grades identified last year.

Other assays reported from the Nugget zone include 8.9 g/t gold over 10 m, part of a wider interval grading 4.3 g/t gold over 21.5 m beginning at surface.

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