Klondike Gold Corp. (CVE:KG, OTC: KDKGF) has reported encouraging assays from a further 12 holes at its Lone Star Zone gold target in its Klondike District property in Yukon.
So far, final assays have been received and released from 42 of the 87 diamond drill holes completed in 2018.
"Exploration continues to affirm multiple local sources of bedrock gold mineralization which explain placer deposits exploited historically within the Klondike District," the firm said in a regulatory statement.
WATCH: Klondike Gold Corp accelerates drill program on their project in Yukon
The 12 holes tested the central portion of the mineralized area and tested behind the main 100-meter wide band of gold mineralization adjacent to the fault.
Results from sectional drilling continue to show broad intervals of gold mineralization starting at or near the surface, as well as the presence of gold mineralization at greater depths.
Highlight drill assays included an interval of 20.20 m (meters), which assayed 0.29 g/t (grams per ton) of the yellow metal.
Another cut 2.35m (meters) at a grade of 2 g/t gold.
The Lone Star Zone is one of five targets, which were tested during this year's exploration program.
Additional results from Lone Star and other targets will be released as they are received, evaluated and incorporated into the evolving exploration model.
Klondike is focused on advancing the Lone Star Gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 557 square kilometres (sq km) property
Klondike Gold shares shed 5% to $0.19.