Has kicked off a $2 million exploration program and is fully financed through 2019
Focus turned now to high grade vein finds
The Company's Klondike district property covers 557 sq km and houses 2,942 claims, from where 20 million ounces of the yellow metal have been recovered from the gravel beds since 1896, yet no underground mine has ever been built.
The so-called Klondike gold rush took place between 1896 and 1899 and saw around 100,000 prospectors migrate to the area.
The group's work has been focused at the Lone Star zone, which lies along the Lone Star ridge, while the group's Yukon properties also include three hardrock projects on the Klondike plateau called the Dominion project, the Gold Run project and the Bonanza project.
Meanwhile, in British Columbia, the Company has a prospective portfolio of gold projects and a large land package which is prospective for gold and base metals.
In May this year, the Company said it had kicked off a US$2 million exploration program on the Klondike District property (it announced it raised C$2.24 million in a placing the same month). Exploration will focus on higher grade targets rather than the low-grade widespread material it had been exploring previously.
The bulk of the work, a 60 hole program, will focus on the Gay Gulch and Nugget zones to confirm high-grades, which was identified as part of last year's drilling season, it said. Results from the former area are expected as early as next month.
Further drilling will also take place at its Lone Star Zone to expand areas of disseminated gold mineralization. Also planned for 2019 is a LiDAR airborne survey to cover the Klondike District property to potentially refine the Company’s exploration model and potentially create new drill targets.
And so far, things look promising. Klondike, earlier this month, said it had added a second drill rig to focus on a promising area of the Nugget Zone, following up high grades found between 2015 and last year. Previous finds at near-surface include 2.36 g/t of gold over 22.9 metres. Klondike says 30 holes are planned to test this zone.
Yukon a focus for investment
There has been C$1 billion of industry investment in the region (90% in gold) over the last decade and the government has recently committed C$360 million and is upgrading the 700km of roads there. The Dawson City airport is also getting paved runway to accommodate larger planes.
The area is no stranger to big beast miners either. Goldcorp bought Kaminak Gold and its Coffee deposit for $520 million in 2016. Coffee lies 120km south of Klondike's claims and the acquisition was part of several investments from big gold producers, including Barrick and Newmont. The Kaminak mine is due online by 2021.
What the CEO says
"When we first got into the Klondike, really there had been no known sources of gold identified and historically it had been thought of as always high grade and the Klondike is known for gold nuggets so where are they all?" said CEO Peter Tallman. "So we kind of went nobody's been able to find those, let’s look for something else and got onto this low- grade, disseminated gold over broad widths model."
But then, the boss said, looking geologically around the district for comparisons, the firm identified the Pogo mine, which is along strike and over the border into Alaska, which also has disseminated gold 200m or so below surface, but below that by another 200m lies the high grade quartz Pogo vein.
Tallman said that topographically, Pogo was comparable to Klondike's Lone Star zone, which has low-grade gold sitting at surface but 200m below are high grade quartz veins.
"So we went back, reviewed the data, particularly from last year, and found that we'd actually intersected a bunch of high grade quartz veins."
Now the firm is going back to drill this, he explained.