- Multi-million ounce gold potential
- Firm says it represents the best kept 'secret' greenfield exploration investment opportunity
- Benefits from local infrastructure; close to Dawson City, power airport, Klondike Highway
What Klondike Gold does:
Klondike Gold Corp (CVE:KG) (OTCMKTS:KDKGF) is focused on bringing modern exploration methods to the famous goldfields in the Yukon.
The company's Klondike district property covers 557 square kilometers (km) and houses 2,942 claims, from where 20 million ounces of the yellow metal have been recovered from gravel beds since 1896, yet no underground mine has ever been built. Only around 10% of the property has been explored in any detail.
The project, accessible by scheduled airline and government-maintained roads, is located on the outskirts of Dawson City, Yukon.
The famous Klondike gold rush took place between 1896 and 1899 and saw around 100,000 prospectors migrate to the area.
The group's exploration focus recently has been on the Lone Star zone, which lies along the Lone Star ridge, and the Stander Zone central on the project. The firm's Yukon properties also include three hardrock projects on the Klondike plateau called the Dominion project, the Gold Run project, and the Bonanza project.
The aim is to find 2 million ounces or more of the yellow stuff before a first resource estimate in a bid to attract a major mining firm.
How is it doing:
In August, Klondike Gold announced completion of the first three stages of drilling at the company’s Klondike district project, which consisted of 45 holes totaling 6,532 meters (m).
Klondike also said it has added a 1,500m Phase 4 drill program scheduled to begin in early September, which will include new high-priority targets generated by prospecting.
The company noted that its 2021 exploration program was designed primarily around three phases of drilling with Phase 1 reconnaissance targeting the Virgin and Lindow areas, while Phase 2 and 3 targeted areas of the Lone Star Zone and Stander Zone, respectively, for extensions to mineralization to be included in a planned maiden mineral resource study.
Meanwhile in May, Klondike Gold said it has begun drilling at the Lone Star zone and identified visible gold in the second hole.
The aim of this second phase drilling of a three-part program is to deliver a maiden resource from the over 3,000m length of Lone Star Zone.
The majority of the work will test for expansions of mineralization in two target areas called Lone Star Deep and Lone Star East. The latter is a 250m by 200m panel and is where the visible gold was encountered with the second hole.
Klondike also noted that Phase 1 drilling was complete with a total of 356m of core drilled in five holes at the Virgin and Lindow targets. Logging and sampling of these holes are in progress.
The company kicked off the first of a three-phase 6,500m drill program on May 12, testing the Virgin and Lindow targets along Bear Creek, which is one of the significant placer gold-producing creeks during the Klondike gold rush.
This work will also include infill and step-out expansion tests of the main Lone Star Zone for inclusion in a planned 2022 maiden mineral resource estimate.
And in March, Klondike unveiled encouraging drill results from the Lone Star zone ahead of a maiden resource estimate planned for 2022.
The latest assays from last year's Phase 4 diamond drilling show strong intervals of near-surface gold, both within and outside the currently defined mineralized shell at Lone Star.
Highlights from the 30 Lone Star holes included 36.55m at 1.66 grams per tonne (g/t) gold from 7.75m downhole in one hole, and 13.40m of 1.18 g/t of gold from 0.60m downhole and 15m at 1.43 g/t of gold from 36m downhole in another.
Inflection points:
- More Lone Star Zone drilling results
- Progress towards maiden resource estimate
- Gold price moves
What the boss says:
Commenting on the company’s initial drill program at its Klondike District gold project, Klondike Gold CEO Peter Tallman said in a statement: “The primary objective of the 2021 exploration season is to expand known mineralized zones to advance a maiden resource at Lone Star.”
Tallman added: "Additionally, we have identified and will test significant new drill targets within the District that could rapidly open up the possibilities for additional discoveries.”
Contact Sean at sean@proactiveinvestors.com
