Klondike Gold Corp (CVE:KG) (OTCPINK:KDKGF) (FRA:LBDP) has begun drilling at the Lone Star zone at its 586 square kilometres (sq km) Klondike District project in Yukon 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 3,000 metres (m) 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.
READ: Klondike Gold begins first phase of 6,500 metres drill program at Klondike District gold project, Yukon
"Visible gold in the second 2021 hole at Lone Star Zone is an excellent boost to the start of the season, as is identifying visible gold in two pertinent historic holes by previous management," said Peter Tallman, Klondike Gold's CEO in a statement.
"The ‘behind the scenes' work by our team collecting and modelling structural, geochemical and geologic data is responsible for the company's confidence in the Lone Star East and Lone Star Deep targets. It is a great start to a breakout season. Credit to the team as a steady and methodical exploration approach over this historic district begins to pay dividends."
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.
At the company's Upper Eldorado Creek placer property, small-scale operation Dulac Mining has resumed placer mining at the property, and Klondike has received its first royalty (10%) payment of 2021, which consisted of 0.5 ounces of gold flake from a total 4.5 ounces gold recovered during start-up equipment testing.
In 2020, Dulac Mining recovered 500 ounces placer gold (as fines, coarse flakes, and nuggets) and Klondike received 50 ounces placer gold in royalty payment.
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