A well funded Yukon gold explorer, Klondike Gold Corp. (TSX-V:KG), announced that it has completed its summer drill program at the Lone Star target in the Canadian Yukon. According to this morning’s press release assay results from the first holes of the third phase program are anticipated to be received from the lab around November 1, and the assays from samples of completed holes yet to be processed are projected to be received in December.
The company reports that “Four of four holes drilled at the western end of the Lone Star target each contain one or more specks of visible gold. So far, four of seven holes testing the central portion of the Lone Star target also contain one or more specks of visible gold.” While this news is certainly encouraging the key for Klondike will be to prove the continuity of the gold mineralization throughout the target area.
Klondike has already made significant discoveries at Lone Star including intersections of 76 grams/tonne au over 2.8 meters and 5.3 grams/tonne au over 7.6 meters. The pending assay results from the summer drilling and the continued geological, geotechnical and sampling work all aim to prove up the continuity and size of gold mineralization at its Klondike Gold Project in the Canadian Yukon.
Finally it’s important to mention that a 2014 restructuring led by Klondike’s largest shareholder, Frank Guistra (~20%), managed to clean up the share count and provide the company with sufficient funding to move forward with exploration. At the latest share price quote of C$.20 Klondike trades at a market capitalization (fully diluted) of ~C$13 million. Shares of KG have corrected along with the gold mining sector in the last couple of months, however, the stock is now resting near important support (C$.16-C$.20) which makes it an interesting speculation particularly considering the pending drill results:
KG.V (Daily – 1 Year)
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