Klondike Gold encouraged by latest drill assays from huge Yukon property

Klondike Gold Corp (CVE:KG) (OTCMKTS:KDKGF) updated Wednesday on drill results from its huge 576 sq km Klondike District property in Yukon, where its 2019 drill program has now ended.

Today’s assays come from the Gay Gulch gold showing along the Eldorado Fault, where seven holes were sunk, following up from the 2015 drilling. This is one of several gold-bearing quartz vein showings discovered along the length of the fault.

READ: Klondike Gold reports encouraging high grade gold assays from Yukon project

The firm said the results were encouraging and further testing next year was warranted.

Significant intercepts included 29.80 metres (m) at 0.40 grams per ton (g/t) gold, including 0.50m at 9.33 g/t of the yellow metal. There was also an intersect of 1.55m at 2.29 g/t gold in one hole and 0.50m at 9.66 g/t gold in another.

In all this season, Klondike said that 94 holes were sunk, testing a variety of showings and targets during the campaign, with assays from 16 holes so far reported.

Core logging, geotechnical work, and core sampling are expected to be wrapped up by mid-October, it added.

Klondike said it had hired GroundTruth of Dawson, Yukon to complete additional soil samples and also to conduct GT-Probe surveying.

Klondike expects to expand or further define anomalies along mineralized fault corridors which could be targets of early 2020 field work. Analytical results will become available in early 2020.

Meanwhile, the firm has hired SRK Group (Toronto) to evaluate the group’s core drilling results and investigate selected trench and outcrop exposures in a bid to update the group’s structural model of the Klondike District.

Investigative phase

The investigative phase of this work has just been completed. Results are expected to become available later in 2019, Klondike also said in today’s statement.

Klondike wants to bring modern exploration methods to the famous goldfields in the Yukon, the site of the historical 19th-century gold rush.

In May this year, the company kicked off a US$2 million exploration program to focus on higher-grade targets rather than the low-grade widespread material it had been exploring previously.

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