Klondike Gold nearly doubles Lone Star

Klondike Gold Corp. Dec. 10 reported that its latest batch of drill results have expanded the Lone Star zone on the company's wholly owned Klondike District gold property, a 527-square-kilometers (203 square miles) block of mining claims that covers a 55-kilometer- (34 miles) long region of the Yukon that has produced more than 20 million ounces of placer gold since the legendary rush to the region in 1898.

This year, Klondike Gold drilled 87 holes (9,511.93 meters) targeting hardrock zones about the placer gold bearing streams in the region.

Lone Star, located above the confluence of the celebrated Bonanza and Eldorado Creeks, was the primary target of this drilling.

The latest batch of drill results are from a 600-meter eastern extension of Lone Star, nearly doubling the near surface gold mineralization outlined so far by systematic drilling of this zone.

• Highlights from these nine holes include:

• 90.6 meters of 0.93 grams per metric ton gold from a depth of 25.4 meters in hole LS18-204;

• 79.7 meters of 0.81 g/t gold from a depth of 4.6 meters in LS18-205; and

• 22.1 meters of 0.71 g/t gold from a depth of 16.4 meters in LS18-206.

Hole LS18-205 was the easternmost hole drilled and the gold mineralization remains open in this direction.

Klondike Gold said the results from its systematic drilling on roughly 50-meter-spacing continues to show broad intervals of gold mineralization starting at or near surface, presence of gold at greater depths and the overall gold-bearing nature of the bedrock mineralizing system.

Exploration of the Lone Star area suggests that a major fault – Rabbit Creek Thrust – has been a conduit of gold-bearing fluids and that secondary faults are the location of gold mineralization as quartz veins or as broader disseminations. Drilling three of these structures – Lone Star, Quartz Creek and Gold Run – has yielded significant gold intersections associated with these faults.

In addition to drilling and resampling, the roughly C$2.5-million in exploration carried out by Klondike Gold this year included structural and lithologic mapping, soil sampling and geophysics.

The company is awaiting a final report and lithologic and structural mapping results from SRK Consulting. This information will be integrated with the final results of Klondike Gold's detailed mapping, as well as the products of district airborne geophysical surveying, soil geochemical surveying, and prospecting.

Klondike Gold said a detailed discussion on the results from the drilling, mapping, rock and soil sampling at Lone Star is expected in early 2019.

Assays from nine holes targeting Nugget, a zone that runs parallel to Lone Star about 1,500 meters to the southwest, and other zones on the property are pending.

–SHANE LASLEY