Klondike Gold raises cash to test Nugget

Klondike Gold Corp. Sept. 3 reported that following the success so far of drilling at its Klondike District property, the company has raised C$770,000 to extend the program into October.

In early August, the company reported that drilling had tapped bonanza grade gold and silver at Nugget, one of the zones identified on the 576-square-kilometer (217 square miles) Klondike District property near Dawson City, Yukon.

Nugget Zone is associated with a prominent, 8,000-meter-long magnetic low known as the Nugget fault, which lies between the legendary Eldorado and Bonanza Creeks of Klondike Gold Rush fame.

Drill hole EC19-267 cut 2.5 meters averaging 404 grams per metric ton gold and 415 g/t silver from a depth of 104 meters, including one meter of 1,009 g/t gold with 1,035 g/t silver.

"Following the release of excellent drill results of 1,009 g/t gold with 1,035 g/t silver over one meter and 8.9 g/t gold over 10 meters at Nugget zone, Yukon, the company felt it was imperative to keep drilling without further delay," said Klondike Gold President Peter Tallman.

In order to follow up on these exciting gold intercepts, the company closed a non-brokered flow through private placement financing that involved the issuance of 1.93 million flow-through units at C40 cents each for gross proceeds of C$770,000. Each unit included one flow-through share and half of a purchase warrant. Each full warrant allows the holder to acquire one additional Klondike Gold share for C50 cents until Sept. 3, 2022.

"This financing provides funding for an extension of the 2019 drill program," said Tallman. "An additional 20-plus holes are planned to be drilled to test for extensions of positive results obtained as reported in the Aug. 6, 2019 news release (high-grade gold and silver at Nugget Zone). Drilling and related work will now continue into October."

–SHANE LASLEY