- Project has multi-million ounce gold potential
- Actively exploring in Yukon since 1980
- Experienced management
What Klondike Gold Corp does:
Klondike Gold Corp (CVE:KG) (OTCMKTS:KDKGF) is focused on bringing modern exploration methods to the famous goldfields in the Yukon.
The company's Klondike district property covers 557 square kilometers and houses 2,942 claims, from where 20 million ounces of the yellow metal have been recovered from gravel beds since 1896, yet no underground mine has ever been built.
The project is accessible by scheduled airline and government-maintained roads located on the outskirts of Dawson City, Yukon.
The Klondike gold rush took place between 1896 and 1899 and saw around 100,000 prospectors migrate to the area.
The group's work has recently been focused on the Lone Star zone, which lies along the Lone Star ridge, and the Stander Zone central on the project. Its Yukon properties also include three hardrock projects on the Klondike plateau called the Dominion project, the Gold Run project, and the Bonanza project.
The aim is to find 2 million ounces or more of the yellow stuff before a first resource estimate in a bid to attract a major mining firm.
How is it doing:
At the end of 2019, Klondike Gold revealed it had updated its exploration model for its Yukon property, which would inform its drilling and exploration efforts in 2020, notably at the Lone Star and Stander zones.
Significantly, at the beginning of June, the group said it had begun 2020's exploration program, transitioning the group from district-scale geoscience surveys towards more detailed testing within both the Lone Star and Stander Zones.
Diamond drilling started with nine holes targeting the Lone Star Zone in phase 1, while a phase 2 program targeting Stander Zone and a phase 3 program targeting Stander Zone extensions are also planned, the firm said.
The work is a bid to test the consistency in the grade of gold mineralization and consider the resource volume at the various targets.
The company also said Dulac Mining has commenced placer mining on ground leased from Klondike on the Upper Eldorado placer property, and that the company retains a 10% production royalty payable in placer gold.
The exploration programme news came after, earlier in the year, Klondike reported encouraging drill results from 36 holes at the Lone Star zone, which, it said, extended the known area of mineralization. Highlights included 0.69 grams per ton (g/t) of gold over 31.40 metres (m), including 1.09 g/t of the precious metal over 17.80m.
In the same month, Ximen Mining Corp (CVE:XIM) (OTCMKTS:XXMMF) struck a deal to buy Klondike's British Columbia (BC) properties, namely 98 mineral claims covering 4,171 hectares and one Crown granted claim of 8.7 hectares in the south-east of the province.
Klondike said it had divested these legacy assets in return for a 'meaningful' share position in Ximen. In April, Klondike also said it had brought in over C$1.22 million from a private placing.
- Results from 2020 drilling and exploration
- Gold price moves
What the boss says:
Speaking to Proactive in June from Dawson City, Klondike's CEO Peter Tallman explained that the Lone Star was 5 kilometres long and the firm was starting drilling at the western end of it.
"What we really like about that is that all the mineralization is at surface and it's kind of the broadest area where it is so we're going to infill it because we think in geometry it forms an ideal open pit. What we are trying to show investors that there are indeed ounces that are potentially extractable here," he said.
Tallman said the program had been designed to be extensive but as cheap as it could be. He said the group was able to operate out of Dawson city while still maintaining appropriate coronavirus safety measures.