Klondike Gold sets 1.0 million-ounce target, shares rise

Klondike Gold Corp. [KG-TSXV] on Thursday released its exploration objectives for 2023 at the company’s Klondike District property near Dawson City, Yukon.

The first objective is to work towards doubling the recent mineral resource estimate to greater than 1.0 million ounces. The company said work is expected to target identified areas at Lone Star and Stander Zones where gold-bearing mineralization is continuous but outside the three areas of pit-constrained mineral resources identified in a November, 2022 resource estimate.

The second objective is to identify and outline new discoveries that can be converted to additional mineral resources, the company said in a press release, Thursday.

Klondike Gold shares advanced on the news, rising almost 6.0% or $0.005 to $0.09 cents on volume of 123,000. The shares now trade in a 52-week range of 21 cents and $0.08.

Ever since the original Klondike discoveries triggered a massive gold rush in 1896, prospectors have been baffled by their inability to find the bedrock source of all the placer gold which has been extracted from the streams and tributaries around Dawson City in the Yukon.

It has been estimated that the Klondike gold fields may have produced as much as 20 million ounces of gold from placer mines.

Yet that same area has yielded only 1,200 ounces of hard rock gold, most of it produced from the Lone Star mine prior to the start of the First World War in 1914.

Klondike Gold has been working to solve the mystery by assembling a large property position in the Klondike fields south of Dawson City. The company is backed by Vancouver financier Frank Giustra, who holds a 14.6% per cent stake in the company.

Klondike’s exploration efforts are being led by President and CEO Peter Tallman, a geologist with 35 years of experience in the mining industry.

The junior holds a 100% stake in the Klondike District property, which covers 586 square kilometres.

Klondike Gold has outlined a indicated resource of 21.5 million tonnes of grade 0.676 g/t gold or 468,901 ounces. On top of that is an inferred resource of 6.4 million tonnes of grade 0.539 g/t or 111,959.

The latest estimate is based on drilling results from the 2014 through to 2021 field seasons.

The company’s aim is to outline an estimated resource of over 1.0 million ounces.

In keeping with that goal, the company aims to target the Gay Gulch Zone where visible gold was discovered and extensive silicification was identified by exploratory drilling. Follow-up drilling in 2023 is anticipated, the company said.

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