Mining News: Klondike drills gold along Bonanza fault

Klondike Gold Corp. July 11 reported nice gold intercepts from the first two holes of eighteen drilled during the initial phase of drilling at the Lone Star target on the company’s Klondike district property near Dawson City, Yukon. This phase-1 program tested a 1,950 meter strike length along or adjacent to the newly identified Bonanza fault, which is interpreted to be a significant structue for orogenic gold mineralization with an inferred 7,500 meter potential strike length.LS17-81, the first hole of this year’s program, cut 41.1 meters averaging 2.1 g/t Au gold from surface. This hole was drilled as a 50-meter step-out west of LS16-58, a 2016 hole that cut 37 meters averaging 2.4 g/t gold. LS17-82, a direct 25 meter undercut of LS16-58, cut 40.9 meters averaging 2.4 g/t gold from a depth of 10 meters. Klondike gold has traced the Lone Star for 750 meters along strike and this target remains open to east, west and to depth. Assays from a further twelve holes at Lone Star, and four from other targeted during the initial phase of drilling at Klondike are pending. Phase 1 drilling. Klondike said visible gold was observed in core from seven holes of the phase 1 2017 drill program. The second phase of drilling, which is expected to include roughly another 20 holes primarily targeting the expansion of Lone Star to the west, is now underway. While Klondike Gold cautions that that the observation of visible gold in drill core is not certain indication that assaying will show economically interesting quantities, it reminds investors that the creeks of the Klondike district are renowned for producing 20 million ounces of visible gold as specks, grains, and nuggets mined from placer gravels eroded from bedrock sources.

–SHANE LASLEY