Mining News: Northern Neighbors: Junior tests for gold veins above Klondike placers

Klondike Gold Corp. March 18 said it plans to complete 1,500 meters of drilling in 20 shallow holes during an initial phase of 2016 exploration at its Lone Star and Dominion properties near Dawson City, Yukon Territory. The C$350,000 program also will include geophysics, soil geochemistry, trenching, prospecting and mapping to advance additional target areas for future drilling. Field work is expected to begin in April with drilling planned to start in June. Based upon its evolving orogenic gold model of source mineralization for placer gold in the region, Klondike Gold has identified numerous areas to test for high-grade gold-bearing quartz veins. The company said the target mineralization is associated with, and controlled by, newly identified fault and extensional structures and certain lithologic parameters. “We now understand how these veins form, where they may be located, the controlling major structures and their implied geologic age,” said Klondike Gold CEO Peter Tallman. “Going forward, we will use drilling to discover as many gold-bearing veins as possible and to systematically test the best of them to determine length, depth, and grade characteristics.” Contingent upon continued positive drill results and funding, the company is anticipating a second phase of drilling this year.

- Shane Lasley