Klondike Gold Corp (CVE:KG) (OTCPINK:KDKGF) said Thursday that recent drilling at the Lone Star Zone on its Klondike District Property has extended gold mineralization by 25 metres to the south.
The results open up a large area with gold potential to test further to the east along the known three-kilometre mineralized strike length on the property, which is located in Yukon, Canada.
Vancouver-based Klondike sank 13 holes on four sections of the zone for a total of 748 metres, targeting a wide area at the western end of Lone Star.
In a statement Thursday, CEO Peter Tallman told shareholders that the positive results from the Lone Star Zone help to solidify the company's guiding geologic theory of gold mineralization in the Klondike.
“The grade and consistency of the drill results reported here at Lone Star and other areas allow the Company to move away from exploration and towards resource delineation,” Tallman said.
Lone Star lies on the Bonanza Fault, an over 60-metre-wide thrust fault that shows significant progressive alteration and deformation.
According to Klondike Gold, the area is an “important potential gold-fluid focus” and trap for gold-bearing fluids, making it a high priority exploration target.
The Phase 1 diamond drilling program at Lone Star was designed to constrain the geometry and boundaries of gold mineralization. The next phase of drilling is scheduled to begin in August.
Contact Angela at firstname.lastname@example.org
Follow her on Twitter @AHarmantas