Klondike Gold Corp. (TSX: V.KG, Stock Forum) has released new exploration results from properties located in the vicinity of the fabled Klondike Gold Fields, near Dawson City, Yukon.
Investors reacted by sending the stock up 7% to 8 cents, leaving Klondike Gold with a market cap of $7 million, based on 87.6 million shares outstanding. The 52-week range is 24 cents and 5 cents.
Klondike has interests in 1,110 claims, located at the centre of the Klondike fields which are thought to have produce as much as 20 million ounces of gold from placer mining (river bed) operations.
The Vancouver company has been focusing on targets located on the 137.6 square kilometer Lone Star Property, a key source of some of the only 1,200 ounces of bed rock gold, which has been produced in the Kondike area since the initial discoveries in 1896.
They include the Nugget zone, and Upper Eldorado Creek area, and Violet Ridge.
Exploration highlights include:
· Nugget Zone grab samples that assayed 179 grams per tonne gold and 78 grams per tonne silver.
· Upper Eldorado Creek grab samples that assayed 98.8 grams per tonne gold with 20.7 grams silver per tonne.
The latest results are from early stage exploration as the company works to outline drill targets. They illustrate the multiple target potential of the Lone Star Property, said project geologist Katie Dodd in a press release. Results also support future drilling to test the Nugget Zone at depth and along strike towards the [nearby] Buckland zone quartz veins.
The aim is to find the hard rock source of the place gold production which Klondike is famous for.
The company said it looks forward to further systematic exploration of the Lone Star Property gold mineralization in 2013.