The company is undertaking a "significant re-evaluation" of its Nugget Zone and Nugget Fault areas at its Klondike District property in Canada's Yukon.

It said the first five results from 43 holes being relogged, sampled and assayed, had shown broad intersections of near-surface gold mineralisation and warranted follow-up drilling.

Klondike Gold has budgeted C$2.5 million (US$1.9 million) for 2018 exploration and said it was fully funded through 2019 at a similar level of expenditure, with $6.5 million (US$4.9 million) on hand.

It has said its first priority for 2018 was to demonstrate gold mineralisation could occur through the 55km Klondike District associated with faulting, after exploration in 2015-2017 suggested a first-order major fault "Rabbit Creek Thrust" had been a conduit of gold-bearing fluids in the area.

Exploration activity in the territory is picking up, with the Yukon Geological Survey counting some C$72.6 million (US$55.2 million) spent on exploration so far this season.
 
Klondike Gold shares had climbed more than 22% on Friday to C41.5c but fell 22% yesterday following the results to close at 32c.