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Klondike Gold soars on discovery in Yukon

Shares in Klondike Gold (TSXV: KG) shot up yesterday as the explorer reported a new discovery below the Nugget zone at its Klondike District property in the Yukon, with a headline intercept of 1m grading 1,009g/t gold and 1,035g/t silver.
Klondike Gold soars on discovery in Yukon Klondike Gold soars on discovery in Yukon Klondike Gold soars on discovery in Yukon Klondike Gold soars on discovery in Yukon Klondike Gold soars on discovery in Yukon

Nugget zone quartz veining at Klondike Gold’s project in the Yukon

Staff reporter

It said this result was part of a wider 2.5m at 404g/t gold and 415g/t silver from 104m, 25m below the known Nugget zone mineralisation and remained open.

Other assay highlights included 49.6m grading 1.8g/t gold from surface, intersecting Nugget zone mineralisation.

The Eric Sprott-backed company has a C$2 million (US$1.5 million) exploration programme underway this year at the property in the historical gold-rush district, targeting the Nugget zone, Gay Gulch and Lone Star.

Highlights from drilling at the property last year included 91m at 1.02g/t gold from the Lone Star zone.

Klondike Gold had $2.8 million (US$2.1 million) in working capital at the end of May after raising $2.2 million at 20c per unit and 22c per flow-through unit.

Its shares hit a 52-week high of 43.5c intraday, closing up 9.3% to 41c to capitalise it at about $45 million (US$34 million).