Klondike Gold (TSX-V:KG) has completed phase one of its 2026 diamond drilling program at the Lone Star Zone and received additional gold royalty receipts from placer mining operations.
The company drilled 7,697m across 34 holes during the phase one program. The program is testing extensions beyond the existing 1.2km-long Lone Star resource area across 2km of projected strike.
Assay results remain pending and are expected to inform a planned update to the 2022 mineral resource estimate (MRE).
CEO Peter Tallman says completion of the first drilling phase supports the planned resource expansion.
“Results from more than 26,800m of drilling completed since the 2022 Lone Star MRE, together with assays pending from this year’s 34-hole program, are expected to provide an important foundation for the planned 2027 MRE,” Tallman says.
Klondike Gold has received 176.1oz of placer flake gold from Armstrong Mining under a lease-to-purchase agreement for the Montana Creek placer property.
Under the agreement announced in March 2025, Armstrong delivers 10% of recovered placer gold to Klondike as royalty payments.
KG plans to complete up to 20,000m of hyperspectral drill core scanning beginning in August to generate quantitative alteration mapping for improved targeting.
A second phase of up to 8,000m of diamond drilling is planned for September, subject to receipt and interpretation of phase one assay results.
An updated MRE incorporating drilling completed between 2022 and 2026 is targeted for H1 2027.
The Klondike District Project comprises a 727km2 land package covering the historic Klondike goldfields placer district in Yukon, Canada.
Klondike Gold is a Vancouver-based explorer advancing a district-scale orogenic gold system across its 100%-owned Klondike District project in Canada’s Yukon Territory.
Write to JC Villarba at Mining.com.au
Images: Klondike Gold
