Impact: Mildly Positive
Klondike Gold reported results from its 2021 Phase 4 diamond drilling program (13 holes totaling 886m) completed at its 100%-owned Klondike District property in the Yukon. We view these results positively as drilling has extended Au mineralization at the Gay Gulch Au showing at Eldorado Creek. We continue to look forward to the upcoming maiden resource estimate for the Lone Star zone at the Klondike project, where we believe the company could likely delineate at least a ~0.55M oz Au resource at an average grade of ~0.83 g/t Au. This resource along with planned exploration activities yielding positive results, could help drive a re-rating of Klondike’s stock.