11:21 AM EDT, 09/28/2017 (MT Newswires) -- Klondike Gold Corp. (KG.V) has released drill assay results from four holes at the Lone Star target while drilling continues with two rigs within the company's 527 square kilometer Klondike district property, Yukon Territory.

The western extent of the Lone Star target is presently known by previously reported LS17-81 which intersected 2.1 g/t Au over 41.1 meters. LS17-106, a 30 meter undercut of LS17-81, intersected 1.0 g/t Au over 28.5 meters. LS17-101, a 30 meter undercut of LS17-106, intersected 0.5 g/t Au over 17.5 meters. These intercepts are approximately the true thickness. This subzone is interpreted to be the most southerly.

The weighted average grade of samples from all three drill holes is 1.4 g/t Au. Gold mineralization outcrops at surface over 50 meters on section, has a drilled down-dip extent of 90 meters, a 60-meter vertical depth extent, and remains open. The implied dip is 40 degrees which is parallel to the Bonanza Fault.

The latest assay results begin to demonstrate the down-dip character of the Lone Star target along the Bonanza Fault structural zone.

Klondike Gold's shares were recently up 2.4%.

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