Vancouver — With Cominco’s (CLT-T) prolific Sullivan base metal mine slated for closure later this year, Klondike Gold (KG-V) is one of the few remaining junior explorers who continue to scour British Columbia’s Purcell Basin in search of the next big deposit.
The Richard Hughes-led company plans to drill-test the first of four targets next week. Two sedimentary lead-zinc-silver targets will be tested near the Sullivan mine, which has produced more than 150 million tons grading 12% combined lead-zinc plus 2 oz. silver per ton.
Klondike can earn an 80% stake in each of the properties from Abitibi Mining (ABB-V) by bringing the project into production.
To the west at Crawford Bay, a third base metal property is also set to be drilled, along with a gold target on a fourth property, some 12 km west of Cranbrook.
Klondike is a steadfast believer in the potential of the area and has recently staked two additional properties in the Purcell Basin.
To fund the program, the junior has arranged a private placement consisting of up to 2.25 million units priced at 10 each. A unit holds one share and one warrant exercisable at 12 for a two-year period.
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