Klondike Source Limited (KSL) was formed in May 1999 to resurrect exploration for undiscovered primary (hard rock) gold deposits in the Klondike Goldfield, located in the northwest Yukon Territory of Canada, close to the Alaskan border.
The Company developed a new geological model which challenges the conventional explanation for the primary sources of alluvial gold.
Since gold was discovered in 1896, over 12 million ounces of unrefined gold have been recovered by mining the rich alluvial deposits on the Klondike River and its tributary creeks, which include Bonanza, Eldorado, Last Chance, Bear, and Gold Bottom creeks. Superficial reasons have been advanced to explain the minimal, 1,000 oz gold production from hardrock sources. The Klondike Goldfield therefore has been considered the world's largest unexplained alluvial gold anomaly.
Following closure of the Company's IPO, the Board met on 5 March 2004 and resolved to allot 18.410 million shares, having raised funds of A$1.841 million. The Company has been admitted to the Official List of the Stock Exchange of Newcastle Limited (NSX) and proceeded to Commencement of Quotation on Friday, 19 March 2004.
During June 2004 (following the spring thaw) the Company commenced a drilling program to unlock the hardrock potential of the Klondike Goldfield. This work was not successful in delineating the deposits sought and the Company resolved to examine other opportunities.