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K2 Gold pops on drill results

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(Kitco News) - K2 Gold said Monday it drilled 86.9 m of 4.0 g/t gold from the surface at its Mojave property in California.

The stock traded up 43% to 53 cents a share as of 1:40 p.m. ET.

CEO Stephen Swatton said the company is building upon historical work.

"Our drilling has expanded upon the work completed by BHP in 1997, with this first set of drill holes positioned 96 meters from the nearest historical drill hole. The initial drill holes of this campaign were targeted beneath a historical trench that returned 4.2 g/t gold over 42.7 meters. In addition to the pending assay results from the remaining fourteen drill holes, K2 is awaiting results from regional exploration sampling at Upland Valley, Gold Valley, and Broken Hill."

Company chair is John Robins. He is also chair of Discovery Group.

"We are very encouraged by these preliminary drill results from the Phase 1 program at Mojave, which confirm the presence of wide intercepts of high-grade oxide gold starting at the surface. Multiple targets have been identified over a large area at Mojave, and we look forward to reporting the balance of our Phase 1 results and to planning the second phase of drilling," said Robins.

The Mojave property in California is a 5,830-hectare oxide gold project with base metal targets.

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