Klondike Gold Mining Corp. KG Corporate Newsletter by 24hgold

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July 2012 ISSUE

TSX.V: KG

Our Projects:

Yukon Territory

Lone Star, YT

Indian River, YT
15 Mile Silver City, YT

British Columbia

Clubine, BC
Red Point, BC
Hughes Range, BC
Kidd Star, BC
Lewis McNeil, BC
Panda - Irishman, BC
Pit Ash, BC
Quartz Mountain, BC
Thea Gold, BC
Vine, BC
Cold Creek, BC

Important Links

Klondike Gold Corp

Corporate Presentation

Exploration Team

Latest News

MAY 1, 2012

KLONDIKE GOLD OPTIONS SE BRITISH COLUMBIA PROPERTY

APRIL 18, 2012

DRILLING COMMENCES ON KLONDIKE GOLD'S LONE STAR PROJECT IN YUKON

APRIL 5, 2012
KLONDIKE GOLD CORP. ADVANCED CONSOLIDATION OF YUKON MINING INTERESTS

MARCH 8, 2012
KLONDIKE GOLD REPORTS INITIAL RESULTS FROM ITS FALL 2011 YUKON WORK PROGRAM

KG Corporate Newsletter

Klondike Gold (KG: TSX-V) is pleased to provide an update of its exploration and corporate activities as part of its commitment to communicate with shareholders, investors and other stakeholders.
The Company has adopted a revitalized corporate strategy aimed at advancing core properties in Yukon's famous Klondike gold camp and adding value to other properties, notably gold projects in Southeast British Columbia.

Yukon's Most Recent Gold Rush

Through strategic acquisitions and take-over bids, Klondike Gold is intending to increase its exposure to the Klondike gold camp to approximately 1,100 claims covering 200 square kilometers. The consolidated land package (to be 100% owned, see News Release

March 1, 2012) would cover more than 50% of the Bonanza Eldorado catchment area where the Klondike gold rush began more than a century ago. This catchment area was the source of approximately 50% of the estimated 20 million ounces of mostly placer gold recovered since the 1898 stampede of fortune-seekers to Dawson City, Yukon.

Yukon is experiencing a modern gold rush, which in the Klondike camp is focused on discovering hidden lode (hard-rock) gold deposits that are the likely sources of the historically mined placer gold. As part of this effort, Klondike Gold is continuing a summer exploration program to advance its Yukon Lone Star Project and other nearby properties. The ongoing program includes trenching to test known anomalies and soil sampling of under-explored areas. Combined with the results of previous sampling and drilling, this year's program will allow the Company to come closer to defining the highest priority gold targets

for follow-up exploration and development work.

Excerpts from the Yukon Geological Service MINFILE 2005 (Lonestar) informs as follows:

" In 1930, a test sample of ten sacks of waste from the dump was shipped to the Trail smelter. It averaged 2.12 g/t Au, with a recovery of 97%. Two selected sulphide specimens collected in 1925 from a shaft below the floor of the open cut returned assays of 11,725.4 g/t and 11,108.3 g/t Au and 2,648.4 g/t and 3,017.1 g/t Ag. Old records from the Lone Star property indicate that gold is erratically distributed and that the true grade is very difficult to determine. The various geologists who chip sampled this property over the years all obtained assays that averaged less than mill grade, and each concluded that such sampling did not adequately account for the presence of occasional high-grade veinlets or sulphide patches. For example, chip samples of the 1929 adit averaged less than 0.34 g/t Au but muck sampling of 24 drift rounds (about 32 m of drift) in 1930 gave average assays of 6.5 g/t.. The following year, 38 rounds averaged 5.8 g/t Au while 14 raise rounds below the floor of the open cut averaged 4.5 g/t Au."

"The Lone Star adit intersected the Boulder Lode at about 30 m, and drifted along it for about 100 m. The workings penetrated below the leached zone and showed clearly that the younger gold-quartz veins contain most of the gold. A large pocket of sulphide ore was found in the opencut, but this could not be treated with the amalgam method used in the mill. Production records show that 7 650 tonnes were milled with a recoverable grade of 5.1 g/t Au and an average gold to silver ratio of about 4:1. Farrell concluded that recovery by the amalgamation method was probably only 75% and that the quartz ore probably averaged about 6.9 g/t Au and would have been even higher if the sulphide ore were included. A hand-picked sample of the sulphides weighing 844 kg was shipped in 1913 to the Selby Smelting Works, San Francisco, and returned $2,009 in gold, a grade of about 368.6 g/t."

(Source: Yukon MINFILE 115O 072).

Lone Star Project: Exploration Update

Exploration at the flagship Lone Star Project began in late May with the excavation of the Boulder Lode open pit. Boulder Lode was among the first operating mines in the Klondike camp, with production starting in 1903. Historic records show that 7,650 tonnes were milled at a recoverable grade of 5.1 grams gold per tonne, with an estimated 75% recovery (Source: Yukon MINFILE 115O 072).

Trenching on Lone Star Project, July 2012

Klondike Gold is currently sampling the exposed face in detail and is encouraged by the strong D4 deformation (suggesting favorable structural geology) and the presence of alteration and quartz veining in the Boulder Lode. The exposed face will also be mapped in order to evaluate the structure and follow the mineralization.

Re-sampling of select trenches along trend of the Boulder Lode is also taking place, using methods consistent with the fall 2011 work program (see March 08, 2012 Press Release: Klondike Gold Reports Initial Results from its Fall 2011 Yukon Work Program). Prospecting along trend has revealed a possible extension to the east that will be trenched to gain better exposure.

The exploration team was encouraged by visible gold found in quartz 150 meters east of the Boulder Lode, along with deformation of the Klondike Schist similar to that seen at the Boulder Lode. More work is warranted in this prospective area.

Tim and Crew 2012.jpg

Dr. Tim Liverton (right) and members of the Exploration Team

A geotechnical drilling program on Lone Star was completed this spring, with four holes totaling 1,381 meters drilled. This drilling focused on the area between the historic Lone Star and Pioneer workings to the southeast. Of particular interest to the Company was the increase in geological understanding of the area, notably the intersected D4 deformation and pyrite occurrence in Hole 3, which explained a coincident induced polarization anomaly. Multi-element results will be analyzed for the purpose of mapping the gold-bearing lithology of the Klondike schist and to help better define a bulk-tonnage target.

Exploration outside the Boulder Lode is also progressing. The single trench in the JF zone has been extended to allow further mapping and sampling. Targeted soil sampling has been contracted to Ground Truth Exploration Inc., along with testing of the promising Boy anomaly, located 7.5 km from the Lone Star zone to the far east of the property. The Boy anomaly was identified as a high priority target through the data review process, illustrating the potential for new targets outside the more intensively explored areas of the Buckland and Lone Star zones.

Yukon: A "Top Ten" Destination for Mineral Investment

Yukon is one of the world's most favorable destinations for mining and mineral exploration investment. The Fraser Institute's Survey of Mining Companies: 2011/2012 ranked the investment climate of 93 jurisdictions around the world. Yukon jumped to 10th from 15th spot, earning the distinction of being the first of Canada's northern territories ever to achieve a top-ten ranking in the survey.

Southeast BC: World-Class Mineral Potential

Hughes Range gold in Quartz Vein

Southeast British Columbia is considered the birthplace of hard-rock mining following the great placer gold rushes to the Fraser River and Cariboo during the mid-1800s. Some of these famous historic mines include the Bluebell (lead-zinc-silver) near Riondel, the Phoenix (copper) in the Boundary region, and Sullivan (silver-lead-zinc) near Kimberley. All were placed into production in the late 1800s and early 1900s.

Southeast BC also has dozens of historic gold mining camps, many of which have seen little or no modern exploration using advanced technologies and methods. Klondike Gold was among the first junior companies to recognize the untapped potential of Southeast BC for new gold discoveries in a variety of geological settings.

Southeast BC: Exploration Update

Exploration in Southeast British Columbia is focused on the Lewis McNeil Creek, Thea, Leadville, Panda Basin, Kidd Star, Hughes Range, and Pitt Ash properties. In total, Klondike Gold Corp. owns eleven properties covering over 600 sq. km. located in historic and traditional mining districts in Southeast BC.

Exploration of these properties is under the direction of Dr. Trygve Hoy and will include mapping, prospecting, sampling and ground geophysics. This work is expected to be completed in August. The programs are designed to target priority gold prospects while prudently limiting cash outlays to assessment costs.

Trenching on Thea Project.jpg

Trenching on Thea Gold Project

Klondike Gold is also considering options for its Quartz Mountain Property, located 12 km southwest of Kimberly, BC. Although no new exploration is required to keep claims in good standing, Quartz Mountain is of particular interest to Klondike Gold as the Sawmill Creek drainage is one of the richest placer creeks in the East Kootenays. Furthermore, alteration from previous drilling is described by Dr. Trygve Hoy as extensive, viewed with considerable potential for hosting gold mineralization. It was observed that some sections of previously drilled core exhibiting strong alteration were not sampled and Klondike Gold Corp. is currently sampling these sections.

The Quartz Mountain property straddles a major east-trending fault, the St. Mary fault, as well as several smaller northeast-trending faults. The claim area includes several small, high-grade past-producing veins, including Price's Pit and the Golden Egg. Recent exploration is focused on an iron oxide copper-gold (IOCG) target, based mainly on the recognition of widespread chlorite, silica and sericite alteration, as well as several zones of disseminated and brecciated hematite. Gold occurs in several very high-grade veins, as well as in felsic dykes, and copper is associated with the hematite breccias as well as in many small fractures and veinlets.

Senior technical staff will make an evaluation this summer following a small but targeted prospecting and geological mapping program, which is currently underway.

Joint Ventures

The company has joint-ventured the majority of the Vine Property in Southeast BC, now operated by PJX Resources (see PJX Resources, News Release May 1, 2012). Not included in the joint-venture is the Vine South property.

Another Joint Venture is underway with the Ron property in Southeast B.C. operated by Anglo Swiss Resources (See Anglo Swiss Resources, News Release September 23, 2011).

The company recently signed a letter of intent to form a JV with a private firm to develop the Indian River Placer Gold Project in Yukon. (see News Release July 7, 2012).

Mine Construction Camp entering the Project site at Indian River

This project is in the advanced exploration stage and is currently undergoing confirmation drilling to be followed immediately with a first stage stripping program during which the sterile overburden is removed and the pay gravels exposed to be processed in the gold recovery plant.

View of the Trommel Plant Complex
for use at Indian River Mine

Mining Equipment is currently being transported to the Indian River project site and mobilization should be completed by end of July..
2 D9 N Caterpillar Bulldozers have already arrived and will be followed by one Cat 350 Excavator (50 ton) and one 988 Caterpillar Loader.. Two processing plants are also being shipped to the mining site to be tuned for the type of gold that will be processed at the Indian River placer gold mine.

D9N CAT.jpg

D9N CAT equipment for the Indian River Project

Revitalized Growth Strategy

As part of a restructuring process during the past year, Klondike Gold has strengthened its management team and is expanding its shareholder base to include new investors from Europe and the Middle East. Other important objectives of the Company's growth strategy are to consolidate, expand and explore priority properties while also seeking competent partners for other projects.

Klondike Gold Corp.'s ongoing exploration efforts will benefit from new research based on almost $20 - $30 million of previous work conducted by the Company and its partners since 1987, and recent advances in exploration technologies and techniques.

To learn more about Klondike Gold Corp., visit our website at: www.klondikegoldcorp.com

This KG Newsletter is part of a series of communications that serves to inform our shareholders and stakeholders of an exciting mission to find and build mines. We have a new team, made up of very experienced talent, and a new approach towards our work. Regarding our principal project that seeks to find sources for the vast gold deposits of the historical Klondike Gold Fields, we approach our task with confidence and enthusiasm, at what may be the beginning of a "New Klondike Gold Rush".

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this presentation. This presentation includes certain "forward-looking statements." All statements other than statements of historical fact, included in this presentation, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Klondike Gold Corp., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Klondike Gold Corp.'s expectations include, among others, risks related to operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver. Although Klondike Gold Corp. has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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