Peter Tallman, President commented 'The Company's geological team are congratulated for their diverse contributions that led to identification and upgrading of a Klondike-era prospect to a significant drillable target. Our team's objective throughout 2016 has been to identify near-surface gold mineralization with interesting thickness, length, and grade characteristics. Results from the first two holes at the Lone Star target have exceeded our initial expectations, and we have positive expectations from results of the remaining fifteen holes to come.'
Lone Star Target
The objective of the 2016 Lone Star target drill program is to systematically test an interpretation of geology and continuity of mineralization that, if successful, would upgrade the potential for economically interesting gold mineralization both at Lone Star and throughout the Company's 527 square kilometer Klondike District project. Compilation of surface work and examination of old drill core by Company geologists prior to the current drill program identified a through-going gold target area comprised of disseminated gold combined with gold-enriched quartz veins. Prospecting outside the eastern and western ends of Lone Star discovered gold-enriched quartz veining with visible gold in outcrop consistent with predictions (see NR September 28, 2016). This target is positioned in the hangingwall of a thrust fault with unknown but probably significant displacement, consistent with the Company's orogenic model of gold mineralization.
In September and October, seventeen drill holes tested western, central, and eastern portions of the Lone Star target across a 700-meter strike length to provide grade, width, and geological information at both ends and the middle of the postulated zone. Visible gold occurs as disseminations within wide 'intermediate schist' unit and within quartz veining within the schist, and has been observed in twelve of the seventeen holes and across the entirety of the 700 meters tested. Two of four westernmost holes reported here, LS16-58 and LS16-59, were designed to prospect for the interpreted westward trend of this gold mineralized horizon. A plan map of all holes and a table of collar and hole information are located HERE.
The first hole at the Lone Star target, LS16-58, intersected a broad zone of disseminated gold mineralization with two quartz vein arrays which beginning at surface assayed 2.4 g/t Au over 37.0 meters downhole including 6.6 g/t Au over 7.05 meters and 9.4 g/t Au over 3.6 meters respectively.
The second hole, LS16-59, drilled 40 meters along strike to the east, beginning at surface intersected a broad zone of disseminated gold mineralization which assayed 1.2 g/t Au over 27.7 meters downhole including 2.3 g/t Au over 7.3 meters.
The true width of mineralization is approximately the interval within each hole.
Section maps of all holes and individual intervals with gold assay information are located HERE. Results for an additional fifteen holes at the Lone Star target are pending. Sampling from the last holes is still in progress so possibly some results may be released in early January.
Corporate Activities
Klondike Gold will be interviewed by Jay Taylor on Tuesday November 1, 2016 edition of the 'Turning Hard Times Into Good Times' live web-based radio program.
Klondike Gold has been invited to speak at the Metals Investor Forum on November 12 and November 13, 2016 at the Rosewood Hotel Georgia hosted by Joe Mazumdar (Exploration Insights), Gwen Preston (Resource Maven), Eric Coffin (HRA Advisories), John Kaiser (KaiserResearch.com), Jay Taylor (Jay Taylor's Gold, Energy and Tech Stocks) and Jordan Roy Byrne (TheDailyGold.com).
Klondike Gold will be attending the Yukon Geoscience Forum from November 19 to November 22, 2016 in Whitehorse, YT.
For 2016 drill core sampling and assay protocols, see news release dated July 14, 2016 or the company's website.
Peter Tallman, Klondike Gold's President and CEO, a Qualified Person as defined by NI43-101, has supervised, reviewed and approved the scientific and technical information contained within this news release.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon Territory. The company is focused on exploration and development of its Yukon gold projects, accessible by government maintained roads located on the outskirts of Dawson City, YT, covering a district-scale 527 square kilometers of hard rock and 20 square kilometers of placer claims including 'McKinnon Creek' featured on the Discovery Channel show 'Gold Rush'.
On behalf of Klondike Gold Corp.
'Peter Tallman'
President and CEO
(604) 609-6110
E-mail: [email protected]
Website: www.klondikegoldcorp.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
'This press release contains 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as 'may,' 'will,' 'should,' 'anticipate,' 'plan,' 'expect,' 'believe,' 'estimate,' 'intend' and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Klondike in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Klondike's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required.'