Mine Prospects Advance for Klondike Star�s Indian River Gold
Project with 2007 Exploration Results
SEATTLE, October 30, 2007 (BUSINESS WIRE) – Donald W. Flinn,
P.Eng., Vice-President, Operations Klondike Star Mineral Corporation
(OTCBB:KDSM) today released 2007 exploration results on the Indian River gold
property.
A major auger drilling initiative was launched late
November, 2006 and carried on almost continuously until wrapped up in
September. 343 holes were completed. 602 holes totaling 4,566
meters/14,797 feet have now been drilled on the property and gold recovery
determined. Gold was recovered from nearly 100% of the holes in the main target
area.
Results from the drilling program have allowed the acceleration of
technical efforts to delineate, model and assess the mineralized zone. Drill
lines were completed at 1000 foot intervals with holes 100 feet apart along the
drill lines spanning the complete width of the initial target zone. In July, the
drilling program shifted to infill drilling of lines at 500 foot intervals to
facilitate detailed mine planning and increase confidence in the calculation of
probable mineral reserves.
Donald W. Flinn, P.Eng., said,
“With the combination of the extensive drilling, detailed mapping and
analysis of the mineralized area targeted for development, and the results of
bulk sampling, we are able to determine with reasonable confidence the amount
of organics and gravels to be moved and the extent of the mineralized ground to
process for gold recovery. We have a measured mineral resource that is being
evaluated for reporting as probable mineral reserves.”
The
target zone forms a wedge that is 300 meters/984 feet at the beginning and
broadens to a width of over 1,500 meters/4,921 feet. To date, the mineralized
zone extends over a distance of more than 3 kilometers/1.9 miles) and remains
open to expansion to the east and south. Gold appears to be consistently
distributed within this broad area with gold values present across the entire
width of the property. The fineness of the gold tested out at 82.27%.
To further calibrate drilling results, increase levels of confidence in the
estimation of mineralization, test mining methods and water management design
requirements, bulk sampling operations started in 2006 using selected heavy
equipment and an industry-standard 5’ trommel. One test site was
completed in 2006 processing 7249 cubic meters of material for 45.08 ounces of
raw gold. (Press Release #24-2006, November 30, 2006). During the 2007 summer
exploration season, a second representative site was completed with an area of
1,624 square yards of which 6200 cubic yards were processed for 32.83 troy
ounces of gold. Test mining is being supervised by an established Canadian firm
specializing in mine engineering and processing technology. The experienced
gained from the bulk sampling operations has contributed to the design of the
proposed mining process. Key criteria for low-cost mining operations include
reducing energy requirements, new methods for handling the mineralized and
non-mineralized materials, and effective water and environmental management
practices.
Earlier this year, to support expanded exploration activity
and in anticipation of potential mine development, Klondike Star completed
upgrading and extension of the access road and installed a 12-person camp.
This is the first in a series of forthcoming releases about 2007 exploration
results from Company properties in the Klondike gold district as assay results
are available.
About the Indian River Gold Project
The Indian River property consists of 223 placer bench claims and 3 leases
totaling about 21.1 km2/8.2 mi2 located in a wide,
shallow valley about 35 miles from Dawson City, Yukon in the heart of the
Klondike gold-producing region. Klondike Star holds 100% ownership, with
exception of a 49% interest in a small group of claims. The property has never
been mined or subjected to modern recovery methods.
The Company has
reported progress respecting environmental assessment and regulatory approvals,
extensive drilling and test mining, delineation of probable mineralization, and
business planning for a forthcoming mine development decision by the Board of
Directors. An authorization to mine has been issued by the Government of Yukon
following a public environmental and socio-economic assessment by an
independent agency. A business plan for the proposed Indian River Gold Mine is
nearing completion.
For more information please contact:
Wayne Cousins, Investor Relations
Toll Free (800) 579-7580
The statements in the press release that
relate to the company's expectations with regard to the future impact on the
company's results from new products or actions in development are
forward-looking statements, within the meaning of the Private Securities
Litigation Reform Act of 1995. The statements in this document may also contain
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Since this
information may contain statements that involve risk and uncertainties and are
subject to change at any time, the company's actual results may differ
materially from expected results.