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KLONDIKE SILVER CORP.
711-675 West Hastings Street, Vancouver, B.C. V6B 1N2 (604) 685-2222 *Fax: (604)
685-3764
FOR IMMEDIATE
RELEASE
TSXV: KS
August 15, 2007
www.klondikesilver.com
SANDON MINING COMPLEX COMMENCES MILLING
Klondike Silver Corp. (TSX-V: KS) is
pleased to announce that it is planning the opening of its Sandon Mining
Complex in Sandon, British Columbia, Canada.
The Company has been rehabbing old underground workings at its Silvana Mine and
the Wonderful Property both located within 5 kilomtetres of the Company’s
Sandon Mill. This rehab work has exposed several lead-zinc-silver veins,
some of which have already had development work conducted. The Company
intends to commence the mining of some of these veins in August while it
continues exploration work on other properties and target areas located within
trucking distance of the Sandon Mill.
The
Company has scheduled the commencement of rehab work at its Hinckley Mine also
located within 5 kilometres of the Sandon Mill. The Company is looking
for several areas to draw material for processing at its Sandon Mining
Complex. The Company has a full suite of drills, trucks, loaders and
other equipment necessary to commence mining in various areas.
The Sandon
Mill is a 100 ton per day mill which the Company has renovated and upgraded
where required. Mining permits for the Silvana Mine, environmental
permits for processing, underground operation permits have all been either
previously received or applied for and approved. The Company hopes to
have sufficient mill feed in order to commence running ore through the Sandon
Mill in September.
The
Company is also pleased to report that it has completed a private placement
of 3,500,000 units at a price of $0.40 per unit (737,500 units each consisting
of one flow-through common share and one common share purchase warrant, and 2,762,500
units each consisting of one non flow-through common share and one common share
purchase warrant). Each common share purchase warrant will entitle the holder
to purchase one common share for a period of two years at price of $0.40 per
share in the first year and at a price of $0.50 in the second year. In
connection with the transaction, the following parties were paid cash
commissions totaling $51,680: Gateway Securities Inc., Standard Securities
Capital Corp. and Research Capital Corp. Any shares issued will be
subject to a hold period expiring on December 10, 2007. Proceeds of the
private placement will be used to conduct preliminary assessment work on the Company's
newly staked properties in Mexico
and for general working capital.
On
behalf of the Board of Directors
KLONDIKE
SILVER CORP.
“Richard W. Hughes” (signed)
President
For Further Information Contact: The
Hughes Exploration Group
Visit the Company’s website: www.klondikesilver.com
to see the Smartstox Report in which Stanlie Hunt interviews Klondike Silver
Corp. President Richard Hughes.
This document
contains certain forward looking statements which involve known and unknown
risks, delays and uncertainties not under the corporation’s control which
may cause actual results, performance or achievements of the corporation to be
materially different from the results, performance or expectation implied by
these forward looking statements.
The TSX Venture
Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this news release.