Vancouver, British Columbia, July 16, 2015, Klondike Gold Corp. ("Klondike Gold" or the "Company") (TSX.V:KG) is pleased to provide an update on 2015 exploration programs on the Lone Star and Dominion Properties near Dawson, Yukon Territory. The announced $800,000 exploration program (see press release February 24, 2015) commenced in late April 2015 (see press release April 30, 2015) and is currently under budget and approximately one month ahead of planned schedule. Klondike Gold owns a 100% interest of 1,406 quartz claims and 14 crown grants covering 250 square kilometers underlying the western half of the Klondike placer goldfields.
In May, Klondike Gold engaged GroundTruth Exploration Ltd ("GroundTruth") of Dawson, YT as contractor for geophysical and orthophoto surveying. To date a total of 94.3 square kilometers of orthophotography and digital elevation modelling collected by unmanned aerial drone ("UAV") surveying has been acquired, processed, and rectified to a UTM projection mapping base. The imagery covers the Lone Star and Dominion Properties, as well as the Indian River/McKinnon Creek placer property. The high resolution imagery is an invaluable aid to prospecting and other geoscience surveys. Additional orthophoto surveys are planned.
A total of 677 line kilometers of detailed high-sensitivity ground magnetics surveying over all high-priority areas has been acquired and processed. Magnetics surveying is complete at the Dominion and Lone Star Properties. Additional magnetic surveys are planned for the Sulphur Creek and Gold Run Properties.
Mapping and rock sampling has also been completed at Dominion Property and is well advanced at the Lone Star Property. Potential drill targets have been identified at both properties. Plans for a 2015 drill program are currently in progress.
Dominion Property Results
Magnetics surveying was completed first at the Dominion Property, combined with orthophotography, and used as a mapping and prospecting base for systematic evaluation of trenches and outcrops. Mapping of all trenches was completed in late June and 154 rock grab samples from quartz veins throughout the entire property were collected and assayed during this work. Assays from individual mineralized veins range between 0.2 g/t gold to a high of 48 g/t gold and 50 g/t silver to a high of 509 g/t silver. (This sampling is deliberately selective in nature; systematic test results may vary significantly. A "nugget effect" is evident.) These results, when combined with 2014 sampling (see press release January 19, 2015), continue to show a focused target area of interest of some 850 meters by 200 meters extent in the central portion of the Dominion Property. Work to date shows this target contains an outcropping array of gold-mineralized quartz veins, sporadically with visible gold, and with individual veins ranging from 0.1 meters to 3.0 meters in thickness. The area has not been diamond drill tested. Interpretation of integrated mapping, magnetic surveying, rock sampling, and structural models is in progress with the intention of defining specific drill targets.
A compilation map of significant (>1 g/t Au) gold assay results for Dominion Property rock grab samples is posted to the Company's website here (CLICK HERE).
Lone Star Property Progress
Orthophotography surveying is complete and all data has been received. A total of 500 line kilometers of magnetic surveying is complete with 75% of data received. Mapping and sampling is in progress. To date a total of 260 rock samples have been submitted for assay with results pending. Two areas of outcropping quartz veining exhibiting visible gold have been identified and are being developed as drill targets contingent upon positive assays. Specific evaluation using detailed induced polarization ("IP") chargeability/resistivity surveying has begun on these two targets. Other areas of subcropping quartz vein material also containing visible gold are currently being investigated.
A Class 3 quartz mining land use plan ("MLUP") permit has been received for the Lone Star Property. The term of the permit is for 5 years expiring July 2020. The Class 3 MLUP permit allows Klondike Gold to conduct advanced exploration activities subject to various conditions including mitigation measures, remediation requirements, and archaeological and ecological provisions among others.
Klondike Gold has completed remediation of a 600 meter long trenched area, the "JF" trench, on the Lone Star Property originally excavated some 10 years ago. The Company plans additional remediation of old disturbed areas in conjunction with systematic exploration.
McKinnon Creek Placer
Work also continues at the McKinnon Creek placer property operated under lease for the second year by Todd Hoffman known as "316 Mining". Under the terms of the lease, Klondike Gold receives a 20% gross (15% net) production royalty which in 2014 netted 202 ounces of placer gold to the Company. The McKinnon Creek placer mining operation is featured on the Discovery Channel show "Gold Rush". Season 6 of Gold Rush is currently being filmed for broadcast during the fall of 2015.
Geotechnical Information
Klondike Gold samples described herein are selective in nature, non-representative rock grab samples of bedrock or boulders collected to test for the presence or absence of gold and other 'economic' minerals. Systematic additional test results may vary significantly. Samples are usually 0.5 kg to 2.0 kg in weight. The Company's samples are spatially located to within 5 meters using a hand-held Global Positioning System ("GPS") in NAD83 datum, assigned a unique assay tag, described, photographed using a GPS-enabled camera, then placed in a plastic bag and sealed. Groups of sealed sample bags are aggregated in large fiber bags then security sealed for shipment. The fiber bags were retained in locked storage in the Company's Dawson office before being delivered by Company personnel directly to the lab. Samples were submitted to Bureau Veritas Mineral Laboratories ("BV Labs") (formerly Acme Labs) preparation facility in Whitehorse, YT with chemical analysis of sample pulps completed in Vancouver, British Columbia. Bureau Veritas Labs is an accredited ISO 9001:2008 full-service commercial laboratory.
As per Klondike Gold's instructions, at BV Labs each 1 kg rock sample is crushed to 80% passing 2 mm size. A 250 g subsample is pulverized to >85% passing -75 microns size (Code PRP70-250). A 30 g (1 assay ton) subsample is assayed for gold by fire assay ("FA") fusion with an atomic absorption ("AA") finish (Code FA430). All over-limit results in excess of 10 ppm (10 g/t) for both silver and gold are re-assayed. The re-assay uses a 30 g subsample and is assayed by FA with a gravimetric finish (Code FA530-Au/Ag). Samples were also analyzed for multi-element chemistry by ICP-MS analysis (AQ200+U code). Samples over-limit in lead are rerun by a high-detection limit ICP-ES procedure (Acme code MA370).
In addition to analyses of Klondike Gold's rock samples, analyses were completed on 18 duplicates, 32 blanks, 21 Au-only standards, 18 Ag standards, and 28 ICPMS standards as part of QA/QC process.
The technical and scientific information contained within this news release has been reviewed and approved by Peter Tallman, P.Geo, President of Klondike Gold Corp., and Qualified Person as defined by National Instrument 43-101 policy.
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 located in the historic Klondike region covering 25,000 hectares of hard rock and 2,000 hectares of placer claims including "McKinnon Creek" leased to Todd Hoffman/Jerusalem Mining LLC and featured on the Discovery Channel show "Gold Rush".
On behalf of Klondike Gold Corp.
"Peter Tallman"
President and CEO
(604) 559-4440
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."