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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
May 29, 2007
TSXV: KS
www.klondikesilver.com
Santa Lucia Update
Klondike
Silver Corp. is pleased to announce the receipt of the Santa Lucia Update
Report from Kootenay Gold Inc., Optionor of the Company’s Santa Lucia
project in Mexico.
Santa
Lucia is located in southern Sonora
State, Mexico
and is comprised of two concessions covering about 9,350 hectares.
Mineralization is comprised of classic epithermal and mesothermal style quartz
veining, silicification, stockwork and breccias.
Two
areas of identified mineralization occur, one on the north part of the project
and a second on the south part of the project. Combined, alteration and
mineralization of the two zones covers over 20 square kilometers. The zones are
about 12 kilometers apart. Grab samples taken by Kootenay Gold range from
background to 648 grams per tonne (GPT) silver and 12 gpt gold (as analysed by
34 element ICP with an AA assay finish on silver and gold conducted by ALS
Chemex in Vancouver, B.C.) Given the large extent of mineralization in multiple
structures and host rocks potential for the discovery of a medium to large
sized deposit of silver and gold is considered good.
The
Company has recently concluded detailed airborne EM and Magnetometer surveys
along 1254 line kilometers spaced 75 meters apart and acquired a data set from
exploration in the late 1990’s. The historic data consists of 1526 soil
samples, 450 rock chip samples from hand and mechanical trenches, geologic
mapping, and a ground magnetometer survey covering a 12 square kilometer area.
The
airborne survey was the AeroTEM system flown by Aeroquest Limited. The survey
was successful in mapping structural trends and in identifying discrete
coincident EM and magnetic anomalies indicating the potential for both new
areas and extensions to known areas of mineralization. Magnetics has mapped the
structural trends controlling known mineralization and shown that these
structures continue for significant distances beyond identified mineralization.
Four distinct EM anomalies have been identified. These anomalies are focused
along intersecting structural zones and in one case along an arcuate trend
possibly reflecting a caldera like ring fracture system. They are important as
the highest grades of gold and silver are associated with higher sulfide
contents and the EM may be caused by higher sulfides. The anomalies vary from
elongate 80 to 200 meter wide zones 3000 meters long to broad zones 350 meters
by 650 meters to circular highs 80 meters across.
The
historic data acquired is for the southern part of the project only. This work
identified 4 targets two of which have been traced for 2 kilometers of strike.
The zones consist of individual quartz veins up to 3 meters wide and of
silicified stockwork and breccias between 50 and 100 meters wide. This work
also indicates silver and gold mineralization is found with deeper style
mesothermal veins and shallow type epithermal veins. Values of silver and gold
range from background to over 500 gpt silver and 34 gpt gold. The arithmetic
mean of all the mechanical trenching on the property was 7.2 meters at 0.75 gpt
gold and 19.56 gpt silver. Highlights form trench results include 18 meters of
1.10 gpt gold and 3.8 gpt silver; 10.5 meters of 0.93 gpt gold and 50 gpt
silver; and 3.0 meters of 4.7 gpt gold and 18.2 gpt silver. All samples were
analysed by Bondar Clegg of Vancouver
B.C. using 34 element ICP with an AA assay finish. It is reported that a small
program of only 17 drill holes was conducted in 1999 and the company is working
on obtaining that data. It is believed this work did not encounter ore grade
mineralization but may aid in the understanding of controls and targeting
future drilling. All data is historic in nature cannot be considered NI43-101
compliant and therefore should not be relied upon.
The new
airborne data and old historic data are being integrated into a GIS system to
aid planning the next exploration program which is being designed to identify a
number of drill targets. It is expected this program will entail some detail
mapping assisted by select trenching to help establish controls and may include
some ground geophysics. Lessons learned form this work will be used to design a
drill program for sometime in the fall.
Technical
information contained in this release has been reviewed by James McDonald, P.Geo., Director and CEO of
Exploration for Kootenay Gold, a Qualified Person as defined in National
Instrument 43-101.
On behalf of the Board of Directors
Klondike Silver Corp.
Signed “Richard W. Hughes”
President
For Further Information 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.