Klondike Gold Corp. (TSX-V: KG) is pleased to announce that it has begun drilling again on several exploration targets in southeastern British Columbia. These include the Sawmill Creek IOCG target near Kimberley and the Red Point Cu-Au property near Trail. As well, drilling on several Sullivan-type massive sulphide targets is also about to begin.
River Valley Services have been contracted to drill four widely spaced exploration holes on the Sawmill Creek Iron oxide-copper-gold (IOCG) property located 15 km southeast of Kimberley. The holes are collared on copper-gold mineralization that is related to hematite breccias, zones of intense sericite-chlorite alteration that extend across a wide surface area in the Sawmill Creek drainage, and a prominent airborne EM anomaly. Previous work on the property has concentrated mainly on several high-grade gold-quartz veins, referred to as Price’s Pit and Golden Egg, both past producers. The current program will focus on determining areas of more intense IOCG style mineralization or alteration with a follow-up infill drill program planned for the 2008 season.
Black Hawk Drilling has begun drilling the Red Point property located immediately south of Trail, also in southeastern British Columbia. Red Point has many similarities to the past-producing Rossland gold-copper camp, 6 km to the west. Exploration on the property in 2006, including ground and airborne geophysical surveys, a soil survey and diamond drilling, identified several targets of widespread disseminated and fracture controlled copper-gold mineralization and massive sulphide copper-gold veins similar to those of the “Main veins” in the Rossland camp. Six holes are currently planned, testing at depth known surface mineralization and coincident soil and geophysical anomalies. The holes are located mainly north and east of drilling done during the 2006 season.
Klondike Gold has also contracted to drill several of the massive sulphide “Sedex” targets in the Purcell basin southwest of the Sullivan deposit. Initial drilling will concentrate on the southern extension of the Sullivan structural basin (graben) where previous drilling by Klondike Gold intersected semi-massive laminated sulphides at the Sullivan horizon. A drill test a few km to the south, referred to as the Quartz Mountain site, is a new exploration target within an inferred structural basin along a prominent structural linear. As well two other drill tests are planned this season: (1) completion of the Irishman drill hole in the Panda basin where drill intersections of the Sullivan horizon have allowed vectoring towards the probable loci of exhalite lead-zinc-silver mineralization, and (2) a new test in the Cruz-Midway area, within a structure that is defined by a thickened, and mineralized, Sullivan horizon.
The Qualified Person for the purpose of National Instrument 43-101 is Trygve Höy who has read and agreed with the contents of this news release.
KLONDIKE GOLD CORP.
ON BEHALF OF THE BOARD
Richard W. Hughes, President