Vancouver, British Columbia, Canada, September 12, 2019 Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to report that the Company has entered into a lease agreement with Dulac Mining Ltd (“Dulac Mining”) whereby Klondike Gold assigns to Dulac Mining the rights and permits to placer mine on the Upper Eldorado Creek property, contained wholly within the Company’s 576 square kilometer Klondike District Property, Yukon Territory.
The Upper Eldorado Creek Placer property (“the Placer Property”) is comprised of 114 contiguous placer claims totaling 6.8 square kilometers in area covering the Upper Eldorado Creek and Chief Gulch drainages. Under the terms of the lease agreement, Klondike Gold will receive from Dulac Mining a direct 10% gold production royalty from mining on the Placer Property payable in raw gold. The lease agreement is for a term of 3 years, expiring July 1, 2022 and is renewable thereafter subject to approval by both parties.
Dulac Mining has commenced mining work on the Placer Property lease. After establishing drainage and zero-discharge water circulation, the mining plant was installed and placer operations have commenced. During the just completed plant commissioning phase a total of 38.07 troy ounces of gold has been recovered, including 13.44 troy ounces of coarse nugget gold.
The gold recovered includes dendritic and wire gold as well as coarser ‘nuggets’ containing fragile thin gold seams in quartz indicating a locally derived bedrock source. Upper Eldorado Creek crosses visually similar gold-bearing quartz veins associated with the Nugget Fault 1,100 meters upstream of the current placer mining operation. The ‘Dulac Mining Lease’ is shown in Figure 1: Location map showing Dulac Mining Lease in relation to the gold mineralized Nugget Fault.
Peter Tallman, President and CEO of Klondike Gold commented, “We are very pleased to be working with Dulac Mining on this project and are impressed with the professionalism exhibited in building and commissioning this new placer operation. We are also excited by the character of the gold returned from initial mining and the resemblance to gold found in outcrop and drill core from the nearby Nugget Fault gold trend. Dulac Mining’s operation provides Klondike Gold the opportunity to receive detailed exploration information at no cost in an important target area. In addition, the Company once again is receiving revenues from its placer properties.”
Figure 1: Location map showing Dulac Mining Lease in relation to the gold mineralized Nugget Fault.
QUALIFIED PERSONS REVIEW
The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, P.Geo., Vice-President Exploration 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 the Lone Star gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 576 square kilometer property accessible by government maintained roads located on the outskirts of Dawson City, YT within the Tr’ondëk Hwëch’in First Nation traditional territory.
On behalf of KLONDIKE GOLD CORP.
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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.”