Vancouver, British Columbia, October 15, 2015, Klondike Gold Corp. (“Klondike Gold” or the “Company”) (TSX.V:KG) is pleased to report receipt of assays from the first four diamond drill holes of nineteen in total on the Lone Star property located on the outskirts of Dawson City, Yukon Territory. Klondike Gold owns a 100% interest in 1,406 quartz claims and 14 crown grants covering 250 square kilometers underlying the western half of the Klondike placer goldfields.
Peter Tallman, President of Klondike Gold states “The 2015 exploration drill program was designed to demonstrate the potential for near surface vein arrays to host good gold mineralization over economically interesting widths. This strategic model has been substantiated with positive results from all of the first four holes reported here, and it opens up the potential for many further Klondike “lode” or hard rock discoveries on our substantial land holdings.”
Summary of Initial Four Drill Holes:
EC15-01: 4.6 g/t Au over 7.65 meters (7.65 meters true thickness) from 3.8m to 11.45m.
EC15-02: 2.3 g/t Au over 7.2 meters (5.7 meters true thickness) from 4.4m to 11.6m.
EC15-03: 5.3 g/t Au over 7.6 meters (6.1 meters true thickness) from 4.4m to 12.0m.
EC15-04: 5.7 g/t Au over 3.0 meters (3.0 meters true thickness) from 21.1m to 24.1m.
2015 Drilling Summary
2015 exploration drilling tested several zones (Nugget, Lower Nugget, Gay Gulch, Buckland area) with outcrop or sub-crop quartz veining containing visible gold. Core logging results show that individual quartz veins with visible gold can be 0.1 to 1.0 meters in thickness and that “zones” are comprised of several to many related quartz veins (“vein arrays”) occurring over widths of up to ~10 meters true thickness and which exhibit along-strike and down-dip continuity. The volume of quartz veining relative to wallrock, expressed as “% quartz veining” or “% QV” is an important exploration indicator. Property-scale exploration focussed on locating near-surface volumes of gold mineralized quartz veining, and this objective will continue for 2016.
2015 Nugget Zone Drill Results
The first six holes of the drill program tested the Nugget showing, following up surface chip sampling results (see NR August 18, 2015). Holes 1 through 5 all intersected quartz veining with visible gold.
Drill core assays have been received for the entirety of holes 1 to 4 (EC15-01 to EC15-04). Nugget Zone holes 5 and 6 (EC15-05 to EC15-06) are pending.
Summary of Nugget Zone Drilling Assay Results
|Hole ID||Dip||From (m)||To (m)||Interval (m)||TrueThickness (m)||Grade Au g/t||% QV||Vein Array|
The Nugget Zone was tested from pairs of holes at 50 meter spaced intervals along a 100 meter total length. Each drill pad had a -45 and a -85 dipping hole collared from it. All holes were drilled at 210 azimuth. Along the strike of the outcropping Nugget showing, holes 1 and 2 tested the easterly end (section 450E), holes 3 and 4 tested the middle (section 500E), and holes 5 and 6 tested the westerly end (section 550E). (A plan map of drill holes plus section maps plus assay interval table is located HERE).
Drilling encountered a previously unknown ‘upper vein array’ at the bedrock surface at the start of holes 1 through 4. Holes 5 and 6 collared forward of the ‘upper vein array’. The target for holes 1 through 6 was the ‘lower vein array’ which is the Nugget vein described in NR Augusts 18, 2015, and which all six holes tested.
Individual quartz veins in holes 1 to 4 assay 5 g/t Au up to 40 g/t Au and most of the visible gold identified occurs within this group of quartz veins.
The ‘upper vein array’ expresses between 25% and 40% quartz vein to form the array interval. The ‘lower vein array’ in holes 1 through 4 expresses between 5% and 25% quartz vein to form the array interval. Although individual vein gold assays in the lower vein array are as high as for the upper veins, so far there are fewer veins in the lower vein array to meaningfully carry a weighted average.
Peter Tallman states “Thus far, the 2015 diamond-drilling program has succeeded in validating the Company’s exploration model for the discovery of new gold-bearing vein arrays and has vastly improved the Company’s technical understanding of important gold lode-deposit formation characteristics for the district. Or, in plain terms: the hunt is on.”
Additional updates and results of holes 5 through 19 will be released as they are received.
Methodology and Data Treatment
Assay intervals herein report the weighted average gold grade for the interval using the quartz vein assays only. Samples logged as wallrock are assigned a 0 g/t Au grade for values up to 300 ppb Au for the purposes of weighted averaging. This is a determination based on examination of the plus versus minus fractions in the metallic screen assay results. The mineralized vein array interval in the -45 dipping holes is approximately the true thickness. The true thickness of the mineralized vein array interval in the -85 dipping holes is approximately 0.8 times the mineralized interval.
Drill Core and Assay Protocols
All drill holes are photographed wet and dry. Magnetic susceptibility, foliation, and rock quality determination (“RQD”) measurements are systematically collected. All cross-cutting (potentially mineralized) quartz veins and adjoining alteration envelopes are individually photographed and upper and lower contact angles measured. Core logging records lithology, structure, and alteration. Visible gold is identified, measured, photographed, and then excluded from the assay sample for that interval. Assay samples from drill core are cut using a diamond saw. Half the core sample interval is bagged, tagged, and sealed; the other half is returned to the core box with a corresponding tag and retained for reference. Sample bags are aggregated into rice bags, sealed, and submitted by Klondike Gold personnel 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.
At BV Labs each rock sample is crushed to 80% passing 2 mm size. A 500 g subsample is pulverized to >85% passing -75 microns size (Code PRP70-500). The 500 g subsample is then sieved to 106 microns (140 mesh) for “metallic screen” assaying. The plus 140 mesh fraction is then weighed and assayed for gold by fire assay (“FA”) fusion with a gravimetric finish (Code FS631). A 30 g subsample of the minus 140 mesh fraction 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 using a 30 g subsample and assayed by FA with a gravimetric finish (Code FA530-Au/Ag). Total gold grade is then calculated using a weighted average of the plus and minus fraction assay results. 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 (Code MA370). QA/QC includes the insertion and continual monitoring of numerous standards, blanks, and duplicates within each batch.
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 road accessible Yukon gold projects located on the outskirts of Dawson City, YT 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.
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.”