Red Point

Overview

• Grab samples from the Cathedral vein returned values up to 45 g/T Au.
• Large property near historical Rossland gold-copper camp, with similar geological setting.
• Several targets, including a Cu-Au porphyry, high grade gold veins, and Rossland-type veins

Regional Exploration and Production

Red Point is dominantly a copper-gold porphyry prospect within Early Jurassic Rossland group metavolcanic rocks that are exposed in a 1.5 to 2.5 km wide embayment in the east-trending Rossland monzonite. Due to regional Eocene tilting, the Red Point area represents a deeper structural level than the main Rossland camp to the west.

Other Local Exploration

Red Point is within a major metallotect in southern British Columbia, with the Rossland gold-silver-copper camp located 5 km to the east. The Rossland camp produced 86 million grams (~ 2.76 million ounces) gold and 109 million grams (~ 3.52 million ounces) silver from 1897 to the mid 1940s.

Exploration is still ongoing in the Rossland camp, with limited production in the mid 1990s. The Teck Resources Ltd. smelter is located in the town of Trail, 3 km to the north.

Property Geology

Disseminated and fracture controlled copper-gold mineralization, interpreted to be an alkalic Cu-Au porphyry system, occurs in the northwestern part of the property. As well, several massive sulphide veins with easterly trends that parallel the trend of similar style mineralization in the Rossland camp, occur on the property. A high-grade Au quartz vein, the Cathedral, also parallels this easterly trend.

Historical Highlights

Limited drilling on the porphyry system, in the 1980s and 1990s, intersected 1.03 g/tonne Au across 103 meters, with several higher grade zones (e.g., 12.2 g/T Au across 3.0 m); there has been no production.

Work Completed to Date

Klondike Gold Corp. has done an airborne geophysical survey, considerable soil sampling, geological mapping and in 2006 and 2007, diamond drilling (~1890 m total). Only the two most northern holes, drilled in 2007, intersected the porphyry system, with other drill holes testing either soil geochemical anomalies, geophysical anomalies or exposed veins.

Recent Highlights

The most northern drill hole in 2007 was anomalous in copper and gold through most of its length with several higher grade intervals occurring in the upper 120 meters; disseminated and vein sulphides are associated with both carbonate and sericite alteration, with values of 9200 ppb Au across 2.0 m, 1416 ppb Au across 9.43 m, and 3890ppb Au across 1.9 m. Selected grab samples from the Cathedral vein returned values up to 45 g/T Au.