Klondike Gold Corp. is pleased to report it has completed two exploration programs on its Hughes Range property and its Lewis-MacNeil property in SE British Columbia. The Hughes Range property is a sediment-hosted precious and base metal target located approximately 20 km northeast of the town of Cranbrook. Work prior to 2012 was focused mainly on a massive sulphide sedex target, based in large part on the recognition of a similar setting as the Sullivan deposit and the presence of a stratiform lead-zinc deposit, the Kootenay King, on the property. As well, significant placer gold has been recovered in the immediate area, and several small gold occurrences on the property have had limited exploration, mainly prospecting and rock geochemistry. Work in 2012 led to the discovery of a widespread zone of disseminated copper sulphide mineralization within a southwest trending structural corridor that is marked by Cretaceous intrusive rocks and base and precious metal vein mineralization. The 2013 program, a ground geophysical VLF-EM and magnetic survey, was concentrated in this corridor with the purpose of outlining zones of increased conductivity that could be related to higher sulphide concentrations and to more closely constrain both controlling structures and lithologies. These results are pending. However, based on earlier known results, further work including more detailed mapping, additional prospecting and sampling, and expansion of the geophysical survey is warranted.
Exploration on the Lewis-McNeal property in 2013 focused on the Brook gold occurrence located in the Purcell Mountains approximately 25 km southwest of Cranbrook. The work was an extension of a mapping, prospecting and ground geophysical survey conducted in 2012 that outlined a north-trending vein-shear system up to 15 to 20 m in width and partially exposed in road cuts and historical trenching through a strike length of approximately 300 m. The zone is characterized by elevated base and precious metals with grab samples assaying up to 15.3 g/T Au (December 2012 news release). The 2013 program included some regional mapping and a ground VLF-EM and magnetic survey that filled in and extended the 2012 survey. Results from this program are expected to more clearly define the extent of mineralization, identify cross structures that are largely hidden by overburden but appear to control zones of enhanced mineralization, and to define both trench and drill target.
The Brook and Hughes Range properties are two of several projects that Klondike Gold has actively explored in the Eastern Kootenays of southeastern British Columbia. These have traditionally focused on massive sulphide silver-lead-zinc targets, but more recently on gold properties including Prices Pit, Golden Egg and the Thea gold vein system.
The Company is also pleased to announce it has received acceptance for the first tranche of its private placement announced on September 6, 2013. This tranche totaled 200,000 flow-through units and 1,000,000 units (priced at $0.06 and $0.05 respectively) for total proceeds of $62,000. Each unit consists of one flow-through or non-flow-through common share and one half of one share purchase warrant. Each full warrant entitles the holder to purchase one common share at a price of $0.12 for a period of three years. A finder’s fee of $4,000 was paid to Haywood Securities Inc. The securities issued under the current private placement are subject to a four month hold. The Company intends to proceed with the financing.
About Klondike Gold Corp.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia and Dawson City, Yukon. The Company is focused on the development of its Yukon properties. In addition, the Company holds a large portfolio of gold and base metal properties in southeastern British Columbia and in Portugal.
Inquiries: John-Mark Campbell, Corporate Secretary 604-685-2222
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. Statements in this press release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.