Klondike Gold Corp. (TSX-V: KG) (the “Company”) confirms that it has started its 2012 exploration program with drilling between the historical Lone Star and Pioneer mines. The Company has signed a 1500 meter drilling contract with CanDrill Global Inc. of Prince Albert, Saskatchewan, designed to gain a better understanding of the geology and structure of the Lone Star deposit. Despite the efforts of previous operators, there is still insufficient data to produce a reliable geological model of the Lone Star deposit. The Company believes that the current drill program allows the development of a more complete model of the Lone Star deposit.
The 1500 meter diamond drill program is designed to test the geology, structure, and potential for mineralization in the 500 meters between the Lone Star deposit and the Pioneer zone to the southeast. This area is significantly underexplored due to overburden cover, but is along the trend of Lone Star mineralization and cross cuts the Lone Star thrust fault. A more complete understanding of geology and structure between Lone Star and Pioneer is necessary in the development of a more robust model of Lone Star mineralization. The drill program is also designed to simultaneously test undrilled induced polarization geophysical anomalies from a 2006 Aurora Geoscience survey and to test for a favorable unit in the Klondike schist identified by lithogeochemical studies below the 170 meter level, the limit of previous drilling.
The Company also is pleased to confirm the appointment of Mr. Iain Mitchell to the position of Resident Exploration Geologist. Mr. Mitchell has over 15 years of industry experience including several years of arctic exploration. With the engagement of Mr. Mitchell the 2012 professional team is now complete. Dr. Tim Liverton, author of the 2011 Lone Star Gold 43-101 Report, recently completed the 2011 Assessment Report which will be available on the Klondike Gold website.
Dr. Liverton has been engaged to work closely with the mineral research units at The University of British Columbia, Canada; the University of Leeds, UK; and the University of Ortago, New Zealand. This research will focus on understanding the geology and mineralization in the complex geological setting of the central Klondike Gold Fields. Professor James Mortenson of UBC and Dr. Liverton recently identified chemical signatures of favorable units within the Klondike Schist that may be used to better direct exploration on the Lone Star property during the 2012 season.
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 and British Columbia gold properties. In addition the Company holds a large portfolio of base metal projects in Southeastern British Columbia.
Inquiries: Robert A. Young 604-685-2222 (Ext 398)
Erich Rauguth, President & CEO 604-685-2222