Vancouver, British Columbia, Canada, August 16, 2017, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) has received analytical results from prospecting and from detailed soil sampling at the Lone Star target within the Company’s 527 square kilometer Klondike district property, Yukon Territory.
Prospecting grab samples of quartz veins with gold potentially extend the Lone Star target 1,000 meters to the east into Victoria Gulch, and 900 meters to the west past O’Neil Gulch. These outcropping quartz veins are associated with potentially younger faults and have anomalous gold-silver-antimony-bismuth-tellurium geochemistry regionally associated in the Yukon and Alaska with Cretaceous age intrusion related gold mineralization.
Results from a detailed soil sampling survey at the Lone Star target show a strong, continuous and contourable gold-in-soil anomaly across the entire 4,000 meter length of the survey, open in both directions. The core of the soil anomaly, a contourable range between 75 ppb to 2,891 ppb gold in soils, extends 2,000 meters, is open to the east, and is directly coincident with the drilled 800 meter long outcropping gold mineralization at the Lone Star target.
Klondike Gold President Peter Tallman stated; “The gold-antimony-silver-antimony-bismuth-tellurium association associated with later faults is potentially significant because this element suite in Yukon and Alaska is associated with Cretaceous age intrusion related gold mineralization. The usual element signature in the Lone Star target and the rest of the Klondike district is gold-only typical of inferred Jurassic age orogenic related gold mineralization, however we are now beginning to consider two styles and ages of potentially overprinting mineralization which expands the exploration potential.”
Prospecting results at the Lone Star target have identified three areas of significance. In Victoria Gulch 1,000 meters to the east of the Lone Star target, outcrops have been found to be gold bearing along a 200 meter stretch of creek. Prospecting grab samples of quartz veining from these outcrops assay gold ranging from 0.2 g/t Au to 5.0 g/t Au in all twelve prospecting samples. Other selected elements in these samples are anomalous up to 72 ppm silver, 108 ppm antimony, 57 ppm bismuth, and 86 ppm tellurium. These samples outcrop along a potentially younger acute angle fault defined by a magnetic low that intersects the ‘Bonanza Fault’. These samples lie 1,000 meters east of the known end of the Lone Star target, and 500 meters east of the Pioneer drill hole LS17-95 (assays pending) (see News Release July 11, 2017).
Prospecting at the western end of the Lone Star target, an outcrop as been found with quartz veining assaying 96 g/t and 24 g/t Au in two prospecting grab samples. Other selected elements are anomalous up to 149 ppm silver, 5 ppm bismuth, and 26 ppm tellurium. This quartz veining outcrops 350 meters away to the east along a potentially younger acute angle fault which passes through drill hole LS17-97 (assays pending) (see News Release July 11, 2017) at the O’Neil target. In addition, prospecting near the location of LS17-97 at the O’Neil target has uncovered locally derived subcrop quartz veins assaying 4.0 g/t and 0.5 g/t Au in two prospecting grab samples. Other selected elements are anomalous up to 32 ppm silver, 16 ppm antimony, 7 ppm bismuth, and 13 ppm tellurium.
Prospecting grab samples are selective, non-representative in nature, and systematic additional test results may vary significantly.
Soil Survey Results:
A detailed soil sampling survey was conducted across the Lone Star target. Approximately 1,185 samples were collected on 100-meter spaced lines at 50 meter spacings testing a strike length of 4,000 meters.
Results show a strong, continuous and contourable gold-in-soil anomaly across the entire 4,000 meter length of the survey, open in both directions. The core of the soil anomaly, a contourable range between 75 ppb to 2,891 ppb gold, extends 2,000 meters and is open to the east across Victoria Gulch. This high range portion of the gold anomaly is directly coincident with the drilled 800 meter Lone Star target area. It is continuous 700 meters westward to beyond the O’Neil target area. A 700 meter westward step out drill hole LS17-98 earlier in 2017 intersected visible gold bearing mineralization at O’Neil (assays pending) (see News Release July 11, 2017); these high gold-in-soil results lend credence to the Company’s geological interpretation that the two areas are continuous and connected.
A map of the soil survey gold results and locations of prospecting grab sample results is on our website HERE.
Ground Truth Exploration of Dawson, YT collected the soils for the Company. Soil samples were 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. Samples were analyzed for multi-element chemistry by ICP-MS analysis (AQ201 code). QA/QC includes the insertion and continual monitoring of Klondike Gold standards, blanks, and duplicates within each batch, in addition to BV Labs QA/QC samples.
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 the Lone Star gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 527 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.
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.