Vancouver, British Columbia, Canada, April 19, 2017, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) is pleased to announce that the Board has approved a $2,000,000 exploration program for 2017 within the Company’s Klondike district property, Yukon Territory.
The Company plans a $2,000,000 exploration program for 2017, double the expenditure made in 2016. Work will focus on the four kilometer long Lone Star exploration target, which is the first potential million ounce target area outlined within the district while advancing other quality targets that are taking shape throughout the Company’s expanded claim holdings (see NR Aug 8, 2016). The potential quantity of the Lone Star target is conceptual in nature and there has been insufficient exploration to date to define a mineral resource and it is uncertain if this season’s exploration program described below will result in the target being upgraded or delineated as a mineral resource.
The objectives and components of the 2017 program include:
On January 19, 2017 the Company announced drill results from the Lone Star target area situated on the ridge between Bonanza Creek and Eldorado Creek, two of the most productive placer gold creeks in the Klondike District. The 17-hole Lone Star target drill program encountered disseminated gold starting at surface across broad widths of up to 42.0 meters along a strike length of 700 meters. The 700 meter drilled length of gold-mineralization is associated with a 1,500 meter induced polarization anomaly (the length of the survey, target remains open) and a 4,000 meter long gold-soil anomaly (also the length of the survey, remains open).
Highlights of Lone Star drill results over the 700 meter strike length include 2.4 g/t Au over 37.0 meters in LS16-58; 3.5 g/t Au over 11.3 meters and separately 1.6 g/t Au over 8.6 meters in LS16-70; 1.5 g/t over 24.5 meters in LS16-64; 0.9 g/t Au over 42.0 meters in LS16-63; 4.7 g/t over 4.0 meters and separately 1.2 g/t over 14.0 meters in LS16-68; and 2.5 g/t over 9.9 meters in LS16-69 (see News Release dated January 19, 2017).
Geophysical surveying is expected to begin in mid-May and continue for approximately one month. Preliminary results will be received daily for field follow-up and final refined interpretative results are anticipated by August.
Diamond drilling, contracted to Kluane Drilling of Whitehorse, YT is expected to begin in June with initial focus on the Lone Star target area. The immediate objective is to test adjacent to the LS16-58 (2.4 g/t Au over 37.0 meters from surface), which intersected the best combined length and width of mineralization of the previous program and remains open to the west. Following receipt of geophysical results, a sustained program of drilling is anticipated at the Lone Star target as well as reconnaissance testing of other identified target areas within the District.
Additional soil sampling will be collected with the objective to refine and extend the four kilometer gold-soil anomaly defining the Lone Star target. Results from this survey are anticipated by July.
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 Yukon gold projects, accessible by government maintained roads located on the outskirts of Dawson City, YT, covering a district-scale 527 square kilometers of hard rock and 20 square kilometers of placer claims including “McKinnon Creek” 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.”