Vancouver, British Columbia, Canada, March 18, 2016, Klondike Gold Corp. (TSX.V:KG) (“Klondike Gold” or the “Company”) is pleased to announce that the Board has approved a $350,000 exploration program for 2016 focused on the Lone Star and Dominion Properties near Dawson, Yukon Territory. The planned program consists primarily of widespread diamond drilling targeting gold-bearing structures with an initial budget sufficient for 20 shallow drill holes totalling 1,500 meters. Geophysics, soil geochemistry, trenching, plus prospecting and mapping will also be conducted to advance additional target areas for future drilling. Field work is expected to begin in April with drilling planned to begin in June. Contingent upon continued positive drill exploration results, a second phase of drilling in 2016 is planned but remains subject to funding.
Peter Tallman, CEO of Klondike Gold states “Last year’s discoveries have given credence to the Company’s new orogenic gold model and has confirmed that the source of the gold in the Klondike’s placers is from in-situ gold bearing veins which have the potential for exceptional grade. We now understand how these veins form, where they may be located, the controlling major structures and their implied geologic age. Going forward, we will use drilling to discover as many gold-bearing veins as possible and to systematically test the best of them to determine length, depth, and grade characteristics.”
Based upon the Company’s evolving orogenic gold model of source mineralization, numerous target areas have been identified to test for high-grade gold-bearing quartz veins. The target mineralization is associated with, and controlled by, newly identified fault and extensional structures and certain lithologic parameters.
In 2015 the Company interpreted a previously unrecognized fault system from historical airborne geophysical surveys. Subsequent ground magnetic surveys mapped these structures in detail. Follow-up prospecting identified gold-enriched quartz veins with exceptional grade at Boulder Lode and Nugget prospects on the Lone Star property (see News Release dated January 14, 2015) and similar gold-enriched quartz veins in outcrop over a 700 meter extent at Hunker Dome prospect on the Dominion property (see News Release dated January 19, 2015). Later in 2015, 19 shallow drill holes totalling 1,500 meters tested the Lone Star property and resulted in new discoveries of orogenic gold vein arrays at Nugget Zone (5.3 g/t Au over 6.1 meters true thickness; see News Release dated October 15, 2015) and Gay Gulch (75.6 g/t Au over 2.1 meters true thickness; see News Release dated October 26, 2015).
Klondike Gold has current working capital of approximately $0.8 million generated from gold placer production royalties paid by Todd Hoffman’s lease of the Company’s McKinnon Creek placer gold deposit, as seen on Discovery Channel’s reality TV show “Gold Rush”.
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 25,000 hectares of hard rock and 2,000 hectares of placer claims including “McKinnon Creek” leased to Todd Hoffman/Jerusalem Mining LLC and featured on the Discovery Channel show “Gold Rush”.
On behalf of Klondike Gold Corp.
President and CEO
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.”