Vancouver, British Columbia, Canada, August 21, 2017, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) announces that, as a result of a review by the IIROC, the Company is issuing the following news release to clarify and retract disclosure pertaining to an article featuring Klondike Gold entitled “How Technology Is Fueling The Next Gold Rush” which appeared on the website OilPrice.com. The article is the product of a corporate communicator attempting to encapsulate the news and direction of the Company’s exploration efforts specifically over the past three years as part of an awareness initiative. For greater clarity this article and its contents is not in any way intended as, nor should be confused with, technical disclosure, nor was this article reviewed by a Qualified Person.
Statements disclosed in the Oilprice.com article contain material which is overly promotional and potentially misleading, does not meet the scientific and technical disclosure requirements of Canadian securities legislation including National Instrument 43-101, and was not prepared by or approved by a Qualified Person and should not be relied upon. The exploration potential disclosed in the piece is conceptual in nature and there is no certainty that ongoing exploration will yield positive results.
Klondike Gold is a junior gold exploration company operating in the Klondike District outside of Dawson, YT, Canada. The Company’s Klondike area property is at an early stage of exploration. There has been insufficient exploration to define a mineral resource or mineral reserve and there are no current mineral resources or mineral reserves outlined on the property. Nor has a preliminary economic assessment, preliminary feasibility study or feasibility study been completed to support the economic viability or technical feasibility of the project. There is no certainty that ongoing exploration will yield positive results.
In particular, the Company wishes to clarify the several references of “20 million ounces of gold” throughout the article. The 20 million ounces of gold refers to the total estimated alluvial gold production as calculated by the Yukon Geological Survey from the Klondike area creeks and gravels extracted from 1896 to the present day from the area located within Klondike Gold’s current bedrock mineral claims. A Yukon Geological Survey technical reference is HERE. Alluvial gold in the Klondike area creeks within the Company’s claims has been considered to be locally derived since its discovery in 1896, and scholarly research has supported this over the past century. The first scholarly publication from 1899 is HERE. However, there is no certainty that ongoing bedrock exploration will yield positive or substantive results from the Company’s properties. As stated above, these references to “20 million ounces” should not be construed to imply the existence of any bedrock mineral resource or reserve on the property.
The Company wishes to retract the quote in the article of “It makes the 20 million ounces that have been collected on the surface of the seem like gold dust. A mere flash in the pan.” This is an egregious statement with no technical merit, is misleading and a violation of TMX Venture Exchange Policy 3.3, 8.2 and is wholly and fully retracted.
The Company wishes to retract the quote of “The verdict: Not only was Klondike’s property ‘good’, it was exceptional: It’s sitting on channel gravels that have given up 20 million ounces of placer gold (worth $25 billion USD today)”. This statement is unsupported and misleading, and disclosure of gross values of metal is a violation of NI 43-101, 2.3 – Restricted Disclosure. For clarity, the Company’s bedrock claims cover the areal extent of the Klondike placer ‘channel gravels’.
The Company wishes to clarify the statement “5 g/t over 14 meters and 76 g/t over 3 meters, keeping in mind that the industry average is 1.18 g/t.” The article is referring to the Company’s drill hole intersections of 5.1 g/t Au over 14.3 meters at the Nugget Zone in 2016, and 75.6 g/t Au over 2.8 meters at the Gay Gulch prospect respectively. The true thickness of the gold mineralization is approximately 0.8 times the interval length in these holes (see NR’s July 14, 2016 and October 26, 2015). The comparative reference to “industry average is 1.18 g/t” is derived from Natural Resource Holdings research findings from the “Global Gold Mine and Deposit Rankings 2013” report which stated the average grade of producing gold mines globally is 1.18 g/t Au. The average grade globally, according to Natural Resource Holdings, for undeveloped “gold deposits” (sic) is 0.89 g/t Au. A link to the full report is HERE. The article compares individual drill hole results to global mine averages; the Company’s drill hole results are selective in nature, non-representative and highly variable whereas global mine averages are representative and a low-variable average. The Company disclaims the comparison which is technically unsound and should not be relied upon.
The Company wishes to clarify the statement in the article that “The Klondike is full of gold – it is known for its gold. It is all sitting at the surface”. The Klondike gold rush is famous for its gold endowment and 20 million ounces of gold have been extracted by simple methods from surface creeks and streams over the past 120 years. The Company has drilled approximately 100 diamond drill holes since 2015 and all of the gold mineralization intersected (approximately 70% of all holes) to date begins at surface or at shallow depths of less than 50 meters vertically from surface.
The Company wishes to clarify the statement in the article that “The 2.4 g/t results from 2 holes at Lone Star on 11 July, was just the beginning” and also “Lone Star is a 70-hole drill program, with results so far showing 2.4 g/t”. The article refers to the drill hole intersection result from the Lone Star target of 2.4 g/t Au over 40.9 meters in news released July 11, 2017. The gold mineralized intersection is approximately true thickness and begins approximately 6 meters vertically below surface. The link in the article is accurate, repeated HERE which contains technical information. The context of both statements suggests to the QP that there is expected to be a high volume of news flow of results from the property, which is an assumption and should not be relied upon.
Peter Tallman, President of Klondike Gold is the Qualified Person, is author of the foregoing clarifications of the article which contained scientific and technical information that was not reviewed by a Qualified Person, for the purposes of NI43-101 Section 3.1 Written Disclosure to Include Name of Qualified Person. Mr. Tallman has provided links to the Company’s technical and scientific disclosure, and provided reference links to outside sources for information purposes only if they could be determined for non-Company technical information used in the article. 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.”