Vancouver, British Columbia, Canada, May 24, 2018, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) is pleased to announce the commencement of its 2018 diamond drill program at the Company’s wholly owned Klondike District property, Yukon Territory. A minimum total of $2.5 million is budgeted for 2018 including an estimated 5,000 meters of drilling (see March 9, 2018 news release). All major work contracts have been finalized, with work components underway or scheduled to begin early in June. The Company has completed a structural and geological compilation, producing the first geology map of the Klondike District subdividing previously “Undifferentiated Klondike Schist”, which will help focus exploration efforts on the most prospective geologic targets. The Company welcomes Ian Perry, P. Geo. to fill the role of Vice President, Exploration.
The initial phase of drilling now underway is designed to test surface gold mineralization at both the Lone Star Zone and the newly discovered Gold Run target located 35 kms southeast, along strike on the Rabbit Creek Thrust trend. Later phases of drilling are planned to include testing of the Lone Star Zone, the Nugget Zone, and other targets.
At the Lone Star Zone, the first series of shallow holes are designed to systematically test selected section lines to provide information on the lateral and vertical geometry and continuity of gold mineralization. Drilling procedures will include using oriented core tools with both NTW and HTW diameter core, and systematic use of XRF analyzers. Plans also include drilling specific locations across the Lone Star Zone to be used for preliminary metallurgical tests. The Lone Star Zone is located 20 km from Dawson at the northwest end of the Klondike District property. A total of approximately 20 holes are initially planned, with additional holes to follow as the summer progresses.
At the new Gold Run target, prospecting in late 2017 located three “lost” c.1900 mine shafts. Visible gold was observed in quartz vein material within sorted, hand-stacked tailings piles adjacent to each of these shafts within a 300-meter by 200-meter area. In total 27 prospecting samples were collected from quartz material in the three tailings piles and all contained gold (0.6 g/t to 55 g/t Au). These prospecting samples are very selective in nature, non-representative rock grab samples collected to test for the presence or absence of gold. Systematic additional test results may vary significantly. Individual quartz vein pieces with selvages suggest individual veins are only 10 cm to 50 cm in width. The old shafts are located in a similar structural position to Lone Star Zone above a major thrust fault (inferred to be a continuation of the ‘Rabbit Creek thrust’) and adjacent to an interpreted secondary fault (inferred to be the ‘Bonanza fault’ or equivalent). The Gold Run target is located 35 km from the Lone Star Zone and 55 km from Dawson. A total of 4 holes are planned to test for geology and mineralization and will be followed by soil surveying to help identify anomalous trends, with additional holes contingent upon positive results.
2018 Work Contracts
SRK Consulting has been contracted to conduct structural and lithologic mapping through the Klondike District property. The objective of this work is to identify district-scale structures and the disposition of individual lithologies adjacent to these faults, which will compliment the compilation recently completed by Klondike Gold staff. Field work is scheduled to begin by mid-June and be completed by mid-August.
New-Sense Geophysics Ltd has been contracted to complete helicopter-borne magnetic, radiometric, and VLF-EM surveying totalling approximately 3,000 line km covering the Klondike District property, including portions previously covered by ground surveys. This work is expected to provide a comprehensive view of structures transecting the district and be completed within this season, potentially allowing for targeted drilling follow-up. Airborne surveying is scheduled to begin in June.
GroundTruth Exploration is providing drone orthophotography surveying on targeted areas where no previous coverage exists. Drone surveys have been completed with data delivery expected this week. Additionally, GroundTruth has been contracted to collect approximately 5,000 soils covering the core areas of interest within the Klondike District property. Soil sample collection is scheduled to begin in June.
Kluane Drilling has been contracted to provide drilling services. This year the contract includes provision for oriented core drilling, both NTW and HTW core drilling, and other technical drilling services. In conjunction with core drilling, Klondike Gold this year will be using InnovX X-ray Fluorescence (“XRF”) analyzer provided by Reflex as part of the geotechnical suite of data collected from core.
Initial field work has been underway since March and has consisted of preparing access routes and drill sites, relogging and additional sampling of older drill holes, re-assaying of 2017 drill core from the Lone Star Zone, thin section and whole rock analyses, and re-examination of drill holes along the Nugget fault. In addition, 2018 field work consisting of prospecting, mapping, drone and fixed-wing aerial surveying for orthophotography, and drilling is also now underway.
The Company welcomes Ian Perry, P. Geo. to fill the role of Vice President, Exploration. Mr. Perry has over 35 years of experience including the management of the technical and engineering aspects of advanced exploration and development projects, both in Canada and internationally. Mr. Perry has assumed responsibility for directing ongoing exploration.
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 553 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.
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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.”