Vancouver, BC – KLONDIKE GOLD CORP. (TSX-V: KG)(the “Company”) is pleased to announce that its summer exploration season continues in the Yukon and is progressing well. Klondike Gold’s Yukon exploration program is focusing on the Company’s Lone Star Project targeting soil geochemical anomalies with trenching and under explored areas using soil sampling. In addition, surface work on the historic Lone Star and Violet mines is continuing, with particular attention being paid to the Lone Star.
The Boulder Lode open cut at the Lone Star mine has not been worked for over 90 years and during this time the sides of the cut had caved and had been covered with vegetation. Production records show that 7650 tonnes were milled with a recoverable grade of 5.1 g/t Au with an estimated recovery of 75%. (Source: Yukon MINFILE 115O 072). Excavation of the upper portion of the open cut has enabled the rock face to be geologically mapped and channel sampled. Ongoing work at Lone Star will be to complete the cleaning-out of the open cut to enable mapping and sampling of the lower level and to investigate high grade pyritic ore that historic records indicate occurs in the central part of the mine workings.
Work on re-sampling using methods consistent with its fall 2011 work program (Press Release: March 08, 2012 Klondike Gold Reports Initial Results from its Fall 2011 Yukon Work Program) of select trenches along trend with the Boulder Lode is also taking place and prospecting has revealed a possible extension to the east which will be trenched and sampled to gain better exposure.
The exploration team was encouraged by visible gold found in quartz, 150 meters east of the Boulder Lode, along with deformation of the Klondike Schist similar to that of the Boulder Lode. Also of note are preliminary results from targeted grab samples from two stacked continuous 20 cm to 50 cm thick quartz veins in the Boulder Lode Open Cut. Both veins dip to the Northeast and dip measurements range from 25 to 42 degrees with a vertical distance between veins of approximately 4-5 meters.
Targeted grab sample 1719053 of the lower contact of the upper quartz vein ran 41.3 ppm Au and sample 1719054 of the lower vein ran 0.313 ppm Au.
Of the channel samples taken from the schist in the Boulder Lode approximately half the values reported varied between 0.1 and 4 ppm (i.e., g/t). One schist channel sample that included the pyritic selvedge of one quartz vein reported 7.31 ppm with the corresponding vein giving 3.80 ppm. Significant values obtained in schist separate from quartz veins are important for the development of a bulk tonnage target. High grades within quartz veins will add to the overall grade.
Whilst one geological team is working on the Lone Star another is working around the Violet mine, the other gold prospect that received significant underground development 12.0724 before the First World War. This season’s surface prospecting has indicated that the Violet vein system may continue on its 310 degree trend towards the “310” prospect that was trenched in 2006. In that year both the Violet mine and “310” trench were bulk sampled, the Violet bulk tests reporting 0.858 g/t from dump material and 1.234g/t from a vein parallel to the mine vein; the 310 bulk reported 2.037g/t over a 75 metre strike length of the exposed vein. A further North-South trending system of quartz veins (possibly a ‘conjugate’ to the 310) is also being prospected. Hand auger soil sampling over this region is in progress.
To date in 2012 Klondike Gold has sent in 2454 rock, core, and soil samples for analysis from the Lone Star property. This figure includes standards and blanks for internal quality control, at the ratio of approximately 1 in 20 samples. Soil samples in secure bags are dropped off at ACME labs Dawson City processing facility where they are sieved and then send on to ACME Labs Vancouver for analysis. Rock samples are securely shipped to ACME’s Whitehorse processing facility for crushing and splitting after which they are forwarded to ACME Labs Vancouver for analysis. The company looks forward to complete results of sampling to date and will use these samples for targeting the second phase of the summer exploration season.
T. Liverton, PhD., C. Geol, F.G.S. is the qualified Person for the purposes of this news release.
About Klondike Gold Corp.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia and Dawson City, Yukon. The Company is focused on the development of its Yukon and British Columbia gold properties. In addition the Company holds a large portfolio of base metal projects in southeastern British Columbia.
Inquiries: Robert A. Young 604-685-2222 (Ext 398)
Erich Rauguth, President & CEO 604-685-2222
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. Statements in this 12.0724 press release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.