Vancouver, British Columbia, Canada, September 27, 2021, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to report results of 2021 Phase 2a diamond drilling at the Lone Star Zone, Klondike District Property, Yukon. Twelve (12) holes totalling 1,222 meters were completed in July 2021. Klondike Gold is pleased that near-surface gold mineralization at the Lone Star Zone has been significantly extended east by 250 meters or ~25% greater in length with these results.
Assay highlights from this phase of Lone Star Zone drilling includes:
Peter Tallman, Klondike Gold’s CEO states “Results continue to show the Lone Star Zone discovery hosts significant near-surface gold mineralization which is expandable and remains open in all directions. Near term milestones include a Geology technical report followed by a maiden mineral resource. The Company is well positioned to rapidly advance the Lone Star Zone as one among a number of ‘pipeline’ targets within our district-spanning 586 square kilometer claim package that has excellent access to existing highway, power, communications, commercial airport and town infrastructure.”
LONE STAR ZONE PHASE 2 DRILLING
2021 drilling at the Lone Star ‘East’ area (Phase 2a) tested for an eastern extension of the Lone Star Zone with 12 holes totalling 1,222 meters. See Figure 1 for drill hole locations and Table 1 for assay results on the Phase 2a Drilling on the Lone Star Zone.
These latest significant positive results at the Lone Star East target demonstrate continuity of mineralization at least 250 meters eastward beyond the currently defined Lone Star Zone gold mineralization model shell and also show downslope continuity of mineralization (see Figure 2 and Figure 3).
Positive results reported from the Lone Star Zone (Phase 2b) tested the downslope and potential down-dip extension (see News Release September 23, 2021). This work extended the downhill slope dip length to 350 meters from 200 meters.
Table 1: 2021 Lone Star Zone East (Phase 2a) Significant Results:
|Hole ID||From (m)||To (m)||Au (g/t)||Length (m)|
PHASE 4 DRILLING AND EXPLORATION UPDATE
Phase 3 drilling testing the Stander Zone was completed in August. Results are pending.
Phase 4 drilling testing along the Eldorado Fault in Eldorado Creek over a 4 kilometer length nears completion with drilling just finished and with logging and sampling in progress. A total of 13 holes were completed testing various targets exclusively. The holes targeted various graphitic fault zones evident from LIDAR surveying potentially associated with gold mineralization. One of these targets at the Gay Gulch Zone, the second of two original discoveries made in 2015, has previously returned significant gold intersections including 420 g/t Au over 0.4 meters within 75.6 g/t Au over 2.8 meters in the discovery hole EC15-10 (see News Release October 26, 2015). No estimate is yet known for availability and reporting of assay results.
Klondike Gold contracted GeoCloud Analytics of Melbourne, Australia to complete a detailed re-interpretation of the 2019 LIDAR survey data (see NR 23 September 2021). The work is in progress.
SRK Consulting of Toronto have been contracted to prepare a NI-43-101 Technical Report summarizing geology and exploration on the Company’s Klondike District Project. Site visit field review has been completed. The report is in progress and is anticipated to be completed for filing by Q4 2021.
2021 ASSAY PROTOCOLS
All 2021 drill holes referenced in this release produced NTW (5.71cm dia.) drill core. Assay samples from drill core are cut using a diamond saw. Half the core sample interval is bagged, tagged, and sealed; the other half is returned to the core box with a corresponding tag and retained for reference. Two gold reference standards, two blank samples (a coarse and a fine), and a coarse sample duplicate per 100 samples, are routinely inserted as part of Klondike Gold’s quality assurance / quality control (“QA/QC”) program, independent of and additional to the laboratory QA/QC program.
Sample bags are aggregated into rice bags, sealed, and submitted by Klondike Gold personnel to Bureau Veritas Mineral Laboratories (“BV Labs”) preparation facility in Whitehorse, YT with chemical analysis of sample pulps completed in Vancouver, British Columbia. Bureau Veritas Labs is an accredited ISO 9001:2008 full-service commercial laboratory.
At BV Labs each drill core sample is crushed to 70% passing 2 mm size. A 500 g subsample is pulverized to 85% passing 75 microns size (200 mesh)(Code PRP70-500). All samples of 500 g were sieved to 106 microns (140 mesh) for “metallic screen” assaying. The +140 mesh fraction is weighed and assayed for gold by fire assay (“FA”) fusion with a gravimetric finish (Code FS631). A 30 g subsample of the -140 mesh fraction is assayed for gold by fire assay (“FA”) fusion with an atomic absorption (“AA”) finish (Code FA430). All over-limit results in excess of 10 ppm (10 g/t) for both silver and gold are re-assayed using a 30 g subsample and assayed by FA with a gravimetric finish (Code FA530-Au/Ag). Total gold grade is then calculated using a weighted average of the plus and minus fraction assay results.
QUALIFIED PERSONS REVIEW
The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, P.Geo., Vice-President Exploration of Klondike Gold Corp. and Qualified Person as defined by National Instrument 43-101 policy. Detailed technical information, specifications, analytical information and procedures can be found on the Company’s website.
Klondike Gold continues to take proactive measures to protect the health and safety of our local host community, our contractors and our employees from COVID 19. Exploration activities in 2021 continue to have additional safety measures in place, following and exceeding all the recommendations made by the Yukon’s Chief Medical Officer. Over 95% of Klondike Gold’s employees and contractors are fully vaccinated.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp. is a Vancouver based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon Territory, one of the top mining jurisdictions in the world. The Klondike District Gold Project targets gold associated with district scale orogenic faults along the 55-kilometer length of the famous Klondike Goldfields placer district. To date, multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The Company is focused on exploration and development of its 586 square kilometer property accessible by scheduled airline and 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.”