Vancouver, British Columbia, Canada, July 8, 2019, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) updates progress of the $2-million 2019 exploration program (see news May 16, 2019) on the Company’s wholly owned 576 square kilometer Klondike District Property, Yukon Territory.
This year’s drilling and exploration program is focused on in two key areas:
- Drilling at the Gay Gulch and Nugget Zones to target prospective areas of high-grade gold mineralization identified after reviewing data collected from 2018’s program; and
- Drilling at the Lone Star Zone to expand areas of disseminated gold mineralization.
Additional geoscience programs are testing the high-priority multi-kilometer Bonanza, Nugget, and Eldorado Fault gold target areas. Soil sampling, GT-Probe deep overburden drilling, and LIDAR surveys all target this area.
A total of 47 holes totalling 3,500 meters drilled have been completed to date out of a minimum 60 planned. Logging, geotechnical work, sampling, and assaying are well underway.
The Gay Gulch Zone on the Eldorado Fault was tested with 7 drill holes. The Nugget East and Nugget Zones on the Nugget Fault were tested with 36 drill holes. The new Glacier Gulch Zone on the Nugget Fault is being tested with 4 drill holes; drilling is in progress at this time. The Lone Star Zone on the Bonanza Fault has 10 to 15 holes planned; drilling is anticipated to begin in mid July.
Further drilling expanding known targets or testing new areas of interest will be allocated and targeted as assay results are received. Drill assays are now expected for release beginning by late-July and continuing through August and September.
Exploration Programs Update
The Company contracted GroundTruth Exploration Inc. (“GroundTruth”) of Dawson, YT to complete its soil sampling program and its GT-Probe surveying. A total of 1,622 soil samples were collected at Eldorado and Bonanza Creek covering high priority prospective trends. All samples have been submitted for analysis and complete results are expected in mid-July. The Company expects to generate new anomalies along the Nugget and Eldorado mineralized fault corridors with plans for immediate follow-up contingent upon success of this survey.
GroundTruth also collected 66 rock samples using the overburden penetrating GT Probe systematically sampling bedrock along a 325 meter line length at 5 meter intervals. The GT-Probe survey tested for the continuation of Lone Star Zone gold mineralization at a 450 meter step out to the southeast. On-site multi-element XRF analysis suggests an anomalous zone (including bismuth as pathfinder element) at the geologically inferred position of the Lone Star Zone horizon which is encouraging. The Company’s intention is to expeditiously locate the Lone Star Zone horizon at a 450 meter step-out without the necessity of drilling a fence of multiple drill holes, thereby saving costs and time. GT-Probe rock samples have been submitted for gold analysis, which could be confirmatory. Assay results are expected in mid-July.
The Company contracted McElhaney (Vancouver) to complete its airborne LIDAR and orthophoto surveys of the Klondike district 576 km2 property. A 20 km2 subset high priority area covering the Lone Star, Nugget, and Gay Gulch Zones will be processed first. LIDAR results from the subset area are expected in late-July and will be used to prioritize drill targets. Results from the entire 576 km2 property surveys are anticipated in September.
For location map and 2019 drill targets, refer to Figure 1: Location of 2019 Drill Target Zones and nearby prospects, Klondike District Property.)
QUALIFIED PERSONS REVIEW
The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, P.Geol., Vice-President Exploration 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 576 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.”
Figure 1: Location of 2019 Drill Target Zones and nearby prospects, Klondike District Property.