Vancouver, British Columbia, Canada, February 13, 2019, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to report final results from 2018 regional exploration programs across the Company’s wholly owned Klondike District Property, Yukon Territory.
Regional work completed in 2018 included airborne magnetic and radiometric surveying, soil surveying, geological mapping, structural mapping, and prospecting. Follow-up work has included further processing of magnetic data (both airborne and ground), processing of soil geochemistry, and geochemical characterization of geological units. Significant regional results to date are described below.
- A prominent magnetic break interpreted as a first-order major fault (the “Rabbit Fault”) is imaged by total field magnetics surveying. This is consistent with the Company’s orogenic model of gold mineralization in the region.
- Nine extensive gold soil anomalies have been identified, all associated with the interpreted Rabbit Fault.
- Structural mapping by SRK suggests a previously unobserved orogenic event in the Klondike area, and links this event with gold mineralization. The orogenic history and gold mineralization are interpreted to have similarities to the Coffee gold deposit situated 120 km to the south. (Disclaimer: Mineralization at the Coffee gold deposit may not be representative of mineralization that may be identified on the Klondike District Property.)
- Lithologic mapping has defined the domains of major units, and identified individual units such as ultramafics and lamprophyre dykes marking deep crustal faults which are important elements in an orogenic gold model.
- Prospecting has documented numerous historic bedrock workings, visible gold occurrences, and gold-bearing rock grab samples throughout the Klondike District, beyond the gold mineralization identified by recent drilling. These gold-bearing workings and occurrences align along mapped faults, again consistent with the Company’s orogenic model of mineralization.
AIRBORNE MAGNETIC SURVEY RESULTS
The Rabbit Fault is imaged in 2018 airborne total field magnetics surveying to be a prominent NNW-SSE trending basement structure extending through the Klondike District Property from Eldorado Creek in the northwest corner to Gold Run Creek in the southeast corner.
The Rabbit Fault (formerly termed the ‘Rabbit Creek thrust’), is considered to be a first-order basement structure spatially associated with sizeable gold-in-soil anomalies also outlined in 2018 surveying. The magnetic survey was flown by New-Sense Geophysics, with helicopter support by Trans-North helicopters, QA/QC control and early processing by George Lev, with post-processing by Campbell and Walker Geophysics Ltd.
SOIL SURVEY RESULTS
Nine significant extensive gold soil anomalies have been identified from 2018 surveying in proximity to the Rabbit Fault through the length of the Klondike District Property.
The nine anomalies range from 1 kilometer to 4 kilometers in length. Soils are considered anomalous above 10 ppb Au (90th percentile), with core anomalous areas from 30 – 70 ppb Au, and highs from 70 ppb Au to a high of 2,223 ppb Au. Each individual soil anomaly is at least 1 kilometer in length observed on survey lines 400 meters apart. Anomaly widths range from 100 meters to over 1,000 meters with soil stations spaced 50 meters apart.
The previously identified gold soil anomaly associated with the Lone Star Zone has been extended by the 2018 survey along strike in both directions to 4 kilometers in length. Three distinct gold soil anomalies have been identified in the region of Quartz Creek. There are five distinct gold soil anomalies in the Sulphur Creek to Gold Run Creek area. Two of these soil anomalies lie adjacent to and uphill of historic and ongoing alluvial gold placer producing creeks as derived from 1940’s drill data compilation which defined the pay streaks. (The Company gratefully acknowledges the compilation work of S. Van Loon of Yukon Geological Survey who provided this data). This region of the Yukon has not been glaciated; gold soil anomalies are inferred to represent weathered-in-place bedrock mineralization.
These results from regional soil sampling combined with airborne magnetics has outlined new extensive gold anomalies associated with a major structural break which supports the hypothesis that the Klondike District has significant prospectivity for orogenic gold mineralization.
Soil sampling programs undertaken during 2018 collected 5,800 soils at 50-meter intervals on lines spaced 400 meters apart; these cover about 25% of the Klondike District Property overall. Soils were collected by GroundTruth Exploration of Dawson, and by Klondike Gold personnel. All soils were analyzed by Bureau Veritas in Whitehorse and Vancouver.
A systematic structural mapping survey broadly covered the length of the Klondike District, with focus on the known areas of gold mineralization between the Lone Star and Nugget Zones between Bonanza and Eldorado Creeks.
Results from structural analysis has documented a previously unobserved orogenic event in the Klondike area and linked this event with gold mineralization. The structural observations help explain the origin and mechanics of gold mineralization associated with faults, such as the Lone Star Zone along the Bonanza Fault, as well as explain gold along newly identified near-orthogonal oriented younger faults, such as is interpreted at the Gay Gulch prospect among others.
The new structural history of the district provides a coherent structural model and more accurate exploration framework to explore for gold mineralization.
These structural features and orogenic history have recently been recognized and documented at the Coffee gold deposit and reported in the Golden Saddle deposit area.
The 2018 structural mapping program covering the Company’s Klondike District project was undertaken by teams from SRK Group (Toronto) and SRK Exploration Services (Cardiff, UK).
Regional and detailed lithologic mapping in 2018 altered and significantly improved the Company’s understanding of the distribution of felsic, intermediate, mafic, and graphitic units. In addition, both ultramafic thrust slivers and lamprophyre dykes are identified to be associated with gold mineralization, and post-mineralization mafic dykes have been distinguished. Ultramafic slivers are associated with gold mineralization at the Lone Star and Nugget Zones; significant because these units are also associated with gold mineralization at the Coffee deposit. The lamprophyre dykes are significant as indication of long-lasting structural conduits by fluids from the lower crust to the upper crust, necessary evidence of an orogenic model of gold mineralization.
Lithological mapping was undertaken by teams from SRK Group (Toronto) and SRK Exploration Services (Cardiff, UK) with detailed follow-up by Klondike Gold personnel.
Prospecting is a reconnaissance tool conducted in areas that have little geoscience information. Prospecting from 2015 through 2018 has yielded significant discoveries, and now with additional systematic surveying described above these efforts can be integrated into the Company’s overall exploration model. Prospecting efforts have been directed towards finding old bedrock workings (adits and shafts), finding and documenting visible gold in outcrop, as well as more traditional activities such as sampling outcrop and float for chemical analysis targeting anomalous gold.
A total of 76 historic shafts or workings targeting bedrock mineralization have been discovered within the Company’s property, documented with GPS, photographs, and rock samples where possible. The workings tend to align along gold-mineralized faults.
With respect to the nine areas of gold soil anomalies identified in 2018, prospecting from 2015 through 2018 has occurred within four of those nine areas. The Lone Star soil anomaly has had the most work, with 334 rock grab samples assayed; 96 samples contained >0.5 g/t Au with 48 samples over 5 g/t Au, to a high of 1766 g/t Au.
Three soil anomalies in the Gold Run area have seen some prospecting work. The Gold Run Creek soil anomaly has had 142 rock grab samples assayed; 33 samples contained >0.5 g/t Au with 19 samples >5 g/t Au to a high of 55 g/t Au. A small part of this target area was drill tested with 4 holes in 2018. Two other soil anomalies have seen very little work with 57 and 21 grab samples assayed; the former area had 4 samples >0.5 g/t Au with one high of 64 g/t Au, and the latter had no significant results. The remaining four new gold soil anomalies have had no work on them. Note that prospecting grab samples are selective by nature and values reported are not representative of mineralized zones.
Prospecting was undertaken by Klondike Gold personnel primarily under the direction of W. Keats of Gander, NL.
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 557 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.
President and CEO
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.”