Vancouver, British Columbia, Canada, April 14, 2016, Klondike Gold Corp. (TSX.V:KG) (“Klondike Gold” or the “Company”) is pleased to announce that the Board has approved an expansion of the previously announced drill program (see news release dated March 18, 2016) that more than doubles the number of holes focused on the Company’s Lone Star and Dominion Properties near Dawson, Yukon Territory from 20 to 50 or more, and increases the budget from $350,000 up to $750,000.
All 50 currently planned holes target outcropping quartz vein arrays containing visible gold, or outcrop grab samples with >5 g/t Au assay results, or both, and all are associated with magnetic breaks (faults) that have >500 meter length. Approximately 30 of the 50 holes are planned to test 15 different, widely spread, gold-bearing quartz vein arrays that have never been drilled.
The drill program is a direct application of an orogenic gold model of mineralization which predicts a >2 km vertical range of gold-bearing veining. A similar drill program last year, which tested easily accessible visible gold-bearing outcrops with 19 holes adjacent to the road along Eldorado Creek, yielded new discoveries at Nugget Zone of 5.3 g/t Au over 7.6 meters (see news release dated October 15, 2016) and Gay Gulch of 75.6 g/t Au over 2.8 meters (see news release dated October 26, 2015). Target specific geophysics, soil geochemistry, trenching, plus prospecting and mapping are also planned to advance additional target areas for future drilling.
Field work consisting of prospecting, mapping, and scouting access for diamond drill locations has already begun. Kluane Drilling of Whitehorse, YT is again providing diamond drilling services and a diamond drill is already located on the Lone Star Property. The Company plans to begin drilling in early May or as soon as practical. Funds for the expanded 3,500 meter drilling program will come in part from the recently completed private placement (see news release dated April 4, 2016).
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 its Yukon gold projects, accessible by government maintained roads located on the outskirts of Dawson City, YT, covering 25,000 hectares of hard rock and 2,000 hectares of placer claims including “McKinnon Creek” leased to Todd Hoffman/Jerusalem Mining LLC and featured on the Discovery Channel show “Gold Rush”.
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.”