Vancouver, British Columbia, Canada, December 10, 2018, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to report assays from a further nine drill holes targeting the new eastward extension of the Lone Star Zone at the Company’s wholly owned Klondike District Property, Yukon Territory.
Significant near-surface gold mineralization has been encountered within a new 600-meter extension to the Lone Star Zone, effectively doubling the mineralized drilled length of the Zone.
The main drilling effort of 2017 and 2018 targeted the Lone Star Zone between sections 11650E to 12300E across this 650-meter interval at approximately 50-meter spacings. New results reported here are from drill holes along a further 600-meter interval from 12400E to 13000E, extending the drilled length of Lone Star Zone gold mineralization to 1,350 meters which remains open.
Nine holes tested for the eastward along-strike continuation of Lone Star Zone gold mineralization in two areas: LS18-202 to LS18-205 plus LS18-209 and LS18-210 between 12400E to 12600E following up hole LS17-124; and LS18-206 to LS18-208 between 12950E to 13000E following up hole LS17-144.
Hole LS18-204 intersected 0.93 g/t Au over 90.60 meters on 12500E, and LS18-205 intersected 0.81 g/t Au over 79.70 meters on 12600E. (LS17-124 from 2017 testing intersected 0.98 g/t Au over 21.3 meters on 12550E.)
Hole LS18-206 intersected 0.74 g/t Au over 22.10 meters on 12950E. (LS17-144 from 2017 intersected 0.53 g/t Au over 32.50 meters on 12975E.)
The systematic pattern drill testing of the Lone Star target at approximately 50-meter spacings between 11650E to 13000E so far has the objective of outlining the character, geometry, and controls of gold mineralization across the 1,350 meter interval. These results from sectional drilling continue to show broad intervals of gold mineralization starting at or near surface, as well as the presence of gold mineralization at greater depths and continue to demonstrate the auriferous nature of the bedrock mineralizing system.
LONE STAR ZONE DRILL RESULTS:
|Hole ID||From (m)||To (m)||Au (g/t)||Interval (m)|
*Holes from 2017 reported previously, mentioned in this news release.
An updated plan map of Lone Star Zone drill hole locations is available on the Company’s website https://www.klondikegoldcorp.com/photos/gallery/2018-drill-maps.
Lone Star Zone drill holes LS18-202 to LS18-210 and also LS17-124, LS17-144 were drilled at -55 dip and 200 azimuth. Assay averages are calculated over drilled core lengths; true thickness from holes drilled at 200 azimuth is approximately the drilled interval.
The final report and lithologic and structural mapping results are due from SRK Consulting. This information, once received, will be integrated with final results of Klondike Gold’s detailed mapping, as well as the products of district airborne geophysical surveying, soil geochemical surveying, and prospecting. Results of the regional program will be released with discussion at that time. Additionally, a synthesis discussion of 2018 Lone Star Zone results including drilling, mapping, rock sampling, and soils is expected in early 2019.
The Lone Star Zone is one of five targets drill tested during the 2018 exploration program. For reference, LS18-210 is the final 2018 hole drilled at the Lone Star Zone. Hole ID numbers LS18-211 to LS18-214 were unused, and holes EC18-215 to EC18-247 targeted the Nugget Zone or other targets along Eldorado Creek.
A total of 87 holes (9,511.93 meters) were drilled in 2018. Results from 78 of 87 diamond drill holes completed in 2018 have been released including all results from the Lone Star Zone (LS18-151 to LS18-159; LS18-164 to LS18-210) and Gold Run area (GR18-160 to GR18-163).
QUALITY ASSURANCE AND METHODS
Klondike Gold maintains a rigorous quality assurance / quality control (“QA/QC”) program. Details can be viewed on the Company’s website https://www.klondikegoldcorp.com/projects/sampling-and-assay-protocols/. Drill core samples are submitted by Klondike Gold personnel to Bureau Veritas Mineral Laboratories (“BV Labs”) (formerly Acme 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 core sample is crushed to 70% passing 2 mm size. A 500 g subsample is pulverized to 85% passing -75 microns size (Code PRP70-500). The 500 g subsample is then sieved to 106 microns (140 mesh) for “metallic screen” assaying. The plus 140 mesh fraction is then weighed and assayed for gold by fire assay (“FA”) fusion with a gravimetric finish (Code FS631). A 30 g subsample of the minus 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.
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.”