Vancouver, British Columbia, Canada, August 22, 2017, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) announces a second diamond drill is being added to the exploration program to accelerate testing of recently identified targets within the Company’s 527 square kilometer Klondike district property, Yukon Territory.
Klondike Gold President Peter Tallman stated; “Building upon our successful field results and funding commitments, we are now able to rapidly expand our gold exploration programs within the Company’s expansive Klondike district land holdings. What we’ve learned so far at Lone Star/Bonanza, has implications for several other key, historically gold-rich target areas within the district, and we’re eager to begin systematically testing these zones as they also exhibit strong discovery potential.”
Results from the recent gold-in-soil survey reported from the Lone Star target show a continuous gold-in-soil anomaly extending 4,000 meters (see NR August 17, 2017) that is coincident with the 800 meters strike length of gold mineralization in drill holes so far this year (see NR’s June 17, 2017; July 17, 2017; and 1 August, 2017). Considering the priority drill targets identified to date and given the time remaining in the season, a second drill (“Rig 2”) has arrived on the Company’s Klondike district properties with drilling expected to begin mid-week. The first drill (“Rig 1”) is drilling. Over the next 30 days up to approximately 40 new drill holes for 4,000 meters of core are expected to be completed in this ‘Phase 3’ drill program. This brings the season’s planned total to approximately 8,000 meters drilled.
In order to survey a greater area, the overall drill strategy using both drills will transition to larger step-outs along the 4,000 meters Lone Star target gold-in-soil anomaly to evaluate the extent of near-surface mineralization and potential for expansion along strike. Rig 1 is expected to test the Lone Star target with up to 1,800 meter step out to the east, and Rig 2 is expected to test up to a 1,200 meter step out to the west for a total length targeted of 3,800 meters. An updated plan map of Phase 1 and 2 drill locations plus Phase 3 planned holes is available on our website HERE.
Contingent upon timing in the season, the Company also has plans to drill test a number of targets along two other interpreted significant fault structures comparable to the ‘Bonanza Fault’ associated with Lone Star target mineralization. Both the ‘Nugget fault’ and the ‘Eldorado fault’ are similar strong ‘magnetic break’ lineaments associated with gold-in-soil anomalies that also extend many kilometers in length. Both of these lineaments host gold mineralization; highlight drill intersections in 2015 and 2016 include 5.1 g/t Au over 14.3 meters and 76 g/t Au over 2.8 meters respectively. The true thickness of the gold mineralization is approximately 0.8 times the interval length in these holes (see NR’s July 14, 2016 and October 26, 2015). Following the identification of multi-kilometer scale gold mineralization at the Lone Star target, the Company believes there is significant potential along the Nugget and Eldorado lineaments as well.
Finally, contingent upon timing in the season, the Company plans to reconnaissance test areas at the Company’s Gold Run target area identified by prospecting, mapping and trenching of gold-bearing quartz veining in outcrop and float coincident with inferred ‘magnetic break’ lineaments. The Gold Run target is located 50 km from the Lone Star target at the other end of Klondike Gold’s extensive property. Despite this, to the Company’s knowledge, there has never been a diamond drill hole in the Gold Run area. The Gold Run target area is characterized by a severe lack of outcrop which has hampered systematic exploration efforts. The objective is to gain an initial understanding of the nature and controls of gold mineralization and host rock lithologies at this end of the Klondike district, which allows for comparison of economically interesting gold mineralization identified in other areas throughout the Company’s property.
A total of 3,937 meters have been completed year to date in 37 holes drilled in Phases 1 and 2 with Rig 1. Assays have been received and released for 11 drill holes. Samples from the remaining 26 holes have been delivered to the lab queue and assays are pending. Contingent upon the completion of at least the Phase 3 drill program outlined above, there will be 66 holes with results to announce from the 2017 season.
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 the Lone Star gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 527 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.”