VANCOUVER, BC – KLONDIKE GOLD CORP. (TSX-V:KG) During the fall of 2011 a limited but important program of exploration was carried out on the Lone Star property under the direction Klondike Gold’s new management. This work focused on identifying the prime hosts (lithological and structural) for the gold mineralization on the property and to assist the company in identifying near surface, bulk tonnage targets in its forthcoming exploration planned for 2012.Work included a sample orientation (channel sampling) program on the Lone Star Zone. In addition, a broader based program of back-hoe supported pit sampling was completed along a distance of 10.4 kilometres in a south-easterly direction (Lone Star Ridge road) from the Lone Star Zone.
Trenching and orientated channel sampling was completed near the west side of the Lone Star zone. A shallow trench (87-16) previously excavated was deepened (up to 8 metres) and followed up with detailed mapping and sampling along a length of ~11 metres. Continuous channel samples were collected along vertical faces that cross-cut a series of narrow (10 to 15 cm) but distinct shallow dipping quartz veins generally spaced at less than 1 metre intervals. The combined weighted grade of this panel (34 separate samples) averaged 0.91 gpt gold. The unique feature of this trench (and not previously recognized in this zone) was the recognition of a series of shallow dipping quartz structures that were generally gold enriched compared to the host schist. Secondly, while historic rock chip samples from the upper portions of the original trench measured only low gold (all less than 50 ppb gold) the channel sampling by Klondike Gold may indicate that the historic “discontinuous chip” sampling may have under reported gold potential for some areas. Results from this program will assist the company in establishing its QA/QC program for future sampling and also provide assistance in re-interpretation of previously drilled mineralized intervals within the Lone Star Zone.
Along the Lone Star ridge road the company completed the excavation of 139 pits along a length of 10.4 kilometres. Soil samples were collected from the C horizon (up to 3 metres in depth) and sent for gold and multi-element geochemical analysis. Rock chip samples were also collected from most pits and final results are being awaited. Initial evaluation of the soil sample results indicates a number of previously unknown gold in soil anomalies (>30 ppb gold) and includes values up to 535 ppb gold. In addition other elements (including arsenic, copper, lead and molybdenum) often associated with mineralized deposits returned anomalous results which could indicate the presence of mineralized veins/structures and/or felsic schist rock units.
In addition to the work by the company, Dr. Jim Mortensen of the Earth Sciences Department of UBC has been conducting research on whole rock geochemistry of the Klondike Schist in an effort to distinguish (and map) the various lithologies. Initial results have been encouraging in that certain trace elements may assist in the identification of specific schist units associated with syngenetic gold mineralization. The company has been working closely with Dr. Mortensen and will be incorporating his findings in planning its future mapping and geochemical sampling programs. The company feels that the work by Dr. Mortensen supports its premise for searching for near surface, low-grade, bulk tonnage gold deposits within the boundaries of the Lone Star property. While limited in scope, the company’s 2011 program was successful in assisting the company in establishing a QA/QC program for future evaluation of the Lone Star property. In addition, trace element work being developed by and in conjunction with UBC is expected to lead to the recognition of preferential hosts for gold mineralization within the Klondike Schist. The company will incorporate this data in plans for its 2012 exploration program.
The Lone Star property covers ~133 square kilometers and is the largest contiguous block of ground covering the historic Klondike Gold fields. Greater than 4 million ounces of placer gold were mined from creeks draining directly off the Lone Star ridge. The company looks forward to its 2012 exploration season and expects to announce plans and budget in the very near future.
Signed, Erich Rauguth President and CEO
T. Liverton, PhD., C. Geol., F.G.S. is the Qualified Person for the purpose of this news release.
Klondike Gold Corp.
Erich Rauguth, President/CEO
Phone: (604) 639-4535
Investor Relations Desk: Robert A. Young 604-685-2222 (Ext 398)