Klondike Gold Corp. (TSX-V: KG) (the “Company”) is pleased to announce that it has signed a Letter of Intent with 46799 Yukon Inc. wherein the parties agree to enter into a Joint Venture (the “JV”) for the purpose of further exploring and developing a placer gold mine located on the Indian River and Montana Creek in the Dawson City Mining District. Klondike Gold Corp. will provide the property and the permits required for exploration and mining and an extensive amount of exploration data. 46799 Yukon Inc. will provide equipment and initial capital to the Joint Venture. Upon each party making their respective contributions to the JV, each will have a 50% participating interest in the JV and its ongoing operations.
The Indian River is a gravel-bed stream located south of Dawson City. It lies on the Klondike Plateau and forms the southern boundary of the Yukon placer gold district. The Indian River and its tributaries are the largest gold producers in the Yukon.
The project consists of 188 placer claims and covers over 96 KM of claims and leases along the southern edge of the Dawson City Mining District. Klondike Star Mineral Corporation carried out an extensive exploration drilling program on the claims between 2005 and 2007 with positive results. This is a placer gold project and the exploration results, while professionally produced, are never-the-less not in compliance with NI 43-101. The property is subject to a 10% royalty to Klondike Star, who are currently the subject of a friendly Take Over Bid by the Company. (See Company news release #12.0301 dated March 1, 2012 for more information.) The Company is particularly pleased with the prospect of seeing one its Yukon Properties developed.
About Klondike Gold Corp.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia and Dawson City, Yukon. The Company is focused on the development of its Yukon and British Columbia gold properties. In addition the Company holds a large portfolio of base metal projects in southeastern British Columbia.
Inquiries: Robert A. Young 604-685-2222 (Ext 398)
Erich Rauguth, President & CEO 604-685-2222
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. Statements in this press release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.