Vancouver, British Columbia, Canada, July 27, 2017, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) updates progress of ongoing drilling at the Lone Star target, and progress of ongoing exploration surveys within the Company’s Klondike district property, Yukon Territory.
Drilling Progress – Lone Star Target:
Drilling continues with a total of 30 holes completed out of a total of 60 holes planned, all testing the Lone Star target and O’Neill area in the vicinity of the Bonanza Fault. Results from the first two holes of the year have been received and released (see News Release July 11, 2017) and final assays are pending for the remainder. Preliminary ICP geochemical results from the next four holes have been received and final quantitative metallic screen assays are imminent. A total of 24 holes are in the lab queue in varying stages of completion, with more being added as ongoing logging and sampling is completed.
An expansion of the drill program by 20 holes to approximately 80 holes this year is contemplated by reallocation within the existing $2 million exploration budget. The additional drill meterage is contingent upon positive assay results from continued drilling at the Lone Star target, and/or positive results from trenching at the Gold Run target.
3D IP Surveying – Lone Star Target:
The 3D IP survey of the Lone Star target area is complete. An approximate total of 35 line kilometers of chargeability and resistivity data has been collected. Preliminary modelling of the survey data has been presented to the Company and is being reviewed with the intention of identifying drill targets in advance of receipt of final data products anticipated by mid-August.
Soil Sampling Surveys – Lone Star Target and Regional:
Sample collection of the planned 2017 soil program is complete with a total of approximately 4,900 samples submitted for analysis. The objectives of this program include completing a property-spanning first pass ridge and spur sampling program and to complete detailed grid soil sampling at the Lone Star target along a 4,500 meter length. This new data should be available for follow-up in late August. The Lone Star target high density grid sampling results will replace data recovered from paper maps of low density reconnaissance soil sampling collected in the 1980’s.
Trenching – Gold Run Target:
Trenching has begun in the Gold Run area on anomalous gold-in-soils coincident with geology targets identified by follow-up prospecting and mapping. The objective of trenching at Gold Run is to confirm geological relationships and provide targeting information for potential diamond drill testing.
Rise Gold (formerly Rise Resources) has elected not to complete the purchase of the Company’s portfolio of British Columbia exploration properties (see News Release dated May 31, 2016). Rise Gold and the Company have agreed to terminate the purchase and sale agreement in return for a $100,000 payment and acknowledgement by Rise Gold that they do not retain any interest in these properties.
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 a district-scale 527 square kilometers of hard rock and 20 square kilometers of placer claims including “McKinnon Creek” 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.”