28/09/17
Vancouver, British Columbia, Canada, September 28, 2017, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) announces drill assay results from four holes at the Lone Star target while drilling continues with two rigs within the Company’s 527 square kilometer Klondike district property, Yukon Territory.
Klondike Gold President Peter Tallman states: “Current drilling is focused on testing several roughly parallel structural zones; the Bonanza Fault, Nugget Fault, and the Eldorado Fault. These multi-kilometer long fault zones host gold mineralization that likely originated as extensional splays from deeper-seated (underlying) regional-scale thrust faults. The Company’s insight and understanding of the numerous geologic controls/influences on the gold depositional processes within the historic Klondike district is steadily evolving and continues to firmly demonstrate exploration potential for bedrock gold deposits.”
Summary
Drilling along the Bonanza Fault up to LS17-139 has now tested a total strike length of 4 kilometers, up from 2 kilometers disclosed previously. The objective of this drilling is to investigate the extent of gold mineralization associated with the currently known strike length of the Bonanza Fault.
Drilling has commenced to test the parallel Nugget Fault structure over a total strike length of 4 kilometers also. The objective of this drilling is to investigate the gold mineralization, character, and extent along strike from the Company’s Nugget Zone (see NR July 14, 2016) on a parallel structure to the Bonanza Fault.
Drilling is contemplated to test the parallel Eldorado Fault structure. Drilling is also contemplated and weather permitting to test the Company’s Gold Run area located 55 km away along strike at the other end of the Klondike district property.
Assay results reported here begin to demonstrate the down-dip character of the Lone Star target along the Bonanza Fault structural zone.
Summary of Gold Intercepts Discussed in this News Release:
Section (m) Hole ID From (m) To (m) Au g/t Interval (m)
45 LS17-81* 5.5 46.62 2.1 41.12
45 LS17-106 10.00 38.50 1.0 28.50
45 LS17-101 34.00 51.50 0.5 17.50
345 LS17-64* 29.50 54.00 1.5 24.50
380 LS17-108 12.75 66.10 0.7 53.25
Including 12.75 38.40 0.9 25.65
440 LS17-109 21.50 28.70 0.9 7.20
*previously reported. All holes listed are drilled at -50 degrees, 200 azimuth. All intervals are approximately true thickness. (See NR August 1, 2017 for section meterage.)
Discussion
Drilling within the Lone Star target has indicated multiple closely spaced, parallel subzones of gold mineralization with 20 meters to 40 meters separation. Previous interpretation had contemplated one continuous zone of mineralization over the 800 meter strike length drilled so far at Lone Star. New interpretation contemplates as many as four. Investors are cautioned that interpretation is evolving as assay results are received and correlated, and is subject to change.
New assays for holes LS17-106 and LS17-101 are reported here.
The western extent of the Lone Star target is presently known by previously reported LS17-81 which intersected 2.1 g/t Au over 41.1 meters. LS17-106, a 30 meter undercut of LS17-81, intersected 1.0 g/t Au over 28.5 meters. LS17-101, a 30 meter undercut of LS17-106, intersected 0.5 g/t Au over 17.5 meters. These intercepts are approximately the true thickness. This subzone is interpreted to be the most southerly.
The weighted average grade of samples from all three drill holes is 1.4 g/t Au. Gold mineralization outcrops at surface over 50 meters on section, has a drilled down-dip extent of 90 meters, a 60 meter vertical depth extent, and remains open. The implied dip is 40 degrees which is parallel to the Bonanza Fault.
New assays for holes LS17-108 and LS17-109 are reported here.
LS17-108 and LS17-109 are located 360 meters and 405 meters respectively along strike testing the same subzone tested by LS17-81, LS17-106, and LS17-101. The eastern extent of the subzone is presently known by previously reported LS16-64 which intersected 1.5 g/t Au over 24.5 meters. LS17-108, a 45 meter step-out to the east, intersected 0.9 g/t Au over 25.65 meters within a broader interval of 0.7 g/t Au over 53.25 meters. LS17-109, a 45 meter further step-out to the east, intersected 0.9 g/t Au over 7.2 meters. These intercepts are approximately the true thickness. This subzone is interpreted to be the most southerly.
Ongoing Exploration Work
The Company’s Klondike property has identified orogenic gold mineralization with gold introduced regionally by a series of major thrust faults acting as conduits. At the Lone Star target, the primary control for gold mineralization is considered to be the Bonanza Fault, a prominent regionally significant structure controlling deposition of gold mineralization. The Bonanza Fault is expressed as a magnetic low (‘break’) which has at least a 7 kilometer length in the Company’s detailed ground magnetics survey data and extends beyond the limit of area currently surveyed.
Field work in progress includes magnetics surveying which is attempting to trace the suspected extension of the Bonanza Fault signature further to the southeast. This work has been contracted to Aurora Geophysics of Whitehorse, YT.
The Company has so far identified two other magnetic low (‘breaks’) termed the Nugget Fault and Eldorado Fault respectively, each with approximately 7 kilometer lengths defined in ground magnetics surveying which parallel the Bonanza Fault. The Nugget Fault hosts the Nugget gold target (see NR July 14, 2016) and the Eldorado Fault hosts the Gay Gulch gold target (see NR October 26, 2015).
Drilling Update
Drilling is ongoing with two drill rigs implementing the Phase 3 program. A total of approximately 4,000 meters of drilling for 40 holes is planned, notionally divided into 20 holes for 2,000 meters for each drill.
Results from Phase 2 drilling LS17-100 to LS17-117 are expected shortly, beginning with results reported here. Results for holes LS17-92 to LS17-94 are dependent for interpretation on the results of LS17-112 and LS17-113, and are the last remaining holes to report from the Company’s Phase 1 drilling. These holes targeted the eastern end of the Lone Star target laminated schist unit.
Drilling is ongoing with two drill rigs. Drilling along the Bonanza Fault up to LS17-139 has now tested a strike length of 4 kilometers, up from 2 kilometers disclosed previously. The objective of this drilling is to investigate the extent of gold mineralization associated with the strike length of the Bonanza Fault.
Drilling has commenced to test the parallel Nugget Fault structure over a total strike length of 4 kilometers also. The objective of this drilling is to investigate the gold mineralization, character, and extent along strike from the Company’s Nugget Zone on a parallel structure to the Bonanza Fault.
Drilling is contemplated to test the parallel Eldorado Fault structure. Drilling is also contemplated, contingent upon road conditions and weather, to test the Company’s Gold Run area located 55 km away along strike at the other end of the Klondike district property.
Turn-around time for laboratory assays has been unusually long over the past weeks but is improving. Logging and sampling of holes by Company personnel is underway and will continue into November. It is still anticipated that some drill assay results will become available for release in January.
Drilling plan view maps and sections are available on the Company’s website here.
Drill Core and Assay Protocols 2017
All drill holes are photographed wet. Magnetic susceptibility, foliation, and rock quality determination (“RQD”) measurements are systematically collected. All cross-cutting (potentially mineralized) quartz veins and adjoining alteration envelopes are individually photographed. Core logging records lithology, structure, and alteration. Visible gold is identified, measured, photographed, and then excluded from the assay sample for that interval. Assay samples from drill core are cut using a diamond saw. Half the core sample interval is bagged, tagged, and sealed; the other half is returned to the core box with a corresponding tag and retained for reference. Sample bags are aggregated into rice bags, sealed, and 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 rock sample is crushed to 80% 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. Samples were also analyzed for multi-element chemistry by ICP-MS analysis (AQ201+U code). Samples over-limit in lead are rerun by a high-detection limit ICP-ES procedure (Code MA370). QA/QC includes the insertion and continual monitoring of Klondike Gold standards, blanks, and duplicates within each batch, in addition to BV Labs QA/QC samples. A description of sample and assay procedures and protocols are also disclosed on the Company’s website.
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.
“Peter Tallman”
President and CEO
(604) 609-6110
E-mail: info@klondikegoldcorp.com
Website: www.klondikegoldcorp.com
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. There has been insufficient exploration to define a mineral resource or mineral reserve and there are no current mineral resources or mineral reserves outlined on the property. There is no certainty that ongoing exploration will yield positive results.
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.
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