Clubine

Overview

• Visible gold observed in several of the 2009 drill holes; assays highlights include 38 g/tonne Au across 0.98 meters, with a 20 cm interval assaying 148.4 g/tonne Au
• High grade gold-quartz base metal vein with limited past production
• Located within a major gold producing district
• Known dimensions - 130 m strike length, 150 m down dip, and up to 1 m thick, open along strike and dip

Regional Exploration and Production

Several important past producing camps are located in the area: the Rossland gold-copper camp is located 40 kilometers to the west, the Ymir silver camp, 8 km to the northeast, the Sheep Creek gold camp, 15 km to the east and the Silver King camp, 20 km to the north. The Rossland camp produced 86 million grams (- 2.76 million ounces) gold and 109 million grams (- 3.52 million ounces) silver from 1897 to the mid 1940s.

Other Local Exploration

Considerable recent exploration has been done by Sultan Minerals Ltd on their Kena gold property, 15 km to the north.

Localized Geology

Clubine is a vein structure within early Jurassic Rossland Group volcanic and metasedimentary rocks. Numerous middle Jurassic granitic stocks occur in the area and the Bonnington and Nelson batholiths occur 10 to 15 km to the east and north respectively.

Property Geology

The Clubine property contains two mineralized zones, an upper lead-zinc-silver zone characterized by a broad geochemical anomaly and thin, mainly quartz-galena veins and a lower, shear-related quartz-gold-silver-sulphide vein. The gold-silver vein was mined in the 1930s and 1940s, with considerable underground development. It is a steeply east dipping vein structure, typically one meter in width, that has been drilled through a vertical relief of approximately 150 meters and a strike length of 130 meters. It is open to depth and along strike. Vein minerals include quartz, siderite, pyrite, chalcopyrite and galena with minor pyrrhotite, sphalerite and tetrahedrite.

Historical Highlights

Clubine is a past producer, with high grade gold vein ore mined in the 1930s-1940s, with recovery of 239,463 g (7699 oz) silver, 123,293 g (3964 oz) gold and 818 kg copper from 3616 tonnes mined.

Work Completed to Date

Klondike Gold acquired the property in 2005; a ground VLF-EM survey was done in 2007, and 9 holes were drilled in 2009.

Recent Highlights

Visible gold was observed in several of the 2009 drill holes. Assays (in progress, Feb, 2010) returned 38 g/tonne Au across 0.98 meters, with a 20 cm interval assaying 148.4 g/tonne Au.