Vancouver, British Columbia, January 19, 2015, Klondike Gold Corp. (TSX.V:KG) (“Klondike Gold” or the “Company”) announces recently received rock assays from 89 prospecting samples on the Dominion Property collected during the 2014 field program as part of a broader program evaluating the Lone Star, Dominion, and Gold Run Properties totalling 22,500 hectares area located near Dawson, YT, Canada. Klondike Gold owns a 100% interest of 1,228 quartz claims and 14 crown grants covering the western half of the Klondike placer goldfields.
Summary:
- Prospecting samples at the Hunker Dome prospect collected from an array of quartz veins exposed in old trenches over a 700 meter length yield gold assays of between 1 g/t and 37.1 g/t Au and silver between 8 g/t and 930 g/t Ag. Three prospecting samples across a 3 meter wide quartz vein exposed in a c.1910 prospecting shaft had gold assays of 81.3 g/t, 12.7 g/t and 7.3 g/t Au. (Prospecting samples are selective in nature; systematic test results may vary significantly.) The prospect has never been drill tested.
- Prospecting samples from the Dominion Adit 150 meters vertically beneath Hunker Dome assayed gold between 0.2 g/t and 0.6 g/t Au with silver between 10 g/t and 167 g/t Ag and are interpreted to represent vertical continuation of veining.
- Two prospecting samples from the Golden Rod prospect assayed gold between 2.1 g/t and 3.0 g/t Au with silver between 7 g/t and 13 g/t silver. Golden Rod exhibits the same type of veining as exposed at Hunker Dome and obtained from the Dominion adit, and is located 1,500 meters south of Hunker Dome.
- A previously unrecognized shear fault array identified in Klondike Gold and Geological Survey of Canada (“GSC”) aeromagnetic surveys is comprised of a main dextral shear fault with associated secondary pinnate and horsetail extensional faults interpreted to transect the Klondike goldfields. On the Dominion Property a pinnate-type extensional “D4” fault passes in proximity to historic gold prospects and is interpreted to be the primary local control on Dominion property area D4 gold-bearing quartz veins.
Regional Structure:
In 2014, Klondike Gold recognized and field mapped a new shear fault array of regional importance. This fault array was identified through analysis of historical detailed airborne magnetic surveys flown by Klondike Gold over small portions of the Company’s Lone Star and Dominion Claim Blocks in 1987, 1996, and 1999. By integrating these surveys with a regional aeromagnetic survey flown for the GSC in 2000 (500m line spacing), Klondike Gold’s geologists identified the fault network throughout the Klondike region. Follow up field mapping at Lone Star and Dominion Properties demonstrates that portions of this fault network, ascribed by academic and government geologists as so-called “D4” faults, are extensional in nature and are thought to control the emplacement of Klondike area gold-enriched “D4” age veins.
Prospecting:
Prospecting in 2014 was guided by interpreted magnetics and investigated areas of faulting with the objective of documenting gold-enriched quartz veins and distinguishing them from unmineralized quartz and carbonate veins. Eighty-nine prospecting samples of all types of quartz veins were collected for assay from throughout the 26 square kilometer Dominion Property and submitted for analysis following the end of the field season. Prospecting efforts focussed on a corridor through the Dominion property interpreted by geophysics to be proximal to a secondary pinnate-type extensional fault in the vicinity of the east-southeast main shear fault. The corridor of interest includes the historic prospects at Hunker Dome, Dominion Adit, Golden Rod, and the Mitchell Vein.
Eleven prospecting samples had a gold assay result of greater than 1 g/t Au to a high of 37.1 g/t Au. Forty-three of the eighty-nine prospecting samples had a gold assay result of 0.1 g/t Au or higher; sixteen of these had anomalous silver greater than 100 ppm Ag and nineteen had anomalous lead greater than 0.5% Pb. Three additional samples collected specifically to characterize a 3 meter wide quartz vein had gold results from 7.3 g/t to 81.3 g/t Au. Note that prospecting samples are selective, non-representative rock grab samples. Systematic additional test results may vary significantly.
The extensional quartz veins of economic interest sampled at the Dominion Property and for the Lone Star Property (see News Release January 15, 2015) are ascribed to D4 veining; all have similar observed textural features, structural characteristics, and geochemistry, and are interpreted to be generated by an extensional fault system documented by Company and GSC airborne magnetics.
The Hunker Dome, Dominion Adit, and Golden Rod prospect areas within the Dominion Property were sampled and characterized during 2014.
Hunker Dome Area:
Hunker Dome area was originally staked in 1900. In 1904, a series of four prospecting shafts were sunk to depths of 4.3 to 24 meters, plus many trenches were excavated. This area has attracted exploration attention periodically since the 1900’s but has never been drill tested. Old trenches and workings remain open and were re-examined and resampled by prospectors in 2014.
Twenty-six prospecting samples collected from quartz veining in trenches and outcrops within a 700 meter length near the Hunker Dome summit all had anomalous gold assays between 0.1 g/t and 37.1 g/t Au, anomalous lead between 0.1% and 4.3% Pb, and eighteen of these contained at least an ounce of silver assaying between 32 g/t to 930 g/t Ag.
One of the 1904 Hunker Dome prospecting shafts exposes a 3 meter wide section of extensional quartz vein. An additional three prospecting grab samples collected across the vein (NE, middle, SW respectively) had gold assays of 81.3 g/t, 12.7 g/t and 7.3 g/t Au.
The Hunker Dome prospect exhibits extensional veins that cross-cut foliation at a high angle, have variable dips, and range between 10 cm to 3 meters in width. Vein frequency and density appears to increase toward the west towards the interpreted fault.
Dominion Adit (“Adit”):
In 1909-1910, an exploration adit collared 550 meters to the southwest and 150 meters vertically below the Hunker Dome shafts near Dominion Creek was driven 2600 feet (792 meters) into the hill targeting the depth extension of Hunker Dome quartz veins. In 2014, Company’s prospectors located the remains of the adit portal and sampled quartz vein material from the adit rock dump.
Five of six prospecting samples of quartz vein material collected assayed gold between 0.2 g/t and 0.6 g/t Au with silver between 10 g/t and 167 g/t Ag, and lead between 0.4% and 1.6% Pb. The sixth sample assayed 0.5 g/t Au. The quartz veins from the Adit are part of the same extensional vein network located 150 meters vertically above at the Hunker Dome prospect.
Golden Rod:
The Golden Rod gold showing was discovered and staked in 1900 and worked by trenching and pitting through 1909. Two prospecting samples (id # 1961856, 1961857) of quartz vein local float from bulldozed old trenches assayed 2.1 g/t and 3.0 g/t Au, with 0.2% to 0.4% lead, and 7 g/t and 13 g/t silver.
Golden Rod exhibits the same type of veining as exposed at Hunker Dome and obtained from the Dominion adit, and is located 1500 meters south of Hunker Dome.
Geotechnical Information:
Sample ID #, corresponding gold and silver analyses, and UTM coordinates (NAD83) and a map are tabulated and shown for prospecting samples in this news release and posted to the Company’s website here (https://www.klondikegoldcorp.com/wp-content/uploads/NR19Jan15-DominionResults.pdf).
Prospecting samples are selective in nature, non-representative rock grab samples of bedrock or boulders collected to test for the presence or absence of gold and other ‘economic’ minerals. Systematic additional test results may vary significantly. Samples are usually 0.5 kg to 2.0 kg in weight. The Company’s samples are spatially located to within 5 meters using a hand-held Global Positioning System (“GPS”) in NAD83 datum, assigned a unique assay tag, described, photographed using a GPS-enabled camera, then placed in a plastic bag and sealed. Groups of sealed sample bags are aggregated in large fiber bags then security sealed for shipment. For samples in this news release, the fiber bags were retained in locked storage in the Company’s Dawson office until after the end of the field season before being delivered by Company personnel directly to the lab. Samples were submitted 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 1 kg rock sample is crushed to 80% passing 2 mm size. A 250 g subsample is pulverized to >85% passing -75 microns size (Code PRP70-250). A 30 g (1 assay ton) subsample 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. The re-assay uses a 30 g subsample and is assayed by FA with a gravimetric finish (Code FA530-Au/Ag). Samples were also analyzed for multi-element chemistry by ICP-MS analysis (AQ200+U code). Samples over-limit in lead are rerun by a high-detection limit ICP-ES procedure (Code MA370).
Peter Tallman, Klondike Gold’s President and CEO, a Qualified Person as defined by NI43-101, has supervised, reviewed and approved the scientific and technical information contained within this news release. Mr. Tallman is not independent of the Company as he is an Officer, Director, and shareholder.
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 located in the historic Klondike region covering 25,000 hectares of hard rock and 2,000 hectares of placer claims including “McKinnon Creek” leased to Todd Hoffman/Jerusalem Mining LLC and featured on the Discovery Channel show “Gold Rush”.
On behalf of Klondike Gold Corp.
“Peter Tallman”
President and CEO
(604) 559-4440
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. 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.”