Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) is pleased to announce that the Board has approved a $2,500,000 exploration program for 2018 within the Company’s Klondike district property, Yukon Territory.
$2.5 million exploration budget for 2018, which includes
5,000 to 7,000 meters of drilling,
3,000 to 5,000 new soil samples,
300- to 500-line kilometers of ground magnetics.
Detailed work in 2018 is designed to systematically test for gold mineralization from the Lone Star prospect along the 55 km trend to the new Gold Run target which is the length of the Klondike District.
The Company plans a $2,500,000 exploration program for 2018, a 25% increase in expenditure compared to the 2017 budgeted program. Major components of the 2018 budget include plans for: 5,000 to 7,000 meters of drilling between multiple targets; 3,000 to 5,000 new soils, 300- to 500- line kilometers of ground magnetics surveying, detailed structural and lithologic mapping and prospecting across the entire district for the first time, and contingency for 2018 follow-up on any new targets generated.
The first priority of exploration work in 2018 is to complete the systematic work necessary to demonstrate gold mineralization can occur throughout the 55 km long Klondike District from the northwest end at the Lone Star target to the southeast end at the new Gold Run target. Results from 2015-2017 in the Lone Star area have suggested a first-order major fault, the “Rabbit Creek Thrust”, has been a conduit of gold-bearing fluids and that secondary faults, the “Bonanza”, “Nugget”, “Eldorado”, and “Irish” faults are loci of gold mineralization as quartz veins or as broader disseminations. Drill testing three of these structures in 2015-2017 yielded significant gold intersections associated with these faults at the Lone Star, Nugget, and Gay Gulch showings respectively. It is inferred from magnetics that these individual or similar fault structures extend through the length of the Klondike District. Detailed work in 2018 is designed to systematically test for gold mineralization associated with faulting.
The second priority is to continue drill testing. The Lone Star exploration target, which is the first sizeable gold ounce target area outlined within the district, will be an early focus of exploration in 2018. The potential quantity of the Lone Star target is conceptual in nature and there has been insufficient exploration to date to define a mineral resource and it is uncertain if this season’s exploration program described below will result in the target being upgraded or delineated as a mineral resource. Work planned for the Lone Star target includes additional drilling and initial preliminary metallurgical testing.
Other targets planned for drilling include additional testing at the Nugget target on the Nugget fault (best hole 5.1 g/t Au over 14.3 meters; see NR July 14, 2016); new testing at the Gay Gulch showing on the Eldorado fault (best hole 75.6 g/t Au over 2.8 meters; see NR October 26, 2015); and initial testing of the Irish fault – all in the northwest end of the Klondike District.
The Company also intends an initial drill program at Gold Run located 55 km to the southwest. Mapping in late 2017 documented a thrust fault, possibly an extension of the Rabbit Creek Thrust, and two secondary structures in similar positions to the Bonanza and Eldorado faults. Prospecting located gold bearing quartz veins with visible gold from very old mine dumps, as well as gold-bearing mineralization from altered outcrops lacking noticeable quartz veins interpreted to be a style of disseminated gold mineralization. The environment at the Gold Run target is very similar to the environment at the Lone Star target, as presently understood.
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 553 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.