Klondike Gold Drilling Intersects 3.5 g/t Au over 11.3 meters; 1.5 g/t Au over 24.5 meters at Lone Star

Vancouver, British Columbia (FSCwire) - Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) announces receipt of drill assay results from all remaining drill holes testing the Lone Star target within the Company’s Klondike District Project located near Dawson City, Yukon Territory.

Summary

• Lone Star drilling encountered near-surface gold mineralization across broad widths of up to 42.0 meters, over a strike length of 700 meters, and remains open in all directions. 

• New highlights of Lone Star drill results include 3.5 g/t Au over 11.3 meters and separately 1.6 g/t Au over 8.6 meters in LS16-70; 1.5 g/t over 24.5 meters in LS16-64; 0.9 g/t Au over 42.0 meters in LS16-63; 4.7 g/t over 4.0 meters and separately 1.2 g/t over 14.0 meters in LS16-68; and 2.5 g/t over 9.9 meters in LS16-69.

• The 700 meter drilled length of gold-mineralization encountered at Lone Star is associated with a 1,500 meter induced polarization (“IP”) anomaly (the length of the survey, target remains open) and a 4,000 meter long gold-soil anomaly, as compiled from various c.1980’s exploration efforts. 

• Klondike Gold Corp. has won the prestigious Robert E. Leckie Award for Excellence in Environmental Stewardship.

• Klondike Gold is pleased to announce the appointment of Jessica Van Den Akker as Chief Financial Officer of the Company effective January 4th, 2017.

The Company’s 2016 exploration program was designed to systematically test new interpretations of geology, structural-controls and continuity of mineralization that would upgrade the potential for economically interesting gold mineralization both at the Lone Star target and throughout the Company’s 527 square kilometer Klondike District project.  Results to date have demonstrated the value of this new exploration interpretation/approach and will be vigorously pursued throughout the upcoming 2017 season including expanded programs focused on multiple targets within the expansive district.

Detailed Drilling Results: Lone Star Target

Lone Star drilling encountered near-surface gold mineralization across broad widths of 30+ meters, over a strike length of 700 meters and remains open in all directions.  A total of 17 short drill holes, LS16-58 to LS16-74, tested the vicinity of Lone Star target in late 2016.  Results are described below.  A drill plan map, individual drill sections, tabulated assay results and collar information (UTM collar location, dip, azimuth, hole depth) can be found on our website HERE.  Hole lengths ranged from 47 meters to 108 meters, usually drilled at shallow -55 degree angles, and gold mineralization occurs at or within 50 meters of surface.

The 700 meter drilled length of gold-mineralization encountered at Lone Star is associated with a 1,500 meter induced polarization (“IP”) anomaly (the length of the survey, target remains open) and a 4,000 meter long gold-soil anomaly, as compiled from various c.1980’s exploration efforts. 

Gold mineralization at Lone Star is preferentially hosted within a ‘laminated schist’ located above a regionally significant low angle thrust fault. The gold-bearing laminated schist has subtle carbonate alteration and disseminated pyrite.  Gold is commonly visible and occurs as disseminations of free grains within the schist and mantling pyrite.  The gold-bearing schist is capped by a siliceous schist with distinct major and trace element chemistry.  Gold is also found within gold-bearing quartz veins along the contacts between the two units.

The following table summarizes the weighted average intervals of gold mineralization from the Company’s winter 2016 drill program at the Lone Star target.

Lone Star Drilling Summary of Gold Intersections:

(* see news release November 1, 2016)

The Company’s Lone Star exploration target includes the c.1910 Lone Star mine area.  From the 1980’s to 2012, various explorers tested a 500 meter length from the Lone Star mine workings with trenching, reverse circulation drilling, and diamond drilling.  During 2016, the Company re-evaluated this historic target following prospecting discoveries of gold-bearing outcrops outside of and along strike from the historic exploration area (see NR September 28, 2016).  The Company’s winter drill program targeted three areas: outside the western end (“western”), within the area of previous work (“central”) and outside the eastern end (”eastern”) as described below by area. 

Western:

Four holes were drilled over a 50 meter strike length outside the western end of the historically explored area at the Lone Star mine.  LS16-58 intersected a broad zone of disseminated gold mineralization with two quartz vein arrays which beginning at surface assayed 2.4 g/t Au over 37.0 meters downhole including 6.6 g/t Au over 7.1 meters and 9.4 g/t Au over 3.6 meters respectively.   LS16-59, drilled 40 meters along strike to the east, beginning at surface intersected a broad zone of disseminated gold mineralization which assayed 1.2 g/t Au over 27.7 meters downhole including 2.3 g/t Au over 7.3 meters.  LS16-60 and LS16-61 tested the hanging wall siliceous schist above the mineralized trend and had no significant mineralization.

Central:

Nine holes were drilled over a strike length of 125 meters (see drill plan map for spacing) to test for continuity of historic intersects.  Five holes, LS16-62 to LS16-66, provided a shallow tier test.  Four holes, LS16-67 to LS16-70, provided a ‘deeper’ tier test.

LS16-62 intersected 1.7 g/t Au over 5.0 meters beginning at surface, and only tested a portion of the total zone.  LS16-62 is 125 meters east of LS16-59.  LS16-63, located 50 meters east of LS16-62, intersected 0.9 g/t gold over 42.0 meters which is the widest significant interval of gold mineralization so far on the property.  LS16-64, located 50 meters east of LS16-63, intersected 1.5 g/t gold over 24.5 meters.  From the same collar, LS16-65 was drilled at steeper angle (-75 degrees) and intersected the bottom portion of the laminated schist with only sporadic anomalous values.  LS16-66, located 25 meters east and 30 meters behind LS16-64, intersected 1.6 g/t Au over 8.0 meters.

LS16-67, located 55 meters behind LS16-64, intersected 1.0 g/t Au over 3.0 meters and also 1.6 g/t Au over 4.5 meters.  From the same collar, LS16-68 was drilled at steeper angle (-75 degrees) and intersected 4.7 g/t Au over 4.0 meters and a deeper zone of 1.2 g/t Au over 14.0 meters. LS16-69, located 40 meters behind LS16-63 intersected 0.9 g/t Au over 12.0 meters from surface and also 2.5 g/t Au over 9.9 meters at 88.7 meters downhole.  From the same collar, LS16-70 was drilled at steeper angle (-75 degrees) and intersected 1.6 g/t Au over 8.6 meters near surface and a deeper zone of 3.5 g/t Au over 11.3 meters. 

Eastern:

Four holes were drilled outside the eastern end of the historically explored area at the Lone Star mine, testing for extension of the mineralized schist in this direction.  LS16-71 intersected disseminated gold mineralization assaying 0.5 g/t Au over 12.7 meters.  From the same collar, LS16-72 was drilled at steeper angle (-75 degrees) and intersected sporadic anomalous values.  LS16-73 tested an IP anomaly collared 25 meters east and 40 meters behind LS16-71 and also did not intersect significant values.  LS16-74 was collared approximately 150 meters west and 150 meters behind LS16-71, drilled at a steep angle (-80 degrees) and designed to test for the underlying major thrust.  The hole intersected 1.5 g/t Au over 4.0 meters from 59.0 meters and a thrust splay at 100 meters.  

The true width of mineralization is generally estimated as the interval within each hole, however this is an estimate and further information is required for greater certainty.

The Company’s 2016 Lone Star target drill program systematically tested a new interpretation of geology and continuity of mineralization that, if successful, would upgrade the potential for economically interesting gold mineralization both at Lone Star and throughout the Company’s 527 square kilometer Klondike District project.

Klondike Gold Wins Prestigious Leckie Award for Excellence in Environmental Stewardship 

Klondike Gold Corp. has won the prestigious Robert E. Leckie Award for Excellence in Environmental Stewardship for the Company’s extensive environmental restoration and reclamation work in 2015 and 2016 of legacy disturbances on its properties.  “[The new management of] Klondike Gold has demonstrated clear leadership in reclamation and is seen by industry as raising the bar with their practices” said Deputy Minister Stephen Mills, Government of Yukon Department of Energy, Mines and Resources.  The Robert E. Leckie Award was presented to Peter Tallman, CEO of Klondike Gold during the 2016 Yukon Geoscience Forum in late November.  Mr. Tallman praised the environmental stewardship efforts of Klondike Gold staff with significant cooperative effort of contractors Reliance Remote Logistics Limited and Kluane Drilling Limited; without everyone working together this award would not have been possible.  More information about the Robert E. Leckie Award can be found at http://www.emr.gov.yk.ca/mining/leckie.html.

Appointment of Chief Financial Officer

Klondike Gold is pleased to announce the appointment of Jessica Van Den Akker as Chief Financial Officer of the Company effective January 4th, 2017.  Ms. Van Den Akker is a Chartered Professional Accountant (CA) with over 11 years’ experience in the resource sector.  She gained extensive experience through a Canadian audit firm providing reporting and accounting assurance services to publicly traded companies, primarily in natural resources.  Ms. Van Den Akker is a graduate of Simon Fraser University where she received a Bachelor of Business Administration. The Board has accepted the resignation of Ms. Dhaliwal and would like to thank her for her contributions to the Company and wish her well in her future endeavours.

The Company further announces that pursuant to the Company’s Stock Option Plan, a total of 150,000 incentive stock options have been granted to Ms. Van Den Akker.  The options are exercisable at the closing price of the Company’s shares on January 19, 2017 for a period of 10 years, subject to regulatory approval.

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.  For detailed drill core sampling and assay and QA/QC protocols, see news release dated July 14, 2016 or the company’s website.

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.

“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.

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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