Klondike Gold Confirms 1 km Continuity, Three Mineralized Sub-Zones at Lone Star Target, Yukon

Vancouver, British Columbia (FSCwire) - Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) reports drill assay results from 22 new holes at the Lone Star target located 20 km from Dawson, Yukon within the Company’s 553 square kilometer property spanning the entirety of the Klondike alluvial gold placer district.

Klondike Gold’s chief executive officer, Peter Tallman stated: "These latest results identifying continuity to gold mineralization associated with major faulting in the Klondike district are extremely encouraging.  The Lone Star drill program confirms our belief that the Bonanza fault, and several other similarly important parallel structures which transect the Klondike district, have considerable exploration potential.  The exploration team has done a great job completing this important drilling program and documenting the details necessary to extend our evolving model of mineralization.  We are already looking forward to an exciting and substantial 2018 exploration program.”

Results reported here are from systematic 50-meter spaced holes along 1,000 meters of the Lone Star target between 11600E and 12600E where potential for bulk tonnage gold mineralization (wide widths, lower grades, at surface) was identified by drilling beginning late in 2016. 

Summary

• Gold mineralization at the Lone Star target is newly recognized to be hosted in three closely spaced parallel sub-zones (named Alpha, Beta, Gamma), each 10 to 40 meters wide, collectively occurring over a total horizontal width of 130 meters.

• Gold outcrops at surface for each sub-zone and extends in drill core to 100 meter vertical depth. All sub-zones remain open to depth.

• Alpha subzone gold mineralization has been intersected for a total length of 950 meters so far from east (LS17-139 on 11600E) to west (LS17-124 on 12550E).  Best intercepts include 2.4 g/t over 40.9 m and 2.1 g/t over 41.1 m in LS17-81 and -58 respectively.

• Beta subzone gold mineralization has been intersected for a total length of 775 meters so far from east (LS17-122 on 11825E) to west (LS17-104 on 12600E).  Best intercepts include 1.6 g/t Au over 30.7 m and 0.6 g/t over 37.5 m in LS17-91 and -113 respectively.

• Gamma subzone gold mineralization has been intersected by four holes only for a total length of 200 meters so far from east (LS17-93 on 12375E) to west (LS17-110 on 12575E).  Best intercepts include 0.3 g/t Au over 51.7 m and 0.6 g/t over 16.3 m in LS17-110 and -94 respectively.

• Previously reported reconnaissance drilling has reported gold to the east at Pioneer (LS17-95 on 12800E) and at O’Neil (LS17-98 on 11200E) for a total strike length of mineralization along the Bonanza fault of 1,600 meters. 

• This News Release relates to results of systematic 50-meter spaced drilling at the Lone Star target.  Additional results from drilling along strike in the O’Neil and Pioneer areas are being compiled and interpreted, as are drill results from the Nugget and Eldorado trends, as are prospecting results from various locales.  These will be forthcoming as soon as possible. 

• Company is fully funded for an expanded exploration program in 2018.

The 2017 season’s three-fold objective was: to infill to provide sufficient density of drilling (at 50 meter spacing) to correlate mineralization between sections; to extend the mineralization to the east and west towards the mineralized zones at the O’Neil and Pioneer areas; and then to do reconnaissance step-outs beyond the O’Neil and Pioneer areas.

Previously, the Company has announced drill intersections of gold mineralization at the Lone Star target of 1,600 meters in strike length (see NR 18 September, 2017) including from large step outs to the east in the O’Neil area (LS17-98 on L11200E) and to the west in the Pioneer area (LS17-95 on L12800E).

The Lone Star target currently encompasses three areas: Lone Star in the centre, O’Neil to the west, and Pioneer to the east, across a total length so far of approximately four kilometers of drill testing in proximity to the Bonanza Fault.  This news release describes assay results from 50-meter spaced drilling across a length of approximately 1,000 meters at the Lone Star target area.  (Drilling at the O’Neil and Pioneer targets, considered to be regional extensions of the Lone Star target mineralization will be discussed in a follow-up news release.)

Drilling at the Lone Star target has revealed three parallel gold mineralized sub-zones, termed Alpha, Beta and Gamma, located above (in the hanging wall) and adjacent to the Bonanza Fault.    

These sub-zones are spaced about 50 meters apart across a 130 meter lateral width (including the intervening unmineralized material).  Individually each of the three sub-zones are from 10 meters up to 40 meters in width as defined by gold assays in drill core.  All mineralization is interpreted to strike north-northwest and dip 50 degrees to the north-northeast.  Drill core intersections are interpreted to be approximately true width but more detailed work, including interpretation of drill sections, is ongoing to verify this in all cases. 

The following is a table of Lone Star target Alpha/Beta/Gamma drill results.  Note this table includes ALL results from 2016 and 2017 to define the complete 50-meter spaced drilling program.  Results are organized by Section from west to east.  The ‘Au (g/t)’ column is the weighted average of all gold values in grams per metric tonne through the ‘Interval’ indicated.  GxW denotes “G” gold (g/t) times “W” width (m) of assay intersection.  All ‘From’, ‘To’, and ‘Interval’ values are rounded to one decimal and may not add exactly.  Similarly, the GxW values are determined from the original unrounded ‘Interval’ values.  Hole ID’s with an asterisk are new results not previously released.

TABLE OF LONE STAR TARGET, ALPHA/BETA/GAMMA SUB-ZONE DRILL RESULTS:

ALPHA Subzone from 11600E to 12550E:

Alpha lies in the immediate hangingwall above the Bonanza Fault.  At approximately 50-meter drilled spacing, Alpha subzone gold mineralization has been intersected over 950 meters length, to 100 meters vertical depth, and remains open in all directions.  Hole LS17-139 is the easternmost hole assigned to Alpha, located on 11600E, which intersected 0.6 g/t Au over 16.0 meters; hole LS17-124 is the westernmost hole, located on 12550E which intersected 1.0 g/t Au over 21.3 meters.    

BETA Subzone from 11825E to 12600E:

Beta lies between 25 and 50 meters north in the immediate hangingwall above Alpha, and 30 to 60 meters above the Bonanza Fault.  At approximately 50-meter drilled spacing, Beta subzone gold mineralization has been intersected over 775 meters length, to 100 meters vertical depth, and remains open in all directions.  Hole LS17-122 is the easternmost hole assigned to Beta, located on 12600E, which intersected 0.6 g/t Au over 19.2 meters; hole LS17-104 is the westernmost hole, located on 11825E which intersected 0.5 g/t Au over 13.7 meters.   

GAMMA Subzone from 12375E to 12575E:

Gamma lies between 30 and 50 meters north in the immediate hangingwall above Beta, and 130 meters above the Bonanza Fault.  At approximately 50-meter drilled spacing, Gamma subzone gold mineralization has been intersected over 110 meters length, to 100 meters vertical depth, and remains open in all directions.  Hole LS17-93 is the easternmost hole assigned to Gamma, located on 12575E, which intersected 0.4 g/t Au over 27.8 meters; hole LS17-110 is the westernmost hole, located on 12375E which intersected 0.3 g/t Au over 51.7 meters.   

The Lone Star target is easily and directly accessible from Dawson and the Company’s Yukon field office by a 20 kilometer government maintained, partially paved, mining resource road.  The Lone Star target lies on the ridgeline above Bonanza Creek, 3 kilometers upstream from the August 1896 discovery site of alluvial gold by George Carmack, Kate Carmack, Skookum Jim, and Tagish (Dawson) Charlie that began the Klondike gold rush.

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 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.

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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