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Klondike Gold Corp.: Indian River Placer Gold Mine Concludes Construction on Schedule and Prepares for Gold Production

20.09.2012  |  Marketwire

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/19/12 -- On July 7th, 2012 the 50/50 joint venture between Klondike Gold Corp. (TSX VENTURE: KG) and 46799 Yukon Inc., was formed to operate a placer mining operation on 188 claims on the Indian River in the Yukon Territory. (See News Release of July 26, 2012). Work on the site commenced on July 27th and the company is pleased to announce, that in the short period since that date, the operating company, KG46 Holdings Ltd., has not only built the complete infrastructure (roads, waterlines, settling ponds, camp) but also purchased and placed the complete 200 cubic yard per hour operating facility (dirt moving equipment, processing plants, power generation, pump stations). During the process of building the infrastructure selected gravel zones were excavated and approximately 25,000 m3 of gravels were stockpiled as pay dirt. Processing some of the material from that stock pile resulted in the recovery of approximately $70,000 worth of gold which, excluding any capital costs, substantially covers the costs of developing the infrastructure. The efficient completion of this work allows the company to sluice more material and fine tune operations over the next few weeks while assuring full production at start of the 2013 season.


The Indian River Placer Project compliments the Company's near-by Lonestar Gold Project where the Company is compiling for the first time, all available geological data that enhances the understanding as to the gold source of the very rich placer claims made famous by the Klondike Gold Rush of 1896.


ABOUT KLONDIKE GOLD CORP.


Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon. The Company is focused on the development of its Yukon and British Columbia gold properties, and also holds a large portfolio of base metal projects in southeastern British Columbia.


Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.


Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contacts:

Klondike Gold Corp.

Robert A. Young

604-685-2222 (Ext 398)
info@klondikegoldcorp.com


Klondike Gold Corp.

Erich Rauguth

President & CEO

604-685-2222

604-685-3764 (FAX)
www.klondikegoldcorp.com


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