Klondike Gold Announces 469,000 Indicated and 112,000 Inferred Gold Ounces Initial Mineral Resource Estimate for the Klondike District Property, Yukon, Canada
3123 – 595 BURRARD STREET
VANCOUVER, B.C. CANADA V7X 1J1
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WWW.KLONDIKEGOLDCORP.COM
Klondike Gold Announces 469,000 Indicated and 112,000 Inferred
Gold Ounces Initial Mineral Resource Estimate for the Klondike
District Property, Yukon, Canada
November 10, 2022 TSX Venture Exchange Symbol – KG
Vancouver, British Columbia, Canada, November 10, 2022, Klondike Gold Corp. (TSX.V: KG;
FRA: LBDP; OTC QB: KDKGF) (“Klondike Gold” or the “Company”) is pleased to announce an
Initial Mineral Resource Estimate in accordance with the Canadian Institute of Mining, Metallurgy
and Petroleum (“CIM”) Definition Standards incorporated by reference in National Instrument
43-101 (“NI 43-101”) for the Lone Star and Stander Deposits at the Klondike District Gold Project,
located near Dawson City in the Dawson Mining District, Yukon, Canada.
The Initial Mineral Resource Estimate comprises a total Indicated Mineral Resource of 469,000
ounces of gold and a total Inferred Mineral Resource of 112,000 ounces of gold on the near-
surface Lone Star and Stander Deposits. The Mineral Resource Estimate is based upon drilling
results from 2014 through 2021 field seasons. The pit-constrained Mineral Resource Estimate is
summarized below.
Table 1: Pit-Constrained Mineral Resource Estimate at a 0.2 g/t Au Cut- Off – Effective
November 10, 2022 – Lone Star and Stander Deposits
Classification Deposit Tonnage
Tonnes
Average Au
Grade
g/t
Au Content
oz.
Indicated
Lone Star 19,535,528 0.643 403,857
Stander 2,049,741 0.987 65,044
Total 21,585,269 0.676 468,901
Inferred
Lone Star 6,156,522 0.503 99,562
Stander 304,821 1.265 12,397
Total 6,461,343 0.539 111,959
Notes:
1. The effective date for the Mineral Resource is November 10, 2022.
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2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
3. The CIM definitions were followed for classification of Mineral Resources. The quantity
and grade of reported inferred Mineral Resources in this estimation are uncertain in
nature and there has been insufficient exploration to define these inferred Mineral
Resources as an indicated Mineral Resource and it is uncertain if further exploration will
result in upgrading them to an indicated or measured Mineral Resource category.
4. Mineral Resources are reported at a cut -off grade of 0.2 g/t Au, using a gold price of
US$1,700/ounces and a US$/CAN$ exchange rate of 0.75.
Both the Lone Star and Stander open pit deposits remain open with mineralization known to
extend beyond the current resource model boundaries. Additionally, the average indicated
mineral resource grade at Stander Deposit is 35% higher than at Lone Star Deposit. (Refer to
Figure 1: Klondike District Gold Project 2022 Resource Areas.)
Figure 1: Klondike District Gold Project 2022 Resource Areas
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A supporting NI 43-101 Technical Report will be filed on SEDAR at www.sedar.com within 45 days
of this press release.
Peter Tallman, Klondike Gold’s CEO states “The Company is excited to generate the first -ever
Mineral Resource documenting bedro ck gold resources in the 125 -year history of alluvial gold
mining in the famous Klondike goldfields. This milestone is many decades overdue from a
historical perspective. We are also pleased with the value this Initial Mineral Resource Estimate
generates for our shareholders. We have observed previously that our exploration has not yet
found the ‘best’ mineralization and we are confident there are many additional discoveries still
to be made in this prolific district.”
MINERAL RESOURCE ESTIMATE
Lone Star Deposit
The drill hole database is comprised of 241 diamond drill holes for the Lone Star deposit with a
cut-off date of May 6, 2022. There are 2 9,623 assays for gold in g/t for a total of 26, 988m of
drilling. The original Au assays were composited to 1.0m as it is the most common sampling
length with 55% of the data sampled to this length. A total of 14,476 composites were generated
from 195 holes located within the mineralized domain as defined by the geology model.
The geology model is composed of a mineralized domain developed at a 0.2 g/t Au cut-off grade.
The mineralized zone extends approximately 2 km along strike at an azimuth of 120° by 700 m
wide and to a depth of approximately 400m below surface.
The high-grade gold outliers of the 1.0m composites within the mineralized domain were capped
to 20.0 g/t Au. Statistics conducted on the capped composites showed lognormal distributions
with reasonably well-behaved gold grade distributions.
The spatial continuity of the gold grades was examined with a variographic study. Results showed
main orientations of gold grade continuity along the strike of the deposit oriented at 115°. Ranges
of gold grade continuity within the mineralized domain are 49m along strike, 25m across strike
and 33m vertically. (Refer to Figure 2: Klondike District Gold Project 2022 Lone Star Resources.)
Page 4 of 10
Figure 2: Klondike District Gold Project 2022 Lone Star Resources
The gold grades were estimated with an ordinary kriging technique into a rotated block model of
5.0m x 5.0m x 5.0m blocks with its X axis at an azimuth of 120°. A minimum of 2 and maximum
of 12 samples were used to calculate a grade estimate from the cappe d 1.0m composites. A 3 -
pass estimation approach was used with the first pass having a search ellipsoid oriented and
dimensioned to the second range of the variograms and the second and third passes having a
search ellipsoid dimensioned to two times and three times the second range of the variograms ,
respectively. Estimates were calculated within the mineralized domain only. The gold grade
estimates were visually and statistically validated to ensure that no bias is present and the level
of smoothing/variability is adequate.
The mineral resource was classified as indicated and inferred. The tonnage was calculated with a
specific gravity value of 2.80 for the mineralized domain. The mineral resource was constrained
within a pit shell optimized from a Lerchs -Grossman algorithm with the following parameters:
US$ 1,700/oz Au, US$ 2.50/t mining, US$ 5.50/t processing, US$ 2.00 G&A, 80% recovery, and
45° pit slope.
Page 5 of 10
The mineral resources are presented below at various gold grade cut -offs for the Lone Star
deposit.
Table 2: Pit-Constrained Mineral Resource Estimate at Various Au Cut- Off Grades – Effective
November 10, 2022 – Lone Star Deposit
Classification Au Cut-Offs
g/t
Tonnage
Tonnes
Average Au
Grade
g/t
Au Content
oz.
Indicated
0.1 27,270,412 0.502 440,135
0.2 19,535,528 0.643 403,857
0.3 14,576,827 0.778 364,614
0.4 11,184,871 0.909 326,878
0.5 8,832,213 1.031 292,765
Inferred
0.1 8,503,730 0.403 110,181
0.2 6,156,522 0.503 99,562
0.3 4,333,985 0.609 84,859
0.4 3,276,452 0.693 73,001
0.5 2,273,378 0.803 58,692
Notes:
1. The effective date for the Mineral Resource is November 10, 2022.
2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
3. The CIM definitions were followed for classification of Mineral Resources. The quantity
and grade of reported inferred Mineral Resources in this estimation are uncertain in
nature and there has been insufficient exploration to define these inferred Mineral
Resources as an indicated Mineral Resource and it is uncertain if further exploration will
result in upgrading them to an indicated or measured Mineral Resource category.
4. Mineral Resources are reported at a cut -off grade of 0.2 g/t Au, using a gold price of
US$1,700/ounces and a US$/CAN$ exchange rate of 0.75.
Stander Deposit
The drill hole database is comprised of 174 diamond drill holes for the Stander deposit with a cut-
off date of May 6, 2022. There are 16,758 assays for gold in g/t for a total of 15,178m of drilling.
The original Au assays were composited to 1.0m as it is the most common sampling length with
55% of the data sampled to this length. A total of 4,906 composites were generated from 96
holes located within the mineralized domains as defined by the geology model.
Page 6 of 10
The Stander deposit is made of 2 mineralized zones; the Central zone and the East zone located
some 500m to the southeast. Both mineralized zones were delineated at a 0.2 g/t Au cut -off
grade. The Central mineralized zone extends approximately 400m along strike at an azimuth of
130° by 200m wide and to a depth of approximately 150m below surface. The East mineralized
zone extends approximately 700m along strike at an azimuth of 130° by 250 m wide and to a
depth of approximately 200m below surface.
The high-grade gold outliers of the 1.0m composites within the mineralized domain were capped
to 25.0 g/t Au for the Central zone and to 20.0 g/t Au for the East zone. Statistics conducted on
the capped composites showed lognormal distributions with reasonably well-behaved gold grade
distributions.
The spatial continuity of the gold grades was examined with a variographic study. Results showed
main orientations of gold grade continuity along the strike of the deposit oriented at 140° for
both zones. Ranges of gold grade continuity within the Centr al mineralized zone are 39m along
strike, 27m across strike and 20m vertically. For the East mineralized zone the ranges of gold
grade continuity are 47m along strike, 32m across strike and 28m vertically. (Refer to Figure 3:
Klondike District Gold Project 2022 Standers Resources.)
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Figure 3: Klondike District Gold Project 2022 Stander Zone Resources
The gold grades were estimated with an ordinary kriging technique into a rotated block model of
5.0m x 5.0m x 5.0m blocks with its X axis at an azimuth of 135°. A minimum of 2 and maximum
of 12 samples were used to calculate a grade estimate from the cappe d 1.0m composites. A 3-
pass estimation approach was used with the first pass having a search ellipsoid oriented and
dimensioned to the second range of the variograms and the second and third passes having
search ellipsoids dimensioned to two and three time s the second range of the variograms,
respectively. Estimates were calculated within the mineralized zones only. The gold grade
estimates were visually and statistically validated to ensure that no bias is present and the level
of smoothing/variability is adequate.
The mineral resource was classified as indicated and inferred. The tonnage was calculated with a
specific gravity value of 2.7833 for the mineralized zones. The mineral resource was constrained
within a pit shell optimized from a Lerchs -Grossman algorithm with the following parameters:
US$ 1,700/oz Au, US$ 2.50/t mining, US$ 5.50/t processing, US$ 2.00 G&A, 80% recovery, and
45° pit slope.
The mineral resources are presented below at various gold grade cut-offs for the Stander deposit.
Table 3: Pit-Constrained Mineral Resource Estimate at Various Au Cut- Off Grades – Effective
November 10, 2022 – Stander Deposit
Classification Au Cut-Offs
g/t
Tonnage
Tonnes
Average Au
Grade
g/t
Au Content
oz.
Indicated
0.1 2,751,402 0.772 68,291
0.2 2,049,741 0.987 65,044
0.3 1,613,422 1.186 61,521
0.4 1,294,878 1.393 57,992
0.5 994,964 1.678 53,677
Inferred
0.1 372,678 1.060 12,701
0.2 304,821 1.265 12,397
0.3 255,120 1.459 11,967
0.4 200,503 1.763 11,365
0.5 167,284 2.024 10,886
Notes:
1. The effective date for the Mineral Resource is November 10, 2022.
Page 8 of 10
2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
3. The CIM definitions were followed for classification of Mineral Resources. The quantity
and grade of reported inferred Mineral Resources in this estimation are uncertain in
nature and there has been insufficient exploration to define these inferred Mineral
Resources as an indicated Mineral Resource and it is uncertain if further exploration will
result in upgrading them to an indicated or measured Mineral Resource category.
4. Mineral Resources are reported at a cut -off grade of 0.2 g/t Au, using a gold price of
US$1,700/ounces and a US$/CAN$ exchange rate of 0.75.
The mineral resources for the Lone Star and Stander deposits are presented below at various
gold grade cut-offs.
Table 4: Pit-Constrained Mineral Resource Estimate at Various Au Cut- Off Grades – Effective
November 10, 2022 – Lone Star and Stander Deposits
Classification Au Cut-Offs
g/t
Tonnage
Tonnes
Average Au
Grade
g/t
Au Content
oz.
Indicated
0.1 30,021,814 0.527 508,426
0.2 21,585,269 0.676 468,901
0.3 16,190,249 0.819 426,135
0.4 12,479,749 0.959 384,870
0.5 9,827,177 1.097 346,442
Inferred
0.1 8,876,408 0.431 122,881
0.2 6,461,343 0.539 111,959
0.3 4,589,105 0.656 96,826
0.4 3,476,955 0.755 84,366
0.5 2,440,662 0.887 69,578
Notes:
1. The effective date for the Mineral Resource is November 10, 2022.
2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
3. The CIM definitions were followed for classification of Mineral Resources. The quantity
and grade of reported inferred Mineral Resources in this estimation are uncertain in
nature and there has been insufficient exploration to define these inferred Mineral