Klondike Gold Begins Phase 2 Drilling at Lone Star Zone
3123 – 595 BURRARD STREET
VANCOUVER, B.C. CANADA V7X 1J1
TELEPHONE: 604-609-6138
FAX: 604-609-6145
WWW.KLONDIKEGOLDCORP.COM
Klondike Gold Begins Phase 2 Drilling at Lone Star Zone
May 26, 2021 TSX Venture Exchange Symbol – KG
Vancouver, British Columbia, Canada, May 26, 202 1, Klondike Gold Corp. (TSX.V: KG; FRA:
LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to report Phase 2 diamond
drilling has begun at the Lone Star Zone Target area, part of a three phase drill program on the
Company’s wholly owned 586 square kilometer Klondike District Property near Dawson City,
Yukon Territory. Also, the Company has received an early small gold royalty payment from Dulac
Mining as the first gold ‘clean up’ of 2021.
SUMMARY
• Phase 2 drilling begins at Lone Star Zone, maiden resource in focus.
• Visible gold is identified in the second 2021 drill hole testing the Phase 2 ‘Lone Star East’
target area.
• Visible gold also is identified in two of three archived legacy drill cores from 2006, during
re-logs. These are within the Phase 2 ‘Lone Star Deep’ drill target area.
• Phase 1 drilling at Virgin and Lindow Targets complete (see details below).
• Dulac Mining has begun placer mining operations on the Company’s Upper Eldorado
Creek placer property. Klondike Gold has received the first royalty (10%) payment of 2021
comprised 0.5 ounces flake gold from a total 4.5 ounces gold recovered during start-up
equipment testing.
Peter Tallman, Klondike Gold’s CEO stated, “ Visible gold in the second 2021 hole at Lone Star
Zone is an excellent boost to the start of the season, as is identifying visible gold in two pertinent
historic holes by previous management. The ‘behind the scenes’ work by our team collecting and
modelling structural, geochemical and geologic data is responsible for the Company’s confidence
in the Lone Star East and Lone Star Deep targets. It is a great start to a breakout season. Credit
to the team as a steady and methodical exploration approach over this historic district begins to
pay dividends.”
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PHASE 2 LONE STAR ZONE TARGETS
Phase 2 drilling begins with the focus on outlining a maiden resource within the 3,000+ meter
length of Lone Star Zone. The Lone Star Zone footprint from 50-meter spaced drilling is currently
950 meters by 200 meters size (see Figure 1 ). The majority of 2021 drill meterage will be
expended testing for expansions of Lone Star Zone mineralization in two informally named target
areas: Lone Star Deep and Lone Star East. T he Lone Star Deep target comprises a 600 meter by
200 meter panel the Company is simultaneously testing for near surface, across-strike
mineralization as well as for down-dip continuation of the Lone Star Zone to 250 meters below
surface. Recent examination of legacy 2006 holes within the Lone Star Deep target encouragingly
identified visible gold near surface in two of the three holes (see Figure 1 for 2006 hole location).
The Lone Star East target is a 250 meter by 200 meter panel that tests for eastern continuation
of Lone Star Zone gold mineralization. Drilling in 2021 has begun here and visible gold is noted in
the second drill hole of the Phase 2 program, LS21 -399, at 42.2 meters downhole within an
interval typical of Lone Star Zone gold mineralization.
Figure 1: Lone Star Zone Target Areas
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PHASE 1 VIRGIN AND LINDOW TARGETS UPDATE
Phase 1 drilling is complete with a total of 356 meters of core drilled in five holes; three at Virgin
Mine and two at Lindow targets. Drill operations were difficult in steep terrain and core
recoveries were poor and blocky, resulting in short holes. Logging and sampling of these holes is
in progress. At least one of the Virgin target holes intersected alluvial white channel gravel
perched on a side -hill bench above bedrock ; not of economic interest to the Company, but a
reminder of the link between gold rush era placer gold and modern exploration.
DULAC MINING ON UPPER ELDORADO CREEK PLACER
Dulac Mining ha s resumed placer mining operations on the Company’s Upper Eldorado Creek
placer property and has completed the first gold ‘clean up’ of 2021 . Klondike Gold has received
0.5 ounces of gold flakes from a total of 4.5 ounces gold recovered from material processed
during start-up equipment testing as first royalty (10%) payment of 2021. In 2020 Dulac Mining
recovered 500 ounces placer gold (as fines, coarse flakes, and nuggets) with the Company
receiving 50 ounces placer gold in royalty payment.
Figure 2: Location of Planned 2021 Drilling Targets (red stars) including Phase 1: Virgin/Lindow
Target, Phase 2: Lone Star Zone and Phase 3: Stander Zone.
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QUALIFIED PERSONS REVIEW
The technical and scientific information contained within this news release has been reviewed
and approved by Ian Perry, P.Geo., Vice -President Exploration of Klondike Gold Corp. and
Qualified Person as defined by National Instrument 43 -101 policy. Detailed technical
information, specifications, analytical informatio n and procedures can be found on the
Company’s website.
COVID-19 UPDATE
Klondike Gold continues to take proactive measures to protect the health and safety of our local
host community, our contractors and our employees from COVID 19 and exploration activities in
2021 will have additional safety measures in place, following and exceeding all the
recommendations made by the Yukon’s Chief Medical Officer. Additionally, the Company has
received Yukon government approval for our 2021 Alternate Isolation Plan (“ AIP”) which
mandates protocols and stringent isolation safety measures permitting essential personnel to
transit to/from Yukon. As of May 25, people who are fully vaccinated will no longer be required
to self -isolate for 14 days upon entry to Yukon provided their vaccination status can be
confirmed. Klondike Gold employees and contractors will reach 92% fully vaccinated in the
coming days with objective of 100% as soon as practicable.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp. is a Vancouver based gold exploration company advancing its 100% -owned
Klondike District Gold Project located at Dawson City, Yukon Territory, one of the top mining
jurisdictions in the world. The Klondike District Gold Project targets gold associated with district
scale orogenic faults along the 55 -kilometer length of the famous Klondike Goldfields placer
district. To date, multi- kilometer gold mineralization has been identified at both the Lone Star
Zone and Stander Zone, among other targets. The Company is focused on exploration and
development of its 586 square kilometer property accessible by scheduled airline and
government-maintained roads loc ated 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) 609-6138
E-mail: [email protected]
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.
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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 factor s 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 desc ribed 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.”