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
3123 – 595 BURRARD STREET
VANCOUVER, B.C. CANADA V7X 1J1
TELEPHONE: 604-609-6110
FAX: 604-609-6145
WWW.KLONDIKEGOLDCORP.COM
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
January 19, 2017 TSX Venture Exchange Symbol – KG
Vancouver, British Columbia, Canada, January 19, 2017, 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:
Hole ID From (m) To (m) Au g/t Interval (m)
*LS16-58 6.5 43.5 2.4 37.0
incl. 6.5 13.6 6.6 7.1
incl. 27.1 30.7 9.4 3.6
*LS16-59 16.5 44.2 1.2 27.7
incl. 16.5 23.8 2.3 7.3
LS16-62 5.5 10.5 1.7 5.0
LS16-63 3.1 45.0 0.9 42.0
LS16-64 29.5 54.0 1.5 24.5
LS16-66 12.8 25.0 0.5 12.2
and 81.0 89.0 1.6 8.0
LS16-67 45.8 48.8 1.0 3.0
and 87.5 92.0 1.6 4.5
LS16-68 33.0 37.0 4.7 4.0
and 67.0 81.0 1.2 14.0
LS16-69 4.9 16.9 0.9 12.0
incl. 4.9 13.1 1.0 8.2
and 88.7 98.6 2.5 9.9
LS16-70 8.3 16.9 1.6 8.6
and 68.0 79.3 3.5 11.3
Incl. 74.5 79.3 7.9 4.7
LS16-71 38.3 51.0 0.5 12.7
LS16-74 59.0 63.0 1.5 4.0
(* 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: [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.
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.”