Klondike Gold Drills 2.4 g/t Au over 40.9 meters and 2.1 g/t Au over 41.1 meters
3123 – 595 BURRARD STREET
VANCOUVER, B.C. CANADA V7X 1J1
TELEPHONE: 604-609-6110
FAX: 604-609-6145
WWW.KLONDIKEGOLDCORP.COM
Klondike Gold Drills 2.4 g/t Au over 40.9 meters and 2.1 g/t Au over 41.1 meters
July 11, 2017 TSX Venture Exchange Symbol – KG
Vancouver, British Columbia, Canada, July 11, 2017, Klondike Gold Corp. (TSX.V:KG; FRA:
LBDP) (“Klondike Gold” or the “Company”) has received drill assay results from the first two
holes of eighteen drilled so far at the Lone Star target within the Company’s Klondike district
property, Yukon Territory.
SUMMARY
• At the Lone Star target, LS17-81 assayed 2.1 g/t Au over 41.1 meters from surface, a
new 50 meter step-out to the west of LS16-58 drilled in 2016 which assayed 2.4 g/t
Au over 37.0 meters.
• LS17-82 assayed 2.4 g/t Au over 40.9 meters from 10 meters downhole, a direct 25
meter undercut of LS16-58.
• The Lone Star target strike length is now 750 meters and remains open to east, west
and down-dip. Assays from a further twelve holes at Lone Star, and four from other
targets, are pending from Phase 1 drilling.
• The Phase 1 drill program tested a 1,950 meter strike length along the Bonanza Fault
including the 750 meter Lone Star target segment. Seven holes of Phase 1 contain
visible gold identified as disseminations and in quartz veining spanning the 1,950
meter strike length tested.
• The Phase 2 drill program has commenced today and is expected to comprise another
approximately 20 holes with the primary objective to continue to expand the Lone
Star mineralized target to the west and to depth.
Eighteen diamond drill holes in the 2017 Phase 1 drill program (“Phase 1”) tested a 1,950
meter strike length along or adjacent to the newly identified Bonanza Fault, from the new
Pioneer area in the east, to the central Lone Star target zone of interest, to the new O’Neill
area in the west. The Bonanza Fault is interpreted to be a significant locus for orogenic gold
mineralization with an inferred 7,500 meter potential strike length.
Seven holes of Phase 1 contain visible gold identified as disseminations and in quartz veining
spanning the 1,950 meter strike length tested along the Bonanza Fault. These include five
holes testing the Lone Star target out of fourteen, and one hole out two which tested each of
the Pioneer and O’Neill areas. A plan map of Phase 1 drill locations is available on our
website HERE.
Fourteen holes of Phase 1 tested the Lone Star target with assays received for the first two.
LS17-82 intersected 2.4 g/t Au over 40.88 meters from 10 meters downhole. LS17-82 is a direct
undercut of LS16-58, the best hole of 2016 at Lone Star, which assayed 2.4 g/t Au over 37.0
meters. Both LS17-82 and LS16-58 had small amounts of visible gold identified. LS17-81, a new
50 meter step-out to the west of LS16-58, intersected 2.1 g/t Au over 41.12 meters from
surface. LS17-81 also had small amounts of visible gold identified. The Lone Star target strike
length is now 750 meters and remains open. Phase 1 drilling primarily tested the Lone Star
target at near-surface depths on 50 meter spacing. Assays for the remaining twelve of these
holes are pending.
Two step-out holes at the O’Neill area intersected pyritic schist 700 meters away along strike
to the west of the Lone Star target. Visible gold is observed in this schist unit in one of two
holes. In addition, two step-out holes at the Pioneer area 500 meters away along strike to
the east intersected a competent unaltered ‘mafic schist’ unit cross-cut by visible gold-
bearing quartz veinlets adjacent the Bonanza Fault. The style of mineralization and host
lithology here has similarities to the Company’s Nugget Zone prospect (see NR September 28,
2016). Sampling of these holes is underway; all assays are pending. Further geophysics, drill
testing and mapping is planned to potentially link the Lone Star target zone with the Pioneer
and O’Neill areas.
Investors are cautioned that the observation of visible gold in drill core is not certain
indication that assaying will show economically interesting quantities. Visible gold is
common in the Company’s Klondike project area and in particular along the Bonanza Fault.
The Klondike district creeks are known for producing 20 million ounces of visible gold as
specks, grains, and nuggets mined from creek gravels derived from nearby bedrock sources
by erosion.
At the Lone Star target, gold occurs within a recently defined pyritic “laminated schist” field
unit as disseminations as well as in quartz veinlets that is the prospective gold mineralized
target horizon. This unit is associated with a major second-order “D4” high-angle fault
termed the “Bonanza Fault” which is variably silicified, carbonate altered, and mineralized
with pyrite. Visible gold associated with the Bonanza Fault has been identified in drill core
over a length of 1,950 meters.
Work is focussing on advancing the multi-kilometer long Lone Star exploration target, the
first significant sizeable gold-bearing bulk-tonnage type target area outlined within the
district. More broadly across the district, the working geologic model is generating other
quality targets that are taking shape throughout the Company’s expanded claim holdings
(see NR August 8, 2016).
The Company’s Phase 2 drill program has commenced. The program is expected to comprise
another approximately 20 drill holes with the objective of extending the Lone Star
mineralized target to the west on 50-meter step outs and to complete a number of deeper
undercuts to test continuity to depth.
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 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
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TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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“This press release contains “forward-looking information” and “forward-looking statements” within the meaning
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its experience, current conditions, expectations of future developments and other factor s which it believes to be
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uncertainties that may cause Klondike’s actual results, performance and achievements to differ materially from
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Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of
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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.