Klondike Gold Lone Star Zone Assays 1.40 g/t Au over 65.05 meters, including 6.07 g/t Au over 8.45 meters
3123 – 595 BURRARD STREET
VANCOUVER, B.C. CANADA V7X 1J1
TELEPHONE: 604-609-6110
FAX: 604-609-6145
WWW.KLONDIKEGOLDCORP.COM
Klondike Gold Lone Star Zone Assays 1.40 g/t Au over 65.05 meters, including
6.07 g/t Au over 8.45 meters
July 18, 2018 TSX Venture Exchange Symbol – KG
Vancouver, British Columbia, Canada, July 18, 2018, Klondike Gold Corp. ( TSX.V: KG; FRA: LBDP; OTC:
KDKGF) (“Klondike Gold” or the “Company”) is pleased to report assays from seven drill holes at the Lone
Star Zone, part of a s ystematic evaluation designed to map the geometry of mineralization across a
portion of the Zone, at the Company’s wholly owned Klondike District Property, Yukon Territory. Results
of the first seven holes, LS18-151 to LS18-157, testing the Lone Star Zone in 2018, are reported here.
A minimum total of $2.5M has been budgeted for 2018 exploration (March 9, 2018 news release). The
Company in 2018 has exploration plans underway to drill test the Lone Star Zone, the Nugget Fault Zone,
and the Gold Run target plus complete comprehensive district-wide mapping, geophysics, and soil surveys
for the first time. The Company is fully funded through 2019 at a similar level of expenditure.
SUMMARY:
• Hole LS18-156 assays 1.40 g/t Au over 65.05 meters from surface at 2.50 to 67.55 meters
downhole, including 6.07 g/t Au over 8.45 meters from 6.65 to 15.10 meters.
• Exploration program results from ongoing Lone Star drilling, Gold Run drilling, Nugget and Gay
Gulch re-evaluation assaying, and district-scale exploration are pending.
PREAMBLE:
The C ompany in 2014 interpreted a series of previously unrecognized district -scale faults (Bonanza,
Nugget, Eldorado, and Irish Faults, and the Rabbit Creek Thrust) from magnetic surveys. During 2015 and
2016 the Company focussed exploration on gold-bearing quartz veins as had previous explorers over the
past 120 years. Target areas of higher grades over narrower intervals identified during these programs
are evident at Gay Gulch (76.0 g/t Au over 2.8 meters) and Nugget Zone (5.1 g/t Au over 14.3 meters) a nd
remain targets of future exploration. Currently the Company is preferentially targeting and outlining
broad zones of lower grade mineralization at or near surface that charact eristically contain visible,
relatively coarse free gold.
Late in 2016 the Company recognized the potential for gold disseminated in the host rock adjacent to
quartz veining at the Lone Star Zone (see NR 1 November 2016) . The follow -up 2017 drill program
intersected near-surface gold at 50 meter intervals across 1,000 meters of strike length (see NR 10 January
2018), and with broad exploration step-outs intersected gold over 2,700 meters.
The Company in 2018 is undertaking systematic evaluation of the Lone Star Zone designed to map
geometry and tenor of mineralization across a 5 50 meter portion to a down -dip extent of 100 to 250
meters by completing a series of 12 fences of holes . Approximately 40 holes in 2018 are planned, and
coupled with 2016 and 2017 holes, are expected to create 12 detailed drill sections with geology and assay
data. Results of the first seven holes, LS18-151 to LS18-157, testing the Lone Star Zone in 201 8, are
reported here.
DISCUSSION
Lone Star Zone gold mineralization is interpreted to have a 2,400 meter strike length from 11100E at
O’Neil Gulch (hole LS17-97; see NR 18 September 2017) to outcrops on 13500E in Victoria Gulch (see NR
16 August 2017). The Company in 2017 focussed on the 1,000 meter length from line 11600E (hole LS17-
139) to line 12600E (LS17- 104) by drill testing every 50 meters along strike and intersecting gold
mineralization in each hole in this distance (see NR 10 January 2018). The ongoing 2018 drill program is
systematically grid testing 550 meters along strike by 250 meters down dip on 50 meter spacing from line
11650E to 11200E, for an approximate total of 40 drill holes.
Holes LS18-151 to -157 reported here were drilled to infill or extend three fences of drill holes on 11650E,
11800E, and 11850E. Plan maps plus full sections including previous results are posted on the company’s
website here: http://www.klondikegoldcorp.com/photos/gallery/2018-drill-maps
The significant highlight from these results is the test by LS18-155 / LS18-156. These were drilled fr om
the same collar, with LS18-156 turned in the opposite direction. The objective was to test the grade and
extent of near-surface gold mineralization. LS18-155 intersected 1.33 g/t Au over 26.20 meters drilled
southerly; LS18-156 intersected 1.4 g/t Au over 65.05 meters drilled northerly from the same origin. These
intersections start at surface and are entirely within 45 meters of surface. Also, the sub-interval in LS18-
156 of 6.07 g/t Au over 8.45 meters suggests there are higher grade pockets of mineralization.
All other holes within the mapped mineralized envelope intersected broad zones of gold mineralization
as expected. The section including holes LS18-151 to -154 indicates down-dip continuity of mineralization
at shallow depths as the mineralization dips sub-parallel to the topography. Part of the current program
is to locate the up-dip termination of mineralization. LS18-151 drilled above the termination and did not
intersect any mineralization.
Results from six drill holes LS 18-152 to -157 all indicate broad intersections of near-surface gold
mineralization, listed in the accompanying table.
TABLE OF LONE STAR ZONE DRILL HOLE WEIGHTED AVERAGE ASSAY INTERVALS:
Hole ID From (m) To (m) Au g/t Interval (m)
EC18-151 No significant value: felsic footwall
EC18-152 5.90 26.90 0.56 21.00
EC18-153 41.30 65.30 1.01 24.00
EC18-154 32.10 56.65 0.39 24.55
EC18-155 6.60 32.80 1.33 26.20
EC18-156 2.50 67.55 1.40 65.05
Including 6.65 15.10 6.07 8.45
And 26.10 37.50 1.91 11.40
And 47.25 53.90 1.48 6.65
EC18-157 2.85 19.20 0.78 16.35
A plan map of Lone Star Zone planned/drilled hole locations, plus cross sections for 2018 holes including
2016-2017 holes , are included below and are available on the Company’s website
http://www.klondikegoldcorp.com/photos/gallery/2018-drill-maps
Drill holes LS18-151 to -155, and LS18-157 were drilled at -55 dip and 200 azimuth. LS18-156 was drilled
at -55 dip and 020 azimuth from the same location as LS18-155. Assay averages are calculated over drilled
core lengths ; true thickness from holes drilled at 200 azimuth is approximately the drilled interval, as
shown in the accompanying section maps.
Lone Star Zone Drill Update:
The ongoing drill program is systematically testing sections across the Lone Star Zone to outline the
geometry, continuity, and extent of disseminated gold mineralization and gold- bearing quartz vein
mineralization. Approximately 38 drill holes testing the Lone Star Zone will soon be completed . Further
results from these holes are expected in batches ranging in time from August through mid-September.
Gold Run Target Drill Update:
Four NQ diamond drill holes GR18-160 to -163 tested the Gold Run target area. Assay results are expected
in August.
Nugget Zone and Gay Gulch Re-evaluation Update:
Examination and additional sampling of 2015 and 2016 drill holes along the Nugget Fault trend and at Gay
Gulch continues. Assay results are expected in batches ranging in time from August through September.
Klondike District Exploration Update:
Systematic district-scale exploration for the first time across the Company’s property is progressing. This
program includes soils, airborne magnetics, radiometric, and VLF-EM surveying, plus detailed structural
and lithologic mapping and prospecting. Results are expected in August and September.
QUALITY ASSURANCE AND METHODS
Klondike Gold maintains a rigorous quality assurance / quality control (“QA/QC”) program. Details can be
viewed on the Company’s website http://www.klondikegoldcorp.com/projects/sampling-and-assay-
protocols/.
Drill core samples are submitted by Klondike Gold personnel to Bureau Veritas Mineral Laboratories (“BV
Labs”) (formerly Acme Labs) preparation facility in Whitehorse, YT with chemical analysis of sample pulps
completed in Vancouver, British Columbia. Bureau Veritas Labs is an accredited ISO 9001:2008 full-se rvice
commercial laboratory. All drill core samples are assayed for gold by fir e assay (“FA”) fusion with a
gravimetric finish. Full sampling/assay procedures and protocols can be viewed on the Company’s website
http://www.klondikegoldcorp.com/projects/sampling-and-assay-protocols/.
The technical and scientific information contained within this news release has been reviewed and
approved by Ian Perry, P.Geol., Vice-President Exploration 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 the Lone Star
gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 557 square kilometer
property accessible by government maintained roads located 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) 609-6110
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, development s 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 t he
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 descri bed 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. ”