Klondike Gold Receives $500,000 for Lease of Montana Creek Placer Property
March 11, 2025
Klondike Gold Receives $500,000 for Lease of
Montana Creek Placer Property
Vancouver, British Columbia, Canada – Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTCQB:
KDKGF) (“Klondike Gold” or the “Company”) announces that effective March 9, 2025, it has
entered into a mining lease and option to purchase agreement (the “Agreement”) with Armstrong
Mining Corp. (“Armstrong”), granting to Armstrong a 6 year lease with option to purchase 100%
of Klondike’s Montana Creek (surface gravel alluvial gold) placer property (the “Montana Creek
Placer Property” or the “ Property”) comprised of 239 placer claims covering 13.4 square
kilometers located near Dawson City, Yukon.
The Montana Creek Placer Property is a non-core asset and peripheral to the Company’s district
spanning 729 square kilometer bedrock gold advanced exploration property (see Figure 1).
Peter Tallman, President and CEO of Klondike states “ Converting a non-core asset into a non-
dilutive source of capital is a strategic step in our growth strategy. Importantly Armstrong Mining
Corp. have assembled an impressive team with the technical expertise, financial backing, and
local operating experience to respons ibly advance our Montana Creek P lacer Property to the
benefit of both our companies and the Dawson region. I personally look forward to working with
them to help make this project a great success”.
The terms of the Agreement between Klondike and Armstrong are summarized as follows:
• Payment of $500,000 to Klondike Gold as a pre -production royalty on signing of the
Agreement.
• Klondike grants Armstrong the exclusive right to mine, extract, remove and dispose of all
leased minerals from the Property over a term of 6-years ( the “Mining Lease”);
• Armstrong grants Klondike a 10% “Production Royalty” on all gold and other minerals
produced from the Property, payable quarterly;
• Armstrong has an option acquire a 100% interest in the leased Pro perty (the “Purchase
Option”), exercisable at any time during the term of the lease , in consideration of the
payment of $9,500,000 (the “Purchase Price”). In the event Armstrong chooses to exercise
the Purchase Option, any and each Production Royalty payment shall be credited towards
the Purchase Price;
• Armstrong agrees to assume obligations pertaining to an underlying royalty held by a 3rd
party.
Klondike Gold acquired the Montana Creek Placer Property by staking in 2005. From 2005 through
2013 the Property was leased to an operator who performed exploration testwork and recovered
330 ounces gold. From 2014 to 2016 the Property produced 4,350 ounce s gold when leased to
the ‘Hoffman crew’ as featured on Discovery Channel ’s reality TV show “ Gold Rush”, work that
more properly reflects the potential placer gold endowment.
Figure 1: Location of Montana Creek placer property in relation to Klondike Gold’s bedrock gold
729 square kilometer “Klondike District Project”.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold is a Vancouver based gold exploration company advancing its 100% -owned
Klondike District Gold Project located at Dawson City, Yukon, one of the top m ining 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. Multi-kilometer gold mineralization has been identified at both the Lone Star Zone and
Stander Zone, among other targets. The Company has identified a pit constrained Mineral
Resource Estimate of 469,000 Indicated and 112,000 Inferred gold ounces 1, a milestone first for
the Klondike District. The Company is focused on exploration and development of its 729 square
kilometer property accessible by scheduled airline and government-maintained roads located on
the outskirts of Dawson City, Yukon, within the Tr’ondëk Hwëch’in First Nation traditional
territory.
ON BEHALF OF KLONDIKE GOLD CORP.
“Peter Tallman”
Peter Tallman,
President and CEO
FOR FURTHER INFORMATION:
Telephone: (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.
Certain statements contained in this news release constitute “forward -looking statements”.
When used in this document, the words “anticipated”, “expect”, “estimated”, “forecast”,
“planned”, and similar expressions are intended to identify forward- looking statements or
information. These statements are based on current expectations of management, however, they
are subject to known and unknown risks, uncertainties and other factors that may cause actual
results to differ materially from the forward-looking statements in this news release. Readers are
cautioned not to place undue reliance on these statements. Klondike Gold does not undertake any
1 The Mineral Resource Estimate for the Klondike District Property was prepared by Marc Jutras, P.Eng., M.A.Sc.,
Principal, Ginto Consulting Inc., an independent Qualified Person in accordance with the requirements of NI 43 -101.
The technical report supporting the Mineral Resource Estimate entitled “NI 43 -101 Technical Report on the Klondike
District Gold Project, Yukon Territory, Canada” has been filed on SEDAR at www.sedarplus.ca effective November 10,
2022. Refer to news release of December 16, 2022.
obligation to revise or update any forward- looking statements as a result of new information,
future events or otherwise after the date hereof, except as required by securities laws.
Forward-looking statements involve numerous risks and uncertainties and actual results might
differ materially from results suggested in any forward- looking statements. These risks and
uncertainties include, among other things, market volatility; the state of the financial markets for
the Company ’s securities; fluctuations in commodity prices and changes in the Company ’s
business plans. In making the forward looking statements in this news release, the Company has
applied several material assumptions that the Company believes are reasonable, including
without limitation, that the Company will continue with its stated business objectives and its
ability to raise additional capital to proceed. A lthough management of the Company has
attempted to identify important factors that could cause actual results to differ materially from
those contained in forward- looking statements or forward -looking information, there may be
other factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward- looking statements and forward- looking information. Readers are
cautioned that reliance on such information may not be appropriate for other purposes. The
Company does not undertake to update any forward- looking statem ent, forward -looking
information or financial out-look that are incorporated by reference herein, except in accordance
with applicable securities laws. The Company seeks safe harbor.
For more information on the Company, investors should review the Company ’s continuous
disclosure filings that are available at www.sedarplus.ca.