Klondike Provides Update on Upgrades to Tailings Management Facility
KLONDIKE SILVER
Our Vision: Silver/Zinc/Lead Production
KLONDIKESILVER.com
KS : TSX.V K1SN : FSE
804 – 750 West Pender St. Vancouver, B.C. Canada, V6C 2T7 T: 604.682.2928
Klondike Provides Update on Upgrades to Tailings Management Facility
May 27, 2021 - Vancouver, Canada – Klondike Silver Corp. (“Klondike Silver” or the “Company” )
(TSX.V: KS) is pleased to provide an up- date on the significant progress being made on remedial
measures to its Tailings Management Facility (“TMF”) in Sandon, British Columbia. As noted in
Klondike’s press release of February 26, 2021, the Company received notification from the Chief Gold
Commissioner for British Columbia that its Free Min er Certificate (“FMC”) had been cancelled. The
FMC is required in order for the Company to continue with underground exploration and development of
its Silvana underground mine property. The cancellation of the FMC resulted from a culmination of a
number of outstanding non-compliance issues associated with the Company’s TMF. The current TMF is
comprised of three distinct tailings ponds that are abutted against each other and are adjacent to
Carpenter Creek.
The Company is permitted to apply for renewal and reinstatement of the FMC once the following
conditions have been fulfilled:
• A 2020 Dam Safety Inspection report is to be completed, signed and sealed by a professional
engineer prior to the end of March 2021. THIS HAS BEEN COMPLETED . Klondike Silver
submitted to the Ministry of Energy Mines and Low Carbon Innovation (“EMLI”) the 2020 Dam
Safety Inspection (DSI) report (signed and sealed by a professional engineer) prior to the end of
Q1, 2021.
• A Geotechnical Site Investigation factual report and geotechnical assessment is to be completed
signed and sealed by a professional engineer. THIS IS IN PROGRESS. Tetra Tech Inc. (“Tetra
Tech”), a geotechnical and engineering consulting firm, has been commissioned to complete this
report with a target date for completion of August 2021. Tetra Tech has already completed a drill
program on the TMF to examine the embankments of all three tailings ponds, the tailings material
within the ponds and the characteristics of the subsurface of the TMF. As outlined in the
Company’s press release of April 19, 2021, Tetra Tech installed piezometers in the drill holes to
measure the depth of groundwater within the TMF throughout the year.
• An Erosion Protection Plan and an Erosion Protection As -Built Report is to be completed, signed
and sealed by a professional engineer. THIS IS IN PROGRESS . Tetra Tech has been
commissioned to complete this plan and report with a target completion date of September 2021.
The Protection Plan is expected to include armouring of the banks of Tri butary Creek and
Carpenter Creek through the placement of “rip- rap” or large loose rock, re- sloping of the
downstream angle of #3 dam and development of a catchment at the bottom of Tributary Creek to
provide surge capacity. In addition, the Company secure d approximately 1,000 tonnes of rip- rap
material for emergency use during the 2021 spring freshet. The 2021 spring runoff has not been
as extreme as 2020 and the Company does not expect to need to place this material.
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KLONDIKESILVER.com
KS : TSX.V K1SN : FSE
804 – 750 West Pender St. Vancouver, B.C. Canada, V6C 2T7 T: 604.682.2928
As further background, the Company wa s in the process of remedying the non- compliance issues
identified above, when in April 2020 the Sandon mill and surface facilities received an in rush of water,
sediments and trees from upper Tributary Creek which originates above the facilities and captu res water
from the Idaho Peak watershed. Tributary Creek joins Carpenter Creek with the confluence of the creeks
meeting in close proximity to the three existing TMF structures and the mill. The volume of water and
sediments represented a 200- year flood event which exceeded the capacity of Carpenter Creek and
resulted in some erosion of the base of #3 Tailing Storage Facility (“ TSF”). Repairs to #3 TSF were
completed in June 2020. Klondike Silver is not responsible for maintenance of the access roads above
the mill location but based on the 2020 freshet Klondike Silver has committed to taking measures to
mitigate a similar result by taking pro-active measures in proximity to Carpenter Creek.
Klondike Silver and Tetra Tech continue to work closely with t he EMLI to ensure that the that the non-
compliance issues are remedied . The Company will provide a further update on progress by the end of
Q2 2021.
The scientific and technical disclosure in this news release has been reviewed and approved by David
Makepeace, P.Eng., Senior Geologist – Environmental Engineer at Geospectrum Engineering, who is an
independent consultant to the Company and Qualified Person as defined in NI 43-101.
About Klondike Silver
Klondike’s Silvana Mine Silver Zinc Lead project is located in South Eastern B.C., 138km north of
the Trail B.C. smelter. The Company is actively exploring from underground, the western extension of
the Silvana Mine, along the “Main Lode”. The “Main Lode” is a 9 km vein structure which is the most
prolific mineralized structure in the Slocan Mining Camp. There are 13 historical mines that are situated
along the 9 km vein structure which have produced 886,000 kg of silver, 95 million kg of zinc and 117
million kg lead so far. Including 8 of the 13 above there are 68 historical mines that are situated in the
Klondike Silver 116 square kilometer claim block which have produced 1,258,000 kg of silver, 72
million kg of zinc and 158 million kg lead so far. (source: BC MINFILE).
Additional information can be found on the Company website: www.klondikesilver.com
On Behalf of the Board of Directors Contact Information
Klondike Silver Corp.
Corporate Inquiries:
"Thomas Kennedy"
Dale Dobson: (604) 682-2928
Thomas Kennedy, B.Comm., J.D. Email: [email protected]
CEO, Director
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KLONDIKESILVER.com
KS : TSX.V K1SN : FSE
804 – 750 West Pender St. Vancouver, B.C. Canada, V6C 2T7 T: 604.682.2928
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.
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute “ forward-looking information” under
applicable Canadian securities legislation. Forward -looking information includes, but is not limited to,
statements about strategic plans, future work programs and objectives and expected results from such
work programs. Forward -looking information necessa rily involve known and unknown risks, including,
without limitation, risks associated with general economic conditions; inability to access sufficient
capital from internal and external sources, and/or inability to access sufficient capital on favourable
terms; and other risks.
Forward-looking information is necessarily based upon a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors
which may cause the actual results and future events to differ materially from those expressed or implied
by such forward -looking information and the risks identified in the Company’s continuous disclosure
record. There can be no assurance that such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such information. Accordingly, readers
should not place undue reliance on forward- looking information. All forward- looking information
contained in this news release is given as of the date hereof and is based upon the opinions and estimates
of management and information available to management as at the date hereof. The Company disclaims
any intention or obligation to update or revise any forward -looking information, whet her as a result of
new information, future events or otherwise, except as required by law.