K2 Gold Provides A Technical Update of the Flume Property
K2 Gold Provides A Technical Update of the Flume Property
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR THE DISSEMINATION IN THE UNITED STATES
Vancouver, B.C. – May 2nd, 2018 – K2 Gold Corporation (“K2” or the “Company”)
(KTO:TSX.V) is pleased to announce that the company has recently completed a re-
interpretation of the geochemical soil data from the Flume Property and confirms two
distinct soil anomalies now known as Ferris and Pirate. The Flume Property is located in
the west-central Yukon Territory in the Traditional Territory of Tr’ondëk Hwëch’in First
Nation.
The gold system footprint at Ferris increases to 2.5 km x 1.5 km and is marked by a
distinct circular Mo and Sr halo, possibly indicative of a skarn type deposit. The gold
footprint at Pirate increases to an area covering 3.5 km x 1.5 km and correlates well with
As and coincident magnetic structural features that are typical of an orogenic style
system. First pass historical 2012 diamond drilling at Pirate (FL12-06; 5.76 g/t Au over
2m, FL12-07; 1.57 g/t Au over 1.12m, and FL12-08; 1.35 g/t Au over 2m) were
encouraging but probably did not accurately test the anomaly (See BRZ:TSX.V press
release of November 14, 2012). The distinct geochemical signatures of the both Ferris
and Pirate anomalies may indicate that there are multiple modes and sources of gold on
the Flume property.
Re-interpretation of the existing rock, soil, and drill sample geochemistry was conducted
by Chris Benn, a respected geochemist with 33 years’ practical experience in mineral
deposit recognition, including 27 years with majors, most recently with Gold Fields Ltd.
Please click LINK to view figure related to this news release.
Jo Price, VP Exploration commented, “The new geochemical analysis allows us to better
target future exploration. The 2018 exploration program is currently being planned.
Program details and budgets will be released when available.”
As announced on March 16, 2017 K2 may earn a 100% interest. To earn an initial 60%
interest K2 must spend $2 million in exploration, make cash payments totaling $400,000,
and issue 1,000,000 shares to Commander. K2 will have the right to earn a further 40%
(total 100%) in the property over the 3 years following the 60% earn-in by making an
additional $3 million in expenditures and making additional cash payments of $250,000
and issuance of a further 2 million shar es to Commander. If K2 has acquired 100%
interest the Company and announces a decision to commence production, it will pay
Commander a balloon payment of either $10 million cash or $5 million cash and $5
million value in shares of K2. Commander retains a 1% net smelter royalty (NSR).
Jo Price, P.Geo., is the Qualified Person, in accordance with NI 43-101 of the Canadian
Securities Administrators, and is responsible for the technical content of this press
release.
For additional information please contact Stephen Swatton at 604-331-5093.
On behalf of the Board of Directors,
“Stephen Swatton”
President and CEO
K2 Gold Corporation.
Forward-Looking Caution:
This news release contains forward-looking statements that are not historical facts. Forward-looking
statements involve risks, uncertainties and other factors that could cause actual results, performance,
prospects and opportunities to differ materially f rom those expressed or implied by such forward-looking
statements, including statements regarding the mineral potential of the Flume Gold Property, Factors that
could cause actual results to differ materially from these forward- looking statements include, but are not
limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the
Company’s inability to reach satisfactory agreements with First Nations to facilitate its exploration and
development plans for the Flum e Property, the Company's inability to obtain any necessary permits,
consents or authorizations required for its planned activities, and the Company's inability to raise the
necessary capital or to be fully able to implement its business strategies. The reader is referred to the
Company's public disclosure record which is available on SEDAR (www.sedar.com). Although the Company
believes that the assumptions and factors used in preparing the forward-looking statements ar e reasonable,
undue reliance should not be placed on these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur in the disclosed time frames or at all.
Except as required by securities laws and the policies of the TSX Venture Exchange, the Company
disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
This news release does not constit ute an offer to sell or a solicitation of an offer to buy, nor shall there be
any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful,
including any of the securities in the United States of America. No securities of the Company have been or
will, in the foreseeable future, be registered under the United States Securities Act of 1933 (the “1933 Act”)
or any state securities laws and may not be offered or sold within the United States or to, or for ac count or
benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933
Act and applicable state securities laws, or an exemption from such registration requirements is available.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM
IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.