K2 Options the GDR Property, Southern Yukon
Suite 1020 – 800 West Pender Street, Vancouver, BC V6C 2V6
Tel: 604-646-8354 Fax: 604-646-4526
TSX-V: KTO
NEWS RELEASE
K2 Options the GDR Property, Southern Yukon
Vancouver, B.C. –9 th January, 2019 – K2 Gold Corporation (“ K2” or the “Company”) (KTO:TSX-V) is
pleased to report that it has agreed to option the GDR property from a private prospecting syndicate.
GDR is situated within the Traditional Territory of Ross River First Nation (“RRFN”).
The GDR property is a gr oup of three licence blocks covering a total of 3073 ha and are road / dirt track
accessible, located just north of the BC-Yukon border approximately 20km east of Rancheria, a
settlement at Mile 710 on the Alaska Highway. The southern most licence, Veronica is 10km north east of
Coeur D’Alene’s 26.5-million-ounce high grade Silvertip silver-base metal mine. Silvertip was subject of a
$250 million take over in 2017 and is expected to boost Coeur’s silver equivalent output by 22% by full
production (Coeur company information). Silvertip has 26.5 million oun ces of silver in the measured and
indicated category and 5 milli on ounces in inferred resour ces. The GDR property is hosted in Paleozoic
sediments with excellent potential for high-grade Ag-Pb-Zn carbonate replacement deposits (CRD) similar
to the nearby Silvertip Mine.
Please click HERE to view all figures related to this news release.
To date, first pass exploration ha s been conducted on the property including most recently, 342 soil
samples and 24 rock samples collected in 2015 and 2016, all returning anomalous results across all 3
blocks, MR, Veronica, and MFW. Highlights of each are the following.
Steve Swatton CEO commented “I am excited that K2 has the opportuni ty to work on the GDR property,
particularly given the very successful development and sale of the nearby S ilvertip project. Recent
sampling work has revealed multiple high grade silv er and base metal target areas on the property. The
GDR property has good access ibility 20 km by road from the settl ement of Rancheria which will greatly
facilitate exploration logistics and a llow for modest exploration costs. K2 will work expeditiously toward
further defining targets for initial drill testing.”
MR
From 1981 to 1986 the MR property was explor ed by Regional Resources Ltd with gridding,
mapping and prospecting, soils, gravity, EM and IP geophysics, trenching, pitting, drilling and
road building. Recent bedrock grab sampling (2015 and 2016) from a 0.5 m wide vein structure
returned up to:
936 g/t Ag (27.3 oz/ton), 1.3 g/t Au, 32% Pb, 0.9% Zn, 0.47% Sn, and 360 ppm In
In the earlier work (1981 to 1986) South Zone areas 1 to 4 were cat trenched and/or drilled to
explore a series of carbonate-hosted, zinc-oxide prospects. The best historic results were:
South Zone Area 2:
Trench 23 3 m @ 6.55% Zn, 4.0% Pb
Trench 11 20 m @ 5.05% Zn, 1.97% Pb, 3.4 g/t Ag
Trench 20 0.5 m@ 10.8% Zn, 2% Pb, 6.5 g/t Ag
DDH 86-12 6 m @ 3.4% Zn, 4.4% Pb
DDH 86-15 1.0 m @ 2.4% Zn, 0.56% Pb
South Zone Area 3:
Trench 1.5 m @ 8.8% Pb, 51.4 g/t Ag
Trench 9.0 m @ 5.5% Zn
DDH 86-20 4.0 m@ 4.1% Zn, 0.1% Pb, 6.9 g/t Ag
And 3.0 m@ 4.2% Zn, 25.7 g/t Ag
Veronica
2015 and 2016, the Veronica soil anomaly 450 by 450 m in size (open to east) was defined with
values of up to 31.1 ppm Ag, 3100 Pb, and 612 ppm Zn. This anomaly has not been trenched,
drilled or explained by prospecting.
At the Stollery barite prospect, high Ag, Pb and Zn values are associated with quartz veins cutting
shales. Soil values range up to 8.67 ppm Ag, 2780 ppm Pb, 2500 ppm Zn, 2080 ppm As, and
17.8 ppm Sb.
MFW
The MFW block includes the Meister Farwest target, which was explored by soil sampling in the
mid 1980s. A discontinuous, 1500 m-long Ag-Pb-Zn anomaly (up to 19 ppm Ag, 3600 ppm Pb,
1050 ppm Zn) was defined. Fe-and Mn-oxide float was located by prospecting, but trenching
failed to reach bedrock and the anomalies were not explained.
2016 soil sampling confirmed the historic anomaly with 14 of 61 soils returning >2.0 ppm Ag, with
a high of 17.95 ppm Ag, 348 ppm Pb, 1060 ppm Zn, 143.5 ppm As and 10.65 ppm Sb,
suggestive of Silvertip-style, argentiferous galena and sulphosalt mineralization that has not been
drill tested.
The Option Agreement
Subject to TSX Venture Exchange approval, K2 can ear n 100% interest in the GDR Property by making
cash payments aggregating $90,000 staged over 4 years, and issue 1.2M sh ares staged over 4 years. In
addition, the property is subject to a 3% NSR payabl e to the Vendor Syndicate. K2 may purchase 2 % of
the NSR for $2M at any time.
Qualified Person
Jo Price, P.Geo., VP Exploration of K2 and a Qualified Person under National Instrument 43-101 has
reviewed and approved the technical information on this 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-l ooking statements that are not historical facts. Forward-looking statements
involve risks, uncertainties and other factors that coul d cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied by such forward-looking statements, including
statements regarding the 2017 explorat ion program at the Wels Gold, Storck, Ladue and Flume Properties
(collectively the “Properties”), including results of drilling, and future exploration plans at the Properties. Factors that
could cause actual results to differ materially from these forward-looking statements incl ude, but are not limited to,
variations in the nature, quality and qu antity of any mineral deposits that may be located, the Company’s inability to
reach satisfactory agreements with First Nations to fac ilitate its exploration and development plans for the Wels
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 necessar y 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 assump tions and factors used in preparing the forward-
looking statements are 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 V enture 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 constitute an offer to sell or a solic itation 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 account or benefit of, U.S. Persons (as defined in Regulation S
under the 1933 Act) unless registered un der 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.