Mr. Peter Tallman reports
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
Klondike Gold Corp. has provided assay results from seven drill holes at the Lone Star zone, part of a systematic evaluation designed to map the geometry of mineralization across a portion of the zone, at the company's wholly owned Klondike District property in the Yukon.Results of the first seven holes, LS18-151 to LS18-157, testing the Lone Star zone in 2018 are disclosed herein.
A minimum total of $2.5-million has been budgeted for 2018 exploration (please see the company's March 9, 2018, news release). The company has 2018 exploration plans under way 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 financed through 2019 at a similar level of expenditure.
Summary:
Hole LS18-156 assays 1.4 grams per tonne gold over 65.05 metres from surface at 2.5 metres to 67.55 metres downhole, including 6.07 g/t Au over 8.45 metres from 6.65 metres to 15.1 metres. Exploration program results from continuingLone Star drilling, Gold Run drilling, Nugget and Gay Gulch re-evaluation assaying, and district-scale exploration are pending.
Preamble
In 2014, he company interpreted a series of previously unrecognized district-scale faults (Bonanza, Nugget, Eldorado, Irish, as well as the Rabbit Creek thrust) from magnetic surveys.During 2015 and 2016, the company focused 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 g/t Au over 2.8 metres) and the Nugget zone (5.1 g/t Au over 14.3 metres), and remain targets of future exploration.Currently, the company is preferentially targeting and outlining broad zones of lower-grade mineralization at, or near, surface that characteristically 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 (please see news release datedNov. 1, 2016).The follow-up 2017 drill program intersected near-surface gold at 50-metre intervals across 1,000 metres of strike length (please see news release date Jan. 10, 2018). With broad exploration stepouts, the program intersected gold over 2,700 metres.
The company is undertaking systematic evaluation of the Lone Star zone designed to map geometry and tenor of mineralization across a 550-metre portion to a down-dip extent of 100 metres to 250 metres by completing a series of 12 fences of holes.Approximately 40 holes are planned in 2018. When coupled with 2016 and 2017 holes, the 40 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 2018 are reported in this news release.
Discussion
Lone Star zone gold mineralization is interpreted to have a 2,400-metre strike length from 11100E at O'Neil Gulch (hole LS17-97) to outcrops on 13500E at Victoria Gulch.In 2017, the company focused on the 1,000-metre length from line 11600E (hole LS17-139) to line 12600E (LS17-104) by drill testing every 50 metres along strike and intersecting gold mineralization in each hole in this distance (please see news release dated Jan. 10, 2018).The continuing 2018 drill program is systematically grid testing 550 metres along strike by 250 metres down dip on 50-metre spacing from line 11650E to 11200E (for an approximate total of 40 drill holes).
Holes LS18-151 to LS18-157 (reported herein) were drilled to infill or extend three fences of drill holes on 11650E, 11800E and 11850E.Plan maps and full sections, including previous results, are posted on the company's website.
The significant highlight from these results is the test by LS18-155/LS18-156.These were drilled from 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 26.2 metres (drilled southerly). LS18-156 intersected 1.4 g/t Au over 65.05 metres (drilled northerly from the same origin).These intersections start at surface and are entirely within 45 metres of surface.Also, the subinterval in LS18-156 of 6.07 g/t Au over 8.45 metres 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 LS18-154 indicates down-dip continuity of mineralization at shallow depths as the mineralization dips subparallel 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, LS18-152 to LS18-157, all indicate broad intersections of near-surface gold mineralization. The results are provided in the accompanying table.
LONE STAR ZONE DRILL HOLE WEIGHTED AVERAGE ASSAY INTERVALSHole IDFrom (m) To (m)Au (g/t) Interval (m) EC18-151 No significant value (felsic footwall)EC18-1525.9026.900.5621.00EC18-153 41.3065.301.0124.00EC18-154 32.1056.650.3924.55EC18-1556.6032.801.3326.20EC18-1562.5067.551.4065.05including 6.6515.106.07 8.45 and26.1037.501.9111.40and47.2553.901.48 6.65 EC18-1572.8519.200.7816.35
A plan map of Lone Star zone planned/drilled hole locations, plus cross sections for 2018 holes (including 2016 and 2017 holes), are available on the company's website.
Drill holes LS18-151 to LS18-155, as well as LS18-157, were drilled at negative 55 dip and 200 azimuth.LS18-156 was drilled at negative 55 dip and 20 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.
Lone Star zone drill update
The continuing 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, 2018, through mid-September, 2018).
Gold Run target drill update
Four NQ diamond drill holes (GR18-160 to GR18-163) tested the Gold Run target area.Assay results are expected in August, 2018.
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, 2018, through September, 2018).
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, 2018, and September, 2018.
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.
Drill core samples are submitted by Klondike Gold personnel to Bureau Veritas Mineral Laboratories' (formerly Acme Labs) preparation facility in Whitehorse, Yukon, with chemical analysis of sample pulps completed in Vancouver, B.C. Bureau Veritas Labs is an accredited ISO 9001:2008 full-service commercial laboratory.All drill core samples are assayed for gold by fire assay fusion with a gravimetric finish.Full sampling/assay procedures and protocols can be viewed at the company's website.
The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, PGeol, Klondike Gold's vice-president exploration. He is a qualified person as defined by National Instrument 43-101.
About Klondike Gold Corp.
Klondike Gold is a Canadian exploration company with offices in Vancouver, B.C., and Dawson City, Yukon. The company is focused on exploration and development of the Lone Star gold target at the confluence of Bonanza Creek and Eldorado Creek, within a district-scale 553-square-kilometre property accessible by government-maintained roads located on the outskirts of Dawson City, Yukon, within the Tr'ondek Hwech'in First Nation traditional territory.
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