TSX Venture Exchange Symbol – KG
VANCOUVER, July 14, 2016 /CNW/ - Klondike Gold Corp.
(TSX.V:KG; FRA: LBDP) ("Klondike Gold" or the "Company") is pleased
to announce first assay results from 2016 drilling, and to update
progress of ongoing drill testing at the Lone Star and Dominion
properties near Dawson City, Yukon
Territory.
A total of 41 diamond drill holes have been completed to date as
part of the drill program which began in mid-May (see News Release
June 14, 2016 and May 18, 2016). The campaign has averaged
nearly one diamond drill hole completion per day using one
drill. A cumulative 3,100 meters of core has been recovered
and processed during this period. Up to an additional 1,500
meters of drilling is planned.
Diamond drill target areas tested so far include Nugget, and
Violet Ridge on the Lonestar Property, and the Hunker target on the
Dominion Property. The 3.5 km long Violet Ridge target area
is divided into "310", "Isaac", and "Violet Mine" subzones based on
geology.
HIGHLIGHTS:
Nugget Zone drilling intersects
visible gold within quartz vein array assaying 5.1 g/t Au over
14.34 meters starting at surface in hole EC16-32, the best
result to date at Nugget; extends Nugget Zone 50 meters to
east.
Initial drilling at Violet Ridge
(310 target) discovers quartz veins with visible gold; assays
pending.
Initial drilling at Dominion
intersects quartz veins down-dip from c.1900 exploration shaft on 3
meter quartz vein assaying up to 81 g/t Au in prospecting chip
samples; assays pending.
Peter Tallman, President of
Klondike Gold states "These early results from Nugget Zone
demonstrate the potential for the discovery of lode deposits of
consequence within the historic area of the Klondike placer gold
fields. Additionally, the exploration team is encouraged by
the identification of extended intervals of pervasive
alteration. This style of alteration at Dominion, some
30 km from similar alteration at Violet (Isaac target), validates
the company's exploration model that bulk tonnage targets exist
alongside high-grade vein targets within the Company's extensive
land package."
DRILLING RESULTS: NUGGET ZONE
The Nugget Zone has successfully been doubled from 100 meters to
200 meters in length. EC16-32, a 50 meter step out to the
east, encountered the best gold mineralization drilled to date
assaying 5.1 g/t Au over 14.34 meters (including 19.6 g/t Au
over 2.4 meters).
The Company first drilled the Nugget Zone in 2015 and outlined
two parallel east-west striking zones of gold-bearing quartz veins
(the "Upper" and "Lower zones; see NR October 15, 2015) over a 100 meter strike
length. In 2015, hole EC15-03 intersected near-surface
mineralization averaging 5.3 g/t Au over 7.6 meters starting at 4.4
meters downhole.
In 2016 a total of 11 drill holes, EC16-23 to EC16-33, tested
the vicinity of Nugget Zone. Results are described
below. A drill plan map, individual drill sections, tabulated
assay results and collar information (UTM collar location, dip,
azimuth, hole depth) can be found on our website HERE.
Hole EC16-32 intersected visible gold-bearing quartz veins
averaging 5.1 g/t Au over 14.34 meters from 3.55 meters downhole
starting at the bedrock surface, representing the best result to
date from the Nugget Zone. A 22 cm interval from 5.1 meters
assayed 147 g/t Au. The hole is a 50 meter step out to the
east. Veining intensity and tenor of mineralization is
strengthening and remains open in this direction. The hole
was drilled at a steep (-85 degree) angle.
EC16-31 is a shallow (-50 degree) angle hole from the same
location as EC16-32. EC16-32 intersected 0.7 g/t Au over 16.9
meter from 5.85 meters downhole starting just below the bedrock
surface.
EC16-27 is a 50 meter step out to the west and was drilled at a
shallow -50 degree angle. EC16-27 intersected a quartz vein
array averaging 0.5 g/t Au over 6.0 meters from 48.5 meters
downhole. EC16-28 was drilled at a steep -85 degree angle
from the same position and intersected minor quartz veining with no
significant assays. EC16-27
marks the western limit of gold-bearing quartz veining at
the Nugget Zone. Two more holes, EC16-29 and EC16-30, drilled
50 meters further to the west, failed to intersect quartz veining
and had no significant assays.
EC16-23 to EC16-26 were tests of the hangingwall above the
Nugget Zone. EC16-23 and EC16-24 appear to have reached the
Nugget vein position and intersected minor quartz veining with no
significant assay. EC16-25 and EC16-26 did not have
significant veins or assays, and did not test the Nugget
target. EC16-33 tested the footwall below the Nugget Zone and
intersected a new vein which assays 7.6 g/t Au over 0.4 meters from
23.07 meters.
DRILLING UPDATE: VIOLET (310)
A total of 9 holes have been completed over a 550 meter strike
extent testing individual outcropping gold-mineralized quartz veins
located originally by c.1900 prospectors and rediscovered in 2016
by company prospectors. Fine flakes of visible gold were
observed in drill core from two holes, consistent with surface
prospecting samples (see News Release May
18, 2016). This area has not previously been drill
tested. Assays are pending.
DRILLING UPDATE: VIOLET
(ISAAC)
A total of 4 holes have been completed over a 175 meter strike
extent testing individual outcropping quartz veins located in
c.1900 trenches and pits. All holes intersected the target
quartz veins, and also intersected zones of silicification.
This is the first discovery within the region of extensive bulk
alteration of the host rock. This area has not previously
been drill tested. Assays are pending.
DRILLING UPDATE: VIOLET (VIOLET MINE)
A total of 4 holes have been completed over a 450 meter strike
extent testing two gold-mineralized shafts including beneath the 50
meter deep Violet Mine excavated in 1903. All holes hit their
target. This area has not previously been drill tested.
Assays are pending.
The 310 target quartz veins are interpreted to be continuous
with Isaac target quartz veins and silicification. Total
combined length of this mineralized system is 2,500 meters, which
remains open in both directions. The Violet Mine target
veining is interpreted to be geologically identical but on a
parallel structure that has a 700 meter length in outcrop.
Prospecting and mapping efforts are underway to extend these
zones.
DRILLING UPDATE: HUNKER TARGET, DOMINION PROPERTY
A total of 10 holes have been completed at the Dominion Property
located 30 km east of the Lonestar Property. Drilling
targeted individual outcropping gold-mineralized quartz veins over
a 900 meter length. Nine of ten holes hit the target quartz
veins. Two holes targeted a c.1900 prospecting shaft exposing
a 3 meter wide galena-pyrite mineralized quartz vein which has
previously yielded gold assays up to 81 g/t Au in prospecting
samples (see News Release January 19,
2015). Two holes testing beneath this quartz vein each
intersected >3 meters of galena-pyrite mineralized quartz
vein. Assays are pending for all Dominion holes.
Of geological significance, several holes at Dominion exhibit
extended intervals of fracture veining controlling pervasive
alteration. This style of pervasive alteration at Dominion,
some 30 km from similar alteration at Violet, validates the
company's exploration model that bulk tonnage targets exist
alongside high-grade vein targets within the Company's extensive
land package.
Drill Core and Assay Protocols 2016
All drill holes are photographed wet. Magnetic
susceptibility, foliation, and rock quality determination ("RQD")
measurements are systematically collected. All cross-cutting
(potentially mineralized) quartz veins and adjoining alteration
envelopes are individually photographed. Core logging records
lithology, structure, and alteration. Visible gold is
identified, measured, photographed, and then excluded from the
assay sample for that interval. Assay samples from drill core
are cut using a diamond saw. Half the core sample interval is
bagged, tagged, and sealed; the other half is returned to the core
box with a corresponding tag and retained for reference.
Sample bags are aggregated into rice bags, sealed, and submitted by
Klondike Gold personnel to Bureau Veritas Mineral Laboratories ("BV
Labs") (formerly Acme Labs) preparation facility in Whitehorse, YT with chemical analysis of
sample pulps completed in Vancouver, British Columbia. Bureau
Veritas Labs is an accredited ISO 9001:2008 full-service commercial
laboratory.
At BV Labs each rock sample is crushed to 80% passing 2 mm
size. A 500 g subsample is pulverized to >85% passing -75
microns size (Code PRP70-500). The 500 g subsample is then sieved
to 106 microns (140 mesh) for "metallic screen" assaying. The plus
140 mesh fraction is then weighed and assayed for gold by fire
assay ("FA") fusion with a gravimetric finish (Code FS631). A 30 g
subsample of the minus 140 mesh fraction is assayed for gold by
fire assay ("FA") fusion with an atomic absorption ("AA") finish
(Code FA430). All over-limit results in excess of 10 ppm (10
g/t) for both silver and gold are re-assayed using a 30 g subsample
and assayed by FA with a gravimetric finish (Code
FA530-Au/Ag). Total gold grade is then calculated using a
weighted average of the plus and minus fraction assay results.
Samples were also analyzed for multi-element chemistry by ICP-MS
analysis (AQ200+U code). Samples over-limit in lead are rerun
by a high-detection limit ICP-ES procedure (Code MA370).
QA/QC includes the insertion and continual monitoring of Klondike
Gold standards, blanks, and duplicates within each batch, in
addition to BV Labs QA/QC samples.
The technical and scientific information contained within this
news release has been reviewed and approved by Peter Tallman, P.Geo, President of Klondike Gold
Corp., and Qualified Person as defined by National Instrument
43-101 policy.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp. is a Canadian exploration company with offices
in Vancouver, British Columbia,
and Dawson City, Yukon
Territory. The company is focused on exploration and
development of its Yukon gold projects, accessible by government
maintained roads located on the outskirts of Dawson City, YT, covering 308 square
kilometers of hard rock and 20 square kilometers of placer claims
including "McKinnon Creek" featured on the Discovery Channel show
"Gold Rush".
On behalf of Klondike Gold Corp.
"Peter Tallman"
President and CEO
(604) 609-6110
E-mail: info@klondikegoldcorp.com
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.
Disclaimer for Forward-Looking Information
"This press release contains "forward-looking information"
and "forward-looking statements" within the meaning of applicable
securities laws. This information and statements address future
activities, events, plans, developments and projections. All
statements, other than statements of historical fact, constitute
forward-looking statements or forward-looking information. Such
forward-looking information and statements are frequently
identified by words such as "may," "will," "should," "anticipate,"
"plan," "expect," "believe," "estimate," "intend" and similar
terminology, and reflect assumptions, estimates, opinions and
analysis made by management of Klondike in light of its experience,
current conditions, expectations of future developments and other
factors which it believes to be reasonable and relevant.
Forward-looking information and statements involve known and
unknown risks and uncertainties that may cause Klondike's actual
results, performance and achievements to differ materially from
those expressed or implied by the forward-looking information and
statements and accordingly, undue reliance should not be placed
thereon.
Risks and uncertainties that may cause actual results to vary
include but are not limited to the availability of financing;
fluctuations in commodity prices; changes to and compliance with
applicable laws and regulations, including environmental laws and
obtaining requisite permits; political, economic and other risks;
as well as other risks and uncertainties which are more fully
described in our annual and quarterly Management's Discussion and
Analysis and in other filings made by us with Canadian securities
regulatory authorities and available at
www.sedar.com. Klondike disclaims any obligation to
update or revise any forward-looking information or statements
except as may be required."
SOURCE Klondike Gold Corp.
