Klondike Gold Reports Lone Star Property Rock Sample Assays

Vancouver, British Columbia (FSCwire) - Klondike Gold Corp. (TSX.V:KG) (“Klondike Gold” or the “Company”) announces recently received rock assays from 212 prospecting samples on the Lone Star Property collected during the 2014 field program as part of a broader program evaluating the Lone Star, Dominion, and Gold Run Properties totalling 22,500 hectares area located near Dawson, YT, Canada.  Klondike Gold owns a 100% interest in 1,228 quartz claims and 14 crown grants covering the western half of the Klondike placer goldfields. 

Summary:

• Prospecting samples at the Boulder Lode prospect from a newly uncovered quartz vein (“Vein 1”) yield gold assays of 1,766 g/t Au, 1,007 g/t Au, and 831 g/t Au with corresponding silver assays of 400 g/t Ag, 237 g/t Ag, and 205 g/t Ag respectively.  (Prospecting samples are selective in nature; systematic test results may vary significantly.) 
• Prospecting samples of bedrock quartz veins from the Nugget to Buckland prospect areas assayed between 1.0 g/t Au and 19.4 g/t Au including six samples with visible gold identified in outcrop. 
• Prospecting identified 19 geographically diverse previously undocumented sites of visible gold in outcropping bedrock quartz veins.
• Analysis of historical aeromagnetic surveys from Klondike Gold and the Geological Survey of Canada (“GSC”) has identified a shear fault array comprised of a main dextral shear fault with associated secondary pinnate and horsetail extensional faults interpreted to transect the Klondike goldfields.  Portions of this fault network have been identified previously as “D4” faults and this fault array appears to be a primary control on “D4” gold-bearing quartz veins in Klondike area. 

Regional Structure:

In 2014, Klondike Gold recognized and field mapped a new shear fault array of regional importance.  This fault array was identified through the analysis of historical detailed airborne magnetic surveys flown by Klondike Gold over small portions of the Company’s Lone Star and Dominion Claim Blocks, in 1987, 1996, and 1999. By integrating these surveys with a regional aeromagnetic survey flown for the GSC in 2000 (500m line spacing), Klondike Gold’s geologists were able to identify and extend portions of the fault network throughout the Klondike region. Follow up field mapping at Lone Star and Dominion Properties demonstrates that portions of this fault network, ascribed by academic and government geologists as so-called “D4” faults, are extensional in nature and are thought to control the emplacement of Klondike area gold-enriched “D4” age veins.

Prospecting:

Prospecting in 2014 was guided by interpreted magnetics and investigated areas of faulting, with the objective of documenting gold-enriched quartz veins and distinguishing them from unmineralized quartz and carbonate veins.  A total of 212 prospecting samples of all rock types were collected throughout the 182 square kilometer Lone Star Property and submitted for analysis following the end of the field season.  Thirty of these prospecting samples had a gold assay result ranging from greater than 1 g/t Au to 1,766 g/t Au.

Historically over the past ten years, workers had documented six individual sites containing visible gold from nine samples.  During 2014, prospectors identified 21 new sites of visible gold in outcropping bedrock quartz veins.

Boulder Lode aka “Lone Star Mine” Area:

The Boulder Lode prospect was staked in 1897, excavated and explored between 1898 and 1903, then developed with an open-cut 105 meters long and 10 meters deep and underground to a vertical depth of 30 meters with 225 meters of lateral drifting and mined between 1909 and 1914.  Historically, Boulder Lode/Lone Star Mine is one of only two prospects in the Klondike that reached production.  Quartz veins at Boulder Lode cross-cut foliation at a high angle, have shallow dips, are typically 5 to 40 cm wide, and have demonstrated lateral and dip continuity on the order of 10’s of meters.  Multiple stacked veins and vein arrays are common.

Two new veins, “Vein 1” and “Vein 2”, were identified in 2014 located on the northeast wall of the Boulder Lode open-cut.  The veins were exposed by clearing bedrock obscured by gravel debris stacked on top by previous excavation efforts.  Vein 1, a 10 to 40 cm wide quartz vein, was sampled along a 5 meter length (sample ID # 1961631 to 1961634) and had a high assay of 1,766 g/t gold (see on-line Photo P1000178: http://www.klondikegoldcorp.com/wp-content/uploads/NR14Jan15-BoulderLodeVein1.pdf).  Vein 2, a 2 to 10 cm wide vein, was sampled along a 4 meter length (sample ID # 1961651 to 1961656) and had a high assay of 67.2 g/t Au (see on-line Photo P1020604 http://www.klondikegoldcorp.com/wp-content/uploads/NR14Jan15-BoulderLodeVein2.pdf).  Vein 2 is located 12 meters along strike from Vein 1 and these represent individual veins in the locally developed vein array. 

Assays from ten prospecting samples collected from Vein 1 and Vein 2 at the Boulder Lode are listed in Table 1.  Prospecting samples are selective in nature, non-representative rock grab samples of bedrock.  Systematic additional test results may vary significantly. Replicate analysis of samples 1961632 and 1961654 yielded consistent results.

Table 1: Boulder Lode Veins Assay Results