Klondike Gold Nugget East Target Assays 2.36 g/t Au over 22.86 meters and 2.22 g/t Au over 21.34 meters

VANCOUVER, BC / ACCESSWIRE / January 24, 2019 / Klondike Gold Corp. (TSX.V:KG; FRA: LBDP; OTC:KDKGF) (“Klondike Gold” or the “Company”) is pleased to report assays from the final 27 drill holes of the 2018 drill program testing various targets including the Nugget Zone at the Company’s wholly owned Klondike District Property, Yukon Territory.

The most significant new near-surface gold intersections come from the Nugget East Target, particularly hole EC18-230 assaying 2.36 g/t over 22.86 meters from 9.14 meters downhole and EC18-234 assaying 2.22 g/t over 21.34 meters from 49.68 meters downhole. These gold intersections, plus EC15-15 and EC15-16 from the 2015 drill program outline a new gold-mineralized subzone of 115 meters strike length which remains open and requires follow-up testing.

The overall objective of drilling at the Nugget area was to test targets within the Eldorado Creek drainage in proximity to the interpreted Nugget Fault and Irish Fault. Gold intersected along the Nugget Fault in particular has been shown to be one of the sources of the rich Eldorado Creek alluvial placer gold deposits from the past century. The Nugget Zone plus the Nugget East, Oro Grande, and Glacier targets lie along the Nugget Fault. The French target lies along the Irish Fault. Drilling encountered vein-array hosted gold mineralization in all intersections. Host rocks were typically brittle mafic schists, and/or felsic schists. In comparison, the Lone Star Zone is hosted by a more ductile intermediate schist.

An updated plan map of drill hole locations in this news release is available on the Company’s website http://www.klondikegoldcorp.com/photos/gallery/2018-drill-maps.

A full table of weighted average gold assays for the 27 holes EC18-215 to EC18-241 are below:

TABLE OF DRILL RESULTS FROM NUGGET AREA TARGETS:

Drill holes EC18-215 and EC15-237 were drilled at -55 dip and 030 azimuth. All other drill holes EC18-206 to EC18-241 were drilled at -55 dip and 200 azimuth. Assay averages are calculated over drilled core lengths; true thickness from holes drilled at 200 azimuth is interpreted to be approximately the drilled interval.

NUGGET ZONE

Holes EC18-215 to EC18-219 tested the Nugget Zone area. The objective was to examine/define the upper and lower bounds of the known Nugget Zone mineralization, and obtain structural information from oriented core measurements.

Hole EC18-215 was drilled at 030 azimuth (180 degrees to all other drilling) testing above the upper (northeast) edge of the Nugget Zone and returned no significant values. EC18-216, EC217, and EC18-218 intersected the upper and lower edges of Nugget Zone and these contained gold mineralization. EC18-219 also drilled above the upper edge of the Nugget Zone and had no significant values.

ORO GRANDE TARGET

Holes EC18-220 and EC18-221 tested the Oro Grande target situated approximately 250 meters to the east of the Nugget Zone attempting to locate the east continuation of Nugget Fault; neither hole intersected the Nugget Fault nor any significant mineralization.

NUGGET EAST TARGET

Holes EC18-222 through EC18-234 tested the Nugget East target interpreted to lie along the Nugget Fault situated approximately 1 km to the east of the Nugget Zone. Drill holes with interesting results include EC18-222 (0.89 g/t gold over 23.55 meters from 13.45m), EC18-230 (2.36 g/t Au over 22.86 meters from 9.14m), EC18-231 (23.50 g/t Au over 1.50 meters) and EC18-234 (2.22 g/t gold over 21.34 meters from 49.68m).

The Nugget East target was tested in 2015 and in 2017 and had four holes yield significant gold mineralization as follows:

New holes EC18-230 and EC18-231, plus EC15-15 and EC15-16, define a series of four holes along a 115 meters strike length spaced 50-meters apart; all four holes intersected interesting gold grades and widths outlining a subzone for further testing.

Hole EC18-234 is part of a series of three holes, EC17-142 / EC18-234 / EC17-140 spaced 50 meters apart; all holes intersected similar gold grades and widths outlining a second subzone for further testing.

GLACIER TARGET

Holes EC18-235 and EC18-236 tested the Glacier target approximately 800 meters west of the Nugget Zone. Hole EC18-235 intersected 4.81 g/t Au over 1.90 meters related to visible gold-bearing quartz veining occurring within a 50-meter zone of quartz flooding.

FRENCH TARGET

Holes EC18-237 through EC18-241 tested two targets in the French Gulch area of the Irish Fault target. No significant gold intersections were encountered.

ONGOING WORK

The final report and lithologic and structural mapping results are being compiled and will be reported shortly. This information, once compiled, will be integrated with final results of Klondike Gold’s detailed mapping, as well as the products of district airborne geophysical surveying, soil geochemical surveying, and prospecting. Results of the regional program will be released with discussion at that time. Additionally, a synthesis discussion of 2018 Lone Star Zone results including drilling, mapping, rock sampling, and soils is also anticipated.

A total of 87 holes (9,511.93 meters) were drilled in 2018. Results from all 87 of 87 diamond drill holes completed in 2018 have now been released including results from the Lone Star Zone (LS18-151 to LS18-159; LS18-164 to LS18-210), Gold Run area (GR18-160 to GR18-163), and Nugget area targets (EC18-215 to EC18-241).

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 http://www.klondikegoldcorp.com/projects/sampling-and-assay-protocols/.

Drill core samples are 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 core sample is crushed to 70% 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.

The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, P.Geol., Vice-President Exploration 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 the Lone Star gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 557 square kilometer property accessible by government maintained roads located on the outskirts of Dawson City, YT within the Tr’ondëk Hwëch’in First Nation traditional territory.

On behalf of KLONDIKE GOLD CORP.

“Peter Tallman”

President and CEO 
(604) 609-6110 
E-mail: [email protected] 
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.