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Klondike Gold drills 83 m of 0.6 g/t Au at Klondike

2020-02-13 11:24 ET - News Release

Mr. Peter Tallman reports

KLONDIKE GOLD REPORTS 0.6 G/T AU OVER 83.0 METERS AND 1.45 G/T AU OVER 20.2 METERS AT LONE STAR ZONE, YUKON

Klondike Gold Corp. has released exploration results, including assays from 36 drill holes from the 2019 drill program, plus one area of channel sampling testing the Lone Star zone along the Bonanza fault on the company's wholly owned 586-square-kilometre Klondike District property, Yukon. The drill program was designed to test the Bonanza fault for Lone Star-style mineralization over an additional 750 metres (m) of strike length to the southeast of the Lone Star zone, in an area of high gold-in-soil values up to 0.8 gram per tonne (g/t) gold (Au). The program was successful in intersecting broad zones of gold mineralization containing local intervals of high-grade gold. The company's latest interpretation however suggests the main Lone Star mineralized horizon has been fault offset slightly south and was untested in 2019 and remains a high-priority target for 2020 drilling.

Summary:

  • Recent reanalysis of geophysical data sets covering the Klondike District property indicate the Bonanza fault can be traced in both VLF-EM and tilt derivative airborne magnetic survey data. The Bonanza fault appears as a seven-kilometre magnetic low (fault) associated with gold mineralization traceable across the northwestern end of the property, starting near the confluence between Eldorado and Bonanza creeks and trending southeasterly through the Lone Star zone.
  • Drill results reported here are from along the Bonanza fault, east of the Lone Star zone.
  • Overall drill and geologic results support the company's interpretation that D4 structures are conduits for gold-bearing fluids and that both D4 and D3 structures are potentially gold mineralized exploration targets with a crosscutting pattern analogous to a checkerboard.
  • Remaining 2019 drill results from various ancillary targets are pending release.

Drill result highlights:

  • The first Lone Star zone drill hole of 2019, LS19-284, intersected mineralization from surface grading 0.60 g/t gold (Au) over 83 metres (four to 87 m), including 1.91 g/t Au over 16.50 metres (35.0 to 51.5 m).
  • Hole LS19-290 intersected mineralization from surface grading 0.84 g/t Au over 18.50 metres (5.30 to 23.80 m).
  • Hole LS19-300 intersected near-surface mineralization grading 0.69 g/t Au over 31.40 m (28.20 to 59.60 m), including 1.09 g/t Au over 17.80 metres (28.20 to 46.00 m).
  • Hole LS19-305 intersected near-surface mineralization grading 1.25 g/t Au over 20.50 m (51.50 m to 72.00 m).
  • The final Lone Star zone drill hole of 2019, LS19-319, intersected mineralization from near-surface grading 1.45 g/t Au over 20.20 metres (20.80 to 41.00 m).

Lone Star zone drill results

Assay results for samples from 36 drill holes (LS19-284 to LS19-319) are newly reported here. The 36 holes were drilled in an area of 300 metres wide by 700 metres (along strike) located east of the known Lone Star mineralized zone. Mineralization in drill holes reported here extends the known envelope of the Lone Star zone mineralization along the Bonanza fault for up to 400 metres to the east and provides information for drill targeting further potential expansion in 2020.

Significant intersections from these 36 holes are listed in one of the attached tables.

Lone Star zone geophysical model overview

The Lone Star zone gold mineralization and associated Bonanza fault is marked in geophysics by a coincident intense conductive northwest-trending very-low-frequency electromagnetic (VLF-EM) high and a magnetic break indicative of a major D3 structure as defined in the company's orogenic gold model (see news release dated Dec. 10, 2019). Recent compilation of work has recognized a three-kilometre extension of the D3 structure to the northwest. The combined VLF-EM/magnetic target, associated with gold mineralization in outcrop, gold in soils and gold intersected in drilling, is now traceable across the northwestern end of the Klondike District property for a distance of seven kilometres.

Lone Star zone gold mineralization

Within the Lone Star zone and continuing along the D3 northwest-striking and southwest-dipping Bonanza fault, gold mineralization occurs within localized zones of quartz veining and disseminated along microfractures. Both the Bonanza fault, and also the nearby Nugget fault (Stander zone), are composite fault zones ranging from 30 to 150 m wide. The later northeast strike and northwest-dipping D4 faults (orthogonal to D3 in orientation, forming a checkerboard pattern), were conduits for the introduction of gold mineralization. The D4 faults apparently reactivated the earlier D3 structures and both are considered conduits and deposition sites for gold-bearing mineralization.

Measured from the northwest end, gold along the Bonanza fault occurs in drill holes at surface between approximately Km 3.5 and Km 7.0. (The Lone Star zone area of closer-spaced drilling is from Km 4.6 to Km 5.6.) The gold is coarse, visible free gold, usually one millimetre (mm) in size, but occasionally occurs in larger clots to over one centimetre in size, hosted by quartz veining. Individual quartz veins range in size from one mm to 10 mm and rarely up to over one m. As currently known, gold mineralization occurs mostly adjacent to and above (in the hanging wall of) the controlling Bonanza fault.

Lone Star zone channel sample results

Seven prospecting grab samples were collected in 2018 from a subcropping quartz vein discovery within the Bonanza fault containing visible gold located 850 metres east of the eastern end of the Lone Star zone. Samples assayed between 14.5 g/t Au to 38.5 g/t Au (average of 25.1 g/t Au). Prospecting grab samples are selective in nature collected to test for the presence or absence of gold and other economic minerals. Systematic additional test results may vary significantly.

A trenching program in 2019 exposed the quartz vein discovery along a strike of 24 metres. The quartz vein and adjacent veinlets dips shallowly to the northeast consistent with veins noted locally in the Lone Star zone. The true thickness of the mineralization is indeterminate.

The quartz vein exposure contains visible gold. A total of 29 channel samples cut by rock saw were collected from approximately one-metre spaced lines continuously across the one-metre-wide to four-metre-wide exposures over a 24-metre strike length. Individual samples were one metre in length. A total of 11 composite channels were cut orthogonally across the 24-metre length and each ranged from one to four metres in total length. The objective of this work was to systematically examine the gold distribution through the length of the quartz vein and better understand the distribution of higher-grade pockets of gold-bearing quartz veins generally.

All channel samples contained gold. The highest composite channel assay result was 28.2 g/t Au over four metres at the four-metre mark along the exposure, including a subinterval of 96.3 g/t Au over one metre, with visible gold. An adjacent composite channel assay interval at the three-meter mark was 11.1 g/t Au over three metres. The average gold assay value collectively for the 29 channel samples is 7.7 g/t Au. The 29 samples had a total mass of 112.9 kilograms (kg) (average of 3.9 kg per sample) and the 112.9-kilogram bulk mass-weighted assay value is also 7.7 g/t Au. These channel samples are selective in nature collected to test for the presence or absence of gold. Systematic additional test results elsewhere may vary significantly. A table of composite channel sample assays is summarized in an attached table.

2019 drill assays pending

Remaining 2019 drill results from 54 holes testing various ancillary targets are pending release.

Drill hole statistics

Drill holes LS19-284 to LS19-319 were NTW-diameter size core. The purpose of varying collar dip and azimuth was to test for crosscutting structures and to obtain structural measurements from the use of oriented core tools.

Sample and analytical protocols

Lone Star zone samples in this release are from NTW-diameter drill core. 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. Three gold reference standards, blanks, coarse crush blanks and sample duplicates are routinely inserted as part of Klondike Gold's quality assurance/quality control (QA/QC) program, independent of and additional to the laboratory QA/QC program. A similar procedure is used for outcrop channel samples except all the individual sampled channel saw cut material is bagged for assay.

Appointment of chief financial officer

The company further reports that Jasvir Kaloti has been appointed chief financial officer of the company to replace Jessica Van Den Akker. The company would like to thank Ms. Van Den Akker for her contributions and wish her well in future endeavours.

Qualified persons review

The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, professional geoscientist, vice-president of exploration for Klondike Gold and qualified person as defined by National Instrument 43-101 policy.

About Klondike Gold Corp.

Klondike Gold is a Vancouver-based gold exploration company advancing its 100-per-cent-owned Klondike District gold project, located at Dawson City, Yukon, one of the top mining jurisdictions in the world. The Klondike District gold project targets gold associated with district-scale orogenic faults along the 55-kilometre length of the famous Klondike Goldfields placer district.

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