Klondike Gold Commences Drilling at Gay Gulch Zone

VANCOUVER, BC / ACCESSWIRE / May 28, 2019 / Klondike Gold Corp. (TSX-V: KG; FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) has commenced 2019 diamond drilling, part of a $2-million exploration program (see News Release May 16, 2019) on the Company’s wholly owned 563 square kilometer Klondike District Property, Yukon Territory. Drilling is initially targeting the Gay Gulch Zone following up high-grade gold mineralization hosted by quartz veining discovered there in 2015. Seven drill holes are planned to test this Zone as part of a 60-hole program testing multiple targets.

SUMMARY:

  • Drilling has commenced targeting extension to the mineralization identified at the Gay Gulch Zone along the Eldorado Fault. Seven shallow drill holes are planned.
  • The Gay Gulch Zone was originally discovered by drilling in 2015. Discovery hole EC15-10 intersected bearing quartz veining which assayed 420 g/t Au over 0.5 meters within a broader interval assaying 75.6 g/t Au over 2.8 meters. All six holes drilled in 2015 contained visible gold.
  • Assay results from this portion of the 2019 drill program are anticipated in late July.

2019 Gay Gulch Zone Target:

The Gay Gulch Zone is situated adjacent to a prominent eight kilometer long northwest trending magnetic low named the Eldorado Fault which has numerous gold showings located along it. At Gay Gulch, the Eldorado Fault is intersected by a younger north trending “magnetic low” fault that creates a kink or bend which is prospective for focusing of gold-bearing quartz veins.

In 2015 following the identification of visible gold bearing quartz veining in local float, six holes (EC15-08 to EC15-13) tested the showing and all holes intersected quartz veins containing visible gold (see News Release October 26, 2015.) Five of six holes returned high grade gold assays over narrow intervals of up to 419.91 g/t Au over 0.50 meters, with interesting narrow gold intersections listed in the following table.

Table 1: High grade gold intervals from 2015 drilling

Hole ID
From
(m)
To
(m)
Au (g/t)
Interval
(m)
EC15-08
42.50
42.85
13.47
0.35
EC15-09
20.15
20.40
6.55
0.35
EC15-10
23.90
24.40
419.91
0.50
EC15-11
21.20
21.35
4.66
0.15
EC15-13
20.00
20.35
17.39
0.35
EC15-13
20.80
21.00
51.83
0.20

A total of seven shallow holes are planned to test for extensions to the mineralization identified in 2015. Five holes will test the northwest strike direction, and two holes will test the north strike direction. The Gay Gulch Zone drilling campaign should be completed by early June. Assay results are expected to be available by late July.

A location map (Figure 1) of 2019 drill targets, and a map (Figure 2) of planned Gay Gulch holes is included below.

Figure 1: Location of 2019 Drill Target Zones and nearby prospects, Klondike District Property.

Figure 2: Map of 2019 Gay Gulch Zone planned holes and 2015 hole locations, Klondike District Property.

QUALIFIED PERSONS REVIEW

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 563 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.

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