Klondike Gold Drills from Surface 0.84 g/t Au over 29.0 meters and Deepest Intersection to Date Of 0.62 g/t Au over 58.0 meters to 214 meters at Lone Star Zone

VANCOUVER, BC / ACCESSWIRE / September 22, 2021 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTC PINK:KDKGF) (“Klondike Gold” or the “Company”) is pleased to report results of 2021 Phase 2b diamond drilling at the Lone Star Zone on the Company’s wholly owned 586 square kilometer Klondike District Project near Dawson City, Yukon Territory.

Highlights from Phase 2b Lone Star Drilling:

• 0.35 g/t Au over 150.0 meters from 7.0 meters to 157.0 meters in LS21-397 including
• 0.74 g/t Au over 38.0 meters from 93.0 meters to 131.0 meters
• 0.62 g/t Au over 58.0 meters from 156.0 meters to 214.0 meters in LS21-402
• 0.84 g/t Au over 29.0 meters from 4.0 meters to 33.0 meters in LS21-399

Peter Tallman, Klondike Gold’s CEO comments, “At ~200 meters vertical depth, these latest Phase 2b drill results from the Lone Star Zone intersected the deepest gold mineralization yet. In addition, the Lone Star Zone gold mineralization has demonstrated continuity along the downhill slope dip length over 350 meters distance. This is a substantial increase from 200 meters previously. All dimensions remain open, and we will soon be reporting the results of drill testing to the east. All these results will be incorporated into the forthcoming independent Technical Report as we work towards a maiden mineral resource.”

PHASE 2 DRILLING

Phase 2 drilling at the Lone Star Zone is complete. Results from the Lone Star area (Phase 2b) tested the downslope and potential down-dip extension of the Lone Star Zone with 13 holes totalling 2,661 meters are reported here. Results from the Lone Star ‘East’ area (Phase 2a) tested the potential eastern extension of the Lone Star Zone with 12 holes totalling 1,222 meters, are still pending and due shortly. See Figure 1 for drill targets and Table 1 for assay results on the Phase 2b Drilling on the Lone Star Zone.

See Figure 2 for a simplified cross section across the Lone Star Zone showing continuity of mineralization subparallel to the slope which includes deep hole LS21-397.

Figure 1: Lone Star Zone Target Areas and 2021 Phase 2 Drill Holes.

Figure 2: Cross section with LS21-397 gold intersection from surface to 150 meters vertical depth.

Table 1: Significant Lone Star Zone Drill Phase 2b Mineralization

All holes are drilled at 200 azimuth and 55 degree dip. Oriented core data shows sheeted gold quartz veining is structurally uniform at 310 azimuth and 35 degree northeast dip. From this data, drill hole intersections are approximately >90% of true width. Offsets of mineralization within section occur as a result of (oblique to section) offset faults with 30m to 100m approximate displacement.

GEOLOGY UPDATE

A significant deep crustal fault has been identified by mapping comprised of graphitic melange with large pyroxenite blocks or ‘knockers’ derived from crustal terranes deep beneath the obducted Klondike Schist. The Lone Star Zone mineralization comprised of gold-bearing sheeted vein zones with locally disseminated gold is developed between this deep crustal fault below and a secondary fault (the Rabbit Creek fault in earlier news releases) more than 1,000 meters away uphill.

PHASE 4 DRILLING AND EXPLORATION UPDATE

A Phase 4 addition to the 2021 drilling program consisting of approximately 12 to 15 holes totalling up to 1,500 meters is underway with holes planned to include testing a new target area located by recent prospecting (see News Release August 24, 2021).

Klondike Gold contracted GeoCloud Analytics of Melbourne, Australia to complete a detailed re-interpretation of the 2019 LIDAR survey data. A detailed interpretation of 10% of the Company’s land holdings covering the core Bonanza and Eldorado Creek area has been received. Based upon the identification of abundant new targets, including over 1,200 previously unknown pits or workings as example, the re-interpretation work has been expanded to include the entire district flown with this survey. This work is intended to substantially increase the overall resolution of the original survey and to identify and systematically map key features that will help the Company target additional areas of potential mineralization throughout the Klondike District Project. The work is in progress.

Klondike Gold also contracted LiDAR Services International Inc. to complete a high resolution orthophoto survey over key areas of the Klondike District Project. The survey has been flown with results received and validated. This photo survey is now the base reference datum for ongoing drill work.

SRK Consulting of Toronto have been contracted to prepare a Technical (NI43-101) Report summarizing geology and exploration on the Company’s Klondike District Project. Site visit field review has been completed. The report is in progress and is anticipated to be completed for filing by 4Q2021.

2021 ASSAY PROTOCOLS

All 2021 drill holes referenced in this release produced NTW (5.71cm dia.) 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. Two gold reference standards, two blank samples (a coarse and a fine), and a coarse sample duplicate per 100 samples, 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.

Sample bags are aggregated into rice bags, sealed, and submitted by Klondike Gold personnel to Bureau Veritas Mineral Laboratories (“BV 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 drill core sample is crushed to 70% passing 2 mm size. A 500 g subsample is pulverized to 85% passing 75 microns size (200 mesh)(Code PRP70-500). All samples of 500 g were sieved to 106 microns (140 mesh) for “metallic screen” assaying. The +140 mesh fraction is weighed and assayed for gold by fire assay (“FA”) fusion with a gravimetric finish (Code FS631). A 30 g subsample of the -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.

QUALIFIED PERSONS REVIEW

The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, P.Geo., Vice-President Exploration of Klondike Gold Corp. and Qualified Person as defined by National Instrument 43-101 policy. Detailed technical information, specifications, analytical information and procedures can be found on the Company’s website.

COVID-19 UPDATE

Klondike Gold continues to take proactive measures to protect the health and safety of our local host community, our contractors and our employees from COVID 19. Exploration activities in 2021 continue to have additional safety measures in place, following and exceeding all the recommendations made by the Yukon’s Chief Medical Officer.

ABOUT KLONDIKE GOLD CORP.

Klondike Gold Corp. is a Vancouver based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon Territory, 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-kilometer length of the famous Klondike Goldfields placer district. To date, multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The Company is focused on exploration and development of its 586 square kilometer property accessible by scheduled airline and 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) 609-6138
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.

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