Model Identifies New Faults To Gold Mineralization 

VANCOUVER, BC - Klondike Gold Corp. reported an update to the working exploration model which identifies newly recognized northeast trending orogenic faults and links these faults to gold mineralization. The updated exploration model is a result of a comprehensive three-month reprocessing and recompilation program of collected data. This new exploration model more adequately explains the recent gold discovery in drill hole EC19-267 which intersected mineralization grading 1,009 g/t Au with 1,035 g/t Ag over 1.0 meter (104.00-105.00 m) and provides vectors towards new exploration targets at the Lone Star and Stander zones. These areas, among others, will continue to be the focus of drilling and exploration efforts in 2020.

The new orogenic structural model identifies three phases of early deformation ("D1" to "D3") associated with obduction of the Klondike island arc terrain onto continental North America, which created northwest-southeast oriented unmineralized faults through the Klondike District. A later post-obduction deformation phase ("D4"), recognized in outcrops in 2018 and recently documented in outcrop, oriented-drill core, in multiple geophysics and LiDAR datasets, and also in the topography shows approximately northeast-southwest oriented faults which dip northwesterly. This represents an almost 90-degree rotation of the main compressional stress direction, and is implied to occur well after (D1 to D3) terrain obduction.

The exploration model essentially recognizes that northeast-trending "D4" faults are responsible for gold mineralization, and that the D4 fault process also reactivated and introduced gold mineralization into some earlier "D3" northwest-trending faults. Historically the D3 faults have been the focus of all exploration in the Klondike District to date and were previously considered to be the only faults with gold mineralization.

The Lone Star Zone and Stander Zone are both (D3-related) structures cross-cut by the newly recognized (D4) faulting. The Company interprets the recent Stander Zone gold intersection in drill hole EC19-267 of mineralization grading 1,009 g/t Au with 1,035 g/t Ag over 1.0 meter (104.00-105.00 m) to be situated at the intersection of localized northwesterly (D3) and northeasterly (D4) trending structures.

Also recognized are subsequent post-mineralization north-northwest ("D5") faults containing Cretaceous age mafic, felsic and lamprophyre dykes which indicate a direct magmatic connection to the upper mantle. Most recent intrusions of north-south trending, reverse-magnetic-polarity ("D6") Eocene porphyry dykes complete the structural evolution.

The Company has also provisionally identified five northeast (D4) cross-faults in the same area which correspond directly to the pattern of creeks drainage. The recognition and mapping of the D4 orogenic faults across multiple datasets and linking these faults to gold mineralization provides explanation for the distribution of gold in faults within the Klondike District. These northeast (D4) faults, the extensions of northwest D3 faults and the structural intersection of the (D3/D4) fault systems are considered primary targets of 2020 gold exploration.

Remaining unreleased 2019 drill results are undergoing interpretation and review in light of the new structural information and exploration model updates and will be forthcoming upon completion of this review. Results from other work such as additional soil sampling, GT-Probe surveying, rock sampling and oriented core analysis are also pending.

The company’s contact information is (604) 609-6138, [email protected],  www.klondikegoldcorp.com.