Klondike Gold Nugget Zone Assays 1.03 g/t Au Over 58.1 Meters 

 

VANCOUVER - Klondike Gold Corp. reported assays from new core resampling of five holes as part of a significant re-evaluation of the Nugget Zone and Nugget Fault area at the Company’s wholly owned Klondike District Property, Yukon Territory.  A minimum total of $2.5M has been budgeted for 2018 exploration.  The Company is fully funded through 2019 at a similar level of expenditure with $6.5M on hand.  

Re-evaluation of Nugget Zone has led to the identification of drill core intervals where disseminated gold is present.  Work in 2015 and 2016 focused solely on the exploration potential of gold-bearing quartz veins in narrow zones.  A total of 43 drill holes are being re-examined and continuously sampled. 

The Company in 2014 interpreted a series of previously unrecognized district-scale faults (Bonanza, Nugget, Eldorado, and Irish Faults, and the Rabbit Creek Thrust) from regional airborne magnetics.  During 2015 and 2016 the Company focussed exploration on gold-bearing quartz veins as had previous explorers over the past 120 years.  Late in 2016 the Company recognized the potential for gold disseminated in the host rock adjacent to quartz veining.   Drilling in 2017 at the Lone Star Zone confirmed that disseminated gold was an important contributor to the gold endowment within the Klondike District.  During these drill campaigns, individual rock units were distinguished and correlated for the first time, leading to the area historically mapped as “Undifferentiated Klondike Schist” to be mapped and divided by lithology.  Late in 2017 disseminated gold was inferred in several holes drilled along the Nugget Fault (LS17-140, LS17-142) which led to a wholesale re-evaluation of previous Nugget Fault and Nugget Zone drilling, as well as the Gay Gulch target on the Eldorado Fault. A total of 43 holes (37 from Nugget, 6 from Gay Gulch) are being relogged, additionally sampled, and assayed representing an approximate total of 2,500 new meters of core being sampled from these holes.  First results from this re-evaluation are reported here. Holes EC15-15 to -17, plus EC17-140 and -142 tested within a 425 meter by 100 meter area situated adjacent to the Nugget Fault approximately 1,400 meters to the southeast along strike from the Nugget Zone.  New assay results from extended and infill sampling from the five holes have been received.  

All drill holes originally targeted historical surface or trench occurrences of gold-bearing quartz veins. The holes were drilled in variable southerly orientations, with differing dips, with at least 100 meters between adjacent holes, and staggered across strike.  Assay averages are calculated over drilled core lengths; true thickness of any interval is unknown.  The reader is cautioned that not enough information is available to correlate lithology or gold mineralization between holes without further drill testing.

These Nugget Zone results warrant follow-up drilling.  Re-allocation of drilling in the current 2018 budget is contemplated, with targeting contingent upon receipt of additional Nugget Zone results still pending.