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Klondike Gold Provides Summary of 2012 Exploration at Lone Star Property

Klondike Gold Corp. is pleased to summarize final results for 2012 exploration of its Lone Star Property, Yukon.

Exploration Highlights

  •   Boulder Lode open cut results of 1.86 g/t over 5 by 25 meters, including 9.43 g/t over 2.5 by 4.2 meters of the excavation and significant advances in understanding of the structural and lithologic control on two types of gold mineralization
  •   Nugget Zone mapping, extension and grab samples of 179 g/t Au with 78 g/t Ag and recognition of a possible trend to the Buckland Zone
  •   Upper Eldorado grab samples of up to 98.8 g/t Au with 20.7 g/t Ag
  •   Violet Ridge trend advancement with high sample of 47.4 g/t Au and 894 g/t Ag and recognition of possible 4 km strike length
  •   Boy Zone 400 m by 900 m soil anomaly and recognition of further under explored areas of the property

The exploration on the Lone Star Property during 2012 used a systematic approach to evaluate the potential of known targets and to explore for new gold mineralization. The winter 2012 data review brought together over 30 years of data into a usable format and drove 2012 exploration priorities.

There are four high priority targets on the Lone Star Property:

  1.   The Boulder Lode on top of Lone Star Ridge
  2.   The Nugget to Buckland trend midway up Lone Star Ridge with possible extent of greater than 1.1 km and significant past high grade results
  3.   The Violet Ridge trend with possible extent of 3.6 km from the historic Violet mine to the 310 Zone
  4.   The underexplored areas of the property which have significant extensive ongoing placer production

New understanding of the mineralization at the Boulder Lode has been facilitated by the excavation and sampling of a 100 year old open cut in June 2012 and by structural and lithological mapping by academic consultants Dr. Doug Mackenzie, Dr. Jim Mortensen, and Dr. Timothy Liverton. This understanding of the Boulder Lode gives evidence for two complementary types of significant gold mineralization:

  1.   Shallow dipping stacked quartz vein system visible in the 2012 Boulder Lode excavation with local thickness of 8 plus metres. Channel sampling shows results of 1.86 g/t (147 sample average) over a 5 by 25 m portion of the stacked vein system, including 9.43 g/t over a 2.5 by 4.2 meters. Individual samples show a high of 43.1 g/t Au in the quartz veins and 4.1 g/t in the interstitial schist host rock. This mineralization dips to the northeast into an area with very limited historical drilling and coincides with an area of favorable host lithology postulated by Dr. Jim Mortensen. Further investigation by drilling into the down dip extension of this mineralized unit is recommended.
  2.   Contouring and lithological mapping used previous drilling and trench data to generate an exploration model that shows gold enrichment in a subunit of the Klondike schist on the anticlines (structural high points) of undulating D3 and D4 folding on a 100 to 200 meter scale. Late D4 extensional deformation appears to have preferentially mineralized these anticlines. This has implications for new target areas to the east and north of the Boulder Lode.

Geotechnical drilling in the Pioneer Zone southeast of the Boulder Lode was conducted in April and May to increase geological understanding of the relationship of the Boulder Lode to the Pioneer as well as to test induced polarization geophysical anomalies to the north of the Pioneer Zone. The program provided insights for future exploration; a stronger IP anomaly north of 12DDH003 is a possible target when taken in context of new lithological and structural understanding of the Boulder Lode. The stronger of the two anomalies was not drilled due to access issues during the early spring thaw.

Boulder Lode results of panel sampling, drilling results, and further explanation of structure contouring is available in Press Release September 5, 2012 "Klondike Gold Advances Lone Star Property".

The Nugget to Buckland trend was investigated in 2012 through mapping and rock sampling. This investigation by the Company's technical team has found that the trend of the upper Nugget Zone can be extended on surface. Select samples were collected including a grab sample of 179 g/t Au with 78 g/t Ag (30 g fire assay with Gravimetric over limit). Results support future drilling to test the Nugget Zone at depth and along strike towards the Buckland Zone quartz veins. Active placer mining in Oro Grande Gulch suggests a source for gold in the area where the Buckland and Nugget Zones are assumed to intersect. Nugget and Buckland Zones have significant high grade results from work by previous operators and the Company views the possibility of high grade quartz veins over this 1000 m strike length as being very positive. It is noted that the Upper Eldorado gold occurrence with assays up to 98.8 g/t Au and several impressive specimens of visible gold may have some relation to this trend; however more work is recommended to confirm this. Further discussion and significant past results are available and in Press Release November 14, 2012 "Klondike Gold Samples 179 g/t Gold with 78 g/t Silver and 98.8 g/t Gold with 20.7 g/t Silver on the Lone Star Property, Yukon Territory".

The Violet Ridge trend from the historic Violet mine to the 310 Zone was explored by mapping, rock sampling, and soil sampling in 2012. The results of this work in addition to further research on historical results have better defined the Violet Ridge trend mineralization. The mineralization appears to be in at least two parallel trends, both showing sharp soil anomalies of 20 to 100 ppb Au with rock sample results of up to 47.4 g/t Au and 894 g/t Ag at the Violet mine ore pile. The veins have vertical extent of approximately 400 m in the area of the 310 Zone on the ridge down to the base of Nugget Gulch where the vein was observed to be steeply dipping to the northeast. The four plus kilometer extent and vertical extent of the Violet Ridge trend with the possibility of high grades make this an attractive target for the Company.

Previous Press Release relating to the Violet Ridge trend include September 20, 2012: "Klondike Gold Samples 47.4 g/t Gold and 894 g/t Silver along the Violet Vein Trend" and November 14, 2012: "Klondike Gold Samples 179 g/t Gold with 78 g/t Silver and 98.8 g/t Gold with 20.7 g/t Silver on the Lone Star Property, Yukon Territory".

The technical team has recognised that portions of the 137.6 km2 Lone Star Property remain under explored. The newly discovered Boy Zone, a 400 m by 900 m soil anomaly, illustrates the possibility of finding new zones on the Lone Star Property. Further promising early stage exploration target areas include:

  1.   The southeast portion of the property in the area of Little Blanche and Quartz Creek where there is significant and ongoing placer gold production.
  2.   Northwest of French Gulch to Adams Creek area along strike with the Violet Ridge trend where there has been little recent work and placer production that was some of the richest in the Klondike Gold Fields and continues to present.

Senior management, expert scientific consultants, and the technical team are currently developing an efficient and effective plan to test Lone Star priority targets in the 2013 season. Resident Geologist Iain Mitchell commented, "It is rare and exciting to have a property with so many high priority gold targets and I look forward to getting my boots back on the ground in 2013."

T. Liverton, PhD., C. Geol, F.G.S. is the qualified person for the purposes of this news release.


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