VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondike Gold Corp. (the “Company”) (TSX-V: KG) is pleased to report on the results of recent examinations conducted by the Company’s geological consultants on the Lagares-Castromil concession of northern Portugal.
As reported in the Company’s News Release dated February 26, 2013, the Lagares-Castromil concession contains two contiguous gold deposits (Castromil ad Serra da Quinta), that were discovered and exploited during Roman times.
The two deposits occur along a northwest trending belt and are mainly hosted within a Hercynian granitic body that is intrusive into folded Lower Paleozoic metasedimentary rocks. Gold occurrences tend to be located near the contact between the granite and the metasediments and are commonly spatially related to a reverse fault that is located at or near the contact between the granite and metasediments. Gold mineralization at Castromil and Serra da Quinta occurs over a strike length of 1,700 m and is open ended in both directions.
Since 1960, this mineralized belt has been investigated by several major mining companies, including Noranda, Anglo American, Billiton and Min Met. The most recent work was carried out by Connary Minerals (“Connary”) between 1994 and 1997. It culminated in the preparation of a Feasibility Study which showed positive economics at gold prices in the $325-375 range. A substantial amount of diamond drilling was done on the property by Billiton (65 holes totaling 2875 m at Castromil and 45 holes totaling 1873 m at Serra da Quinta) and Connary (276 short percussion holes and 17 diamond holes). Based on the results of drilling and of extensive channel sampling of underground workings ACE Howe International (“ACE”), consultants to Connary, estimated at Castromil a measured – indicated mineral resource of 2.42 million tonnes at an average grade of 1.89 g/t Au (no breakdown between measured and indicated resources is provided in the ACE report).
Note that these resource estimates are historic in nature, are not 43-101 compliant and a qualified person has not done sufficient work to classify the historical estimates as current mineral resources.
The Serra da Quinta deposit has the potential to host a tonnage comparable to that of Castromil and requires additional drilling for resource definition.
Specific follow up targets at Serra da Quinta are listed below:
- Section 1025 S. Additional drilling to define continuity of mineralization in PD 264 (9m of 5.2 g/t Au)
- Section 1050 S. Drilling between PDSQ 202 (7 m of 4.13 g/t Au ended in mineralization) and MIL 22 (3.54 m of 10.58 g/t Au). Potential high grade ore panels.
- Section 1125 S. Drilling between 95/13 (14.05 m of 5.0 g/t Au) and MIL 21 . To establish continuity of potential high grade ore panels east of 95/13.
- Section 1375 S to 1500 S. Additional drilling east of PD250 (potential shallow mineralization below Roman excavations and deeper mineralization). Infill drilling on sections 1400 S to 1475 S (add to existing resources and extend high grade mineralized panels : e.g. 9.0 m of 7.22 g/t Au and 7.80 m of 3.15 g/.t Au in MIL 29 and BIL 68, respectively).
- Section 1575 S. The Romans mined a substantial amount of shallow material between sections 1550 S and 1600 S. Based on a hypothetical reconstruction of the original topography on section 1575 S a triangular segment 65 m long and up to 15 m high was removed along section 1575 S. The 38 m long Adit 6 collared at the bottom of the Roman workings penetrated three mineralized zone averaging 5.95 g./t Au over 5.10 m, 14.06 g/t Au over 5 metres and 21.47 g/.t Au over 2.1 metres.
The purpose of the 2013 field program was to review the existing database, carry out examinations of portions of Castromil and Serra da Quinta and investigate the nature and controls of gold mineralization along the belt. The results of these studies point to a simpler structural framework that had been previously interpreted and indicate that several untested exploration targets exist within the belt, namely:
1) Deeper mineralized zones
2) Potential gold mineralization within the metasedimentary rock units
3) Several unexplored but potentially mineralized panels at Serra da Quinta
4) Potential extensions of gold mineralization south of Serra da Quinta into what is referred to as the San Domingos area.
Mr. Erich Rauguth, President and CEO of Klondike stated “We are very pleased with the results of the recent geologic work at Castromil. The new interpretations will be used to plan a follow up drilling program aimed at expanding the historic gold resources and establishing a new resource model to be incorporated in a 43-101 compliant resource estimate.”
On July 30, 2013 the Company announced that it has received three additional exploration licences, the Castelo de Paiva, the Valongo, and the Ponte do Barca. The Castelo de Paiva and the Valongo licences are contiguous with Lagares-Castromil and bring the Company’s land holdings in the Valongo Mineral Belt to over 550km2.
Luca Riccio, Ph.D., P.Geo and Jim Mortensen, Ph.D., P.Eng, have reviewed the content of this News Release.
About Klondike Gold Corp.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia and Dawson City, Yukon. The Company is focused on the development of its Yukon properties. In addition, the Company holds a large portfolio of gold and base metal properties in southeastern British Columbia and in Portugal.
CONTACT INFORMATION
| Inquiries: | Erich Rauguth, President & CEO | |||
| Telephone: | (604) 685-2222 | |||
| Email: | ||||
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.