Klondike Star Green Lights Indian River Gold Project
Hans Boge, P.Eng., President of Klondike Star Mineral Corporation, reported on the determination of probable mineral reserves sufficient to support a mining decision by the Board of Directors.
The probable mineral reserve identified to date, based on drilling of over 600 holes on 60% of the Indian River property, calibrated by bulk sampling, is in the order of 66,000 crude ounces of gold. Gold was recovered from nearly 100% of the holes in the main target area. The target zone forms a wedge that is 300 meters/984 feet at the beginning and broadens to a width of over 1,500 meters/4,921 feet. To date, the mineralized zone extends over a distance of more than 3 kilometers/1.9 miles and remains open to expansion to the east and south. Gold is uneven but consistently distributed across this broad area with gold values present across the entire width of the property. The fineness of the gold assayed at over 82%. If mining results are typical of the industry’s experience in the Klondike, the extent of mineralization could be higher by as much as 20-30%.
Hans Boge, P.Eng., President, says: “At current and projected gold prices, even this relatively modest gold deposit is worthy of development. Furthermore, Klondike Star is already fully permitted to develop and operate the Indian River gold mine.”
The Company’s development plan is to phase into production starting with large-scale test mining. The approach offers financial, tax, risk management and operational advantages. Stripping of the organic ground-cover and non-gold bearing gravels is currently scheduled to commence late fall/early winter. The mining plan designed specifically for the Indian River ground is scaleable allowing for substantial increases in annual gold production over time.
Among the advantages of the Indian River property are that it can be brought into production quickly. It lends itself to environmentally responsible mining methods already employed successfully in the Klondike that engineers have refined to reduce energy requirements and minimize operating costs. The Company also has camp facilities and some of the required equipment on the project site.
Boge notes, “Indian River would be Klondike Star’s first operating mine — an important milestone for the Company. Similar to one of the building blocks for a leading mid-tier company, that used a revenue stream from the sale of sand and gravel from a modest property, the Indian River Gold Project could support Klondike Star’s continuing growth and emergence as a gold producer by contributing to its financial self-sufficiency and stability.”
Negotiations for required financing of the mine are in progress.
A DVD video on the proposed Indian River Gold Project can be downloaded for viewing from the Company website www.klondikestar.com under Recent Additions.
About the Indian River Gold Project
The Indian River property consists of 223 placer bench claims and 2 leases totaling about 21.1 km2/8.2 mi2 located in a wide, shallow valley about 35 miles from Dawson City, Yukon in the heart of the Klondike gold-producing region. Klondike Star holds 100% ownership, with exception of a 49% interest in a small group of claims. The Indian River Gold Project is part of Klondike Star’s three prong strategy to advance the company and build shareholder value for long-term gain. Indian River would be Klondike Star’s first operating mine in the Klondike, Yukon, Canada.
About Klondike Star
Klondike Star is a well-governed junior mineral exploration and development enterprise with a solid portfolio of mineral properties. The company has majority or 100% interests in 5 gold projects totaling about 290 km2/112.4 mi2 in the Yukon, located in the northwest corner of Canada underlying the site of the world-renowned Klondike gold producing region. Major properties include the advanced-stage exploration Lone Star Gold Project with a scoping study completed, the intermediate-stage Dominion Gold (and silver) property; and the Indian River Gold Project. The mission is to explore, develop and operate new mines as socially responsible, sustainable developments.
For more information please contact: Wayne Cousins Investor Relations
Toll Free (800) 579-7580
Source: Klondike Star Mineral Corp.
