Donald W. Flinn, P.Eng., Vice-President, Operations for Klondike
Star Mineral Corporation (OTCBB:KDSM) today released the results from
a series of bulk samples collected from the Lone Star zone and
processed at the Company's gravity test facility located at Eldorado
Creek. A 67 meter long series of bulk samples was collected
perpendicular to the strike of the Lone Star zone at its western end.
This work successfully demonstrated continuity of gold mineralization,
with coarse free gold recovered from each sample. The overall 2006
bulk sampling program was highly successful in terms of productivity,
as the Company processed more than double the volume of material
assessed in 2005 (86 tonnes versus 41 tonnes in 2005).
Trench 87TR-16 lies approximately 400 meters from the original
Lone Star Mine and at the southwest end of the Lone Star zone, and
contains a wide zone of gold mineralization. This trench was
originally bulldozed in 1987, and was dug deeper by excavator in 1996.
Continuous chip samples were collected systematically over 1 meter
intervals along the length of the trench in 2005 and 2006, and
confirmed the broad zone of mineralization identified by previous
workers. Ten bulk samples, ranging in weight from 2.9 tonnes to 8.1
tonnes, and collected across widths varying from 6 meters to 10 meters
were collected along a 67 meter length of the trench, which is cut
perpendicular to the strike of the Lone Star zone. Results varied
between 1.41 g/t gold over 6.0 meters in sample 06LS-B5 to 0.054 g/t
gold over 10.0 meters in sample 06LS-B8, and averaged 0.67 g/t gold
over the entire 67 meter interval, including 1.33 g/t gold over 24
meters from the southern end of the bulk sampling. Chip samples varied
from trace to 10.39 g/t gold over 1.0 meter, and averaged 1.03 g/t
gold over the same 67 meters tested by bulk sampling. Additional chip
samples collected to the south of the bulk sampling contained
anomalous values up to 4.13 g/t gold over 1.0 meter, indicating a
greater mineralized width than tested so far by the bulk sampling
program. Additional bulk samples will be collected from this extended
area in 2007.
Flinn said, "These bulk sampling results are helping Klondike Star
accurately assess the grade of mineralized areas as part of
delineating the potential mineral resources of the Lone Star gold
project. In addition, experience from the recovery process is
instrumental to the examination of mining methods in the scoping study
currently in progress."
The Eldorado bulk gravity test plant produced three products from
each sample - raw gold, a heavy mineral concentrate, and tailings. Raw
gold accounted for 19%-44% of the gold in each sample, while the heavy
mineral concentrate (mostly iron oxides) contained between 10 and 25%
of the gold, with the remainder of the gold extracted from the
tailings.
Hole 06LS-23 was drilled as part of the 2006 diamond drilling
program beneath trench 87TR-16 at minus 50 degrees. This hole returned
0.46 g/t gold over 40.0 meters, including 8.40 g/t gold over 0.8
meters (Press Release #01 - 2007).
The Lone Star zone has now been drill tested over a strike length
of 900 meters, and is thought to have a potential strike length of
over 3,500 meters. Mineralization is present across widths of tens to
hundreds of meters along this length. The zone is open to expansion to
the northwest, to the east, the north and at depth.
About the Lone Star Project
Lone Star is an advanced exploration stage project that is being
studied for mine development. Of its eight projects, Klondike Star is
currently focusing exploration efforts at the majority-owned Lone Star
Project. It is comprised of 1,056 mineral claims and crown grants
involving an area of 152 square kilometers (or 58.7 square miles)
including the Lone Star Zone, the Nugget Zone, the Buckland Shear Zone
and the 27-Pup-Dysle-Veronika Zone. All four zones extend over large
areas with excellent opportunity for the existence of multiple
mineralized zones, along both strike and dip. They belong to a class
of mineralized structures which have potential for large, medium-to
low grade, bold bearing ore bodies.
The Lone Star Mine was built in 1912 and was the largest of the
underground gold mines built in the Klondike. By 1914, the Lone Star
Mine had produced 7,640 tons of ore (calculated to represent
approximately a head grade of 0.202 oz/ton: Cathro, 1969, or 5.67
grams/tonne) from an open cut which was connected to a 225 meter adit
by means of an ore pass. An amalgamation 4-head stamp mill was built
on Victoria Gulch and a gravity tramway connected this to the mine.
The mine was closed at the outbreak of World War I. Various attempts
at underground development took place between 1911 and 1948.
Gold on the Lone Star property is present as coarse free gold,
with pyrite in disseminations, and locally is associated with narrow
discordant quartz veins. The mineralized zones are associated with
quartz-carbonate-pyrite alteration, and are hosted by felsic
metavolcanic schist.
About Klondike Star
Klondike Star Mineral Corporation is an established exploration
and development company actively working on eight major properties,
totalling 463 square kilometers or 179 square miles in the Yukon,
Canada. The company is developing extensive surface and subsurface
mineralized zones on a 370 square kilometer or 143 square mile land
position underlying the site of the Klondike gold-producing region in
the Dawson mining district. These holdings include, but are not
limited to properties known as the Lone Star Project and the Indian
River Placer Project, both advanced stage exploration. Additionally,
Klondike Star holds interests in 93 square kilometers or 36 square
miles of select high potential targets for gold, base and precious
metals in the Watson Lake and Whitehorse mining districts of the
Yukon.
The statements in the press release that relate to the company's
expectations with regard to the future impact on the company's results
from new products or actions in development are forward-looking
statements, within the meaning of the Private Securities Litigation
Reform Act of 1995. The statements in this document may also contain
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Since this information may contain statements that involve
risk and uncertainties and are subject to change at any time, the
company's actual results may differ materially from expected results.
