Donald W. Flinn, P.Eng., Vice-President, Operations for Klondike
Star Mineral Corporation (OTCBB:KDSM) today announced the discovery of
volcanogenic massive sulphide zones at it's Ultra Project, near Haines
Junction, Yukon, Canada. The Telluride Zone was discovered in outcrop
at 2600 meters (8500 feet) elevation on the northwest ridge of Mount
Cairnes, approximately 4.5 kilometers southwest of the massive
sulphide boulders previously described on the property. This
outcropping zone is thought to be the source of the zinc-copper-silver
rich boulders. A second discovery, the Nunatak Zone is located along
trend about 3 kilometers to the southeast of Telluride.
The existence of the Telluride mineralized zone was noted by
previous workers, but had not been sampled or described in detail. The
massive sulphide zone outcrops for about 200 meter along strike, and
disappears in both directions beneath overburden and snowfields. The
Telluride zone trends northwest, is up to 4 meters thick, and dips
moderately to the south into the mountain. A low grade sulphide vein
stockwork zone up to 35 meters thick underlies the massive sulphide
horizon. The massive sulphide grades up to 3.23% copper, 6.75% zinc,
17.8 ppm silver and 0.15 ppm gold over a 4.0 meter thickness. Maximum
values of 13.4% copper, 6.75% zinc, 56 ppm silver and 0.25 ppm gold
were obtained from the zone.
The massive sulphide zones are hosted at the contact between mafic
pillow lavas and massive basalt, and have been classified as
volcanogenic massive sulphide (VMS) deposits. The mineralized horizon
has been followed intermittently for about 6 kilometers to the
southeast of the Telluride zone, with another significant massive
sulphide zone discovered about 3 kilometers away. The Nunatak Zone was
discovered near the end of the 2006 exploration program, at an
elevation of 2150m (7050 feet) on the north face of Mt. Cairnes. It
consists of a bedded massive sulphide zone and associated sulphide
vein stockwork zone, with results of 11.54% copper, 1514 ppm zinc and
7.2 ppm silver over a 3 meter thickness.
Flinn notes, "The 2006 program at Ultra represents a significant
success for our exploration team and the Company, with the
identification of a major VMS horizon with economically interesting
grades and widths."
The 2006 work program at the Ultra property consisted of property
wide geological mapping and geochemical sampling, detailed mapping of
known showings, grid MMI soil geochemistry in areas of geophysical
anomalies previously identified near the massive sulphide boulder
zone, and trenching and helicopter pad building at the Telluride
showing.
The VMS zones discovered in 2006 present certain logistical
challenges, being located on steep slopes at relatively high altitude
and in areas in proximity to snowfields and glaciers.
The field season in this area is short, and the weather can be
poor. The VMS horizon trend appears to extend for a considerable
distance including to the southeast.
The 2006 work was supervised, mineral assessment conducted and the
project technical report written by Jean Pautler, P.Geo., senior
independent consulting geologist. She is a Qualified Person under
Canadian National Instrument 43-101 mineral resource reporting and
qualifies as a Competent Person under U.S. reporting standards.
About the Ultra Project
Lone Star is an intermediate stage exploration stage project that
is drill ready. It is comprised of 404 mineral claims involving an
area of 82 square kilometers (or 31.7 square miles). Three types of
mineralization are present on the property: copper-zinc-silver-gold
massive sulphide, magmatic nickel-copper-platinum-palladium-gold and
Cu-Ag veins. Placer gold is also present. The property is near the
former operating nickel-platinum Wellgreen Mine and an area optioned
by Falconbridge Limited. The discovery lies to the northwest of
various economically significant VMS deposits of various ages in
northern B.C. and southeast Alaska, such as Windy Craggy, Anyox,
Granduc, Greens Creek and Eskay Creek. Ultra is only 10 kilometers
(6.2 miles) west of the all-weather international Alaska Highway.
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.
