Hans Boge, P.Eng., President today announced that the Arab
Republic of Eqypt and the Egyptian Mineral Resources Authority have
announced the award to Klondike Star Mineral Corporation (OTCBB:KDSM)
of the rights to explore and exploit a world-class gold property. The
property encompasses a 1,245 square kilometre block (481 square miles)
in the Oweinat Area of the Western Desert, Arab Republic of Eqypt.
Hans Boge, P.Eng., President says, "The gold potential identified
by the Egyptian Geological Survey in the Oweinat property is
significant. Following a moratorium on mining in the country for over
50 years, Egypt is mobilizing to develop a modern gold-mining industry
by revisiting ancient deposits of the precious mineral that symbolized
the glory of the Pharaohs. Klondike Star is in on the ground floor."
Only two other companies are currently active in mineral
exploration and development in the country. The International Finance
Corporation, a private sector arm of the World Bank is working with
Egyptian authorities to modernize mining laws over the next year.
According to various accounts, with Egypt's rich and diversified
culture and history, ancient mining would have definitely played a
major role in the development of high grade ore-bodies. None-the-less,
modern exploration has not been carried out in Egypt, and as a result,
the country has excellent potential for the discovery of significant
discoveries for gold in particular. Egypt's mineral resource
development is coordinated by the Egyptian Geological Mining and
Survey Authority (EGMSA).
Based on preliminary review of the mineral potential of the
Oweinat block by the geology department of Klondike Star Mineral
Corporation, Exploration Manager, Bill Mann, M.Sc., "There is
excellent potential for discovery of multiple gold deposits, and
potential for iron ore within a vast area."
The Oweinat block is north of the border between Egypt and Sudan,
near the Libyan border. This area was essentially unexplored
geologically prior to a program of regional scale mapping and
prospecting jointly initiated in 1992 by the EGSMA (Egyptian
Geological Survey) and IRC Libya. This work, which produced a
geological map at a scale of 1:100,000 identified highly favourable
Archaean terrain with abundant bodies of BIF (banded iron formation)
within highly metamorphosed gneiss. Gold was found to be common within
the BIF bodies, and in certain quartz veins, shear zones, dykes and
alteration zones in the same areas.
30 favourable areas identified by the regional work program were
selected for follow-up work in 1996 to 1998, and again in 2000,
including mapping at scales of 1: 50,000, 1:20,000 or 1: 5,000,
trenching, grab sampling and channel sampling, and limited ground
geophysical surveys. A bulk sample of 2.5 tons was collected and
processed by carbon in pulp, and returned 6.8 g/t gold.
Of the 30 widely separated blocks studied and sampled in detail,
11 areas returned analyses above 10 g/t gold and 25 returned gold
analyses above 1 g/t by fire assay.
Donald W. Flinn, P.Eng., Vice-President, Operations says, "The
Oweinat block appears to represent a substantial portion of an
essentially unexplored Archaean gold province. EGSMA has identified
multiple zones with high gold grades that warrant a substantial
exploration effort. Klondike Star, in cooperation with Egyptian
geologists and partners, can't wait to start work to confirm this
potential."
Rock samples were initially analyzed by spectral analysis, and
anomalous samples were re-analyzed by fire assay for gold. All
analytical work was performed by EGSMA; their quality assurance,
quality control procedures were not reported. Values up to 53 g/t gold
over 20 metres were reported. Iron analyses are mostly in the 20 to
50% Fe2O3 range, with some large samples averaging 32%, however there
may be potential for enriched areas among the dozens of BIF bands that
are up to hundreds of metres thick, and extend for kilometers. Much of
the favourable terrain is overlain by thin sand deposits; geophysical
exploration methods will be beneficial for exploring in these areas.
Additional information is published in the Annals of the
Geological Survey of Egypt. Also see the profile in
www.klondikestar.com.
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 result
