Donald W. Flinn, Vice-President, Operations is pleased
to announce that Klondike Star Mineral Corporation (OTCBB:KDSM) is
moving ahead with test mining and business planning on its placer gold
property on the Indian River, located 40 kilometers from Dawson City
in the heart of the Klondike gold producing region of the Yukon,
Canada. Exploration efforts are shifting from winter drilling to an
entirely new phase with new investments in the first-ever summer
exploration and bulk sampling program. The objective is to develop a
large-scale placer mine.
The Indian River Placer Project consists of 185 mineral claims
plus 17 leases totaling 35 square kilometers. The Indian River is
emerging as one of the most active areas of new investment and
productive placer mining in the Klondike region. Klondike Star holds
100% ownership of the project. The property was staked by Vern
Matkovich and Tom Morgan, 2004 Yukon Prospectors of the Year, both key
members of Klondike Star's exploration team.
During its recent winter drilling program, Klondike Star completed
184 holes (double the 2005 drilling) for a cumulative total of 274
holes or 2,426 metres. The winter drilling recovered gold from 90% of
the holes, with gold recovered from 100% of the holes drilled in the
main target area along the Indian River. (Press Release #4-2006). In
2005, drilling resulted in gold recovery from 87% of the holes
drilled. (Press Release #10-2005)
2006 summer bulk sampling and test processing will be conducted on
three or more high potential sites that are already prepared for this
purpose through stripping, clearing and permitting. Test mining will
be supervised by an established Canadian firm specializing in mine
engineering and processing technology. After careful evaluation,
Klondike Star is deploying two processing technologies to help refine
the best approach for possible production. One is a dry separation
technology used in mining operations elsewhere in the world in similar
conditions; and, the other is a conventional sluicing system used
extensively in the Klondike that is particularly suited to conditions
along the Indian River. This will allow comparative analysis of
throughput and gold recovery.
In emphasizing the new importance of the Indian River Placer
Project to Klondike Star, Hans Boge, P. Eng., President, Klondike Star
Mineral Corporation said: "A scoping study is being initiated
concurrently with the summer exploration program to assess the mineral
resource, prepare a preliminary business plan for production, and
complete arrangements for seeking necessary permits and regulatory
approval."
The Indian River Placer Project is an advanced exploration
property. Bulk sampling is proceeding alongside the initiation of the
scoping study to determine the economic viability of the mineral
deposit and facilitate expedited planning and decision-making.
About Klondike Star
Klondike Star Mineral Corporation is an established exploration
and development company actively working on seven major properties in
the Yukon Territory, Canada. Klondike Star Mineral Corporation is
developing mineralized zones on a 350 square kilometer land position
underlying the site of the Klondike Gold Rush, and 88 square
kilometers of select high potential targets in other parts of the
Yukon.
The famous Klondike goldfields have been in constant surface
mining production since the discovery of gold in 1896. Thousands of
ounces of gold continue to be produced from placer mining operations
each year on streams in the Klondike. The company owns extensive
subsurface and surface mining rights in the Klondike mining district.
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.
