Klondike Gold Corp.
TSX VENTURE : KG

Klondike Gold Corp.

December 09, 2009 08:45 ET

Klondike Gold Corp. Intersects 38.1 g/t Gold, 62.5 g/t Silver and 0.99% Copper Over 0.95 Meters in First Hole on Clubine Property

- HISTORIC WORKINGS BEING EXAMINED FOR POSSIBLE FUTURE UNDERGROUND EXPLORATION

- HIGHEST GRADE INTERCEPTS - 148.4 G/T GOLD, 203 G/T SILVER AND 2.28% OVER 0.2 METERS AND 79.25 G/T OVER 0.36 METERS GOLD IN A SECOND LOWER VEIN

- RECENT PAST EXPLORATION ON PROPERTY (BY YELLOWJACK RESOURCES LTD) FOCUSED ON A LEAD-ZINC ZONE AT A HIGHER ELEVATION WITH LIMITED WORK DONE ON GOLD-SILVER ZONE

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 9, 2009) - Klondike Gold Corp. (the "Company") (TSX VENTURE:KG) is pleased to announce it is has received assay results from the first of nine holes recently drilled on its 100% wholly owned Clubine property, located approximately 5 km north of Salmo, British Columbia.

Drilling intersected a prominent, steeply dipping, north-trending shear zone, characterized by quartz veining, sulphide mineralization, and locally high gold and silver content. Assay results from mineralized sections in the first hole are shown below, with the central part of an approximate 1 meter thick vein section containing 148 g/tonne gold and 203 g/tonne silver across 0.2 meters and a second lower vein containing 79 g/tonne gold and 110 g/tonne silver across 0.36 meters.

Drill Hole CB09-1: (* - ICP-ES)

SampleDepth: From (m)Depth: To (m)Width (m)g/tonne Aug/tonne AgCu (%)
98170954.0854.240.162.22*8.5*0.21
98171054.2454.490.256.9222.20.53
98171154.4954.690.20148.4203*2.28
98171254.6954.960.2715.4537.20.96
98171354.9655.030.073.27*26.3*0.79
98171556.3956.750.3679.25110*1.05
98171757.4757.690.2213.3630.50.76

Along with the release, an audio interview summarizing the results with Project Consultant, Trygve Hoy, PhD, P.Eng., has been prepared. Please click on the following link or cut and paste the link into your web browser to listen to the interview:

http://www.smartstox.com/interviews/kg/120909/

"We are very encouraged by these drill hole assays from our Clubine Gold property and look forward to receiving the results of the remaining eight holes," comments Company President, Richard Hughes. "Our team is currently assessing expansion of our exploration program with additional drilling and evaluation of the condition of historical underground workings. Future drilling and exploration plans for the property will be reviewed and revised accordingly, guided by the information gathered from the remaining holes."

Mineralization on the Clubine property occurs as a number of quartz and quartz-carbonate precious and base-metal veins in the upper 500 metres of the Hall Formation and lower part of the Elise Formation, in the Keystone Mountain area. The old workings are on five levels, but production is limited with recovery of 123,293 of gold and 239,463 grams of silver from 3676 tonnes mined. In 1989, diamond drilling intersected gold-bearing quartz veins and silicified zones beneath the No. 5 level of the Clubine-Comstock (082FSW200) occurrence. Gold occurs in the vein quartz and also within adjacent silicified and pyritic zones. Based on results from the 1989 work and on previous underground exploration, the Company is drilling both above and below the Number 5 level for gold zones down plunge and along strike from known mineralization.

Future exploration will include additional diamond drilling in order to determine extent and continuity of known gold zones.

The qualified person for the purpose of National Instrument 43-101 is Dr. Trygve Hoy, PhD, P.Eng., who has read and agreed with the technical information in this news release.

About Klondike Gold Corp
Klondike Gold is a large landholder in southeastern British Columbia as well as in the Klondike District of Yukon Territory, an area which produced between six and twelve million ounces of gold during its historic gold rush. The Company also holds a 50% interest with partner Chalice Diamond Corp in approximately 78,000 acres of diamond properties located in the Chapleau-Wawa region of Ontario and a number of properties in southeastern British Columbia.

Please visit the Company's website: www.klondikegoldcorp.com for more information on the diamond properties in Ontario, our holdings in the Klondike and our properties in southeastern BC.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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