Klondike Silver Corp.
TSX VENTURE : KS

Klondike Silver Corp.

October 07, 2009 14:15 ET

Klondike Silver Corp. Commences Drift Extension Into Lode Structure to Test for Mineralization

- GOAL OF CURRENT PROGRAM IS TO DETERMINE EXTENT OF LODE STRUCTURE AND TEST FOR MINERALIZED SHOOTS - TARGET AREA WAS SLATED FOR FURTHER EXPLORATION WHEN MINE SHUT DOWN IN 1990s AS A RESULT OF LOW METAL PRICES

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) - Klondike Silver Corp. (TSX VENTURE:KS) (the "Company") is pleased to announce that lateral drifting westerly has commenced from the underground west extension of the main access "4625 Level" of the Silvana Mine. This heading is starting to cross-cut the lode structure intersected in a recent drill program (see news release August 27, 2009). The planned 100 meter drift is the first into a 1.5 km long unexplored, underground segment of the productive and historic "Main Lode" structure which is the principal source of the Slocan mining camp's silver/lead/zinc production.

"We are pleased to announce the commencement of this new drift into an area of the Slocan that has never been explored," comments Company President, Richard Hughes. "Intersecting the lode structure this early in our underground efforts is extremely encouraging as over 1.5 km of unexplored ground remains to be tested. Our efforts are now focused on determining whether or not this extension of the lode structure is mineralized and if so to what extent."

To view a map of the 2009 drilling and target area please click on the following link (if the link does not open cut & paste it into your browser address bar):

http://www.klondikesilver.com/i/pdf/NewMailLodesection.pdf

The initial underground diamond drilling program consisted of four BQ size holes totaling 363.6 meters. Geology intersected in the initial drilling includes structure having characteristics typical of the Main Lode as mined in the Silvana mine. These characteristics are interpreted as belonging to this major and important feature whose location and identification are critical factors in the exploration effort.

The Main Lode is over 8 km long, extending from Silverton on Slocan Lake in the west to Sandon in the east through the "Silver Ridge" of the Selkirk mountains approximately 50 km north of Nelson, BC.

Silvana mine production to date is approximately 8 million ounces of silver and over 30,000 tons each of lead and zinc from approximately 550,000 tons of millfeed mined from a 1.5 km section of the Main Lode under Silver Ridge. The section was explored, developed and mined from by the Silmonac Syndicate and its successors including Kam-Kotia Mines Limited, Silvana Mines Inc., Dickenson Mines Limited and Treminco Resources Ltd. almost continuously from 1970 to 1993, until low metal prices resulted in its closure.

The Company holds the ground on the next approximately 1.5 km to the west of this productive zone, to within 500 meters of the Mammoth mine. The current program represents the first attempt since the early 1990's to explore westerly towards the Mammoth and the other major Main Lode producers towards Silverton.

The Qualified Person for the purpose of National Instrument 43-101 is Ed Craft, PEng, who has read and agreed with the technical information in this news release.

About Klondike Silver:

Klondike Silver Corp. has assembled a quality portfolio of silver properties in historic mineral districts in North America, and is applying advanced exploration technologies to add value to these core assets. Klondike Silver is reviving the Gowganda and Elk Lake silver camps in Ontario, and the world-famous Klondike district of Yukon Territory. The Company owns a 100 TPD fully operational flotation mill in Sandon, BC, which is currently processing material from one of its Yukon properties and local mines in the historic Slocan Silver Camp.

Klondike Silver is a member of the Hughes Exploration Group of Companies and is led by a team with a stellar track record of discovery and development in Canada.

Visit Klondike Silver's web-site: www.klondikesilver.com to see Smartstox interviews with Company President, Richard Hughes.

The statements made in this news 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 or contents of this news release.

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