SOURCE: Klondike Star Mineral Corp.

October 30, 2007 14:42 ET

Mine Prospects Advance for Klondike Star's Indian River Gold Project With 2007 Exploration Results

SEATTLE, WA--(Marketwire - October 30, 2007) - Donald W. Flinn, P.Eng., Vice-President, Operations Klondike Star Mineral Corporation (OTCBB: KDSM), today released 2007 exploration results on the Indian River gold property.

A major auger drilling initiative was launched late November 2006 and carried on almost continuously until wrapped up in September. 343 holes were completed. 602 holes totaling 4,566 meters/14,797 feet have now been drilled on the property and gold recovery determined. Gold was recovered from nearly 100% of the holes in the main target area.

Results from the drilling program have allowed the acceleration of technical efforts to delineate, model and assess the mineralized zone. Drill lines were completed at 1000 foot intervals with holes 100 feet apart along the drill lines spanning the complete width of the initial target zone. In July, the drilling program shifted to infill drilling of lines at 500 foot intervals to facilitate detailed mine planning and increase confidence in the calculation of probable mineral reserves.

Donald W. Flinn, P.Eng., said, "With the combination of the extensive drilling, detailed mapping and analysis of the mineralized area targeted for development, and the results of bulk sampling, we are able to determine with reasonable confidence the amount of organics and gravels to be moved and the extent of the mineralized ground to process for gold recovery. We have a measured mineral resource that is being evaluated for reporting as probable mineral reserves."

The target zone forms a wedge that is 300 meters/984 feet at the beginning and broadens to a width of over 1,500 meters/4,921 feet. To date, the mineralized zone extends over a distance of more than 3 kilometers/1.9 miles and remains open to expansion to the east and south. Gold appears to be consistently distributed within this broad area with gold values present across the entire width of the property. The fineness of the gold tested out at 82.27%.

To further calibrate drilling results, increase levels of confidence in the estimation of mineralization, test mining methods and water management design requirements, bulk sampling operations started in 2006 using selected heavy equipment and an industry-standard 5' trommel. One test site was completed in 2006 processing 7249 cubic meters of material for 45.08 ounces of raw gold. (Press Release #24-2006, November 30, 2006). During the 2007 summer exploration season, a second representative site was completed with an area of 1,624 square yards of which 6200 cubic yards were processed for 32.83 troy ounces of gold. Test mining is being supervised by an established Canadian firm specializing in mine engineering and processing technology. The experienced gained from the bulk sampling operations has contributed to the design of the proposed mining process. Key criteria for low-cost mining operations include reducing energy requirements, new methods for handling the mineralized and non-mineralized materials, and effective water and environmental management practices.

Earlier this year, to support expanded exploration activity and in anticipation of potential mine development, Klondike Star completed upgrading and extension of the access road and installed a 12-person camp.

This is the first in a series of forthcoming releases about 2007 exploration results from Company properties in the Klondike gold district as assay results are available.

About the Indian River Gold Project

The Indian River property consists of 223 placer bench claims and 3 leases totaling about 21.1 km2/8.2 mi2 located in a wide, shallow valley about 35 miles from Dawson City, Yukon in the heart of the Klondike gold-producing region. Klondike Star holds 100% ownership, with exception of a 49% interest in a small group of claims. The property has never been mined or subjected to modern recovery methods.

The Company has reported progress respecting environmental assessment and regulatory approvals, extensive drilling and test mining, delineation of probable mineralization, and business planning for a forthcoming mine development decision by the Board of Directors. An authorization to mine has been issued by the Government of Yukon following a public environmental and socio-economic assessment by an independent agency. A business plan for the proposed Indian River Gold Mine is nearing completion.

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.

Contact Information

  • For more information please contact:
    Wayne Cousins
    Investor Relations
    Toll Free (800) 579-7580