SOURCE: Klondike Silver Corp.

January 28, 2008 12:52 ET

Exploration Results at the Connaught Property

VANCOUVER, BC--(Marketwire - January 28, 2008) - Klondike Silver Corp. (TSX-V: KS) is pleased to update results from the 2007 exploration program at the Connaught (CN) property, which is under option from ATAC Resources Ltd. The property hosts an extensive system of silver-lead-gold veins located within the Sixtymile Placer Gold Camp, 65 km due west of Dawson City in western Yukon Territory. It is accessed by four-wheel drive truck via the Sixty Mile Road off the Top of the World Highway, which extends from Dawson City west into Alaska. The property is being explored as a high grade lead-silver vein target modeled after the highly productive Keno Hill district located 250 km to the east.

Historical work identified numerous lead-in-soil geochemical anomalies and seven silver-lead-gold bearing veins (referred to as #1 through #7) within a 13 km by 5 km area that is now mostly covered by the CN property. Approximately 218 tonnes of galena/anglesite rich material is reported to have been collected from the #1 and #3 Veins and shipped to the Cominco smelter in 1976. The shipment reportedly averaged 2228.5 g/t (65 opt) silver, 60% lead and 1 g/t gold.

The 2007 exploration program at the CN property followed a property-wide, helicopter-borne VTEM survey conducted in 2006. The work consisted of prospecting, grid soil sampling, approximately 1100 m of excavator trenching and 566 m of diamond drilling. Most of this work was directed toward better establishing the tenor of mineralization at the known vein zones.

The #1 Vein is coincident with a linear, northeast trending lead-in-soil geochemical anomaly that extends for 1100 m along strike and which contains peak values of 7400 ppm. Historical bulldozer trenching conducted along a 220 m portion of the anomaly exposed a vein dominantly composed of quartz and arsenic-antimony sulfosalts with intermittent lenses of massive galena.

Detail chip sampling was conducted along a 70 m portion of the vein zone in an open cut left from the bulk sampling performed in the late 1960s and 1970s. The 2007 samples returned peak grades of 2550 g/t silver and 74.62% lead. These peak values are from galena-rich lenses. Adjacent quartz vein selvage material with arsenic-antimony sulfosalt mineralization also contains significant silver (up to 763 g/t) and lead (up to 25.28%) accompanied by gold values up to 10.90 g/t.

Highlights from chip sampling at the #1 Vein are listed in Table I.

Table I
Highlights From 2007 Chip Samples - #1 Vein

--------------------------------------------------
From (marker) Width (m)* Ag (g/t) Pb (%) Au (g/t)
--------------------------------------------------
0 m              0.77      569    19.69    2.61
--------------------------------------------------
Including        0.16      2410   75.71    0.07
--------------------------------------------------
                 0.16     57.10    3.31    2.04
--------------------------------------------------
                 0.45     96.60    5.59    3.74
--------------------------------------------------
25.0 m           0.30     86.50   11.60    4.93
--------------------------------------------------
37.0 m           0.75      798    26.30    2.31
--------------------------------------------------
Including        0.30      1685   58.26    0.65
--------------------------------------------------
                 0.45      207     5.00    3.41
--------------------------------------------------
45.0 m           0.21      205    18.15    9.71
--------------------------------------------------
49.5 m           0.80      605    16.75   10.90
--------------------------------------------------
55.0 m           0.22      1620   47.72    3.37
--------------------------------------------------
62.5 m           0.90      1066   29.67    1.60
--------------------------------------------------
Including        0.20      2130   64.72    0.01
--------------------------------------------------
                 0.70      763    25.28    2.03
--------------------------------------------------
*All reported intervals are true widths.

Two diamond drill holes tested beneath the vein on a section line that passes under the trench 49.5 m from its start. The holes encountered quartz dominant vein material at the anticipated piercement depths of 43 and 82 m. No significant mineralization was associated with either intersection.

Limited excavator trenching was performed at the #3 Vein situated 3 km north of the #1 Vein. This site is marked by an old bulldozer pit, where the largest portion of the historical bulk sample was believed to have been collected.

In 2007, the base of the pit was cleared of slough and debris exposing a 5 m long massive galena and anglesite lens that is up to 1.25 m wide. Channel samples were sawn across the lens at various points and yielded grades up to 2880 g/t silver, 54.89% lead and 3.54 g/t gold. The highest grades for silver and lead are associated with massive galena and anglesite. Significant weighted averages and key results from individual samples are illustrated in Table II.

Table II
Significant 2007 Channel Sample Results - #3 Vein

-------------------------------------------------------------
From (marker) Width (m)*      Ag (g/t)   Pb (%)      Au (g/t)
-------------------------------------------------------------
0.0 m            1.64         1031       19.96       1.58
-------------------------------------------------------------
Including        0.40         2880       54.89       0.77
-------------------------------------------------------------
1.7 m            1.25         2450       48.81       0.87
-------------------------------------------------------------
3.4 m            1.60         1100       23.80       0.78
-------------------------------------------------------------
Including        0.75         2030       44.71       0.73
-------------------------------------------------------------
5.0 m            1.45          864       17.90       1.51
-------------------------------------------------------------
Including        0.70         1100       35.65       1.70
-------------------------------------------------------------
*All reported intervals are true widths.

Two diamond drill holes CN-07-05 and -07 tested the #3 Vein Zone with piercements at 25 m directly beneath the massive galena lens and 25 m along strike to the northeast. Both holes encountered massive galena and anglesite at the anticipated piercement points. Assays are shown in Table III.

Table III
Significant Diamond Drill Results - #3 Vein

----------------------------------------------------------------
Hole      From (m) To (m) Interval (m)* Ag (g/t) Pb (%) Au (g/t)
----------------------------------------------------------------
CN-07-05   34.05   37.58      3.53        119     2.66    0.23
----------------------------------------------------------------
including  34.05   34.11      0.06        2130   17.95    3.94
----------------------------------------------------------------
           37.51   37.58      0.07        2120   31.16    1.96
----------------------------------------------------------------
CN-07-06   28.94   30.37      1.43        535     4.78    0.65
----------------------------------------------------------------
including  30.14   30.37      0.23        2860   21.70    3.55
----------------------------------------------------------------
*True widths are approximately 70% of the reported intervals.

A third hole CN-07-06 was drilled from the same site as CN-07-05. It was designed to test the vein at a target depth of 50 m but encountered a porphyry dyke that appears to have cut-off or displaced the vein.

"Initial results from the sampling program at the #1 and #3 Veins are very encouraging," states Richard Hughes. "We eagerly await the results for the remaining three veins sampled during this program and look forward to further evaluating the #8 Vein on the newly acquired Mag claims, which adjoin the eastern part of the CN claim block to the east."

Vein mineralogy at the #8 Vein is similar to the veins exposed on the CN property and reported historical grades for galena-dominant samples collected intermittently along a 275 m strike length range from 723 g/t to 5498 g/t silver with lead values up to 84.65%. Results for samples collected in 1988 along the #8 Vein are reported in Table IV.

Table IV - #8 Vein

--------------------------------------
Length along Vein   Ag (g/t)    Pb (%)
--------------------------------------
0 m                 1965        64.00
--------------------------------------
25 m                2500        72.30
--------------------------------------
112 m               1632        75.00
--------------------------------------
130 m               5498        78.76
--------------------------------------
143 m               1901        84.65
--------------------------------------
275 m               723         22.30
--------------------------------------

All analyses for the 2007 program are being performed at ALS Chemex laboratory in North Vancouver using industry-standard fire assay and ICP techniques. This laboratory carries ISO 9001:2000 registration and is accredited to ISO 17025 by Standards Council of Canada for a number of specific test procedures including fire assay Au by AA, ICP and gravimetric finish, and multi-element ICP and AA assays for Ag, Cu, Pb and Zn.

The exploration program at the CN property is being carried out under the supervision of Bill Wengzynowski, P.Eng, President of Archer, Cathro & Associates (1981) Limited.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101. Mr. Wengzynowski is designated as the qualified person who reviewed this information.

On behalf of the Board of Directors
KLONDIKE SILVER CORP.


"Richard W. Hughes" (signed)
President

For Further Information Contact: The Hughes Exploration Group at (604) 685-2222

Or visit the Company's website: www.klondikesilver.com to see the Smartstox Report in which Stanlie Hunt interviews Klondike Silver Corp. President Richard Hughes.

This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the corporation's control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.

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

Contact Information

  • For Further Information Contact:
    The Hughes Exploration Group
    (604) 685-2222

    #711-675 WEST HASTINGS STREET
    VANCOUVER, B.C. CANADA V6B 1N2
    TELEPHONE: 604-685-2222
    FAX: 604-685-3764
    WWW.KLONDIKESILVER.COM
    KLONDIKE SILVER CORP.