Klondike Gold Corp.

Klondike Gold Corp.

August 13, 2008 16:10 ET

Klondike Gold Announces 'Sullivan' Exploration Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2008) - The management of Klondike Gold Corp. (TSX VENTURE:KG) is pleased to report that under the expert direction of Trygve Hoy, Ph.D. P.Eng, Klondike Gold has completed several comprehensive exploration programs in search of Sullivan type lead-zinc-silver mineral deposits in southeastern British Columbia. The Sullivan mine at Kimberley, B.C. closed in 2001 after producing in excess of 130 million tons of approximately 6.9% lead, 5.1% zinc and 67 g/t silver which, at today's metal prices, would be valued at several tens of billions of dollars. The Sullivan Mine, and the Sullivan basin in which it sits, is in an area most often studied as befits its position as a truly world-class deposit. While the goal for Klondike Gold is obvious, that being to replicate the discovery of the Sullivan mine, the exploration process and anticipated successes require an analytical ability and level of expertise which Dr. Hoy unequivocally possesses. He has worked in the mining field for over forty years, twenty-five years with the provincial government throughout British Columbia, a further eight years studying and exploring for a "second" Sullivan, and as a consultant for a number of mining exploration companies throughout Canada. He is an author and award winner in the mining field and his experience and understanding of the Proterozoic Purcell Basin is unparalleled anywhere in the world.

The exploration program undertaken by Dr. Hoy was designed to identify Proterozoic-age structural basins, similar to the basin in which the Sullivan deposit was located, and then to determine if the right sedimentary strata was present in the basins. Once basins were identified, they were drilled in an attempt to initially identify distal indicators of Sullivan type mineralization, and then to vector in to the sulphide vents characteristic of the source of Sullivan-type mineralization.

The exploration program has been very successful by clearly identifying six structural basins with indicators of Proterozoic tectonic activity (one of the main criteria in basin recognition) with indications that the right time horizons are present. Several other areas have also been identified as having the potential to host mineralization. The program has drill tested each of the six basins by one or more widely spaced drill holes. Drilling in the Davent, Panda, Sullivan South (Pit-Ash) and Pakk basins intersected distal base metal sulphide mineralization at the right Sullivan time horizon. This is indicative of seafloor exhalitive (sedex) mineralization. Subsequent programs were directed to testing the source of these sulphides, again by deep drilling.

One of the more successful programs, exploration of the Panda basin, has involved drilling six holes, all to the Sullivan horizon, and has clearly defined the limits of the basin and shown that sulphide content is increasing towards the south, near the intersection of the basin axis with a northeast-trending Proterozoic-age fault.

A seventh hole, begun during the last field season, was stopped short of target depth due to heavy winter snow conditions. Completion of this hole is the first exploration priority in Klondike Gold's 2008 Sullivan exploration program.

The Panda basin is a north-trending structural basin containing a thick accumulation of quartzites, shales, and gabbroic sills. It is one of several small, 4-5 km wide basins, including the Sullivan basin that developed on an ocean floor nearly 1.6 billion years ago as a result of regional extension and/or rifting.

Detailed studies of the Sullivan basin over the years has led to the recognition of the controls of sulphide accumulation in the basin. The recognition of these features in the Panda basin, which included alteration assemblages, trends of sedimentary strata and marker horizons, and metal distribution patterns, has allowed Klondike Gold Corp. to systematically target a projected source of sulphide accumulation.

Klondike Gold's southernmost completed hole in the basin, drilled in 2005, intersected the highest grade of Sullivan-age mineralization discovered to date outside of the Sullivan basin itself. The uncompleted 2007 Panda basin hole is located approximately one km to the southwest, closer to the projected axis of the basin and to the controlling northeast-trending Moyie fault. It was stopped at a depth of approximately 1200 meters, an estimated 200 meters above the Sullivan horizon.

Several other less tested basins have also been defined by Klondike Gold Corp., and remain exciting exploration targets. One of these, the Cold Creek basin, is characterized by considerable structural disturbance, anomalous alteration and mineralization, but has only one hole drilled to Sullivan time. A second, the Pitt-Ash basin, is the southern extension of the Sullivan basin. One hole drilled to Sullivan time here intersected laminated sulphides similar to the distal fringes of the Sullivan deposit.

Klondike Gold Corp.'s 2008 exploration program is well underway and will be reported on in subsequent news releases.

About Klondike Gold Corp.

Klondike Gold Corp.'s portfolio covers mineral exploration for gold, silver, lead, zinc, and diamonds in some of the best known mining areas of Canada. Details relating to exploration activities on specific properties will be announced as the work programs are implemented.

Please visit Klondike Gold's web-site: www.klondikegoldcorp.com to see Smartstox interviews with the Company's President, Mr. Richard Hughes.

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.

Contact Information