SOURCE: Klondike Gold Corp.

July 08, 2008 18:15 ET

Klondike Gold Reports Year-End Performance Highlights on Lone Star & Indian River Projects

VANCOUVER, BC--(Marketwire - July 8, 2008) - Klondike Gold Corp. (TSX-V: KG) has received from its joint venture partner, Klondike Star Mineral Corporation (OTCBB: KDSM), updates on the Lone Star Project and the Indian River Project, both of which are located near Dawson City, Yukon.

Major highlights for the twelve-months ending February 29, 2008 include:

Indian River Gold Project (Placer)

The Indian River gold project (placer) has shifted from advanced-stage exploration to the pre-development stage. This has included the completion of a major drilling program, bulk sampling, an environmental and socio-economic assessment of the project by the public, governments and regulatory authorities, the issuance of the authorization to develop and operate the mine, and substantial progress on mine planning and analysis for the determination of a mineral reserve and development decision-making.

The Indian River property consists of 223 placer bench claims and 3 leases totaling about 21.1 square km (8.2 square mi) located in a wide, shallow valley about 35 miles from Dawson City, Yukon in the heart of the Klondike gold-producing region. Klondike Gold Corp. has a 5% Net Smelter Royalty interest on the Indian River Placer project.

Lone Star Project

A significant breakthrough on the advanced exploration stage Lone Star gold project (hard-rock) has been based on the consolidated analysis of 2007 exploration results and geological research of the Klondike Region by the University of British Columbia's Mineral Deposit Research Unit. Updated analysis has identified about 20-25% of the mineralization needed for viable mining and established priority drill targets, which are expected to substantially increase known gold potential. There are now four target zones demonstrating significant gold mineralization and resource potential including Lone Star, Nugget, Buckland, and Pioneer. A fifth zone, the JF, is drill-ready. The comprehensive Lone Star Gold Project Scoping Study for a large tonnage, low-to medium-grade gold mine with a minimum projected life of 10 years is nearing completion and release.

Lone Star is an advanced exploration stage project that is being studied for mine development. Of all its projects, Klondike Star is currently focusing exploration efforts at the majority-owned Lone Star Project. It involves an area of 135 square km (152 square mi), including the Lone Star Zone, the Nugget Zone, the Buckland Zone, the JF Zone, the Pioneer Zone and the 27-Pup-Dysle-Veronika Zone. These zones extend over large areas with excellent opportunities for the existence of multiple mineralized zones, along both strike and dip. They belong to a class of structures which have potential for large, medium-grade, bulk-tonnage ore bodies.

Klondike Star has invested approximately $10 million into directly exploring the Lone Star since 2004.

Under the Option Agreement with Klondike Gold Corp., Klondike Star has earned a 55% Working Interest in the Lone Star Project. By taking the project to a bankable feasibility stage, Klondike Star can increase its Working Interest up to 75%.

Additional operational and financial highlights are summarized in Klondike Star's annual 10-K filing with the U.S. Securities and Exchange Commission. A copy of the complete report is available on their website or may be requested by contacting

The Qualified Person as defined in National Policy 43-101 is Trygve Hoy, P.Eng, Ph.D.

The Company also announces that it has terminated its Cruz option agreement in the Moyie Lake area of British Columbia due to less than favorable results on the property.

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. Klondike Gold Corp.'s cost of acquisition for these properties has been relatively inexpensive by getting positioned in the camps when metal prices and exploration activity were low. It is now well positioned to take maximum advantage of improved metal prices. Details relating to exploration activities on specific properties will be announced as the work programs are implemented.

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

  • For further information, contact:

    Alan Campbell or Kevin Hull
    Investor Relations
    Hughes Exploration Group
    Phone: (604) 685-2222
    Or visit Klondike Gold's website: to see Smartstox
    interviews with Company Chairman and President.

    Klondike Gold Corp.
    711, 675-West Hastings Street
    Vancouver, B.C.
    V6B 1N2 Canada
    (604) 685-2222