SOURCE: Klondike Silver Corp.

February 26, 2008 09:30 ET

Klondike Silver Adds New Results for Pending Vein Samples at the Connaught Property

VANCOUVER, BC--(Marketwire - February 26, 2008) - Klondike Silver Corp. (PINKSHEETS: KLSVF) (TSX-V: KS) is pleased to announce the remaining vein sampling 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. The property is road accessible and is being explored as a high grade silver-lead vein camp modeled after the highly productive mines of the Keno Hill district 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 covered by the CN property. Approximately 218 tonnes of galena/anglesite rich material was extracted from shallow open cuts on 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.

Results for samples collected across galena rich lenses and adjacent arsenic-antimony sulfosalt bearing selvages within the #1 and #3 Veins were reported in the News Release dated January 28, 2008. Peak values for silver, lead and gold were 2880 g/t, 54.89% and 10.90 g/t, respectively.

The #4 Vein lies approximately 2 km northeast of the #1 Vein and is exposed for 260 m along the northwestern edge of an alpine knoll. It dominantly consists of multi-episodic quartz that is variably mineralized with arsenic-antimony sulfosalts and which is surrounded by strong clay alteration. In 1969, previous operators reported an "average assay" of 615.8 g/t silver and 8.32% lead across 1.22 m for a series of chip samples collected along the northeasternmost, 114 m portion of the exposure. These samples include peak grades of 2451 g/t silver and 34.90% lead across 0.73 m. In 1988, diamond drilling was done in eight holes at the southwestern end of the exposure with the best reported interval grading 534.8 g/t silver and 2.15 % lead across 2.29 m.

Five short excavator trenches were cut in 2007 at equal intervals along an 80 m section at the southwestern end of the vein zone. Three of the trenches tested the footwall portion of the previously defined structure, which was mostly covered by talus, and the other two were intended to explore the projected trace of the vein to the southwest. The three trenches dug into the footwall of the vein zone discovered new mineralization in a splay off the main structure. The two southernmost trenches did not encounter bedrock because of permafrost. Highlights from chip sampling are listed in Table I.

Table I

Highlights From 2007 Chip Samples - #4 Vein

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Trench         Width(m)*     Ag(g/t)     Pb(%)     Au(g/t)
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-----------------------------------------------------------
TR-07-16         8.25         79.5        1.73        -
-----------------------------------------------------------
including        1.35          363        7.80      0.75
-----------------------------------------------------------
-----------------------------------------------------------
TR-07-17         1.35         1347       27.26      0.97
-----------------------------------------------------------
including        0.20         2880       51.40      0.97
-----------------------------------------------------------
-----------------------------------------------------------
TR-07-18         2.30         1770       31.39        -
-----------------------------------------------------------
*All reported intervals are true widths.

Two diamond drill holes were located to test the vein zone at approximately 25 to 35 m piercements beneath TR-07-16 and along strike 100 m to the southwest. Both holes encountered intervals of weak quartz and arsenic-antimony sulfosalt mineralization. Grades from these intervals are shown on Table II.

Table II

Significant 2007 Diamond Drill Results - #4 Vein
------------------------------------------------------------------
Hole       From(m)   To(m)  Interval(m)*  Ag(g/t)   Pb(%)  Au(g/t)
------------------------------------------------------------------
------------------------------------------------------------------
CN-07-03    76.05   79.85      3.80         339     4.04    0.26
------------------------------------------------------------------
including   77.02   79.05      2.03         409    10.45    0.11
------------------------------------------------------------------
------------------------------------------------------------------
CN-07-04    70.61   76.30      5.69        48.1     0.30    0.07
------------------------------------------------------------------
*True widths are approximately 70% of the reported intervals.

The #7 Vein and the newly discovered Stirling Vein are located approximately 3 km west of the #4 Vein. Bulldozer trenching had previously been done in these areas but no significant mineralization was reported.

The #7 Vein was exposed by extending an old bulldozer trench where massive galena cobbles were found within the lower part of the soil profile. A vein zone that is likely the source of the galena cobbles was exposed in two excavator trenches situated approximately 120 m apart. The northern trench, TR-07-27, exposed a quartz vein with arsenic-antimony sulfosalt mineralization and massive galena lenses up to 55 cm wide, along a strike length of roughly 23 m. The northernmost of the galena lenses is open to the northeast where it projects beneath an access road. Approximately 2 tonnes of massive galena was recovered during the exploration of this lens. Weighted average grades and individual assay results for samples taken across the vein at specific lengths along the trench are shown in Table III.

Table III

Significant 2007 Channel Sample Results - #7 Vein
----------------------------------------------------------
From(length)   Width(m)*     Ag(g/t)     Pb(%)     Au(g/t)
----------------------------------------------------------
0.0 m            0.56          443        9.58      0.45
----------------------------------------------------------
4.0 m            0.53         1583       43.78      1.49
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including        0.26         2830       62.65      0.30
----------------------------------------------------------
12.0 m           0.10         3100       61.54      0.35
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15.0 m           0.10         3060       74.75      0.13
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21.0 m           0.55         2750       70.71      0.29
----------------------------------------------------------
23.0 m           0.45         3430       73.46      0.73
----------------------------------------------------------
*All reported intervals are true widths.

TR-07-29, which is located 120 m to the southwest of TR-07-27, exposed a vein zone dominantly composed of quartz with arsenic-antimony sulfosalt mineralization. A chip sample across this exposure returned 479 g/t silver 8.81% lead and 1.51 g/t gold across 0.56 m.

The Stirling Vein is a new discovery made by deepening an old bulldozer trench, situated approximately 400 m northeast of the #7 Vein. It is characterized by a strong arsenic-antimony sulfosalt-bearing quartz vein, again with intermittent massive galena lenses up to 47 cm wide. The vein was exposed for a strike length of 22 m. Table VI contains significant assays for samples collected across the vein at various points along the mineralized trend.

Table IV

Significant 2007 Channel Sample Results - Stirling Vein
----------------------------------------------------------
From(length)   Width(m)*     Ag(g/t)     Pb(%)     Au(g/t)
----------------------------------------------------------
0.0 m            0.22          500       10.05      1.23
----------------------------------------------------------
6.5 m            0.59          821       19.45      1.51
----------------------------------------------------------
7.6 m            0.76         1895       47.47      0.67
----------------------------------------------------------
including        0.35         2240       49.56      0.28
----------------------------------------------------------
8.75 m           0.66         2083       51.50      1.99
----------------------------------------------------------
including        0.47         2660       64.54      0.67
----------------------------------------------------------
                 0.19          656       19.26      5.23
----------------------------------------------------------
11.4 m           0.63         1025       24.71      0.80
----------------------------------------------------------
including        0.16         3190       67.53      0.34
----------------------------------------------------------
20.0 m           0.43          361        6.07      5.81
----------------------------------------------------------
22.0 m           0.32          513       12.90      3.67
----------------------------------------------------------
*All reported intervals are true widths.

Richard Hughes, President of Klondike Silver states "We are very pleased with the results from our 2007 sampling program at the CN property, which has confirmed the high grade nature of the veins and the potential for new discoveries. We are further encouraged by the significant gold potential within the sulfosalt dominant sections of the mineralized structures." Klondike Silver is currently designing an aggressive 2008 exploration program to continue its evaluation of the CN property."

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

  • Contact:
    Klondike Silver Corp.
    #711-675 West Hastings Street
    Vancouver, B.C.
    Canada V6B 1N2
    Telephone: (604) 685-2222
    Fax: (604) 685-3764
    www.klondikesilver.com