Klondike Silver Corp.

Klondike Silver Corp.

September 14, 2010 09:03 ET

Klondike Silver Corp. Discovers Multiple Gold Zones on ATAC Resources Joint Venture




VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2010) - Klondike Silver Corp. (TSX VENTURE:KS) (the "Company") is pleased to announce that a significant exploration program has resulted in several new discoveries at its Connaught Project (50-50 Joint Venture with ATAC Resources Ltd.). The program expanded on the highly successful soil geochemical programs of the past three years, and followed up with mapping and prospecting in areas of multi-element anomalies. 

The Connaught property lies in the headwaters of the 60 Mile placer gold district, within the Tintina Gold Belt, and at the northwestern end of the White Gold District. The Yukon has seen increasing interest as a gold exploration target in the past few years. Great success has been achieved by Kinross at their White Gold project, Kaminak at their Coffee project, and by ATAC Resources at their RAU gold project, along with many other high potential gold properties in the region.

"Klondike Silver continues to discover significant mineralization by prospecting. These new zones warrant further exploration by mechanized trenching and diamond drilling. We are optimistic in the potential for both gold and silver," commented Company President, Richard Hughes. 

Camp Area: Three veins have been discovered in the area of the exploration camp and across the intrusive body to the southeast. The "Kitchen Vein" is exposed beneath the camp kitchen, and extends for at least 80m in float. The best results from four samples were 1.08 g/t gold and 783 g/t silver. The "69-2 Vein" is exposed about 300m to the southeast of the Kitchen in a 1969 era bulldozer trench that was not previously sampled, and returned 3.00 g/t gold and 1660 g/t silver. A similar undocumented trench located a further 500m southeast contains the "69-3 Vein", which was discovered in 2009 and returned 4.13 g/t gold and 406 g/t silver (reported previously in Klondike Silver news release dated October 30, 2009). These three veins lie within a robust multi-element soil anomaly that measures roughly 600m by 1100m, and lies at the west end of the intrusive trend, adjacent to a regional scale normal fault.

Cross Fault Area: A second area of newly discovered mineralization lies in the central part of the property, in the vicinity of a newly mapped north-south trending cross fault that displaces the intrusive body and appears to control the location of a zone of intense hornfels alteration that forms a prominent ridge to the north of the intrusion. Gold in soil values are elevated in this area, and three new veins were discovered here in 2010. One vein (not named yet) returned 1.2 g/t gold and 528 g/t silver from a single cobble in an anomalous soil geochemical sample pit in an area near the cross fault. "Sandro's Vein" is located about 1000m southwest in a previously undocumented 1969 era bulldozer trench, and returned 5.77 g/t gold and 70.7 g/t silver. The "Woodpecker Vein" is located about 350m south of Sandro's, and returned 2.52 g/t gold and 343 g/t silver from a single boulder in an area with almost no rock exposure. The Woodpecker is the first vein discovered on the south side of the intrusion, which expands the area of high potential on the property.

Ridge Junction Area: A new vein was discovered in another 1969 era bulldozer trench southwest of the main road junction. This vein returned 0.915 g/t gold and 182 g/t silver from vein material in the trench. Mineralized pebbles 50m to the southwest of the trench returned 1.825 g/t gold and 111 g/t silver.

Skarn Zones: Several bands of marble, locally altered to skarn are present on east side of the property. Initial mapping and sampling of these zones in 2010 has returned values up to 0.386 g/t gold, 16.5 g/t silver and 7.24% zinc. This target warrants further investigation by mapping, prospecting and soil geochemistry.

Mineralization at Connaught is intrusion related, with narrow polymetallic veins discovered over an area of 11km by 4km. Late Cretaceous age granitic intrusions are present on the property, with metamorphic country rocks of the Yukon Tanana terrane. Hornfels and skarn zones present on the property may hold potential for bulk tonnage gold deposits. The project area has not been subject to glaciation, and therefore soils and rocks are thought to be locally derived. Prospecting on the south side of the property was enhanced by an intense forest fire in 2009 that removed moss and lichen from rocks. The 1969 exploration in the area was focused on lead-rich silver veins suitable for direct shipping to smelters, and on porphyry copper-molybdenum. The silver- quartz veins discovered in that era were not considered to be significant.

The Qualified Person for the purpose of National Instrument 43-101 is William Mann, P.Geo., who has read and agreed with the technical information in this news release.

About the Connaught Property:

Exploration at the Connaught Property has now revealed silver, gold and lead mineralization in 20 veins over an area measuring roughly 11 kilometres by 4 kilometres. Porphyry and skarn mineralization is also present in the area.

About Klondike Silver:

Klondike Silver is a member of the Hughes Exploration Group of Companies and is led by a team with an excellent track record of discovery and development in Canada.

Klondike Silver Corp. has assembled a quality portfolio of silver properties in historic mineral districts in North America, and is applying advanced exploration technologies to add value to these core assets. Klondike Silver is reviving the Gowganda and Elk Lake silver camps in Ontario, and the world-famous Klondike district of Yukon Territory. The Company owns a 100 TPD fully operational flotation mill in Sandon, BC, which processes material from local mines in the historic Slocan Silver Camp. 

Visit Klondike Silver's web-site: www.klondikesilver.com to see Smartstox interviews with Company President, Richard Hughes.

The statements made in this news 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 or contents of this news release.

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