Klondike Star Mineral Corporation
OTC Bulletin Board : KDSM

Klondike Gold Corp.

Klondike Gold Corp.

June 09, 2005 15:19 ET

Klondike Star Acquires The ULTRA Multi-Target Property

SEATTLE--(CCNMatthews - Jun 9, 2005) -

Donald W. Flinn, Vice President, Operations for Klondike Star Mineral Corporation (OTCBB:KDSM) is pleased to announce that an agreement has been signed for the acquisition of up to 75% interest in the ULTRA claims, covering several copper-zinc and nickel-platinum group targets in the Kluane Mineral Belt, Yukon. The agreement requires cash payments to Klondike Gold Corp. (TSXV:KG) totaling $265,000 over 5 years and work commitments totaling $2,225,000 to acquire a 55% interest. Producing a bankable feasibility study and arranging project financing can earn a further 20% interest in the project.

The property is located 42km northwest of Haines Junction, and is accessible by a 10km road from the Alaska Highway, in the Whitehorse mining district. Two distinct types of mineralization have been discovered on the property: VMS-style copper-zinc-silver-gold and magmatic nickel-copper- platinum-palladium-gold. There is also some placer gold noted in the streams draining this well mineralized area.

Exploration in 2004 focused on the VMS target, with geological mapping, prospecting and airborne geophysics along the Nicolai volcanic belt. Previous work had located numerous massive sulphide boulders up to 19 tons, with assays to 2.1% copper, 5.1% zinc, and 25 g/t silver. Drilling between 1956 and 1970 focused on the immediate area of the boulders, and was unsuccessful. More recent work has recognized that the boulders are located in a terminal glacial morraine, and have likely been transported some distance from their current location. This volcanic belt is host to the giant Windy-Craggy zinc-copper-gold deposit 150km southeast, in northwestern British Columbia.

Mapping in 2004 confirmed the presence of favourable volcanic host rocks, and discovered new outcrops of stringer-type mineralization which could represent feeder zones to VMS mineralization. Although the property is in mountainous terrane and outcrop is generally good, the volcanic belt is covered by thick overburden over much of its length on the property. McPhar Geosurveys was engaged to conduct a 200 line-km airborne magnetic and EM geophysical survey in September 2004 which identified 54 conductors within the Nicolai volcanic belt which hosts the VMS mineralization. These conductors warrant follow-up work in 2005.

A magmatic ultramafic hosted nickel-copper-platinum-palladium-gold zone is present on the property within Kluane Range Ultramafic Suite sills. These rocks host the former-producing Wellgreen nickel-platinum mine about 80km to the northwest. The Wellgreen deposit currently hosts resources of 49.9 million tonnes grading 0.36% nickel, 0.35% copper, 0.51 g/t platinum and 0.34% palladium. At the Frohberg showing on the Ultra property mineralization has assayed up to 5.5 g/t platinum, 13.5 g/t palladium, 4.1% copper and 1.7% nickel. A large band of ultramafic rocks on the property have seen very little exploration for this target.

Klondike Star plans to begin testing both the VMS and Magmatic targets during the summer of 2005. A budget and work plan have yet to be finalized.

About Klondike Star

Klondike Star Mineral Corporation is developing 5 mineralized zones on a 250 square km land position underlying the site of the Klondike Gold Rush, and select high potential targets in other parts of the Yukon.

The famous Klondike goldfields have been in constant surface mining production since the discovery of gold in 1896. Thousands of ounces of gold continue to be produced from placer mining operations each year on streams in the Klondike. The company also owns extensive surface mining rights in the Klondike Mining District.

The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products or actions in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.

Contact Information

  • Klondike Star Mineral Corporation
    James West, 800-579-7580