SOURCE: Klondike Star Mineral Corp.

April 29, 2008 09:00 ET

Klondike Star Clears Final Regulatory Step on Indian River Gold Project

SEATTLE, WA--(Marketwire - April 29, 2008) - Donald W. Flinn, P.Eng., Chief Operating Officer of Klondike Star Mineral Corporation (OTCBB: KDSM), reports that all the operating permits necessary for Indian River mine development and gold production have now been received.

Planning for mine development is proceeding on a systematic, step-by-step basis.

The Company received notice on April 24, 2008 that Yukon mining authorities and the Yukon Water Board, an independent agency, issued Klondike Star a Class 4 placer mining land use operating permit under the Placing Mining Act (Yukon) and a Type B water use license under the Waters Act (Yukon). An authorization to mine was previously granted by the Government of Yukon following the completion of a public environmental and socio-economic review of the proposed Indian River gold mine. The environmental assessment, project review and permitting process took about one year from start to finish.

Flinn notes, "The Yukon and Canada are good places to develop sustainable, socially responsible mines. Indeed, the thorough yet timely review of the proposed Indian River Gold Project by the public and regulatory bodies is testimony to a favorable environment for investment."

The business plan for the proposed Indian River Gold Project is being updated to reflect the latest mineral reserve analysis, cost estimates, scheduling and operating permit requirements now that they are fully known. The option of starting with large-scale test mining is being given consideration, as it could offer advantages with respect to the tax treatment of expenditures, cash flow, cost control and the value of projected returns.

Flinn says, "We are optimistic a decision on whether to proceed with full-scale test mining or directly into production can be made shortly. Either way, gold would be produced."

About the Indian River Gold Project

The Indian River property consists of 223 placer bench claims and 3 leases totaling about 21.1 km2/8.2 mi2 located in a wide, shallow valley about 35 miles from Dawson City, Yukon in the heart of the Klondike gold-producing region. Klondike Star holds 100% ownership, with exception of a 49% interest in a small group of claims. An extensive drilling program, bulk sample test mining, and an analysis of mineralization have been completed and a mining plan developed. The property has never been mined or subjected to modern recovery methods.

The Indian River Gold Project is part of Klondike Star's three prong strategy to advance the company and build shareholder value for long-term gain.

About Klondike Star

Klondike Star is a well-governed junior mineral exploration and development enterprise with world-class projects in Canada and Egypt. The company has majority or 100% interests in 5 gold projects totaling about 290 km2/112.4 mi2 in the Yukon, located in the northwest corner of Canada underlying the site of the world-renowned Klondike gold producing region; and residual interests in three other gold, base and precious metal projects. Major properties include the advanced-stage exploration Lone Star Gold Project with a scoping study in progress, the intermediate-stage Dominion Gold (and silver) property; and, the pre-development Indian River Gold Project. The mission is to explore, develop and operate new mines as socially responsible, sustainable developments. Through its wholly owned Canadian subsidiary, Klondike Star was awarded the right to explore and develop gold, iron ore and other minerals on the expansive 1,245 km2/481 mi2 Oweinat concession in the Arab Republic of Egypt through a competitive, international bidding process.

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

  • For more information please contact:
    Wayne Cousins
    Investor Relations
    Toll Free (800) 579-7580