Klondike Star Mineral Corporation

March 08, 2005 13:45 ET

Klondike Star Reports Gold Property Acquisition


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KLONDIKE STAR MINERAL CORPORATION

OTC Bulletin Board SYMBOL: KDSM

MARCH 8, 2005 - 13:45 ET

Klondike Star Reports Gold Property Acquisition

SEATTLE--(CCNMatthews - Mar 8, 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 claims covering
gold bearing quartz pebble conglomerate in the Indian River area, along
the southern edge of the Klondike gold fields. The agreement requires
cash payments totaling $145,000 over 5 years and certain work
commitments 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 consists of 174 units, totaling about 36 square kilometres,
in 7 separate blocks located south of the Indian River, approximately 30
km south of Dawson City. The target of the claims is a Witwatersrand
style gold deposit hosted by quartz pebble conglomerate, the same unit
currently being explored by competitor Boulder Mining Corp. (TSX
VENTURE:BDR). The claims optioned by Klondike Star cover key exposures
of the mineralized conglomerate which were identified by the McKinnon
brothers in 1899 and explored for the next 20 years, including the
Britannia, Winchester and Andromeda shafts. Previous work on the
property identified low grade gold values disseminated throughout the
conglomerate, with local coarse gold. Only a small area has been
explored by modern methods. It has been postulated by some workers that
erosion of the conglomerate unit contributed a substantial part of the
placer gold in the Klondike, and that the unit could be equivalent to
the White Channel Gravel that hosts the bulk of the Klondike placers.

There is a close spatial association between the quartz pebble
conglomerate and successful placer mines south of the Indian River. Of
particular interest is an atypical area where the conglomerate clasts
are up to boulder size, instead of the usual pebble size. It is possible
that this previously unexplored, high energy environment is
preferentially enriched in gold. Much of this hard rock property
underlies the placer leases recently acquired by the company (see Press
Release March 1, 2005), and both placer and hard rock targets will be
explored simultaneously. Klondike Star has commenced exploration of the
area by auger drilling, with geophysics and test pitting to follow. The
auger drilling program in progress will evaluate placer gold potential,
and also provide some bedrock data. Work planned for this summer will
include geological mapping and soil geochemical surveys to evaluate the
hard rock potential.

About Klondike Star

Klondike Star Mineral Corporation is exploring mineralized zones on a
250 square km land position underlying the site of the Klondike Gold
Rush. Klondike Star can earn up to 75% interest in the Lone Star claim
group from its joint partner by completing certain exploration programs,
delivering a bankable feasibility study and financing to mining
production.

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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Klondike Star Mineral Corporation
    James West, 800-579-7580