Klondike Star Mineral Corporation
OTC Bulletin Board : KDSM

September 13, 2005 14:07 ET

Klondike Star Reports Plans For Indian River Placer Property

SEATTLE--(CCNMatthews - Sep 13, 2005) -

Donald W. Flinn, Vice President, Operations for Klondike Star Mineral Corporation (OTCBB:KDSM) is pleased to announce plans for an expanded winter drilling program at its Indian River placer (surficial) gold project, 30 km south of Dawson City, Yukon. Auger drilling will commence in November, 2005, and extend until March, 2006, with a mid-winter break during the coldest, darkest part of the winter. The proposed program will total about 200 drill holes, with a goal to establish a gold-bearing volume of gravel. This outcome would be confirmed next summer by test sluicing. This exploration program follows a successful drilling program conducted in the spring of 2005. The company will thoroughly investigate the potential to establish a large placer mine on this property.

The placer gold project, located at Indian River near Montana Creek has been successfully advanced by our spring auger drilling program. The initial test phase consisted of 811m of auger drilling in 90 holes (see press releases dated March 1 & 29, 2005). The drilling tested 12 widely spaced areas on 60 miles of placer leases and claims along the southern bench of Indian River, and along Montana Creek and its tributaries. Work conducted at Indian River this summer was focused on the conglomerate bedrock target that may be an important source of the placer gold.

The approach being taken by the company to explore and develop this property is to identify gold-bearing gravels with favourable mining characteristics using an auger drill when the ground is frozen. When drilling has outlined a suitably large and rich area, a summer bulk testing program will be initiated to establish the mineable grade of the ground. Indian River and its tributaries Dominion Creek, Sulphur Creek and Gold Run Creek currently host several large operating placer mines, which each sluice over 1000 cubic meters of gravel per day during the operating season. These streams have cumulatively produced over 2 million ounces of gold by placer mining.

Drilling to date has been very encouraging, and a larger scale second-phase of auger drilling is planned for this winter. The spring 2005 drill program resulted in gold recovery from 87% of the holes drilled. Of 90 holes drilled, 4 failed to reach bedrock, and 2 were drilled in thawed ground where auger drilling is ineffective. The gold recovered by drilling at the property was fine-grained, typical of the placer mines located on the Indian River. One hole returned over 100 gold grains from a 3m gravel interval. Donald W. Flinn, P. Eng., V.P. Operations commented.... "The results of this program indicate good progress toward our objective of developing a large placer mine which would bring cash flow benefits to the company and contribute towards the main objective of Klondike Star, which is exploration of the mineral rights in the Klondike Mining District."

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