TORONTO, ONTARIO--(Marketwire - Jan. 29, 2013) - New Klondike Exploration Ltd. (TSX VENTURE:NK) ("New Klondike" or the "Company") is pleased to announce that it has filed a National Instrument 43-101 compliant technical report (the "Report") for the Goldstorm Project (the "Goldstorm Project" or the "Project"), a highly prospective, gold focused exploration project in Northwestern Ontario, located south-southeast of the City of Dryden. New Klondike acquired the Project by staking a large contiguous claim group, centered in the Kawashegamuk Lake Area, comprised of 79 mining claims totaling 1,091 claim units covering approximately 17,450 hectares. A preliminary description of the Project was provided in the Company's press release on November 15, 2012.
The Report was co-authored by David H. R. Powers, H.B.Sc., P.Geo. and Seymour M. Sears, B.A., B.Sc., P.Geo.; and is titled "NI 43-101 Technical Report on the Goldstorm Project, Kenora Mining Division, Ontario, Canada" with an effective date of November 15, 2012. Excerpts from the summary section of the Report are set out below. A complete copy of the Report is available on SEDAR www.sedar.com or on the Company's website www.newklondike.com. The Company plans to file an updated technical report for the Goldstorm Project in the near future to include information regarding additional contiguous claims recently added to the Project.
Michael Coulter, President of New Klondike said, "We are very pleased with the outcome of the preliminary compilation and evaluation of the Goldstorm Project geology and the identification of numerous and significant structural features within the Project area presented in the Report. The conclusions and recommendations have surpassed our initial expectations since initiating the acquisition of the Project in July 2012. We look forward to implementing a comprehensive exploration program on this long-overlooked and prospective area of Ontario."
The following was excerpted from the Report:
"Conclusions and Recommendations
The Goldstorm Project covers a large area within the south-eastern part of the Eagle-Wabigoon-Manitou Lakes Greenstone belt in the Wabigoon Subprovince of the Superior Province of the Canadian Shield. The claims are centered on a band of Timiskaming-type sedimentary rocks that rest unconformably on felsic volcanic and ultramafic to felsic intrusive rocks. Two major fault structures pass through the claim group. Gold mineralization occurs in association with all of the rock units.
At least 5 areas within the boundaries of the Project area have been identified as having excellent potential to host economic gold deposits:
1. The unconformity between the Timiskaming-type sedimentary rocks and the underlying volcanic rocks in the south part of the Project area.
2. The highly deformed zone represented by the east-west trending Mosher Bay-Washeibemaga Lake Fault zone which lies along the north side of the Timiskaming-type sediments in the center of the Project.
3. The mafic to ultramafic sills that are found within the upper part of the Wapageisi Group volcanic rocks that host many known Au occurrences in the Latisha Lake area, southern part of the Project.
4. The intensely ankeritized Long Lake Fault zone and adjacent felsic to mafic volcanic rocks between this structure and the Revel Lake Batholith on the eastern side of the Project area.
5. The north-northeast trending fault or set of faults that pass through the NW part of the Project and the coincidental Au-in-lake sediment anomalies in that area.
Several volcanic centers identified within the Kawashegamuk Lake Group, also have potential for hosting VMS-type base metal mineralization. Copper mineralization has also been noted in some of the layered gabboric sills that occur throughout the Boyer Lake Group rocks. These layered gabbroic rocks may provide a ponding site for the deposition of copper-nickel and/or platinum group element mineralization.
The Goldstorm Project is an early stage exploration project. There are at least 4 known gold occurrences, one Cu-Ni occurrence and a multitude of exploration targets on the Project. These targets have geological, geochemical and/or geophysical attributes that warrant an extensive exploration program and as such it is considered a project of merit.
An aggressive exploration program designed to thoroughly evaluate the large Goldstorm Project is highly recommended. The program should include a balanced work program consisting equally of detailed technical surveys: geophysical, soil and litho geochemical, geological mapping and prospecting. The program should include:
- Evaluation of the existing airborne geophysical data.
- A new airborne geophysical survey using the most advanced technology.
- Ground follow-up of features identified by these airborne surveys, historical survey data and known Au/base metal occurrences should be carried out in the near term in order to provide a baseline of data for evaluating future targets.
The objective should be to delineate drill targets early in the exploration cycle. The estimated cost to carry out the first phase of an exploration program is CDN$ 890,000."
Geology and Mineralization
Note: All rocks within the Goldstorm Project have been metamorphosed to greenschist or lower amphibolite facies and for simplicity sake, the term "meta" will be assumed for all rock types.
The Goldstorm Project claims cover a large area within the southeastern part of the Eagle-Wabigoon-Manitou Lakes Greenstone belt in the Wabigoon Subprovince of the Superior Province of the Canadian Shield. The claims are centered on a band of Timiskaming-type sedimentary rocks that rest unconformably on mafic volcanic and ultramafic to felsic intrusive rocks. Two major fault structures pass through the claim group. Gold mineralization occurs in association with all of the rock units.
The Goldstorm Project area shares many similarities to greenstone belts containing world-class gold deposits in other parts of Ontario and Quebec. These similarities include the following:
- Regional, crustal-scale, major fault structures that have enabled the influx of metal bearing hydrothermal fluids;
- "Timiskaming-type", clastic sedimentary rocks that unconformably overly a diverse array of Keewatin-type mafic to felsic volcanic rocks;
- Mafic to ultramafic sills and dykes as well as subvolcanic felsic bodies that lie close to or at the unconformity;
- Pervasive hydrothermal alteration as evidenced by extensive ankerite zones and the presence of sericite, fuchsite and sulphides in association with known gold mineralization; and
- A diversity of styles of gold-bearing zones within the greenstone belt such as veins, stockwork, breccia and massive sulphides, and associated accessory minerals suggests the presence of a long-lived, multi-staged mineralizing system.
Many of these features are found in association with the gold deposits of the Timmins-Porcupine, Kirkland Lake - Larder Lake and Red Lake gold camps of Ontario.
The Goldstorm Project covers a 15 km long section of the Timiskaming-type sediments. These sediments unconformably overlie felsic to mafic volcanics containing known gold occurrences. The northern margin of the sedimentary rocks are highly deformed and lie along a major east-west trending fault referred to as the Mosher Bay - Washeibemaga Lake Fault. This fault joins with the northwest trending Long Lake fault zone that traverses the eastern side of the Project area. Both faults and the Timiskaming-type sedimentary rocks exhibit intense carbonate alteration and have numerous associated gold occurrences. Both structures are deep seated and regional in scale and have potential to host significant gold mineralization. Several volcanic centers have been identified within the property boundaries. These structures have excellent potential for VMS-type base-metal/gold mineralization. The gabbroic to ultramafic intrusions have potential for nickel-copper and/or platinum group element mineralization.
The Goldstorm Project area has seen sporadic and limited exploration for base metals in the past, but public records show very little documentation of any sustained programs for gold exploration. More than 200 gold occurrences have been compiled within the Eagle-Wabigoon-Manitou Greenstone Belt. In the immediate area of the Goldstorm Project, there have been 8 historic gold producers, together accounting for approximately 18,000 ounces of gold. Most of these small operations were active between 1899 and 1909 and were all from narrow, high-grade quartz veins.
New Klondike Exploration Ltd. has not conducted any exploration on the Project to date."
An independent evaluation and interpretation of existing government airborne geophysical data covering parts of the Goldstorm Project is presently underway.
About the Authors of the Report
Mr. Sears is a director of New Klondike and has provided geological consulting services to the Company since 2009. Mr. Powers introduced the Goldstorm Project concept to the Company and his consulting practice was granted a one-half of one percent (0.5%) net smelter royalty on the Goldstorm Project as consideration therefor.
Mr. Seymour M. Sears, B.A., B.Sc., and P.Geo., a director of the Company, has reviewed and approved the technical content of this press release.
About New Klondike
New Klondike is a mineral exploration and development company focused on the acquisition and development of base and precious metal deposits on the Goldstorm Project and its other exploration properties in Ontario. The Company presently has 17,342,845 common shares issued.
This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, statements relating to the Company's expected exploration plans and strategies, are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure of the Company to execute its proposed exploration plans and strategies as indicated herein and general business and economic uncertainties.
Any forward-looking statement speaks only as at the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.