KG Klondike Gold Corp

KLONDIKE GOLD CORP. (TSX VENTURE:KG) is pleased to announce significant advances
on its Yukon Lone Star Property with the completion of extensive data
compilation. The Company now has sufficient geological and structural control to
direct targeted drilling towards a disseminated bulk tonnage gold target
contained within a high grade orogenic vein system. This important advancement
builds on the discovery of significant quantities of disseminated gold in schist
and a higher grade vein system that increases the overall gold grade in the bulk
tonnage target gold bearing schist (GBS1) unit. 


The advances that allow Klondike Gold confidence in drill ready targets are:



1.  Confirmation that the majority of placer gold from Bonanza and Eldorado
    Creeks (probably greater than 10 million ounces) was derived from gold-
    bearing lodes within an approximately 4 by 2 kilometer area centered on
    Lone Star Ridge between Eldorado and Upper Bonanza Creeks. 
2.  The discovery that the higher grade orogenic vein system contains those
    that are both steeply dipping (previously recognized in 2006) and
    shallow dipping veins whose significance was recognized in the 2012
    excavation of the Bolder Lode open cut. 2012 observations in the Boulder
    Lode excavation confirmed significant gold of up to 43.1 g/t Au in grab
    sample from shallow veins. 
3.  Lithogeochemical analysis demonstrated that stratigraphic units within
    the pyritic schist package can be recognized and mapped and that one of
    these units (GBS1) contains up to several grams per tonne disseminated
    gold. This advancement was made possible by research and field work by
    scientific consultants and technical staff from 2011 to 2013. 



This is a milestone in the one hundred plus years of exploration activity that
took place on the Lone Star Ridge and it is the first time that a property
operator has gained such advanced geological and structural control over the
historic Lone Star Hard Rock Mine. 


The following provides further details of technical and scientific advances:

The Klondike Gold Fields have produced approximately 20 million ounces of placer
gold since their discovery in 1897; however, no significant hard rock mine has
been developed. The source of gold is an intriguing geological mystery that is
elusive due to the complex nature of geology of the Klondike. During the Lone
Star Property's 115 year history there have been several significant leaps in
understanding of the hard rock source. These advances include the understanding
that small sample sizes tend to underreport the actual grade, that gold in soil
anomalies extend far beyond the initial hard rock discoveries, and that placer
gold is locally derived. In the past nine years, exploration of the property by
Klondike Gold Corp. and the previous operator has built on this work and made
further major advances in the understanding of the hard rock sources of the
placer gold in the Bonanza and Eldorado Creek drainages.


It has been shown that the majority of placer gold from Bonanza and Eldorado
Creeks (probably greater than 10 million ounces) was derived from gold-bearing
lodes within an approximately 4 by 2 kilometer area centered on Lone Star Ridge
between Eldorado and Upper Bonanza Creeks. An independent detailed investigation
of the compositions of placer and lode gold throughout the Klondike was
undertaken by Dr. Robert Chapman from the University of Leeds and Dr. Mortensen
and published in 2010 in Economic Geology. This work led to several key
conclusions, one of which is the importance of Lone Star Ridge in the production
of the millions of ounces of Eldorado and Bonanza placer gold. 


Klondike Gold now understands the structural controls for gold-bearing veins on
Lone Star Ridge. This provides a structural framework within which it is
possible to identify the extent and geometry of vein systems on the Lone Star
Property and to predict where these vein systems might be localized.
Reconstructing the deformation history of the Klondike region has been key in
this new understanding of gold deposition. Between 2004 and 2007, the entire
Klondike was remapped geologically to understand the structural controls on
gold-bearing veins. This work was carried out by Dr. Douglas MacKenzie and Dr.
David Craw from the University of Otago, geological consultant Dr. Timothy
Liverton, and Dr. Jim Mortensen from the University of British Columbia. The
work culminated in a 2008 publication in Mineralium Deposita that identified and
described a previously unrecognized and localized phase of deformation (the "D4
event") that appears to be the main control on the location of gold-bearing
quartz veins in most parts of the Klondike. This work suggested that the main
structural control on gold-bearing veins was steeply-dipping D4 deformation
zones. Excavation of schist at the north end of the Lone Star trend in 2011 and
the 2012 excavation of the Boulder Lode on Lone Star Ridge shows that a shallow,
northeast dipping, stacked D4 vein system is dominant. This system contains
significant gold over a package thickness of at least 6 meters. Dr. Liverton has
postulated that these packages may repeat at depth. Repeating packages of
shallow dipping gold enriched veins may be a partial explanation of the
abundance of placer gold in Bonanza and Eldorado Creek. There is strong evidence
for this phenomenon in the area of Victoria Gulch below the Boulder Lode where
the topographic slope is similar to the dip of the gold enriched package in the
Boulder Lode and significant eluvial (in situ gold in soil) and placer gold is
present. 


Recent lithogeochemical analysis demonstrated that stratigraphic units within
the pyritic schist package can be geochemically recognized from conventional
multi-element assay data, and more importantly, that one of these units (GBS1)
contains up to several grams per tonne disseminated gold. These geochemical
criteria can also be applied to most of the past diamond drilling, rotary
drilling, and surface sample assay data that has recently been compiled for the
first time, making it possible to trace individual rock units over the entire
Lone Star Ridge area. The geochemical signatures of individual lithologies have
identified units that are mappable in the field, and this distinction has made
it possible to constrain a map of the key gold-bearing schist unit (GBS1) over a
50 to 250 m by 3 plus km area (still open along strike) of Lone Star Ridge that
is postulated by Dr. Mortensen to be contained within a steeply dipping limb of
a northeast verging fold sequence. This understanding was facilitated by the
most recent phase of mineral exploration work on the Lone Star property
performed by Dr. Mortensen and Dr. Liverton. This work highlighted the
importance of sub units of the pyritic felsic schist package as a source of gold
that has been locally remobilized into high grade orogenic quartz veins
(probably on a scale of less than 100m) as well as a potentially bulk-mineable
rock package of gold bearing schist (GBS1). 


The aforementioned lithogeochemical and structural advances will allow Klondike
Gold to direct exploration drilling with greater precision. Dr. MacKenzie and
Klondike Gold identified an undulation on a 100 to 200 meter scale in the lower
contact of the felsic schist caused by the interaction of D3 and D4 deformation.
The high points of this undulation show enrichment of gold with late D4
extensional deformation, preferentially mineralizing these anticlines. This
suggests new target areas to the east, west, and north of the Boulder Lode in
the domes of these structural undulations.


The corporate strategy of systematic property wide investigating gold
occurrences has also been productive. This has resulted in the advancement of
several targets across the property including:




--  Boulder Lode open cut results of 1.86 g/t over 6 by 25 meters, including
    9.43 g/t over 2.5 by 4.2 meters of the excavation and significant
    advances in understanding of the structural and lithologic control on
    gold mineralization (as outlined above). Individual samples show a high
    of 43.1 g/t Au in the quartz veins and 4.1 g/t in the interstitial
    schist host rock. 
--  Nugget Zone mapping, extension, grab samples of up to 179 g/t Au with 78
    g/t Ag and recognition of a possible trend 1.1 km to the Buckland Zone.
    Past results from the Buckland Zone include: 

    ------------------------------------------------------------------------
    Nugget Zone Bulk Sampling     Weight of Sample (kg)       Grade (g/t Au)
    ------------------------------------------------------------------------
    05NZ-B7-A                                     1886                 6.46 
    ------------------------------------------------------------------------
    05NZ-B4-B                                     2769                 8.61 
    ------------------------------------------------------------------------
    Nugget Zone Drilling                   Interval (m)                     
    ------------------------------------------------------------------------
    06NZ02                                28.9 to 29.9                98.68 
    ------------------------------------------------------------------------
    06NZ03                                25.6 to 26.5                30.15 
    ------------------------------------------------------------------------
    Buckland Zone Drilling                 Interval (m)                     
    ------------------------------------------------------------------------
    07BU03                                      6 to 8                4.785 
    ------------------------------------------------------------------------
    07BU03                                    19 to 21                13.48 
    ------------------------------------------------------------------------
    including                                 20 to 21                 22.6 
    ------------------------------------------------------------------------
    07BU03                                    26 to 27                 4.51 
    ------------------------------------------------------------------------
    07BU04                                    51 to 53                 8.59 
    ------------------------------------------------------------------------
    Including                             52.0 to 52.5                 24.9 
    ------------------------------------------------------------------------

--  Violet Ridge trend advancement with high sample of 47.4 g/t Au and 894
    g/t Ag and evidence for a 4 km strike length in soil samples 
--  Boy Zone 400 by 900 m soil anomaly and recognition of further under
    explored areas of the property 



Klondike Gold plans to continue to utilize a systematic approach in the future
evaluation of the Lone Star Property. The 20 million ounces of placer gold
recovered from Klondike gold fields was partly derived from the hard rock
sources on Klondike Gold claims and we are dedicated to unlocking this hard rock
economic potential.


T. Liverton, PhD., C. Geol, F.G.S. is the qualified person for the purposes of
this news release.


ABOUT KLONDIKE GOLD CORP.

Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver,
British Columbia, and Dawson City, Yukon. The Company is focused on the
development of its Yukon, Portugal, and British Columbia gold properties, and
also holds a large portfolio of base metal projects in southeastern British
Columbia.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Klondike Gold Corp.
Erich Rauguth
President & CEO
604-685-2222
info@klondikegoldcorp.com
www.klondikegoldcorp.com

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