Métaux / Industrie minière / Presse économique
SEATTLE -- (BUSINESS WIRE) -- May 25, 2005 -- Donald W. Flinn, Vice-Président à l'Exploitation de la société Klondike Star Mineral Corporation (OTCBB:KDSM), a le plaisir d'annoncer la conclusion d'un accord portant sur l'acquisition de 75% des concessions SPICE, qui couvrent un terrain aurifère épithermal particulièrement prometteur situé dans la « ceinture aurifère du sillon de la Tintina » (Tintina Gold Belt), au Yukon.
(BW)(WA-KLONDIKE-STAR-MINERAL)(KDSM) Klondike Star Acquires The SPICE Epithermal Gold Property
Metal/Mining Writers/Business Editors
SEATTLE--(BUSINESS WIRE)--May 25, 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 the SPICE claims, covering an exciting epithermal gold target in the Tintina Gold Belt, Yukon. The agreement requires cash payments to Klondike Gold Corp. (TSXV:KG) totaling $200,000 over 4 years and work commitments totaling $500,000 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 is located 28km east of Ross River, and 8km south of the North Canol road in the Watson Lake mining district. The target of the claims is a low-sulphidation epithermal style gold deposit hosted by rhyolite, similar to the Grew Creek property 60km to the west. The Grew Creek property is currently being explored by competitor Freegold Ventures Ltd. (TSXV:ITF, OTCBB:FGOVF) with an on-going drilling program.
The claims optioned by Klondike Star cover strong coincident geophysical and geochemical anomalies near the Tintina Fault in an area with very poor rock outcrop. The area of the SPICE claims has only been explored since 2000, when a regional geochemical survey conducted by the Yukon Geological Survey identified strong, coincident gold, silver and epithermal pathfinder elements. Follow-up geochemical sampling identified an open-ended anomalous zone up to 300m wide and 700m long. Rhyolite float rock samples in this area assayed up to 13.9 g/t gold
Trenching by hand in this area failed to reach bedrock; however the glacial till cover is thought to be relatively thin. Ground magnetic and IP geophysical surveys conducted in 2004 identified anomalies coincident with the geochemically anomalous area previously identified.
In the IP survey a strong, shallow high chargeability and high resistivity anomalous zone 300m by 100m was identified which is coincident with the highest gold and silver geochemical anomalies, and is interpreted to come to surface beneath the overburden.
This IP anomaly is consistent with a pyritic, silicified rhyolite, which appears to be the source of the gold. Several other IP anomalies were identified at depth and along strike which warrant further investigation. This property has never been drilled: Klondike Star plans to begin testing the targets during the summer of 2005. A budget and work plan have yet to be finalized.
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: Klondike Star Mineral Corporation James West, 800-579-7580
KEYWORD: ALASKA WASHINGTON
INDUSTRY KEYWORD: MINING/METALS BANKING ENVIRONMENT MARKETING AGREEMENTS
SOURCE: Klondike Star Mineral Corporation