Klondike Silver Corp. (the "Company") (TSX VENTURE: KS) and
Kootenay Gold Inc. (TSX VENTURE: KTN) ("Kootenay") are pleased to
announce the phase one diamond drill program has commenced on the
Espiritu Gold - Copper porphyry system in Sonora, Mexico.
"We are excited to be moving forward with a much anticipated
drill program on the Espiritu project and look forward to testing
the potential large scale porphyry gold-copper system," comments
Company President, Richard Hughes. "A significant amount of work
has been completed by joint venture partner, Kootenay Gold, to
advance the property to this point including sampling of the
leach-cap zone which has produced copper values consistent with
those taken above other porphyry deposits in northwest Mexico and
the southwest USA. Initial drilling on the property will focus on
determining the thickness and mineralization grade of the enriched
Supergene layer."
Drilling will consist of a minimum 1000 meters of HQ core and
comprise of 4 to 6 holes in 4 drill sites 100 to 500 meters apart.
It is anticipated it will take 3 to 4 weeks to complete the
program.
The Espiritu project is owned 100% by Kootenay Gold Inc. and is
under option to Klondike Silver Corp. who have the right to earn a
50% interest in the project by making certain payments and
exploration expenditures (March 31, 2008).
Geology
The Espiritu project is host to an extensive area of
polymetallic vein, stockwork, breccia and gold-copper porphyry
mineralization. The evidence of Silver-Gold enriched veins
occurring within and adjacent to the gold-copper porphyry style
mineralization significantly enhances the economic value of the
project due to the potential existence of a strong precious metal
component.
Mineralization and alterations are hosted along a 5 km east
northeast trending structure that measures between one and two km
in width. Two zones of mineralization have been recognized; the
northeast zone dominated by a porphyry setting is separated by a
major fault from the southwest zone dominated by veins and
stockworks of precious and base metal mineralization. The two zones
appear to be genetically related with the polymetallic
vein/stockwork systems representing mineralization that would be
expected to overlie the porphyry setting.
Northeast Zone
The northeast Espiritu porphyry prospect is a 2.2 x 1.4 km
sub-circular area defined by a concentric pattern of zonation
diagnostic of copper gold porphyry deposits. The different zones
are strong propylite, argillic, sericitic and potassic alteration
hosted in a biotite, feldspar quartz porphyry.
Mineralization and alteration covers a 1.5 km x 1 km zone. In
the biotite zone of alteration, 19 grab samples from the
disseminated and fracture mineralization showed good values of
copper (average 0.24%) and gold (average 0.239 gpt). In the
argillic/sericitic zone of alteration or leach-cap zone, extensive
leaching of the fracture and dissemintated mineralization has taken
place, and the average copper content shows values of 0.034%,
consistent with the general average copper values within the
leach-cap zones that sit on top of known porphyry deposits of the
southwest USA and northwest Mexico. The polymetallic veins show
anomalous values in gold (to a high of 3.60 gpt) and silver (to a
high of 462gpt). All samples are grab samples.
Southwest Zone
The southwestern part of the system is represented by veins,
breccias and stockworks anomalous in gold, silver, copper, lead and
zinc.
At present, the main mineralization in the southwest is defined
by several zones spread out along a 2 km length. These are named
the west, central and east polymetallic zones. Anomalous
mineralization has been recognized in two other separate zones: the
PS-1 zone about 2 km to the northwest and the PS-2 zone about 500
metres to the east.
Two stages of mineralization are noted; one stage marked by
mainly quartz veins low in all metal values and a second stage
marked by veins, breccias and stockworks of polymetallic gold,
silver, copper, lead and zinc mineralization.
Fifty-eight grab samples were collected within the west, central
and eastern parts of the southwest polymetallic zone. The
polymetallic veins averaged 226 gpt silver, 1.58% lead and 1.57%
zinc associated with 0.18 gpt gold and 0.15% copper. From the 35
samples collected from the polymetallic system, 18/35 were greater
than 0.100 gpt gold and 29/35 were greater than 30 gpt silver.
The PS-1 area gave values of 0.84, 0.50 and 0.46 gpt gold and
277 and 217 gpt silver associated with anomalous lead (to 6%) and
zinc(to 1.5%). The PS-2 zone gave silver values of 686, 644 and 487
gpt and anomalous copper, lead and zinc from thirteen samples has
been noted. Anomalous values of molybdenum (to 0-0.129%) were noted
from this area.
QA/QC
All samples were placed and sealed with tape into a plactic rock
sample bag. Each sample was labeled and catalogued and delivered to
ALS Chemex's preparation laboratory in Hermosillo, Sonora Mexico
where pulps are made of each sample which were then sent to the ALS
Chemex laboratory in North Vancouver, B.C. Canada. Each sample was
analyzed with a multi acid digestion ICP AES (Plasma Emission
Spectroscopy). Samples with precious exceeding the upper detection
limit of the ICP AES are analyzed again using fire assay methods
with either atomic absorption, emission spectroscopy or gravimetric
finishes for gold and silver. Base metals exceeding upper limits
are reanalyzed using a four acid ore grade analysis. All samples
referred to herein are grab samples. ALS Chemex is an
internationally recognized independent laboratory operating to ISO
17025 quality assurance standards. The drill contractor is
Globexplore located in Hermosillo, Sonora Mexico.
The foregoing geological disclosure has been reviewed and
verified by Kootenay's CEO, James McDonald, P.Geo (a qualified
person for the purpose of National Instrument 43-101, Standards of
Disclosure for Mineral Projects). Mr. McDonald is a director of the
Company.
The Company would also like to announce it has received approval
from the TSX Venture Exchange to extend the term and reduce the
exercise price of 5,178,301 warrants issued by the Company which
expired on December 4, 2009 (the "Warrants"). The expiration date
of the Warrants has been extended to December 3, 2012, and the
exercise price reduced to $0.10.
The Company has also completed the private placement announced
on October 27, 2009. The private placement consisted of 2,500,000
flow through units at a price of $0.065 per unit. Each unit
consisted of one flow-through common share and one non flow through
common share purchase warrant. Each common share purchase warrant
will entitle the holder to purchase one common share at $0.10 per
share until November 10, 2011, and $0.15 per share until November
10, 2014. Union Securities Ltd. was paid a cash commissions
totaling $2,925. Shares issued are subject to a hold period
expiring on March 12, 2010. Proceeds from the private placement
will be used for exploration on the Company's British Columbia
properties.
About Kootenay Gold
Kootenay is an emerging exploration Company actively developing
mineral projects in the Sierra Madre Region of Mexico and in
British Columbia, Canada. The Company is currently drill testing
four separate projects. Kootenay's top priority remains the ongoing
development of its Promontorio Silver project in Sonora State,
Northwest Mexico, which encompasses the former producing
Promontorio Silver Mine.
About Klondike Silver:
Klondike Silver is a member of the Hughes Exploration Group of
Companies and is led by a team with a stellar track record of
discovery and development in Canada.
Klondike Silver Corp. has assembled a quality portfolio of
silver properties in historic mineral districts in North America,
and is applying advanced exploration technologies to add value to
these core assets. Klondike Silver is reviving the Gowganda and Elk
Lake silver camps in Ontario, and the world-famous Klondike
district of Yukon Territory. The Company owns a 100 TPD fully
operational flotation mill in Sandon, BC, which is currently
processing material from local mines in the historic Slocan Silver
Camp. As well, Klondike Silver entered into a joint venture with
Kootenay Gold Inc. to explore a copper-porphyry property in the
state of Sonoro in northern Mexico.
Visit Klondike Silver's web-site: www.klondikesilver.com to see
Smartstox interviews with Company President, Richard Hughes.
Cautionary Note to US Investors: This news release may contain
information about adjacent properties on which we have no right to
explore or mine. We advise U.S. investors that the SEC's mining
guidelines strictly prohibit information of this type in documents
filed with the SEC. U.S. investors are cautioned that mineral
deposits on adjacent properties are not indicative of mineral
deposits on our properties. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially
from the Company's expectations and projections.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy or contents of this news release.
Contacts: Corporate Inquiries: Klondike Silver Corp. Kevin Hull
or Alan Campbell (604)-685-2222 info@klondikesilver.com
www.klondikesilver.com AGORACOM Investor Relations KS@agoracom.com
www.agoracom.com/ir/KlondikeSilver
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