Klondike Star Advances Indian River Gold Project Towards
Mine Decision
SEATTLE, August 30, 2007 (BUSINESS WIRE) – Hans Boge, P.Eng.,
President, Klondike Star Mineral Corporation (OTCBB.KDSM) is pleased to report
substantive progress on regulatory approvals, current extensive drilling and
test mining program, delineation of probable mineral reserves, and business
planning for a mine development decision by the Board of
Directors.
Following regulatory and public assessment under the Yukon
Environmental and Socio-Economic Act, the Yukon government Department of
Energy, Mines and Resources has formally authorized the development and
operation of an Indian River placer mine by Klondike Star. This approval
provides the direction to regulatory agencies for the detailed water and mining
land use permits expected to be issued in the near future.
Following two
successive winter exploration drilling programs, Klondike Star completed a
third winter drilling program in March 2007 and mounted a major auger drilling
initiative after spring break-up in May. This accelerated effort to delineate
mineralized areas and assess probable reserves. Drill lines were completed at
1000 foot intervals with holes 100 feet apart along the drill lines spanning
the complete width of the initial target zone.
As of late July, a
cumulative total of 551 holes 5,051 meters/16,565 feet had been drilled on the
property and gold recovery determined. Between November 2006 and July 2007,
277 holes were completed totaling 1814 meters/5945 feet. Gold was recovered
from close to 100% of the holes continuing the pattern established with
previous drilling results. The drilling program has since shifted to infill
drilling with drill lines at 500 foot intervals to facilitate detailed mine
planning and increase confidence in the assessment of whether there may be
probable mineral reserves.
To further calibrate drilling results, test
mining operations started in 2006 using an industry-standard 5’ trommel.
One test site was completed in 2006 totaling 7249 cubic meters of material with
positive results. As of August, test mining is progressing on two more
representative sites. Results are expected to be available for release in
September.
Hans Boge, P.Eng., Klondike Star President stated, “The
receipt of an authorization to mine from the Government of Yukon, following the
environmental and socio-economic assessment by an independent agency, is a
major step forward. Along with the forthcoming report on probable mineral
reserves, this allows the company to finalize plans for a potential mine on its
Indian River property.”
A comprehensive business plan based on a
10-year minimum mine-life is nearing completion. It will comply with the U.S.
Securities and Exchange Commission requirements for assessment and reporting of
mineral reserves. The plan providing the information necessary for a mine
development decision is expected to be considered by the Board of Directors
within 45 days. Subject to financing, this would allow for production to
commence as early as 2008.
About the Indian River Gold
Project
The Indian River property consists of 223 placer bench
claims and 3 leases totaling about 21.1 km2/8.2 mi2located in a wide, shallow
valley about 40 kilometers from Dawson City, Yukon in the heart of the Klondike
gold-producing region. Klondike Star holds 100% ownership, with exception of a
49% interest in a small group of claims. The property has never been mined
using modern recovery methods.
For more information please contact:
Wayne Cousins, Investor Relations
Toll Free (800) 579-7580
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.