Klondike Star Releases Drilling Results on Indian River
Placer Gold Project as it moves into Mine Development
SEATTLE, May 10, 2007 (BUSINESS WIRE) – Donald W. Flinn, P.Eng.,
Vice-President, Operations for Klondike Star Mineral Corporation (OTCBB:KDSM)
today released results from a productive winter auger drilling program.
Drilling was mobilized in November 2006 and carried through mid-April
2007.
During the recent drilling program, Klondike Star completed
141 holes totaling 967 meters (3,173 feet). This increases the cumulative
three-year total to 415 holes encompassing 3,393 meters (11,132 feet). Gold was
recovered from 100% of the holes in the main target area (107 holes), an
extension of the ground where gold was recovered from 100% of the holes in
2006. In 2005, drilling resulted in gold recovery from 87% of the holes
drilled.
The drilling met the Company’s exploration
objective by successfully expanding the known mineralized zone identified
through the previous delineation and infill drill programs in 2005 and 2006.
“These results are important as they continue to demonstrate a pattern of
gold distribution with consistent gold values across the entire width of the
property,” said Flinn.
The target zone forms a wedge that is 300
meters (984 feet) at the beginning and broadens to a width of over 1,500 meters
(4,921 feet). To date, the mineralized zone extends over a distance of more than
3 kilometers (1.9 miles) and remains open to expansion to the east and south.
Gold appears to be consistently distributed within this broad area. The
overburden is relatively thin and bedrock is about 7.7 meters (25 feet) deep on
average, which indicates a modest amount of waste stripping.
“Due to
these encouraging results and the economic placer gold potential of the known
mineralized target zone, Klondike Star is accelerating business planning with
the intent of making a mine development decision in the near term,” said
Flinn.
The Company’s goal is to bring a large-scale placer mine
into production. Based on conventional mining methods and the nature of the
permitting regime for placer mining, it would be feasible to bring a placer
mine into production by spring of 2008. Permit applications to facilitate
future mining operations have been submitted and are under review by
environmental assessment and regulatory authorities. In 2006, Klondike Star
started test mining under the supervision of an established Canadian firm
specializing in mine engineering and processing technology. Initial results
from the first stage of test mining were announced in November
2006.
Drilling is conducted using track-mounted hydraulic auger drills
with either 6 or 8-inch diameter augers (6 inches for exploration and deeper
holes). Drill samples are collected in buckets and processed in a small Long
Tom sluice box, which accurately simulates conventional placer mining
equipment. The heavy minerals accumulated in the sluice are hand panned, and
the gold grains picked out. The gold is weighed using a high precision balance.
The holes are drilled on a grid of drill-holes spaced 30 meters (98 feet) apart
along lines spaced 200 meters (656 feet) apart.
About the Indian
River Placer Project
The Indian River Placer Project is a
development-stage placer gold exploration property. It is located 40 kilometers
from Dawson City in the heart of the Klondike gold-producing region of the
Yukon, Canada. The Project consists of 214 mineral claims plus 17 leases
totaling 37 square kilometers (14.3 square miles). With the exception of a 49%
interest in a small group of claims, Klondike Star holds 100% ownership of the
Project subject to a royalty.
For perspective on the Indian River Placer
Project, take the 2007 Live Visual Tour of the Klondike properties on Google
Earth at www.klondikestar.com.
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.