Drilling is scheduled for September at the JAE claims, which lie at the headwaters of Dominion, Gold Bottom and Hunker creeks, all of which have been significant producers of placer gold, and are still being actively mined. This area of the Dominion project hosts at least seven parallel gold – (silver) vein zones within an area of highly anomalous soil geochemistry that measures about 1.5 kilometers/0.9 miles by 1 kilometer/0.6 mile. Two of these zones, the Mitchell and Sheba have been outlined along hundreds of meters of length by previous exploration efforts since 1900, including numerous trenches and shallow shafts, direct shipping of hand selected silver-rich ore (7.2 tonnes averaging 6090 g/t silver = 178 oz/ton), soil geochemistry and geophysics. Only 3 shallow drill holes, directed at the high grade silver have previously been drilled on the property. The Mitchell – Sheba trend will be the initial focus of the drilling. The Mitchell zone is well known for impressive specimens of visible gold, but has never been drilled. It is expected that further surface work on the other parallel zones will result in additional drill targets.
Six bulk samples have been collected and processed at the JAE property this year. The samples were collected from a variety of targets, including major veins, subsidiary veins, and pyritic alteration zones located near veins. The large size samples (up to 7 tonnes) are effective at accurately indicating the grade of these targets, which contain coarse free gold.
A grid with 15 kilometers/9.3 miles of line has been cut at the JAE property for an IP geophysical survey. This survey will be conducted in the 2007 field season by Aurora Geosciences Ltd. of Whitehorse. The results of the current survey will be integrated with those of an IP survey conducted on widely spaced lines at the site in 1990. IP geophysics is known from the earlier survey to be appropriate for this area, as the mineralized quartz veins have gold-rich pyritic haloes which responded well to this method.
Soil geochemical surveys and other investigations are in progress in select areas of the Dominion project beyond the JAE property.
Klondike Star, in conjunction with the University of British Columbia Mineral Deposit Research Unit has been developing an exploration model for this area that combines an improved understanding of the structural geology with compilation of other data including airborne geophysics, geochronology, petrology and placer gold characteristics and distribution. A geological map at 1:20,000 scale has been produced for this area.
The major mineralized structures at the JAE property have a well-defined, north- northwesterly trend and steep easterly dip, with local en echelon offsets to the veins. This clearly defined structural setting lends itself to a straight-forward exploration approach, with drill targets and hole orientations easily selected. One highlight of the exploration this season has been the rediscovery of substantial mineralized quartz veins that were trenched at some time in the past, but were not recorded in any of the available property assessment reports. A thorough compilation of the existing data has been ongoing for the past two years, as well as conventional and differential GPS surveying of the extensive network of overgrown roads, trails, trenches and vein deposits.
About the Dominion Project
The Dominion Project includes an advanced exploration stage target at the JAE claims, as well as a large area with little previous exploration. Of Klondike Star’s eight projects, the Dominion ranks second in importance after the Lone Star project. Dominion is comprised of 371 mineral claims involving an area of 62.8 square kilometres/24.3 square miles, including the Mitchell zone, Sheba zone, Dome Lode and Lloyd zone. All zones extend over large areas with excellent opportunity for the existence of multiple mineralized zones, along both strike and dip. They belong to a class of structures which have potential for large, medium-to-low grade, gold bearing ore bodies.
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.
Klondike Star Mineral Corporation
Wayne Cousins, Investor Relations, 800-579-7580