Message #50 From:
NewsBot Date: November 30, 2006 12:12:00 PM
KDSM News Klondike Star Reports Indian River Test Mining Results
SEATTLE--(BUSINESS WIRE)--Donald W. Flinn, Vice-President, Operations is pleased to announce the
results of Klondike Star Mineral Corporation’s
(OTCBB:KDSM) placer bulk sample test mining program undertaken this
summer/fall at a selected site on its placer gold property on the Indian
River, located about 25 miles (or 40 kilometers) from Dawson City in the
Klondike gold producing region of the Yukon, Canada.
The objective of test mining, simulating actual mine production, is to
strengthen the Company’s knowledge and
assessment of the economic potential of the mineralized areas delineated
through two previous drilling programs (274 holes). The test further
validates mineral resource estimates for business planning, and assesses
the effectiveness of conventional mining methods.
One test site was mined in September. A total of 7,249 cubic yards of
placer gold bearing materials was processed. It is of note that the test
cut was located in an area over previously drilled auger drill-holes.
The grade indicated by auger drilling is only an indication of true
grade, and it must be checked and calibrated by test mining. The test
resulted in the recovery of 45.08 ounces of raw placer gold. The purity
has yet to be determined. On the basis of preliminary analysis, the
Company believes the test mining results, at this one site, correlate
and improve on the general findings of the previous drill-holes on the
site. The results from the test site in terms of gold recovered and the
corroboration of drill-hole analysis contribute in a positive manner to
the business case for an expanded test mining program in 2007.
A conventional sluicing system was used to assess throughput and gold
recovery. This method is commonly used in the Klondike, and other parts
of the world, and is well suited to conditions along the Indian River.
To assure quality control and reporting, the entire process was
supervised by an established Canadian firm specializing in mine
engineering and processing technology supported by an experienced placer
mining team.
An all-weather access road into the area was constructed. Subsequent to
the mining test, additional sites were stripped, cleared and prepared
for continuation of the test mining program immediately following spring
break-up in 2007, bringing the total sites available for test mining to
four.
About the Indian River Placer Project
The Indian River Placer Project is an advanced-stage exploration
property entering early development with test mining, preliminary
business planning for a production decision, and preparation of permit
applications for expanded operations in progress. The Indian River
Placer Project consists of 214 mineral claims plus 17 leases, totaling
37 square kilometers or 14.3 square miles. The Indian River is emerging
as one of the most active areas of new investment and productive placer
mining in the Klondike region. The 2006 winter drilling recovered gold
from 90% of 184 holes. The 2005 drilling program resulted in gold
recovery from 87% of the 90 holes drilled. Klondike Star Mineral
Corporation holds 100% ownership of 185 claims and 17 leases, as well as
49% interest in 29 additional claims acquired in the second quarter
ended August 31, 2006. The goal is to develop a large-scale placer mine.
About Klondike Star
Klondike Star Mineral Corporation is an established exploration and
development company actively working on eight major properties, totaling
463 square kilometers (179 square miles) in the Yukon Canada. The
company is developing extensive surface and subsurface mineralized zones
on a 370 square kilometer (143 square miles) land position underlying
the site of the Klondike gold producing region in the Dawson mining
district. These holdings include, but are not limited to properties
known as the Lone Star Project and the Indian River Placer Project, both
advanced stage exploration. Additionally, Klondike Star holds interests
in 93 square kilometers (36 square miles) of select high potential
targets for gold, base and precious metals in the Watson Lake and
Whitehorse mining districts of the Yukon.
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.
