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ADVANCED STAGE PROJEKTS
The Indian River Placer
The Indian River Placer Project is an advanced-stage placer gold exploration property. It is located 40 km from Dawson City in the heart of the Klondike gold-producing region of the Yukon, Canada. The Company’s goal is to develop a large-scale placer mine. The Indian River Placer Project consists of 214 mineral claims plus 17 leases totaling 37 km2 (14.3 mi2). The Indian River is emerging as one of the active areas of new investment and productive placer mining in the Klondike region. With the exception of a 49% interest in a small group of claims, Klondike Star holds 100% ownership of the project.
During the 2005-2006 winter drilling program, the Company completed 184 holes (double the 2004-2005 drilling) for a cumulative total of 274 holes or 2,426 meters. The winter drilling recovered gold from 90% of the holes, with gold recovered from 100% of the holes drilled in the main target area along the Indian River. In 2005, drilling resulted in gold recovery from 87% of the holes drilled.
During 2006, bulk sampling and testing of conventional processing technology (for throughput and gold recovery) proceeded alongside a business planning study to determine the economic viability of the mineral deposit. Test mining is being supervised by 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. Klondike completed upgrading and extension of the access road, set up a camp, and prepared additional bulk sample test sites for the 2007 test mining program, to commence following spring break-up. With a target of drilling and sampling 150 - 200 holes, the third consecutive winter drilling program commenced November 2006 and concluded in March 2007. Results are currently being compiled and analyzed.
Permit applications to facilitate future mining operations have been submitted and are under review by environmental assessment and regulatory authorities. Based upon conventional mining methods and the nature of the permitting regime for placer mining, it could be feasible to bring a placer mine into production in the short-term. A placer mining operation could generate cash flow for the Company to finance its major exploration and development initiatives
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The Lone Star Project
he Lone Star Project is an advanced-stage gold exploration property that is being studied for potential mine development. The Project consists of 1056 mineral claims and crown grants totaling 152 km2 (58.7 mi2). Lone Star is the largest project of six in the gold-producing Klondike region of Yukon, Canada.
The property is situated in the Tintina Gold Belt which spans Alaska and the Yukon and includes producing mines and major deposits. The Lone Star Project is located 20 km (12.4 mi) from Dawson City and is accessible by summer-maintained, graded gravel roads linking to the Klondike Highway.
First assembled by Canadian mine-finder Richard Hughes, the initial 500 mineral claims in the Klondike were optioned to Klondike Star in December 2003. It is the site of the former producing Lone Star Mine (1912-14) and decades of previous exploration.
Since acquiring the property, the Company has become the majority owner and operator, increased the size of the project from 500 to 1056 mineral claims and crown grants, constructed a 65-person exploration complex, with core processing and milling infrastructure on site, and completed extensive soil, chip and bulk sampling, diamond drilling, IP (induced polarization) geophysical surveys, assay and other analysis.
Exploration results and professional analysis to date indicate that the Lone Star Project represents an extensive mineralized area with a large-tonnage, low-grade gold target augmented by higher grade zones that warrants an expanded exploration effort and intensive evaluation for potential mine feasibility and development. The Company is working towards a mineral resource assessment consistent with industry and international standards and best practices.
Assay results from the 2005 exploration season were released sequentially October 6, 2005 to January 24, 2006. During the May to October, 2006 summer exploration program, the focus was on diamond drilling, bulk sampling, and ground and airborne geophysical surveys along with continuation of the Klondike Research Project with the Canadian University of British Columbia Mineral Deposit Research Unit (UBC MDRU).
Diamond drilling is delineating the extent of the known gold-bearing ore body in the primary zones of interest, including the Lone Star and extensions, the Buckland Shear between Gay Gulch and 27 Pup, and the Nugget Zone above Oro Grande Gulch.
A scoping study is in progress to assess the economic viability of the Lone Star mineral deposit, provide a baseline assessment of environmental and socio-economic considerations, along with a base case conceptual mine design, key factors such as energy and water supply, and capital and operating cost estimates.
Progressive exploration results, including the discovery of a new target, the JF Zone, were announced between December 2006 and February 2007 and a preliminary report on the scoping study was released in March 2007. A summary report on the UBC MDRU geological studies on the Klondike region was also released in March 2007.
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