New Klondike introduces the Goldstorm Project in Northwestern Ontario
TORONTO, ONTARIO–(Marketwire – Nov. 15, 2012) – New Klondike Exploration Ltd. (TSX VENTURE:NK) ("New Klondike" or the "Company") is pleased to announce that it has completed the acquisition of a new and highly prospective gold focused exploration project in Northwestern Ontario, located southeast of the City of Dryden. The project was acquired by staking a large contiguous claim group, in an area of active gold exploration. The Company has named the project the 'Goldstorm Project', which is comprised of 79 unpatented mining claims, consisting of 1,106 claim units covering approximately 17,900 hectares (44,000 acres). The Goldstorm Project claims cover a large area within the southeastern part of the Eagle-Wabigoon-Manitou Lakes Greenstone Belt. The claims are centered on a band of Timiskaming-type metasedimentary rocks that rest unconformably on mafic metavolcanic and ultramafic to felsic intrusive rocks. Two major fault structures pass through the claim group. Gold mineralization occurs in association with all of the rock units. The project geology is further described below. Maps and figures depicting the location and geology of the Goldstorm Project have been posted on the Company's website atwww.newklondike.com.
Goldstorm Project – Geology
The Goldstorm Project area shares many similarities to greenstone belts containing world-class gold deposits in other parts of Ontario and Quebec. These similarities include the following: 1) regional, crustal-scale, major fault structures that have enabled the influx of metal-bearing hydrothermal fluids; 2) "Timiskaming-type", clastic metasedimentary rocks that unconformably overlay a diverse array of Keewatin-type mafic to felsic metavolcanic rocks; 3) mafic to ultramafic sills and dykes as well as subvolcanic felsic bodies that lie close to or at the unconformity; 4) pervasive hydrothermal alteration as evidenced by extensive ankerite zones and the presence of sericite, fuchsite and sulphides in association with known gold mineralization; and 5) a diversity of styles of gold bearing zones such as veins, stockwork, breccia and massive sulphides, and associated favourable accessory minerals suggests a long-lived, multi-staged mineralizing system. Many of these features are found in association with the gold deposits of the Timmins – Porcupine, Kirkland Lake – Larder Lake and Red Lake gold camps of Ontario.
The Goldstorm Project area has seen sporadic and limited exploration for base metals in the past, but public records show very little documentation of any sustained programs for gold exploration. More than 200 gold occurrences have been compiled within the Eagle-Wabigoon-Manitou Lakes Greenstone Belt. In the immediate area of the Goldstorm Project, there have been 8 historic gold producers identified from information available in the public domain, which collectively produced approximately 18,000 ounces of gold. Most of these small operations were active between 1899 and 1909 and all were from narrow, high-grade quartz veins.
The Goldstorm Project covers a 15 km long section of the Timiskaming-type sediments. These sediments unconformably overlie felsic to mafic volcanics containing known gold occurrences. The northern margin of the sedimentary rocks are highly deformed and lie along a major east-west trending fault referred to as the Mosher Bay – Washeibemaga Lake Fault. This fault joins with the northwest trending Long Lake fault zone that traverses the eastern side of the Goldstorm Project area. Both faults and the Timiskaming-type sedimentary rocks exhibit intense carbonate alteration and have numerous associated gold occurrences. Both structures are deep-seated and regional in scale and have potential to host significant gold mineralization. Several volcanic centers have been identified within the property boundaries. These structures have excellent potential for VMS-type base-metal/gold mineralization.
Goldstorm Project – Location and Access
The Goldstorm Project is centred in the Kawashegamuk Lake area and extends to the west into the Boyer Lake area and to the east into the Revel Lake area, all within the Kenora Mining Division, Ontario. The northern boundary of the property is approximately 30 km southeast of the City of Dryden. The property is comprised of 79 contiguous unpatented mining claims, consisting of 1,106 claim units, forming a roughly rectangular shape. At its greatest extent, the property is approximately 24 km from east to west and approximately 10 km north to south and covers a total area of approximately 17,900 hectares.
The Project is accessible by means of local forestry access roads that depart southwardly from Highway 17 east of Dryden.
Regional/Local Exploration Activity
The area bounded by the cities of Dryden, Kenora, Rainy River and Atikokan in Northwestern Ontario has seen increasing levels of gold exploration activity in recent years and is now recognized by the mining community as an emerging gold camp. Several projects in this region now host defined resources, two of which have categorized gold resources of greater than 5 million ounces based on information available in the public domain. The location of some of these projects is shown on figures posted on the Company's website.
A National Instrument 43-101-Standards of Disclosure for Mineral Projects compliant technical report on the Goldstorm Project is nearing completion and will be made available once it has been received by the Company.
The concept for the Goldstorm Project was introduced to the Company by Mr. David Powers, B.Sc. (Honours) Geology, P.Geo. In consideration for introducing the Goldstorm Project to New Klondike, the Company has granted, subject to regulatory approval, a one-half of one percent (0.5%) net smelter royalty (the "NSR") on the Goldstorm Project claims to Dave Powers Geological Services, a consulting firm owned by Mr. Powers. New Klondike has retained the right to purchase one-half (0.25%) of the NSR, at any time, for $250,000, payable in cash or shares at the sole election of New Klondike and has also retained a first right of refusal in the event of a future sale of the NSR to a third party.
Mr. Powers has operated his own independent geological consulting practice since 2006; he has more than 37 years of experience in mineral exploration and development. Prior to that he held various positions during his 12 years with Placer Dome Inc., starting as an Exploration Geologist at their Musselwhite Mine prior to a positive feasibility study and production decision, and later as Senior Geologist in Canada managing exploration off-mine sites until the company was sold in 2006. He spent the first 17 years of his career with Noranda where he held various roles from Project Geologist to Chief Geologist at their Eagle River project. It is anticipated that Mr. Powers will provide consulting services for the Goldstorm Project in the future.
Mr. Seymour M. Sears, B.A., B.Sc., and P.Geo., a director of the Company, has reviewed and approved the technical content of this press release.
About New Klondike
New Klondike presently owns the Goldstorm Project (gold/base metals) in the Dryden area, a 30% working interest in the Santa Maria property (gold/base metals) also in the Dryden area, and the past producing Nickel Offsets property (nickel/copper) in the Sudbury area.
Management is focused on advancing New Klondike's future exploration strategy as a Canadian precious metal explorer. For further information about New Klondike please visit our website www.newklondike.com or contact Michael Coulter, President at 416-368-3332 or by email: [email protected].
This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, statements relating to the Company's expected exploration plans and strategies, are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure of the Company to execute its proposed exploration plans and strategies as indicated herein and general business and economic uncertainties.
Any forward-looking statement speaks only as at the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.