New Klondike Introduces the Goldstorm Project in Northwestern Ontario
TORONTO, ONTARIO, Nov 15, 2012 (Menafn - MARKETWIRE via COMTEX) --New Klondike Exploration Ltd. ("New Klondike" orthe "Company") is pleased to announce that it has completed theacquisition of a new and highly prospective gold focused explorationproject in Northwestern Ontario, located southeast of the City ofDryden. The project was acquired by staking a large contiguous claimgroup, in an area of active gold exploration. The Company has namedthe project the 'Goldstorm Project', which is comprised of 79unpatented mining claims, consisting of 1,106 claim units coveringapproximately 17,900 hectares (44,000 acres). The Goldstorm Projectclaims cover a large area within the southeastern part of theEagle-Wabigoon-Manitou Lakes Greenstone Belt. The claims are centeredon a band of Timiskaming-type metasedimentary rocks that restunconformably on mafic metavolcanic and ultramafic to felsicintrusive rocks. Two major fault structures pass through the claimgroup. Gold mineralization occurs in association with all of the rockunits. The project geology is further described below. Maps andfigures depicting the location and geology of the Goldstorm Projecthave been posted on the Company's website at www.newklondike.com.
Goldstorm Project - Geology
The Goldstorm Project area shares many similarities to greenstonebelts containing world-class gold deposits in other parts of Ontarioand Quebec. These similarities include the following: 1) regional,crustal-scale, major fault structures that have enabled the influx ofmetal-bearing hydrothermal fluids; 2) "Timiskaming-type", clasticmetasedimentary rocks that unconformably overlay a diverse array ofKeewatin-type mafic to felsic metavolcanic rocks; 3) mafic toultramafic sills and dykes as well as subvolcanic felsic bodies thatlie close to or at the unconformity; 4) pervasive hydrothermalalteration as evidenced by extensive ankerite zones and the presenceof sericite, fuchsite and sulphides in association with known goldmineralization; and 5) a diversity of styles of gold bearing zonessuch as veins, stockwork, breccia and massive sulphides, andassociated favourable accessory minerals suggests a long-lived,multi-staged mineralizing system. Many of these features are found inassociation 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 explorationfor base metals in the past, but public records show very littledocumentation of any sustained programs for gold exploration. Morethan 200 gold occurrences have been compiled within theEagle-Wabigoon-Manitou Lakes Greenstone Belt. In the immediate areaof the Goldstorm Project, there have been 8 historic gold producersidentified from information available in the public domain, whichcollectively produced approximately 18,000 ounces of gold. Most ofthese small operations were active between 1899 and 1909 and all werefrom narrow, high-grade quartz veins.
The Goldstorm Project covers a 15 km long section of theTimiskaming-type sediments. These sediments unconformably overliefelsic to mafic volcanics containing known gold occurrences. Thenorthern margin of the sedimentary rocks are highly deformed and liealong a major east-west trending fault referred to as the Mosher Bay- Washeibemaga Lake Fault. This fault joins with the northwesttrending Long Lake fault zone that traverses the eastern side of theGoldstorm Project area. Both faults and the Timiskaming-typesedimentary rocks exhibit intense carbonate alteration and havenumerous associated gold occurrences. Both structures are deep-seatedand regional in scale and have potential to host significant goldmineralization. Several volcanic centers have been identified withinthe property boundaries. These structures have excellent potentialfor VMS-type base-metal/gold mineralization.
Goldstorm Project - Location and Access
The Goldstorm Project is centred in the Kawashegamuk Lake area andextends to the west into the Boyer Lake area and to the east into theRevel Lake area, all within the Kenora Mining Division, Ontario. Thenorthern boundary of the property is approximately 30 km southeast ofthe City of Dryden. The property is comprised of 79 contiguousunpatented mining claims, consisting of 1,106 claim units, forming aroughly rectangular shape. At its greatest extent, the property isapproximately 24 km from east to west and approximately 10 km northto south and covers a total area of approximately 17,900 hectares.
The Project is accessible by means of local forestry access roadsthat depart southwardly from Highway 17 east of Dryden.
Regional/Local Exploration Activity
The area bounded by the cities of Dryden, Kenora, Rainy River andAtikokan in Northwestern Ontario has seen increasing levels of goldexploration activity in recent years and is now recognized by themining community as an emerging gold camp. Several projects in thisregion now host defined resources, two of which have categorized goldresources of greater than 5 million ounces based on informationavailable in the public domain. The location of some of theseprojects is shown on figures posted on the Company's website.
Technical Report
A National Instrument 43-101-Standards of Disclosure for MineralProjects compliant technical report on the Goldstorm Project isnearing completion and will be made available once it has beenreceived by the Company.
Royalty
The concept for the Goldstorm Project was introduced to the Companyby Mr. David Powers, B.Sc. (Honours) Geology, P.Geo. In considerationfor introducing the Goldstorm Project to New Klondike, the Companyhas granted, subject to regulatory approval, a one-half of onepercent (0.5%) net smelter royalty (the "NSR") on the GoldstormProject claims to Dave Powers Geological Services, a consulting firmowned by Mr. Powers. New Klondike has retained the right to purchaseone-half (0.25%) of the NSR, at any time, for 250,000, payable incash or shares at the sole election of New Klondike and has alsoretained a first right of refusal in the event of a future sale ofthe NSR to a third party.
Mr. Powers has operated his own independent geological consultingpractice since 2006; he has more than 37 years of experience inmineral exploration and development. Prior to that he held variouspositions during his 12 years with Placer Dome Inc., starting as anExploration Geologist at their Musselwhite Mine prior to a positivefeasibility study and production decision, and later as SeniorGeologist in Canada managing exploration off-mine sites until thecompany was sold in 2006. He spent the first 17 years of his careerwith Noranda where he held various roles from Project Geologist toChief Geologist at their Eagle River project. It is anticipated thatMr. Powers will provide consulting services for the Goldstorm Projectin the future.
Qualified Person
Mr. Seymour M. Sears, B.A., B.Sc., and P.Geo., a director of theCompany, has reviewed and approved the technical content of thispress 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 Mariaproperty (gold/base metals) also in the Dryden area, and the pastproducing Nickel Offsets property (nickel/copper) in the Sudburyarea.
Management is focused on advancing New Klondike's future explorationstrategy as a Canadian precious metal explorer. For furtherinformation about New Klondike please visit our websitewww.newklondike.com or contact Michael Coulter, President at416-368-3332 or by email: info@newklondike.com.
Forward-Looking Information
This news release contains certain "forward-looking information". Allstatements, other than statements of historical fact, that addressactivities, events or developments that the Company believes, expectsor anticipates will or may occur in the future including, withoutlimitation, statements relating to the Company's expected explorationplans and strategies, are forward-looking statements. Theseforward-looking statements reflect the current expectations orbeliefs of the Company based on information currently available tothe Company. Forward-looking statements are subject to a number ofsignificant risks and uncertainties and other factors that may causethe actual results of the Company to differ materially from thosediscussed in the forward-looking statements, and even if such actualresults are realized or substantially realized, there can be noassurance that they will have the expected consequences to, oreffects on the Company. Factors that could cause actual results orevents to differ materially from current expectations include, butare not limited to, the failure of the Company to execute itsproposed exploration plans and strategies as indicated herein andgeneral business and economic uncertainties.
Any forward-looking statement speaks only as at the date on which itis made and, except as may be required by applicable securities laws,the Company disclaims any intent or obligation to update anyforward-looking statement, whether as a result of new information,future events or results or otherwise. Although the Company believesthat the assumptions inherent in the forward-looking statements arereasonable, forward-looking statements are not guarantees of futureperformance and accordingly undue reliance should not be put on suchstatements due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this pressrelease.
Contacts:
New Klondike Exploration Ltd.
Michael Coulter
President
416-368-3332
info@newklondike.com
www.newklondike.com
SOURCE: New Klondike Exploration Ltd.
mailto:info@newklondike.com
http://www.newklondike.com
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