MINERAL TARGET: GOLD
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.
For additional information on project-specific mineral rights and exploration activity, see press releases below and refer to the Management’s Discussion and Analysis contained in quarterly SEC filings. Go to Reports and SEC filings under Investor Relations, or, go to www.sec.gov under “filings and Forms (EDGAR),” click on “Search for Company Filings,” then on “Company & Other Filers.” Enter “KDSM” in the CIK box and locate 10-QSB or 10-KSB filings.
