Mineral Exploration

KLONDIKE GOLD PROJECT

J.H.Montgomery, Ph.D., P.Eng.
January, 2004

The world famous Klondike Gold Rush produced a minimum of 12 million ounces of placer gold. This number is considered a minimum because much of the gold recovered was not reported and, of course, placer miners are still actively mining gold more than 100 years after the initial discovery in 1896. The gold nuggets, which were dispersed largely over Bonanza Creek, Eldorado Creek and their tributaries might be considered a phenomenal geochemical anomaly, phenomenal because the gold values are not measured in parts per billion (ppb) as is usual but rather in Troy ounces per cubic yard. Klondike Star claims straddle Bonanza and Eldorado Creeks, the richest creeks in the Klondike.

Since the discovery of placer gold in 1896, entrepreneurial prospectors have sought the source, or "mother lode", for the vast quantities of alluvial and possibly eluvial gold taken from the Klondike.

The body of work done by many operators over the years has resulted in a clearer understanding of the geology of much of the bedrock source of Klondike gold. The target area has been defined by three sub-parallel mineralized shear zones which have been traced over almost 5 kilometers. Gold occurs within shear zones and related quartz veins. Also, these shears may have acted as feeder zones for disseminated gold deposition in favorable strata cut by the shears. Most of the large area traversed by the shear zones remains virtually untouched.

Early Stage Exploration
The first lode discovery made was the Lone Star Mine (Boulder Lode) in 1897, from which 7,700 tonnes of ore (5.07 gpt Au) were mined between 1912 and 1914. Additional work in the form of a 195 m adit and a 30 m Raise was done between 1929 and 1931 but ceased through lack of funds.

In 1946-1947, Yukon Consolidated Gold Corp. resumed exploration on the Lone Star Mine (Boulder Lode) with a program of sampling, trenching and drilling.

During the period 1960-1962, Klondike Lode Gold Corp. explored the same property further with trenching and overburden sampling. They identified anomalous gold around Victoria Gulch and Gay Gulch to the southeast and south respectively. This was the first real attempt at regional exploration beyond the immediate vicinity of Lone Star Mine.

From 1980 to 1985, Dawson Eldorado Gold Exploration Ltd. returned to the Lone Star property. They conducted the first geological mapping and geochemical soil sampling programs. They also conducted limited geophysical surveys.

Middle Stage Exploration
In 1986, Arbor Resources Inc., under the leadership of Richard Hughes, optioned the Lone Star property and proceeded to expand the project greatly to cover most of the area between Eldorado and Bonanza Creeks. He conducted airborne geophysical surveys, geochemical soil sampling, trenching and drilling (4,300 meters of diamond drilling and 9,650 meters of reverse circulation drilling). In 1992, Kennecott Canada Inc. continued this program.

Historical placer mining records have served to outline productive drainage catchment areas. Within this large gold-productive area (17.5 km x 8 km) on the Klondike Star claims, extensive exploration work over the past 97 years (1897-1994) has served to define three northwesterly-trending, gold bearing sub-parallel shear zones: Boulder Shear Zone, Nugget Shear Zone and Buckland Shear Zone.

The Boulder Shear Zone has been traced over 4.8 kilometers strike length and is coincident with a gold geochemical anomaly. This shear is open at both ends. The best (not representative of the whole) samples taken from this zone were 7.67 gpt Au (20m), 4.75 gpt Au (11m), 10.76 gpt Au (5m) and 2.5 gpt Au (15m).

The Buckland Shear Zone lies about three km southeast of the Boulder Shear. This zone is believed to be the probable source of much of the placer gold recovered from Eldorado Creek. It ranges from 3 to 13 meters in width and has been traced, with reasonable confidence, over a strike length of 3.4 km and is open at both ends. This structure also coincides with a significant gold-in-soil anomaly. Most assays from trenches are below 1.5 gpt Au across widths of less than three meters.

The Nugget Zone is a third sub-parallel zone which lies about one km northeast of the Buckland Shear Zone. This zone also carries high grade, discontinuous quartz veins (15 cm widths and up to 9 meter lengths) which have assayed up to 778 gpt Au.

Proposed Final Stage Exploration
The Klondike Star property is now ready for large scale, intensive and detailed exploration. It is obvious that the proximity and close geologic relationship of the sub-parallel shear zones and the distribution of placer gold is more than a coincidence and that there is reasonable hope for a large, significant gold deposit.

The management and geologic team of Klondike Star Mineral Corporation are convinced that the comprehensive exploration programs designed for the project which consist of direct methods (mapping, geochemistry, trenching, drilling and underground bulk sampling) will finally unlock the "secrets" of Klondike gold.