MINERAL TARGET: GOLD
The Spice Project is an intermediate-stage gold exploration project that has moved to a drill-ready stage of exploration. As of November 30, 2006, the Spice Project consists of 51 mineral claims totaling 10.9 km2 (4.2 mi2). The property is located 28 km (17.4 mi) east of Ross River and 8 km (5 mi) south of the North Canol Road in the Watson Lake Mining District of Yukon, Canada. The Spice Project falls within the Tintina Gold Belt that hosts numerous gold deposits and producing mines, notably the Fort Knox, Pogo and (former) Brewery Creek, as well as active exploration projects.
The property has been explored since 2000, when a regional geochemical survey conducted by the Yukon Geological Survey of the Yukon Government, identified strong, coincident gold, silver and epithermal pathfinder elements. Follow-up geochemical sampling identified an open-ended anomalous zone and samples assayed up to 13.9 grams/tonne gold. An IP chargeability high and low resistivity coincides with the highest geochemical values. The target is a low-sulphidation epithermal-style gold deposit hosted by rhyolite, similar to the Grew Creek property being explored 60 km (37.3 mi) to the west.
The property is drill ready and Klondike Star plans to proceed with a diamond drilling program in the spring/summer of 2007.
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.
