Klondike Leases Placer Gold
Klondike Gold Corporation report that the Company has entered into a lease agreement with Dulac Mining Ltd whereby Klondike Gold assigns to Dulac Mining the rights and permits to placer mine on the Upper Eldorado Creek property, contained wholly within the Company’s 576 square kilometer Klondike District Property, Yukon Territory.
The Upper Eldorado Creek Placer property is comprised of 114 contiguous placer claims totaling 6.8 square kilometers in area covering the Upper Eldorado Creek and Chief Gulch drainages. Under the terms of the lease agreement, Klondike Gold will receive from Dulac Mining a direct 10% gold production royalty from mining on the Placer Property payable in raw gold. The lease agreement is for a term of 3 years, expiring July 1, 2022 and is renewable thereafter subject to approval by both parties.
Dulac Mining has commenced mining work on the Placer Property lease. After establishing drainage and zero-discharge water circulation, the mining plant was installed and placer operations have commenced. During the just completed plant commissioning phase a total of 38.07 troy ounces of gold has been recovered, including 13.44 troy ounces of coarse nugget gold.
The gold recovered includes dendritic and wire gold as well as coarser nuggets containing fragile thin gold seams in quartz indicating a locally derived bedrock source. Upper Eldorado Creek crosses visually similar gold-bearing quartz veins associated with the Nugget Fault 1,100 meters upstream of the current placer mining operation.
Peter Tallman, President and CEO of Klondike Gold commented, “We are very pleased to be working with Dulac Mining on this project and are impressed with the professionalism exhibited in building and commissioning this new placer operation.
We are also excited by the character of the gold returned from initial mining and the resemblance to gold found in outcrop and drill core from the nearby Nugget Fault gold trend. Dulac Mining’s operation provides Klondike Gold the opportunity to receive detailed exploration information at no cost in an important target area. In addition, the Company once again is receiving revenues from its placer properties.”
