Klondike Silver Corp.: Test Mining at the 4755 Level of the Silvana Mine to Provide Mill Feed
June 03 2009 - 1:00PM
Marketwired
Klondike Silver Corp. (TSX VENTURE: KS) (the 'Company') is pleased
to announce that a program of underground rehabilitation and
subsequent test-mining is under way on the 4755 Level of the
Silvana Mine in the historic Sandon Silver Camp of south-central
British Columbia.
The Company is the largest landholder in the Slocan Camp, which
has produced more than 24 million ounces of silver plus by-product
base metals since the late 1800s. The land package includes ten
historic mines and a fully permitted 100-tonne-per-day mill.
At the Silvana Mine, Company personnel have identified several
small but potentially economically mineable areas beyond the limits
of productive former stopes developed in the early 1970s. These
areas lie roughly 100 feet (30 metres) or more in elevation above
the main 4625 Level adit access. Detailed re-examination of
historic records, including assays from diamond drill holes and
chip/channel samples, show the possibility of mineralized areas
amenable to small-scale mining using best-practice grade control to
achieve desired economic returns.
The work program now under way includes replacing a timbered
ore-chute on 4625 Level at the base of the gravity muck pass from
4755 Level, rehabilitating the skipway and manway between the two
levels, re-establishing compressed air, water and electrical
services and bringing mining equipment up to 4755 Level.
Initial test-mining will be by sub-drifting in the Main Lode
structure towards the identified areas of interest. Channel and
muck sampling will be carried out to identify the best sections for
stoping. The muck from the development will be evaluated and
stockpiled as appropriate.
The mill run of economic-grade material from test-mining at
Silvana will follow the completion of processing of millfeed from
the Company's Stump Property (Yukon Territory).
The Main Lode structure - the principal source of the Slocan
Camp's silver-lead-zinc production - is more than 5 miles (8 km)
long, extending from Silverton on Slocan Lake in the west to Sandon
in the east through the 'Silver Ridge' of the Selkirk Mountains, 30
miles (50 km) north of Nelson, BC.
The Silvana production was from a length of less than one mile
(1.5 km) of the Main Lode under Silver Ridge, westerly from the
Silversmith Mine, a former major producer near Sandon. The Company
holds approximately 1.5 km of the ground to the west of this
productive zone, to within a quarter of a mile (0.5 km) of the
Mammoth Mine.
About 1.5 million tons of ore was locally processed or
direct-shipped from these historic operations. Total recovered
production to 1964 from the western segment was 9.5 million ounces
of silver, 45,000 tons of lead and 60,000 tons of zinc. The eastern
segment yielded approximately 9 million ounces of silver, 43,000
tons of lead and 13,000 tons of zinc. The eastern segment was the
first area developed and mined, and as a result less zinc was
recovered from processing, likely because the metal was less sought
after or was difficult to recover using technology available at the
time.
Almost all of this recovered production came from a zone within
the Main Lode lying roughly between 4,000 feet (1,200 m) and 5,500
feet (1,700 m) elevation. The central unexplored portion of this
prospective deep zone passes for 2.5 miles (4 km) beneath the 5,000
(1,500 m) to nearly 8,000 feet (2,400 m) approximate elevations of
steep-sided Silver Ridge. This area received initial underground
exploration westerly from the Silversmith Mine area in the late
1940s by the Kelowna Exploration Company using a program of lateral
drift mining and diamond drilling.
A similar but extensive program was conducted westwards from the
Kelowna work by the "Silmonac Syndicate" in late 1962. The
Syndicate's persistence was rewarded in 1967 with the discovery
from underground diamond drilling of a silver-lead-zinc mineralized
section of the Main Lode (not recognized definitively as such at
the time).
This section was explored, developed and mined by Silmonac's
successors, including Kam-Kotia Mines Limited, Silvana Mines Inc.,
Dickenson Mines Limited and Treminco Resources Ltd. almost
continuously from 1970 to 1993, and now by Klondike Silver.
Production to date is about 8 million ounces of silver and over
30,000 tons each of lead and zinc from some 550,000 tons of mill
feed, representing 30% of the area's silver and 25% of its lead
production. This makes the Silmonac/ Silvana operation the second
largest single producer of silver and lead in the Slocan camp after
the Standard Mine. It should be noted that the silver-to-lead ratio
from Silvana production was higher than production from the
Standard Mine, an enhancement that improves the potential economics
of Silvana's typical mill feed.
The technical information in this news release has been prepared
in accordance with Canadian regulatory requirements set out in
National Instrument 43-101. Mr. Edward Craft, P.Eng., is designated
as the qualified person who reviewed and approved the contents of
this press release.
About Klondike Silver
Klondike Silver Corp. has assembled a quality portfolio of
silver and silver-rich poly-metallic properties in historic mineral
districts in North America, and is applying advanced exploration
technologies to add value to these core assets. Klondike Silver is
reviving the Gowganda and Elk Lake silver camps in Ontario, and the
world-famous Klondike district of Yukon Territory. The Company owns
a 100 TPD fully operational flotation mill in Sandon, BC, which is
currently processing material from one of its Yukon properties and
local mines in the historic Slocan Silver Camp.
The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially
from the Company's expectations and projections.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
Contacts: Corporate Inquiries: Klondike Silver Corp. Kevin Hull
or Alan Campbell (604) 685-2222 (604) 685-3764 (FAX) Email:
info@klondikesilver.com Website: www.klondikesilver.com Or visit
Klondike Silver's web-site: www.klondikesilver.com to see Smartstox
interviews with Company President, Richard Hughes AGORACOM Investor
Relations Email: KS@agoracom.com Website:
http://www.agoracom.com/ir/KlondikeSilver
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