Klondike Silver Corp. Receives $1,050,960 from 506 Tonnes of Silver/Lead Concentrate
October 27 2009 - 3:15PM
Marketwired
Klondike Silver Corp. (TSX VENTURE: KS) (the "Company") is pleased
to announce the Company received $1,050,960 from over 500 tonnes of
concentrate shipped to a smelter in the last year. The 506 tonnes
of silver/lead concentrate had an average grade of 67.43% lead and
88 oz/tonne silver. At current metal prices the bulk sample would
have grossed over $1.4M, encouraging management to move forward
with more bulk sampling this coming year.
"We are encouraged by the results from the mill and are moving
forward on a number of fronts to provide mill feed. The western
drift extension in the 4625 level of the Silvana mine is underway
into a previously unexplored area where the Main Lode structure was
recently intersected. Underground drilling is currently testing a
number of targets at the east end of the same level." comments
Company President, Richard Hughes. "We've recently completed a four
hole surface drill program in the Hewitt Van-Roi exploration area
with the final hole intersecting a wide structural zone, on strike
with the Hewitt vein, which is believed to be an extension of the
lode system. The Connaught property and Stump property also saw
summer exploration programs which we expect to see results from
shortly. These programs were designed to further the Company's
understanding of the high-grade vein systems occurring on both
properties as well as prepare them for potential 2010 bulk
samples."
The Company is especially encouraged with the positive
performance and recovery rates shown by the mill throughout the
processing of the bulk sample. With the knowledge gained the
Company feels confident in its decision to continue providing mill
feed from underground exploration in the immediate area as well as
proposed bulk sampling from its high-grade Yukon properties.
Total milling costs of the 506 tonne sample were $217,970.
Mining and transportation costs of the bulk sample, which were paid
in advance in early 2008, totaled $877,500. Overall the Company
experienced a slight loss of $36,490 due to collapsing metal prices
in late 2008/early 2009. As the transportation and mining had been
paid for in advance, the total milling cost was more than offset by
revenue which prompted the Company to go ahead with the milling,
even though the low metal prices meant it would not be able to
recoup all of its transport costs. This is the largest/highest
grade sample has put through the mill since its acquisition.
The Company would also like to announce it has arranged for a
private placement of up to 2,500,000 units for total proceeds of up
to $162,500. The financing will consist of flow through units
priced at $0.065 per unit. Each of the units will consist of one
flow through common share and one non-flow through,
non-transferable share purchase warrant entitling the holder to
purchase one additional common share for one year at a price of
$0.065 per share in the first year, $0.10 per share in the second
year and $0.15 for the remaining three years. Proceeds from the
private placement will be used for general exploration
expenditures.
About Klondike Silver:
Klondike Silver Corp. has assembled a quality portfolio of
silver 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.
Klondike Silver is a member of the Hughes Exploration Group of
Companies and is led by a team with a stellar track record of
discovery and development in Canada.
Visit Klondike Silver's web-site: www.klondikesilver.com to see
Smartstox interviews with Company President, Richard Hughes.
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 or contents of this news release.
Contacts: Klondike Silver Corp. Kevin Hull or Alan Campbell
(604)-685-2222 info@klondikesilver.com AGORACOM Investor Relations
KS@agoracom.com http://www.agoracom.com/ir/KlondikeSilver
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