TSX.V: KS www.klondikesilver.com Klondike Silver Mill, Sandon BC

TSX.V: KS
www.klondikesilver.com
Klondike Silver Mill, Sandon BC
REVIVING THE SLOCAN
Since 2000, Klondike Silver Corp. has maintained a dominant presence in the Slocan
mining district of British Columbia, an area rich in silver and base metals that has been
explored since the silver rich deposits were first discovered in the region in 1891. The
Slocan mining district has a rich history, having produced more than 2 million kilograms
of silver plus associated base metals since its discovery.
Klondike Silver continues this legacy today through its many projects in the region. The
Company’s assets include at least 25 past producing mines, a 100 t onne per day
flotation mill in Sandon and 11,209 hectares (27,698 acres) of prospective exploration
lands. Underexplored by modern exploration techniques, the “Silvery Slocan” region of
BC represents prime hunting ground for important new silver rich discoveries.
Located approximately 50 kilometres north of Nelson in southeastern British Columbia,
these historic silver discoveries transformed this scenic wilderness into the silver mining
center of Western Canada at the turn of the century.
Klondike Silver began consolidating ground in the Slocan mining district in 2000 during
an industry downturn when properties could be ac quired through staking or low cost
options. Fifteen years later, Klondike Silver is now the largest land holder in this historic
silver mining district.
GEOLOGY
Mines in the Slocan district exploited shallow to steeply dipping silver-lead-zinc veins
and silver-lead-zinc replacement deposits hosted in limestone of the Slocan Group. The
Main vein or “Main Lode” as the miner’s call it was the most productive in the area and
strikes generally east-west with a v ariable dip of 13 to nearly 70 deg rees. I t is an 8
kilometre long structure that has hosted the biggest producing mines in the area.
OVERVIEW
Along with the 100 tonne per day flotation mill in the historic town of Sandon, Klondike
Silver owns the past producing Silvana and Wonderful mines. Rehabilitation of these
mines has exposed silver-lead-zinc vein systems that will be the focus of future
exploration programs. This land has seen little modern exploration because of the
previous fragmented ownership and the presence of overburden.
WHAT’S NEXT
In addition to underground drilling and exploration programs within the most prospective
of the past producing mines, exploration programs will use advanced geophysical,
geochemical and other modern exploration techniques to explore for extensions of
known near surface veins and new vein-hosted targets obscured by overburden.
Regional and underground exploration is assisted by a number of seasoned geologists
that have decades of experience in this mining camp.
Klondike Silver Corp. – 2016
2
A general map locating the land package near the Villages of New Denver and Silverton
Klondike Silver Corp. – 2016
3
Silvana
The Silvana Mine is located 5 km southwest of Klondike Silver’s 100% owned mill in
Sandon, BC. The Silvana Mine (082FNW050) produced 242,982 kilograms of silver and
more than 25,000 tonnes each of lead and zinc from 510,964 tonnes of mill feed mined
from a 1.5 km section of the Main Lode under Silver Ridge. The principal source of the
Slocan Camp’s historic silver-lead-zinc production comes from the Main Lode structure
which is more than 8 km long, extending from Silverton on Slocan Lake to Sandon in
the east through the Silver Ridge of the Selkirk Mountains. The historic Silvana
production came from less than 1.5 km of the Main Lode. The Company holds
approximately 1.5 km of the ground to the west of this productive zone, to within 0.5 km
of the Mammoth Mine which has been under-explored, in the past.
Underground development and exploration of several levels has continued in the search
of large ore bodies that would allow the mill to work at full capacity. K londike Silver
plans to continue focusing on s everal of the westward drifts to test the western
extension of the Main Lode. F avourable results have been obtained to date.
Exploration at the 4625 Level of the Silvana Mine confirmed the continuation of the Main
Lode structure west, towards the Mammoth and Standard Mines.
Klondike Silver also wants to explore the 4000 level, which can act as an e fficient
haulway, allowing mineralized rock to be transported to the mill. T his underground
exploration could be done in both easterly and westerly directions.
Klondike Silver Corp. – 2016
4
Other Potential Targets
Wonderful
Historic grab values at the Wonderful Mine, located
1.5 km west of our mill in Sandon, reported lead as
high as 79% and silver as high as 5,601 grams per
tonne and while the Company is not representing
these assays as ore grades they do testify to the
potential of this area. (See KS news release Aug. 2,
2006).
Hinckley
Located 5 km from the mill in Sandon, the Hinckley
vein trends northeast underground (025 degrees)
and dips steeply to the east. It is an exposed vertical
relief of approximately 50 metres, of varying widths.
Hewitt Van-Roi
Past producers Hewitt and Van Roi mines together
produced over 146,618 kilograms of silver. The Hewitt
and Van Roi deposits were developed on an easttrending, north dipping lode structure within middle
Triassic metasediments of the Slocan Group, just
north of the middle Jurassic Nelson batholith.
Payne, HalMac and Majestic
Payne Mountain, directly across Carpenter Creek
from Klondike Silver’s mill in Sandon, hosted some of
the biggest silver deposits in the area. The area has
a good road system and has been logged recently.
Klondike Silver holds mineral tenures on most of
Payne Mountain, on which the following past
producing mines occur: Payne, HalMac, Slocan Boy,
St Keverne, Altoona and Argenta. The Payne mine
(082KSW006) produced over 116,386 kilograms of
silver and over 17 million Kilograms of lead, with the
bulk of this activity taking place from 1898 to 1906. A
deep adit (Level 15) was driven in 1912 (4,500 ft) and
a raise to upper workings and l evels 9 and 10
developed by 1916. Klondike Silver wants to utilize this
infrastructure to conduct underground exploration
drilling to prove up m ineral inventories. The Halmac
and Majestic were former high grade silver mines and
are future exploration targets that can be explored by
developed adits and underground drilling to identify the
possible extensions of past ore bodies.
Klondike Silver Corp. – 2016
5
Jackson Basin Area
Includes past producing mines; Jackson, New Jackson, BonTon, Dardenelles, Texas
and Lucky Boy.
Best-Rambler
The Best property is contiguous with the past producing Rambler Mine. Years ago
developers of the Rambler Mine drove a 1,371 metre tunnel underneath the Best
property. This property was mapped but not explored because it was not part of the
Rambler claim group. Today, Klondike Silver owns both properties. Two veins have
been identified. Klondike Silver is looking forward to exploration.
Sandon Creek
The area has excellent infrastructure being within 1.5 kilometres of the Sandon mill.
This would lower transportation costs to the mill. The area has no past-producers, but is
believed to host the Adams Lode which is a parallel mineralized vein system, south of
the Main Lode.
Cody Creek Area
This area includes past producers Noonday, Colonial, Freddy Lee, Chicago No2 and
Vulture.
Silverton Creek Area
This area hosts the past producers Wakefield and F isher Maiden as well as the Iron
Mask and Fairmont showings.
Cliff Claims
This ground includes seven past producing mines. One of them, the Lucky Jim
(082KSW023), produced 18,364 kilograms of silver, 79,798,689 kilograms of zinc and
3,697,184 kilograms of lead. The other mines show less significant production numbers
but all 7 mines are an important component of the Slocan Mining Camp. T his claim
block acts to make a contiguous area between Klondike Silver’s Stinson, Jackson Basin
and Cody Creek claims.
Klondike Silver Corp. – 2016
6
Slocan Silver Project
Sandon BC Canada
Klondike Silver has spent several years acquiring multiple past major producing mines
in this geological belt. To date we have acquired the following properties plus a major
land position in this silver camp.
Past Producing Mines on Klondike Silver Claims
Past Producing
Mines (Minfile)
Tonnage
(Metric
tonnes)
Silver
(Grams
/tonne)
Lead
Zinc
(%)
(%)
Total
Silver
(Ounces)
Silvana (082FNW050)
510,964
476
5.62
5.15
7,812,077
Silversmith (082FNW053)
355,110
637
9.16
3.31
7,269,534
Violamac (082FNW204)
149,502
864
14.55
9.52
4,151,538
Payne (082KSW006)
110,604
1,052
15.71
0.93
3,741,914
Rambler (082KSW018)
189,421
575
5.56
1.40
3,503,143
Van Roi (082FNW064)
284,706
304
2.84
2.67
2,787,160
60,575
1,270
16.71
2.65
2,473,893
112,573
530
1.57
2.41
1,916,970
36,650
682
6.34
2.08
803,545
28,806
453
5.62
4.22
419,793
Lone Batchelor (082FNW205)
1,820
2,631
33.84
5.98
153,946
Hinckley (082FNW013)
2,011
387
7.34
10.12
25,028
18
4,854
58.36
7.23
2,809
1,842,760
592
7.36
Ruth-Hope (082FNW052)
Hewitt (082FNW065)
Richmond –
Eureka (082FNW054)
Wonderful (082FNW043)
Slocan King (082FNW196)
TOTALS
3.81 35,061,350
Source: Online B.C. MINFILE historic records.
Example - Silvana:
http://minfile.gov.bc.ca/report.aspx?f=PDF&r=Production_Detail.rpt&minfilno=082FNW050
Klondike Silver Corp. – 2016
7
Klondike Silver Management Includes:
Richard W. Hughes
Director
Mr. Hughes is a mine finder and developer with an impressive record
that has earned him the mining industry’s highest awards. He
played a major role in the development of the world class Hemlo
Gold Camp of Ontario, which produced over 195,000 kilograms of
gold and earned $6 billion, and the Belmoral, Beaufor Sleeping Giant
and Aurizon Mines in Quebec. Richard was also past president of
Kalahari Resources Inc. (now Integra Gold Corp.) and a founding
director of Alamos Gold Inc.
Len Palmer
Mine manager – Sandon BC
Mr. Palmer has 45 years of mining experience throughout North
America with a m ajority of that coming underground. Mr. Palmer's
expertise allowed him to become the Mine Manager in Sandon BC
over 15 y ears ago. During that time Mr. Palmer has developed an
impressive understanding of the underground structure and the
historical data which has proven to be valuable.
Klondike Silver’s Objectives
•
Klondike Silver could relatively easily re-open or extend many historical adits in
order to reach areas of potential mineralization. These many workings, if reactivated,
would be “Brownfield” projects that could hold mineralization potential. Many of the
past producers were shut down during the great depression of the 1930’s and never
reopened. These historic mines are prime targets for the future. Z inc was also
considered waste at the time but may provide additional revenue sources in the
future.
•
The historic Payne Mine’s main zone is still open and h as never been dr illed at
depth. This applies to most of the adits and shafts at most of the mines within the
Klondike Silver property holdings. In most cases these development headings are
still open for easy access.
•
Perhaps the biggest upside for Klondike Silver is owning a 1.5 kilometer stretch of
under-explored area called the “Silver Mile”, located between the Standard Mine and
Silvana Mine that has never been dr illed. This area is accessible by underground
workings and from surface. This Main Lode trend has historically produced multiple
repetitive deposits some of which were in excess of 150,000 kilograms each.
Klondike Silver Corp. – 2016
8
Slocan Silver Project
BRITISH COLUMBIA
LOCATION: South Eastern British Columbia
MINERALS: Silver, Lead, Zinc
The Slocan silver project is located approximately 50 kilometres north of Nelson B.C.
near Slocan Lake.
Klondike Silver Corp. – 2016
9
OTHER AREAS FOR
EXPLORATION
YUKON
LOCATION: Southern Yukon Territory
MINERALS: Silver, Lead, Zinc
The Stump property is located near Ross
River in southern Yukon. It is wholly
owned by the Company, subject to a net
smelter return royalty. It is a r oad
accessible property hosting silver-lead
veins that are part of a l arge mineral
camp which includes the former Ketza
gold mine, 5 km west. A 2007 exploration
program confirmed the high grade nature
of the vein on t he property and bul k
sampling of the near surface galena
lenses followed. The bulk sample was
approximately 39% lead and 1,500
grams silver per tonne (see KS news
release July 31, 2008).
ONTARIO
LOCATION: Northern Ontario
MINERALS: Silver, Cobalt, Nickel
Klondike Silver has mineral claims in and around the Gowganda and Elk Lake silver
camp areas of north central Ontario. The Gowganda and Elk Lake silver camps were
the largest silver producing areas in Ontario outside of the Cobalt silver camp and the
three camps collectively producing more than 12 million kilograms of silver. Past
discoveries and mining within the silver camps largely occurred in areas where rock was
exposed and prospectors could more easily discover the high grade silver veins.
Klondike Silver can use new, state of the art, technologies to help map out the
geological structures beneath areas covered with glacial till and overburden.
Klondike Silver Corp. – 2016
10
COMPANY HIGHLIGHTS
• 100% owned 100 tonne per day mill in Sandon, BC.
• The mill is just 140 km to the north of the Trail smelter
• A long history of silver production from this mining
camp.
• Klondike Silver is the largest land holder in the Slocan
silver camp.
• Prime exploration targets on the trend of the largest
historic producing mines.
• Multiple years of regional exploration.
• Key ground in good assessment standing with the
province of British Columbia through 2023.
The scientific and t echnical disclosure in this document has been reviewed and
approved by J.W. Morton P.Geo. who is an independent consultant to the Company and
qualified person as defined in NI 43-101.
Cautionary note: This document contains forward looking statements. All resource
numbers are historical in nature, and should not be relied upon. No feasibility study has
been completed and there is no certainty future operations will be economically viable.
By their nature, forward looking statements involve risk and uncertainties because they
relate to events and depend on factors that will or may occur in the future. A ctual
results may vary depending upon exploration activities, industry production, commodity
demand and pricing, currency exchange rates, and, but not limited to, general economic
factors. All readers are encouraged to perform their own due diligence.
Klondike Silver Corp. – 2016
11
SUMMARY
Continued financial and political uncertainty in many parts of the world has reinforced
our longstanding belief that Canada provides a better investment climate for the mining
industry. This favorable investment climate combined with excellent geological potential
reduces risks to shareholders and greatly assists our ability to raise capital to find the
next generation of mines.
Canada needs new discoveries to replace the great discoveries and mines of the past,
including several that involved our management team. Many of these past discoveries
were developed into mines, as shown below, providing strong returns to shareholders
and greatly benefiting Canada’s mining industry.
Klondike Silver provides a very interesting model that can take advantage of potential
future increases in silver values. There are many former producing mines in the Sandon
camp that offer Klondike Silver the opportunity to explore underground using existing
infrastructure along with a close proximity to the Sandon mill.
The goal of Klondike Silver Corp. is to continue this track record of discovery into a new
century using advanced technologies and Canadian geological expertise in mineral
exploration. It is very unusual to find a silver exploration company with facilities that can
provide processing capability that will leverage returns in face of growing optimism in
the international silver markets.
FOR ADDITIONAL INFORMATION PLEASE CONTACT RICHARD HUGHES 778-886-9975
#804 – 750 W EST PENDER STREET
VANCOUVER, BC CANADA V6C 2T7
TOM KENNEDY OR DALE DOBSON
TELEPHONE: 604-682-2928
TOLL FREE: 1-888-400-2928
FAX: 604-685-6905
WWW .KLONDIKESILVER.COM
TSX-Venture: KS
Klondike Silver Corp. – 2016
12