Klondike Silver Corp. (“Klondike”) (TSX-V: KS) is pleased to announce, subject to regulatory approval, the acquisition of two precious metal/base metal properties (Alaska North and Alaska South) in the state of Sonora, some 300 kilometres southeast of Hermosillo, the state capital in Northwest Mexico. Consideration for each property consists of $420,000 and issuing 300,000 shares, both over a period of 48 months. There is also a 3% net smelter return payable, and up to 2% of this may be purchased in increments of 0.5% for $500,000 per increment).
The Alaska North & Alaska South Mining Concessions consist of a total of 15,209.18 hectares and straddle the Sierra Alamos range of hills for some 22 km in a N-S direction approximately 9 km west of the famous silver mining village of Alamos. The two properties are served by a newly paved road from the city of Navajoa, a station on the main railroad and on the N.S. toll road to Mexico City or north to Tucson Arizona. Navajoa is located some 50 kilometres west of the old Alamos mining camp.
The Alamos Mining camp has had a picturesque history as the former “Silver Capital of the World”, purportedly producing hundreds of millions of dollars of silver in the 1800s. The entire mining camp was shut down around 1909 when the price of silver went down to 48 cents per ounce.
Alaska North
This property covers the extensions of some 30 mineralized zones and several famous old mines including: Minas Nuevas, Quinterra, Promotorios, Caterra, Santa Domingo and the San Josee Group of Mines.
The area contains several types of mineralized zones which are noted below
1. Disseminated deposits in quartz veins and wall rock.
2. Replacement types in limestone and limestone breccias.
3. Brecciated veins.
4. Lenticular bodies of sulphides and their oxides.
5. High temperature irregular deposits in recemented zones containing native silver and copper.
6. Post – mineralization oxidation and leaching which formed secondary deposits.
From the available historical records the ore bodies mined to date averaged, 20.0 opt. silver, 0.02 opt. gold, 0.50% copper, 1.0 % lead and 1.0% Zinc.
Alaska South
This property adjoins Alaska North along its South boundary (Latitude 27°) in the southern part of the mining concession. The ground covers the southern extension of the Alamos Silver Camp. The property encompasses a number of base and precious metal mineralized zones.
Work on the area peaked between 1919 and 1936 when a number of shafts and adits were completed on the property along with a milling facility. Although the majority of work was completed on high grade zones, old reports indicate the possibility of a large tonnage low grade gold, copper ore body.
These large low grade zones along with the high grade gold and silver zones will be the subject of the current exploration program. Research of the historical data is currently in process along with an alteration survey based on state-of-the-art satellite imagery.
Field work is scheduled to start within the next 10 days. It is anticipated a drill program could follow by early 2009.
Don Cross, P.Eng., a Qualified Person for the purposes of NI 43-101, has reviewed and approved the contents of this news release.
About Klondike Silver Corp.
Klondike Silver Corp. is a young and dynamic silver exploration company focusing on advanced exploration and small high grade silver production in British Columbia, Yukon, Ontario and Mexico. Klondike Silver’s wholly owned 100 tons per day mill at Sandon, BC is able to process ore from local and Yukon properties for exploration purposes. Klondike Silver is using modern geophysical, geochemical and drilling technology to explore historical silver camps and discover new mineralization. A large exploration program is underway in 2008 in the Gowganda and Cobalt silver camps of Ontario.
For Further Information Contact: Alan Campbell, The Hughes Exploration Group
(604) 685-2222
Or visit the Company’s website: www.klondikesilver.com to see the Smartstox Report in which Stanlie Hunt interviews Klondike Silver Corp. President Richard Hughes.
This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the corporation’s control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.
