VANCOUVER, BC--(June 24, 2008) - Klondike Silver Corp. (“Klondike”) (TSX-V: KS) is pleased to report that a 2500 ton mini bulk sampling is underway on its wholly owned Stump property located in the Yukon. As reported on March 12, 2008, the average ore grade of an 80 ton bulk sample taken from the Stump in 2007 assayed 40% lead and 40 oz silver per ton. The 2500 ton bulk sample will be processed at Klondike Silver's Sandon mill located near New Denver, BC and then shipped to smelter.
Exploration and mining continues at the Silvana mine, level 4625, located at Sandon, BC. The Silvana produced 750,000 tons of ore at approximately 14 oz silver and 14% combined lead zinc before it was closed in 1993 due to low metal prices.
The Hinckley mine has been rehabilitated and is now ready for production. The Hinckley stopped in ore in 1992 much like the Silvana, due to low metal prices. Ore from the Hinckley will also be processed at the Sandon mill. Further underground exploration to increase the Hinckley's reserves is expected to begin shortly.
The Wonderful mine rehabilitation on level 4 has been completed, along with the portals at levels 2 and 3. An underground diamond drill station in level 4, on a heading down dip from the McLanders zone has been completed with diamond core drilling starting soon. Our news release of August 2, 2006 reported grab sample assays of the lead/zinc/silver-rich McLanders, part of the Wonderful vein lode system, with assay values as follows:
Sample Pb % Zn % Ag oz/t Type
1 79.93 0.8 197.6 rock outcrop
2 75.37 1.5 117.2 rock outcrop
3 44.72 2.28 63.1 rock outcrop
4 67.51 2.21 161.4 rock outcrop
5 71.1 3.11 113.2 rock outcrop
Klondike Silver is pleased to report that a recent drill hole up slope from the Wonderful Mine intersected 3.4 metres (11.2 ft) assaying 13.6% zinc and 1 oz Ag per ton. A raise from level four (lowest level) to level three (72 metres) is approximately 60% complete and intersects 1 metre true width of high grade zinc which may be the down dip extension of the McLanders vein.
The Sandon mill, with a capacity of 100 tons per day, is completely operational and is processing ore from the Silvana mine and the raise being driven in the Wonderful. The processing of ore from the Hinckley mine and the Stump property is expected to begin this summer. Negotiations are presently underway for the delivery of existing and future inventories of concentrate to smelter. The Sandon Mill lead concentrate averages 75% lead, carrying 135 ozs silver per ton, while the zinc concentrate averages 55% zinc carrying 50 ozs silver per ton.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. The company continues to evaluate a number of historic producing mines in the Slocan Camp for the purpose of identifying new zones and increasing reserves. Klondike Silver now owns over 75% of the land in the Slocan Camp where at one time over 100 mines were in operation. The present surface exploration program conducted by the Klondike Silver exploration office, located at Rosebery, BC, near New Denver, is well underway.
The management is encouraged and pleased by the progress made on our Yukon properties, the Sandon Mill in the Slocan, in underground mining and the exploration taking place to discover new zones.
About Klondike Silver
Klondike Silver Corp. has assembled a quality portfolio of silver and silver-rich polymetallic properties in historic mineral districts of North America, and is applying advanced exploration technologies to add value to these core assets.
The Company holds more than 10,000 hectares of claims and crown grants in the "Silvery Slocan" district, including numerous past-producing mines and a fully permitted and operating 100 tons per day mill near the historic mining town of Sandon, B.C. Klondike Silver is reviving the historic Gowganda and Elk Lake silver camps in Ontario, and is exploring silver-rich polymetallic targets in the world-famous Klondike district of Yukon Territory. The Company has also recently optioned eight high-potential mineral concessions in under-explored historic mineral districts of Mexico.
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.
TEL: (604)-685-2222 Kevin Hull or Alan Campbell
EMAIL: info@klondikesilver.com
