Vancouver, BC – August 19, 2008 -Klondike Silver Corp. (TSX Venture: KS) is pleased to report, subject to regulatory approval, the option of the San Luis property in Sinaloa State, Mexico. The property lies immediately adjacent to US Gold Corporation’s El Magistral gold mine, where recent drilling success has been reported by Robert McEwen, Chairman and CEO (see US Gold Corp.’s news release dated July 7, 2008).
The San Luis Mining Concession consists of a total of 143.0309 hectares in Mocorito, Sinaloa, Mexico. Consideration for the property consists of $1,200,000 and issuing 2,000,000 shares, over a period of 48 months. There is also a 3% net smelter return payable, and Klondike Silver has the first right of refusal to purchase up to 2% of the NSR.
Klondike Silver Corp.’s chief geologist in Mexico, Donald Cross, P.Eng., is the qualified person in accordance with National Policy 43-101 and reports that a geologic traverse was made across the eastern part of the San Luis block. The country rock consists of propylitized andesite, the same rock as the host at US Gold’s adjacent Samaniego Hill deposit. Abundant float and a few outcrops of quartz veined and/or silicified andesite were found on the San Luis ground. One outcrop contained quartz veining with disseminated chalcopyrite and strong copper staining. Samples were collected for analysis. Klondike Silver will commence an exploration program consisting of geological mapping and geochemical sampling to be followed by drilling of potential extensions of US Gold’s mineralization onto the San Luis claim block.
About Klondike Silver
Klondike Silver Corp. has assembled a quality portfolio of silver and silver-rich poly-metallic properties in historic mineral districts of North America, and is applying advanced exploration technologies to add value to these core assets.
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.
CONTACT INFORMATION
Corporate Inquiries: Kevin Hull or Alan Campbell, (604)-685-2222
Email: info@klondikesilver.com
Or visit Klondike Silver's web-site: www.klondikesilver.com to see Smartstox interviews with our Company President.
AGORACOM Investor Relations
Email: KS@agoracom.com; Website: http://www.agoracom.com/ir/KlondikeS...
