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Klondike Gold's Application Accepted on Three New Portuguese Exploration Licences

Feb 14 2013 12:00AM

Marketwire

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/14/13 -- Klondike Gold Corp. (the "Company") (TSX VENTURE: KG) is pleased to announce that its applications for 3 exploration licenses in Portugal have been accepted by the Portuguese Department of Energy & Geology. Klondike Gold Corp.'s license applications cover the Balazar License, the Castelo de Paiva License and the Ponto de Barca License. The Balazar and the Castelo de Paiva licenses are located in Valongo mineral belt and compliment the previously announced Lagares License application for the 80 km2 Castromil and Serrra de Quinta Property. Both new license areas host historic gold mining activity dating back to Roman times and artisan and industrial mining activity during the later part of the twentieth century. Antimony, tungsten, silver, lead, tin and gold occurrences are confirmed throughout the Valongo mineral belt.

The Balazar License: The 191 Km2 Balazar property hosts the historic open pit mine of Lagoa Negra and a multitude of artisan antimony extraction sites. Gold in this region is mainly associated with antimony and despite the substantial presence of antimony and historic Roman activity, no known large scale exploration activity has been recorded in the region in recent times and the area remains underexplored.

The Castelo de Paiva License: The 109 Km2 Castelo de Paiva License contains at least ten historic Roman mine sites and the now closed Terramonte Mine, which was up to the 1960's one of the largest silver lead zinc mines in Europe. The Castelo de Paiva License is contiguous to the southern limits of the Castromil/Quinta Serra license and brings the total exploration area of Castromil and Castelo de Paiva to 189 Km2.

The Balazar and Castelo de Paiva license applications are for a multitude of minerals and metals chiefly: gold, antimony, tungsten and silver.

The Ponto de Barca License: The third License application is for the 48 km2. Ponto de Barca License which is located in northern Portugal. This area is also known for its historic Roman mining activity, Exploration work carried out between 1945 and 1948 confirm areas where important gold values can be found in hard rock. The license boundaries were selected to include known gold occurrences like Coto da Cruz, Muia, Eiros, Corugeira, Froufe, and Sobredo. The local gold mineralizations appear to be hosted in shear zones which control the Lima River valley. Gold mineralization has also been found to be associated with the intrusion of pegmatites. The primary focus of the Ponto de Barca license is gold and silver.

The contractual conditions for the Lagares-Castromil and the Balazar Licenses are in place and the Director of Geology and Energy has set Feb. 22, 2013 as the activation date of the exploration licenses. Castelo the Paiva and Ponto de Barca projects are now in an exclusive option stage and advancing towards activation.

Political Risk Factor:

In recent years, there has been a rapid growth in demand for metals of strategic economic importance. The political risks associated with the geographical concentration of their supply has led to concern worldwide, but especially in the EU where the European Commission has identified a list of 14 economically important raw materials which are subject to a higher risk of supply interruption. Rare Earth Elements, antimony, and tungsten are at the top of the list of 41 raw materials designated as critical.

The British Geological Survey (BGS) in its news release from September 19, 2012 posts the RISK LIST 2012 and states:

"'Critical' metals such as rare earths, antimony, and tungsten where production and resources are concentrated in a few countries and so are at greater risk of supply disruption. The Risk List 2012 will help to focus future exploration activity as well as research on greener production technologies and more cost effective recycling."

Quote from the publication by the European Commission: The European enterprise and industry / raw materials, defining critical raw materials.

"The Commission will also promote research projects that focus on extraction and processing of raw materials in its seven framework program. European technology platform on sustainable mineral resources focuses on new exploration and extraction technologies. Furthermore cohesion policy funding in particular under the European regional development fund is available to support a range of research innovation and business measures for raw material exploitation."

Klondike Gold Corp has a capable team of consulting Geologists in Portugal where it operates through its wholly owned subsidiary, Klondike Gold Corp. Portugal.

About Klondike Gold Corp.

Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia and Dawson City, Yukon. The Company is focused on the development of its Yukon properties. In addition the Company holds a large portfolio of gold and base metal properties in southeastern British Columbia.

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.



Contacts:
Inquiries:
Klondike Gold Corp.
Erich Rauguth, President & CEO
604-685-2222
604-685-3764 (FAX)
info@klondikegoldcorp.com
www.klondikegoldcorp.com





Source: Marketwire


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