North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Klondike Gold Corp. Aug. 8 reported an agreement to acquire 223 square kilometers (55,0000 acres) of mining claims in the Dawson Mining District of Yukon Terrtory from Gimlex Enterprises Ltd., a privately owned Dawson-area exploration and mining business that has been placer mining in the area since 1984.

Upon completion of this transaction, Klondike Gold will have effectively doubled its land position in Yukon's historic Klondike gold region with direct ownership of a total of 2,780 quartz claims that form a continuous 50-kilometer- (30 miles) long property covering a region where 20 million ounces of placer gold has been recovered.

"This acquisition consolidates ownership of the Klondike district into one contiguous district-spanning claim group for the first time," said Klondike Gold President and CEO Peter Tallman.

Klondike Gold believes there is significant potential for multiple discoveries, and this consolidation will allow the greatest opportunity for testing the best-possible targets." In exchange for the property and exploration data accumulated over the past 24 years, Klondike Gold has agreed to pay Gimlex C$500,000 in cash; issue the family-owned company 3 million Klondike Gold shares; and grant Gimlex a 2 percent net smelter returns royalty on the acquired property, of which Klondike Gold may purchase 1 percent for C$1.5 million.

Gimlex President James Christie said, "This opportunity will allow these quartz properties to be advanced to the next stage." Former Gimlex President Tara Christie has been appointed to the Klondike Gold board of directors.

"The opportunity to draw upon their multi-generational experience in the Klondike district will be a strategic asset to help guide the next phases of exploration," Tallman commented on having Christie on the board.

Klondike Gold said the merging and compilation of exploration data is in progress and a comprehensive work program and budget for district-wide exploration is being planned.

The company is currently carrying out drilling on its original claims in the Klondike district.

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Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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