Klondike Silver buys a piece of Alaska in Mexico

2008-04-23 18:20 ET - News Release

Mr. Richard Hughes reports

KLONDIKE SILVER ACQUIRES LARGE MEXICAN MINERAL CONCESSION

Klondike Silver Corp., subject to regulatory approval, is acquiring two precious metal/base metal properties (Alaska North and Alaska South) in the state of Sonora, roughly 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-per-cent net smelter return royalty payable, and up to 2 per cent of this may be purchased in increments of 0.5 per cent for $500,000 per increment.

The Alaska North and Alaska South mining concessions consist of a total of 15,209.18 hectares and straddle the Sierra Alamos range of hills for roughly 22 kilometres in a north-south direction approximately nine kilometres 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 north-south toll road to Mexico City or north to Tucson, Ariz. Navajoa is located roughly 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 roughly 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, including:

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. Postmineralization oxidation and leaching which formed secondary deposits; from the available historical records, the orebodies mined to date averaged 20.0 ounces per ton silver, 0.02 ounce per ton gold, 0.50 per cent copper, 1.0 per cent lead and 1.0 per cent zinc.

Alaska South

This property adjoins Alaska North along its southern boundary (27-degree latitude) 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 orebody.

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.

Fieldwork is scheduled to start within the next 10 days. It is anticipated a drill program could follow by early 2009.

Don Cross, PEng, a qualified person for the purposes of National Instrument 43-101, has reviewed and approved the contents of this news release.

We seek Safe Harbor.