K2 Announces the Discovery of a New Mineralized Zone at Wels, extends its license acreage at Wels and Appoints Jo Price as Vice President of Exploration
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 13, 2017) - K2 Gold Corp. ("K2" or the "Company") (TSX VENTURE:KTO) is pleased to report the discovery of a new zone of gold mineralization on the Wels Gold Property ("Wels" or "the Property") located in west-central Yukon Territory in the Traditional Territory of White River First Nation ("WFRN"). This new zone ("Southwest Spur") is approximately 1.2km southwest of the initial Saddle Zone discovery on Wels, which has been the focus of drilling to date. The Company has also staked an additional 1,200 hectares on the western margin of the Wels Property.
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Highlights of the Southwest Spur discovery
- One sample from Southwest Spur returned 28.2 g/t from an area of highly altered, fractured and silicified mafic rock (Figure 1). An additional 44 samples were collected in follow-up work for which assays are currently pending.
- Rocks collected to date from Southwest Spur appear to be mafic in nature, possibly gabbroic, and represent a completely different lithology to the gold bearing granites of the Saddle Zone. The Southwest Spur rock samples also exhibit multiple alteration and fabric features consistent with faulting.
- The 28.2 g/t Au sample is located immediately adjacent to the site of previous soil sampling that returned 672 ppb Au and 389 ppb Au.
- Within 150m of the 28.2 g/t rock sample and the two next highest rock values of 0.36 g/t and 0.2 g/t Au, thirteen soil samples recorded values of above 26 ppb Au.
- The anomalous soil sample zone at Southwest Spur appears to extend for at least 1.5km by 500m in an east west direction.
2017 Yukon Exploration Summary
Wels - The identification of a new gold zone completes a successful summer season of drilling and exploration at Wels. The Saddle Zone mineralization was extended along strike by drilling and trenching, the results of which are summarized in the Company's news release dated August 10, 2017. The known mineralization now extends over a strike length of 150 metres and remains open in all directions. In addition, a new mineralized zone ("the Southwest Spur") comprises a different lithology and was discovered approximately 1.2km to the southwest of Saddle. In total 1,232 metres of diamond drill core was recovered and 50m of trenches were dug at Saddle and Southwest Spur. Of the 181 soil samples and 207 rock and trench samples that have been taken from throughout Wels in 2017, 69 rock sample assays remain pending. As a result of encouraging soil sampling results on the western margin of the property, in an area where recovery of good samples is challenging, the Company has staked a further 1,200 hectares between the current license at Wels and the White River (Figure 2). The total size of the claims at Wels is now approximately 6,000 hectares.
The recent gold discovery at Southwest Spur indicates that multiple lithologies on the property may be hosting gold. K2 will collate the results and integrate the data with previous campaigns to design a larger and more comprehensive drill programme for 2018.
Flume, Storck, Ladue - A rock sampling and soil programme has been concluded at Flume, Storck, and the recently staked Ladue Properties. The majority of these samples are still in the laboratory and will be reported in a future news release when all results have been received.
Future Work at Wels 2017 - 2018
Upon receiving all the results of the current rock-sampling, a 2018 drill campaign will be designed incorporating information from the newly discovered mineralization at the Southwest Spur Zone. In addition, the Company is considering a property wide airborne VTEM and LIDAR survey programme due to the recognition of highly altered rocks at Southwest Spur. This would enable the Company geologists to detect structure and lithological contrast under the overburden. The new discovery at Southwest Spur has highlighted the necessity to undertake exploration (trenching and prospecting) during the 2018 season in all areas of the Property that exhibit elevated Au soil results including the North Ridge target (Figure 2).
Appointment of VP Exploration
K2 is also pleased to announce the appointment of Jo Price, M.Sc., P.Geo., as Vice President of Exploration. Jo has extensive experience in managing exploration programs in northern latitudes, having most recently worked in Nunavut (North Country Gold) and Alaska (Graphite One). In addition to exploration and management experience, Jo is a project generator and is also well versed in data management, QAQC protocols, land management and collaboration with First Nation and Indigenous Groups. Jo applied this work experience in her recently completed MBA studies in which her thesis was an analysis of the interaction and relationship between First Nations and the mining industry. Her diversified background will be a very welcome addition to the skill set of the K2 management team as the Company ramps up its exploration efforts in the 2018 field season.
Steve Swatton, President and CEO stated "The exploration at Wels has taken an exciting new step upon receiving positive drill results in August and more recent the discovery of ounce grade material 1km from the original Saddle Zone discovery. I am pleased that Jo, who has been associated with the Discovery Group and related companies for over 17 years will be focussing her efforts on K2 and join Al Doherty in increasing our knowledge of the Wels gold discovery. Her experience in managing northern projects and delivering cost effective drilling and exploration programmes, and collaboration with First Nation and Indigenous Groups will be of great benefit to the company."
Location of Wels
The Wels Property is located in west-central Yukon Territory approximately 45 kilometers east of Beaver Creek and 185 kilometers south of Dawson City. The camp is serviced from a 3km long airstrip 24km west of Wels. It is a new gold discovery within the highly prolific 'Tintina Gold Belt' and exhibits characteristics of a reduced 'Intrusion Related Gold System' ("IRGS") similar to the multi-million ounce Fort Knox (Kinross) and Dublin Creek deposits (Victoria Gold).
About K2 Gold Corporation
K2 Gold Corp. is a junior mineral exploration company focused on building a portfolio of gold exploration projects in the Yukon, including the Wels Property located approximately 185 km south of Dawson City, Yukon. In addition to Wels the Company is conducting exploration at the Flume, Storck and Ladue properties in the South Klondike district north of Wels. The Company has assembled an experienced management team and board of directors with a track record of discovery success. The company has adequate funds to complete the anticipated exploration expenditures reported in this news release.
R. Allan Doherty, P.Geo., author of the Technical Report is the Qualified Person, in accordance with NI 43-101 of the Canadian Securities Administrators, and is responsible for the technical content of this press release.
On behalf of the Board of Directors,
Stephen Swatton, President and CEO
This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding the 2017 exploration program at the Wels Gold Property, including results of drilling, and future exploration plans at the Property. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to reach satisfactory agreements with First Nations to facilitate its exploration and development plans for the Wels Property, the Company's inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's public disclosure record which is available on SEDAR (www.sedar.com). Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except as required by securities laws and the policies of the TSX Venture Exchange, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. No securities of the Company have been or will, in the foreseeable future, be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
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K2 Gold Corp.