New Klondike delays Katisha option payment to Aug. 31

Feb 26, 2014

NEW KLONDIKE EXTENDS KATISHA LAKE OPTION, ATTENDING PDAC

New Klondike Exploration Ltd. has entered into an amending agreement with the owners of the Katisha Lake claim, Alexander Glatz and Ivar Joseph Riives, to postpone an option payment of $20,000 which was due on Jan. 23, 2014, until Aug. 31, 2014. In consideration for the optionors’ agreement to extend the date for the payment, the company has agreed to issue 100,000 common shares to each of the optionors, subject to receipt of regulatory approval. Under the terms of the option agreement, which was fully described in the company’s press release dated Feb. 4, 2013, the company has the right to acquire a 100-per-cent interest in the Katisha Lake claim. The shares, when issued, will be subject to a four-month statutory hold period.

The Katisha Lake claim, located in the Kawashegamuk Lake area of Northwestern Ontario, consists of nine claim units covering an area of 144 hectares and is contiguous to the western boundary of the company’s Goldstorm project. The claim is host to at least eight known gold prospects, as documented in Ontario Geological Survey data files. Reconnaissance scale sampling in July, 2013, produced encouraging gold assay values previously announced by the company in a press release dated Sept. 25, 2013, including the following.

Ten samples taken from four gold prospects located in the southwestern part of the project area, collectively referred to as the Katisha Lake gold zone, assayed an average of 2.18 grams per tonne Au with individual samples ranging from 0.28 g/t to 8.69 g/t Au. The samples were composite grab samples representing mineralized zones ranging in thickness from 0.3 to 0.8 metre. Gold mineralization at Katisha Lake is hosted by silicified zones and quartz veining developed within sheared, sericitized and pyritized zones ranging from one to 20 metres in width. These zones have been traced by historical exploration programs for lengths ranging from 50 to 300 metres. The zones are hosted within a complex geological setting that includes layered gabbroic sills intruding Archean-aged mafic to felsic volcanic and intrusive rocks. All of these rocks are unconformably overlain by a band of Timiskaming-type sediments immediately to the north of the known gold prospects. The July sampling and geological reconnaissance program helped to confirm recent prospector sampling and observations, which indicate that the major trend of the mineralized zones at Katisha Lake is from north-south to northeast-southwest. This trend is contrary to the east-west trends that were the targets of most historical exploration activity, including a drilling program carried out by Esso Minerals Ltd. in the 1980s.

Grab samples are selective by nature and may not represent average grades for the mineralized zones at Katisha Lake.

Goldstorm project

The Goldstorm project claims cover a large area, in excess of 230 square kilometres, within the southeastern part of the Eagle-Wabigoon-Manitou Lakes greenstone belt. Five regional-scale structures and associated gold mineralization have been identified within or passing through the project boundaries. These include more than 45 kilometres of major fault zones and a 12- to 15-kilometre-long band of Timiskaming-type sedimentary rocks that rest unconformably on mafic volcanic and ultramafic to felsic intrusive rocks. Maps and figures depicting the location and geology of the Goldstorm project have been compiled in a presentation titled Goldstorm project — Northwestern Ontario available on the company’s website.

Qualified person

Seymour M. Sears, BA, BSc and PGeo, a director of the company, has reviewed and approved the technical content of this press release.

Prospectors & Developers Association Convention (PDAC)

The company will be exhibiting at the PDAC on Tuesday, March 4, and Wednesday, March 5, 2014, in booth 2201B and invites shareholders and other investors to visit it for an update.

http://www.newklondike.com/news-newsreleases/2014