Klondike Silver could be about to take off
There’s an old saying when it comes to development, why reinvent the wheel? This can also apply to historical mine camps throughout Canada. Infrastructure and in most cases an inferred resource are already in place, meaning there is no need to start from scratch.
Klondike Silver Corp.‘s (TSXV: KS) royalty-free silver-lead-zinc land package (100 km2) and Sandon Mill are located in the historic Slocan Mining Camp in Southeast British Columbia. The Company’s goal is to revive the historic Sandon British Columbia Mining Camp using modern mining methods.
The historical Slocan Mining Camp
The Slocan Mining Camp was first established in 1891. The region has had 173 producing mines that produced 2.2 billion grams of silver, 263 million kg of lead, and 259 million kg of zinc. Klondike Silver controls 68 past producing mines in the Slocan Mining camp. The District produced more than 24 million ounces of silver since the late 1800s, transforming it into the silver-mining center of Western Canada. The productive and most prolific 9 km vein is referred to as the Main Lode. Klondike Silver is the largest landholder in the Slocan Mining Camp and their land package includes over half of the Main Lode structure, of which 1.5 km is virtually unexplored.
The Silvana Mine
Klondike Silver’s Silvana Mine was the largest of the 68 historical producers in the land package yielding 7,812,077 oz silver, 63,253,498 pounds lead and 57,981,253 pounds zinc, with an average production grade of 13.87 oz/ton silver, 5.62% lead and 5.15% zinc.
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On March 26, 2019, Klondike Silver announced they have completed the second diamond drill hole of a 26-hole program. The program was designed to explore the fault offset of the Main Lode (vein system), at the start of the Company’s unexplored Silver Mile section of the 1.6 km long Main Lode. Both holes intersected the Main Lode with an average true width of approximately 38.5 meters. This is consistent with the average true width of the Silvana portion of the Main Lode. These new intersections are approximately 400 meters west of the old Silvana Mine working. Assay results are pending and have the potential to propel the stock higher if high grades are found.
This news comes on the back of results announced on February 20, 2019, that drill hole number one had intersected the main load structure from 43.45 m (142.54 ft) to the end of the hole at 61.87 m (203 ft), for +18.42 m (+60.46 ft) of intersection. Having hit the main load structure Klondike’s 26 hole program will establish the structure in a way their geological engineer needs to identify it properly.
The first drill hole is already being labeled glory minor, by Tom Kennedy, CEO, and Director of Klondike Silver Corp. He adds: “It is glory for us because we have hit what we needed to hit, to be able to find the next mine.”
The Sandon Mill
One of Klondike Silver’s advantages is their nominal 100 ton (90.7 metric tonnes) milling facility. The Sandon Mill is a standard crushing, grinding flotation system that produces zinc and lead concentrate. The mill is currently in maintenance mode until enough mineralization can be identified in and around the Silvana Mine to make the running of the mill more economical.
Proven management team
With an advisory team that has a proven track record of mineral exploration, discovery and mine development in North America, Klondike Silver brings the promise of the best underexplored zinc-silver-lead camp in Canada.
Klondike Silver sums up their exploration potential by stating: “Four past producing Zinc Silver Lead mines to the West and nine past producing Zinc Silver Lead mines on Klondike Silver’s Land Package, all located on the 9 kilometer Main Lode, provide the evidence that the Silver Mile should host significant mineralization.”
History has shown the Slocan Mining Camp and Klondike Silver’s claims to be very productive. With drill assay results pending and more drilling to follow, the potential is there for Klondike Silver to find a high grade and economic silver-lead-zinc resource. Investors only need to wait and see.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>