(TheNewswire)
May 27, 2021 – TheNewswire - Vancouver, Canada – Klondike Silver Corp.(“Klondike Silver” or the “Company” ) (TSXV:KS) (OTC:KLSVF) is pleased to provide anup-date on the significant progress being made on remedial measures toits Tailings Management Facility (“TMF”) in Sandon, BritishColumbia. As noted in Klondike’s press release of February 26,2021, the Company received notification from the Chief GoldCommissioner for British Columbia that its Free Miner Certificate(“FMC”) had been cancelled. The FMC is required in order for theCompany to continue with underground exploration and development ofits Silvana underground mine property. The cancellation of the FMCresulted from a culmination of a number of outstanding non-complianceissues associated with the Company’s TMF. The current TMF iscomprised of three distinct tailings ponds that are abutted againsteach other and are adjacent to Carpenter Creek.
The Company is permitted to apply for renewal andreinstatement of the FMC once the following conditions have beenfulfilled:
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- A 2020 Dam Safety Inspection report is to becompleted, signed and sealed by a professional engineer prior to theend of March 2021. THIS HASBEEN COMPLETED . Klondike Silver submitted to theMinistry of Energy Mines and Low Carbon Innovation (“EMLI”) the2020 Dam Safety Inspection (DSI) report (signed and sealed by aprofessional engineer) prior to the end of Q1, 2021.
- A Geotechnical Site Investigation factual report andgeotechnical assessment is to be completed signed and sealed by aprofessional engineer. THISIS IN PROGRESS . Tetra Tech Inc. (“TetraTech”), a geotechnical and engineering consulting firm, has beencommissioned to complete this report with a target date for completionof August 2021. Tetra Tech has already completed a drill program onthe TMF to examine the embankments of all three tailings ponds, thetailings material within the ponds and the characteristics of thesubsurface of the TMF. As outlined in the Company’s press releaseof April 19, 2021, Tetra Tech installed piezometers in the drill holesto measure the depth of groundwater within the TMF throughout theyear.
- An Erosion Protection Plan and an Erosion ProtectionAs-Built Report is to be completed, signed and sealed by aprofessional engineer. THIS ISIN PROGRESS . Tetra Tech has been commissioned tocomplete this plan and report with a target completion date ofSeptember 2021. The Protection Plan is expected to include armouringof the banks of Tributary Creek and Carpenter Creek through theplacement of “rip-rap” or large loose rock, re-sloping of thedownstream angle of #3 dam and development of a catchment at thebottom of Tributary Creek to provide surge capacity. In addition, theCompany secured approximately 1,000 tonnes of rip-rap material foremergency use during the 2021 spring freshet. The 2021 spring runoffhas not been as extreme as 2020 and the Company does not expect toneed to place this material.
As further background, the Company was in the processof remedying the non-compliance issues identified above, when in April2020 the Sandon mill and surface facilities received an in rush ofwater, sediments and trees from upper Tributary Creek which originatesabove the facilities and captures water from the Idaho Peak watershed. Tributary Creek joins Carpenter Creek with the confluence of thecreeks meeting in close proximity to the three existing TMF structuresand the mill. The volume of water and sediments represented a200-year flood event which exceeded the capacity of Carpenter Creekand resulted in some erosion of the base of #3 Tailing StorageFacility (“TSF”). Repairs to #3 TSF were completed in June 2020. Klondike Silver is not responsible for maintenance of the accessroads above the mill location but based on the 2020 freshet KlondikeSilver has committed to taking measures to mitigate a similar resultby taking pro-active measures in proximity to Carpenter Creek.
Klondike Silver and Tetra Tech continue to work closelywith the EMLI to ensure that the that the non-compliance issues areremedied. The Company will provide a further update on progress by theend of Q2 2021.
The scientific and technical disclosure in this news release has beenreviewed and approved by David Makepeace, P.Eng., Senior Geologist –Environmental Engineer at Geospectrum Engineering, who is anindependent consultant to the Company and Qualified Person as definedin NI 43-101.
About KlondikeSilver
Klondike’s Silvana Mine Silver ZincLead project is located in South EasternB.C. , 138km north of the Trail B.C. smelter. The Company isactively exploring from underground, the western extension of theSilvana Mine, along the “Main Lode”. The “Main Lode” is a 9km vein structure which is the most prolific mineralized structure inthe Slocan Mining Camp. There are 13 historical mines that aresituated along the 9 km vein structure which have produced 886,000 kgof silver, 95 million kg of zinc and 117 million kg lead so far. Including 8 of the 13 above there are 68 historical mines that aresituated in the Klondike Silver 116 squarekilometer claim block which have produced 1,258,000 kg ofsilver, 72 million kg of zinc and 158 million kg lead so far. (source: BC MINFILE).
Additional information can be found on the Company website: www.klondikesilver.com
On Behalf of the Board of Directors | Contact Information |
Klondike Silver Corp. | Corporate Inquiries: |
"Thomas Kennedy" | Dale Dobson: (604) 682-2928 |
Thomas Kennedy, B.Comm., J.D. | |
CEO, Director |
Neither the TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute“ forward-lookinginformation ” under applicable Canadian securitieslegislation. Forward-looking information includes, but is not limitedto, statements about strategic plans, future work programs andobjectives and expected results from such work programs.Forward-looking information necessarily involve known and unknownrisks, including, without limitation, risks associated with generaleconomic conditions; inability to access sufficient capital frominternal and external sources, and/or inability to access sufficientcapital on favourable terms; and other risks.
Forward-looking information is necessarily based upon a number ofestimates and assumptions that, while considered reasonable, aresubject to known and unknown risks, uncertainties, and other factorswhich may cause the actual results and future events to differmaterially from those expressed or implied by such forward-lookinginformation and the risks identified in the Company’s continuousdisclosure record. There can be no assurance that such informationwill prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such information.Accordingly, readers should not place undue reliance onforward-looking information. All forward-looking information containedin this news release is given as of the date hereof and is based uponthe opinions and estimates of management and information available tomanagement as at the date hereof. The Company disclaims any intentionor obligation to update or revise any forward-looking information,whether as a result of new information, future events or otherwise,except as required by law.
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