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KERR MINES AWARDS KEY-CONTRACTS FOR-THE-2017 EXPLORATION PROGRAM AND PRE-FEASIBILITY STUDY
TORONTO, Aug. 8, 2017 /CNW/ - Kerr Mines Inc. ("Kerr" or the "Company") (TSX: KER, OTC: KERMF, FRA: 7AZ1) is pleased to announce that it has completed the tender process and has awarded the three key contracts to support the execution of the 2017 Copperstone Mine exploration program and pre-feasibility study. Hard Rock Consulting ("HRC") of Colorado, has been appointed to conduct the Copperstone Mine pre-feasibility study, which is estimated to be completed by Q1 2018. The pre-feasibility study will be the basis for the decision to proceed towards production of the Copperstone Mine.
In addition, Godbe Drilling LLC ("Godbe") of Arizona, has been awarded the drilling contract, which includes both the surface and underground drilling programs.
DMC Mining Services Corporation ("DMC") of Utah, has been awarded the contract for underground development. The inclusion of the underground development allows the 2017 Copperstone Mine exploration program to access high-priority targets previously unavailable.
HRC is recognized for delivering expertise and providing value added service directly from the highly experienced principals to a variety of mining clients ranging from due diligence to full feasibility studies. This allows HRC to take a hands-on role in providing a cost-effective and prudent move forward strategy. Both Godbe and DMC have extensive experience in their core businesses and share a proven ability to achieve safe performance and deliver excellent results under a variety of conditions. These appointments establish a key milestone in the Company's development strategy by employing strong expertise in engineering, drilling and mine development, in order to advance the Copperstone Mine project towards a production decision.
A competitive bidding, evaluation and selection process was carried out by senior management, which led to these awards. "We are very pleased to have completed the process of selection of the engineering, drilling and mine development contractors, enabling Kerr to execute the 2017 Copperstone exploration program and pre-feasibility study. Detailed planning of the program is well underway and contractors are preparing to mobilize," said Martin Kostuik, President, Kerr Mines.
About Kerr Mines Inc. Kerr Mines is a North American gold development and exploration company currently advancing the fully permitted past-producing Copperstone Mine project. Copperstone is a high-grade gold project located along the Walker Lane mineral belt in mining-friendly Arizona. The project demonstrates significant upside exploration potential within 12,000 acre a land package which includes a production history of over 500,000 ounces of gold. The Company's current focus is on maximizing Copperstone's potential by defining and expanding current resources and strengthening the mine's economics leading to a production decision.
Cautionary Note Regarding Forward Looking Statements This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Kerr Mines' business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Kerr Mines assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release and no stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Well let's hope they fine further high grade gold at Copperstone under the open pit...? It will increase their odds of going into production in early 2018... ?
KERR MINES is a North American gold development and exploration company currently advancing the fully permitted past-producing Copperstone Mine project. Copperstone is a high-grade gold project located along the Walker Lane mineral belt in mining-friendly Arizona. The project demonstrates significant upside exploration potential within a 12,000 acre land package. The focus for the Company is to maximize Copperstone’s potential by defining and expanding current resources and strengthening the mine’s economics leading to a production decision.
COPPERSTONE HIGHLIGHTS - Fully permitted with extensive infrastructure in place - Historically produced ~500,000 oz Au - Contains 313,000 oz M&I resources* – open at depth - 11,800ac land package - Significant exploration upside
MANAGEMENT TEAM Claudio Ciavarella | CEO, Director
Martin Kostiuk | President, Director
Brad Atkinson | Director, Exploration
Chris Hopkins | CFO
BOARD OF DIRECTORS
Fahad Al Tamimi | Chairman Peter Damouni | Director Ayman Arekat | Director James McVicar | Director
TECHNICAL ADVISORS Patrick Downey Michael R. Smith
I wonder if Klondex will try to acquire Kerr Mines or at least the Golden 'Copperstone Mine' ?
"Kerr Mines Interviewed on CEO.ca TORONTO, ONTARIO – May 29, 2017 – Kerr Mines Inc. (“Kerr” or the “Company”) (TSX: KER) recently sat down with Peter Bell for an interview on CEO.ca. During the interview, Claudio Ciavarella, CEO, and Martin Kostuik, President, provided an update on Kerr Mines and their strategy for advancing Copperstone this year."...
Kerr Mines might be leaving the golden train station with a bright golden light at the end of the tunnel as Klondex has fortunately already successfully done IMHO!
Take a look-at-the photo of-the Copperstone Gold Mine on this link NO, clear Mill, large tailings ponds obvious decline mine entry point in early 2015 http://www.kerrmines.com/projects/copperstone-mine
NOW, compare it to the same 2016 image of the Copperstone Gold mine on google Earth ... You can easily see several new massive tailing ponds and impoundments etc..., a large updated state of the art mill, obvious entry for the orange Decline Shafts with proper ventilation from an aerial point of view in the middle of the large oval open mining pit...
Greg Gibson, what is going to transpire with the Copperstone Gold Mine; might it be provided to Klondex Gold mines etc... For pennies on the dollar like San Gold?
MANITOBA – Since completing the acquisition of the former Rice Lake high grade gold mine in Bissett last January, new owner Klondex Mines of Vancouver is wasting no time as it gets ready to reopen it. The provincial government approved the resumption of mining and milling in March.
Several projects are underway at the mine site. All of the shaft guides have been replaced. About 1,500 metres of track on the 2600 level has been repaired; that’s about 55% of the job completed. The new underground shop and gear storage cut-outs are 80% complete.
Successful testing will also play an important part in reopening. Klondex is testing narrow vein long hole stoping to control dilution. Metallurgical tests are also underway to determine whether the existing tailings can be reprocessed through the existing mill flowsheet.
Former owner San Gold had drill results with very high grades at Rice Lake, and perhaps the best assay was 64.7 g/t Au over 4.3 metres in the footwall. The drilling done before the end of last year identified the potential for a new vein in the footwall of the 91 vein adjacent to the 24 level incline, according to Klondex. There is additional mineralization in the hanging wall of the 91 vein. The new owner will drill later this year to follow up on the earlier results.
"....News April 14, 2016 Klondex Update on Rice Lake Development Activities
View PDF Vancouver, BC -- April 14, 2016-- Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE MKT) ("Klondex"or the "Company") is pleased to provide an update on the Company's exploration and development activities at its Rice Lake Mine in Manitoba, Canada. The drill results summarized below were conducted by a prior owner of the Rice Lake Project. The Company intends to follow-up on the 15 hole drill program later this year. A summary of the results of this prior drill program is set out below.
Rice Lake Drilling Highlights from Q4 2014: 644-14-009: 0.15 opt Au over 14 ft, or 5.1 g/t over 4.3 m (Hanging Wall) Including 0.30 opt Au over 5.3 ft, or 10.3 g/t over 1.6 m 644-14-011: 0.59 opt Au over 2.3 ft, or 20.4 g/t over 0.7 m (Hanging Wall) 644-14-016: 0.70 opt Au over 4.2 ft, or 24.1 g/t over 1.3 m (Foot Wall), and 0.53 opt Au over 7.3 ft, or 18.1 g/t over 2.2 m (91 Vein) 644-14-017: 0.42 opt Au over 10.0 ft, or 14.3 g/t over 3.0 m (Foot Wall) Including 0.76 opt Au over 4.3 ft, or 26.0 g/t over 1.3 m 644-14-018: 0.43 opt Au over 22.2 ft, or 14.8 g/t over 6.8 m (Foot Wall) Including 0.57 opt Au over 16.4 ft, or 19.6 g/t over 5.0 m 644-14-019: 0.54 opt Au over 17.3 ft, or 18.4 g/t over 5.3 m (Foot Wall) 644-14-021: 1.89 opt Au over 14.0 ft, or 64.7 g/t over 4.3 m (Foot Wall), and 0.53 opt Au over 3.3 ft, or 18.1 g/t over 1.0 m (91 Vein)
A total of 15 holes totaling 6,485 ft (1,977 m) were drilled during the fourth quarter of 2014 by San Gold Corporation from the 6440 drill station. These holes were targeting the down-dip extension of the 91 vein. This drilling identified the potential for a new vein in the footwall of the 91 vein adjacent to the 24 level incline. Moreover, an additional mineralized structure was intersected in the hanging wall of the 91 vein. This mineralization occurred where northeast and northwest structures intercept the San Antonio Mining unit (SAM) which is the host rock to much of the historic mining at the Rice Lake Mine. Drilling is planned for later this year to follow up these high grade intercepts. (TABLE 1)
Project development activities continue to advance and are on schedule and within budget.
Project Development Highlights: Rice Lake Project has completed 83 days without a Loss Time Incident. The notice to recommence mining and milling operations was approved by the Director of Manitoba Mineral Resources in March, 2016. Shaft Project Complete -- 100% of the guides have been replaced. Track Repair Ongoing -- Approximately 1,500 of track has been ditched and repaired at the 2600 level; project is ~55% complete. Initiated testing of narrow vein long hole design to reduce dilution. New underground shop and new gear storage cut-outs are 80% complete. Initial metallurgical testing on existing tailings indicate the tailings can be processed economically through the existing mill flow sheet.
Mr. Paul Huet, President and CEO commented, "Our progress at the Rice Lake Mine has proceeded better than expected. The results of the Q4 2014 drill program noted above are very encouraging and suggest the opportunity for new high grade discoveries at Rice Lake." Mr. Huet continued, "Our progress in refurbishing the track and the shaft is on budget and on schedule and we are excited about the successful testing of long hole stoping at the mine. We continue to expect to be in a position to announce a production decision in the second half of this year, and we remain grateful to be part of such an exceptional and supportive mining community in Bissett."
Underground drill core samples were assayed on site in the then owner's assay lab using the fire assay method with an AA and gravimetric finish. The quality control and assurance program included the insertion of standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, Saskatchewan and Accurassay Laboratories in Thunder Bay, Ontario. The core lengths are actual lengths as drilled and were not adjusted for the true width of the mineralized zones.
Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a "qualified person" within the meaning of NI 43-101.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in two producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, as well as the recently acquired Rice Lake mine and mill in Manitoba, Canada.
For More Information John Seaberg Senior Vice President, Investor Relations and Corporate Development O: 775-284-5757 M: 303-668-7991 jseaberg@klondexmines.com
Qualified Person
Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a "qualified person" within the meaning of NI 43-101.
Cautionary Note Regarding Forward-looking Information
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, "forward-looking information"), including but not limited to information about the magnitude and the quality of the Rice Lake mine and milling facility, the accuracy of current interpretation of drill and other exploration results, the Company's intention and ability to complete additional drilling, the Company's intention and ability to monetize mineralized material, the Company's intention and ability to make a production decision in the planned timeframe, project development and related permitting, cash flows, budgeting and the financial condition of the Company. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital requirements and operations. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada and United States available at www.sedar.com and www.sec.gov, respectively. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law...." - See more at: http://www.klondexmines.com/s/news.asp?ReportID=745428#sthash.iV3iR5Zu.dpuf
I was surprised by this major change and that they could put the financing together. Having been with Klondex for some time, long before the management takeover, it will be interesting to see how the company transitions with the new property. Watching for permitting to get going.
Vancouver, British Columbia - December 6, 2013 -Further to the news release dated December 4, 2013, Klondex Mines Ltd. (TSX:KDX) ("Klondex" or the "Company") is pleased to provide a financing update in connection with the Company's proposed acquisition of the Midas mine and related ore milling facility (the "Acquisition"). The financing is expected to include a gold financing package from Franco-Nevada Corporation ("Franco-Nevada") in the amount of $35 million, a private placement of subscription receipts for gross proceeds of approximately $35 million and a private placement of secured notes for approximately $25 million (collectively, the "Acquisition Financing").
The Company has agreed on financing terms with Franco-Nevada in the form of a US$35 million financing package consisting of a pre-paid gold purchase arrangement and a 2.5% NSR royalty on all minerals produced from the Company's properties. The 2.5% NSR royalty commences on year six, upon completion of the pre-paid purchase arrangement (the "Gold Financing"). The obligations under the Gold Financing and the Notes (as defined below) will be secured against the assets of the Company and the obligations under the Gold Financing and the Notes will rank pari passu.
In addition, Klondex has engaged a syndicate of agents led by GMP Securities L.P. and including MGI Securities Inc., Mackie Research Capital Corporation, M Partners Inc., Jones, Gable & Company Limited and PI Financial Corp. (collectively, the "Agents") to complete a private placement financing on a fully-marketed best efforts basis (the "Equity Offering") by issuing subscription receipts ("Subscription Receipts") at a price of C$1.45 per Subscription Receipt (the "Issue Price") for aggregate gross proceeds of approximately C$35 million. Each Subscription Receipt will be deemed to be exchanged upon satisfaction of the Escrow Release Conditions (as defined below), without payment of any additional consideration, for one common share in the capital of the Company (an "Underlying Share"). The Subscription Receipts will provide for appropriate adjustments to be made in the event of share dividends, consolidations, distributions and other forms of capital reorganizations.
The Equity Offering is expected to close on or about December 17, 2013 (the "Equity Closing Date"). The gross proceeds of the Offering, less the Agents' commission and the Agents' expenses and out-pocket-costs (the "Escrowed Funds"), will be deposited in escrow on the Equity Closing Date. The Escrowed Funds will be released from escrow to the Company upon the satisfaction of the following conditions (together, the "Escrow Release Conditions"): (i) the satisfaction or waiver of all conditions precedent to the Acquisition, other than the delivery of the purchase price of the Acquisition; and (ii) receipt by the Company of the requisite approval of the Company's shareholders to the Offering pursuant to the requirements of the Toronto Stock Exchange ("TSX"). In the event that the Escrow Release Conditions are not satisfied on or before February 14, 2014, the gross proceeds will be returned to the holders of the Subscription Receipts and the Subscription Receipts will be automatically cancelled. The Subscription Receipts and the Underlying Shares will be subject to a four month plus one day hold period in Canada.
The Company has also finalized terms in respect of a private placement offering through a syndicate of lenders of approximately C$25 million initial principal amount of 11.00% senior secured notes of the Company due June 30, 2017 (the "Notes"), together with 124 common share purchase warrants per $1,000 principal amount of Notes.
The net proceeds from the Acquisition Financing are expected to be used to fund the purchase price of the Acquisition and for the repayment of $7 million in outstanding notes. The Acquisition Financing remains subject to the receipt of all required regulatory approvals, including, without limitation, the approval of the TSX. The Acquisition Financing arrangements also remain subject to confirmatory legal due diligence, the negotiation of definitive documentation and other customary conditions.
Klondex Enters Into Definitive Agreement With Newmont to Acquire the Midas Mine and Mill Complex and Announces Acquisition Financinghttp://www.klondexmines.com/s/news.asp?ReportID=614616#sthash.Xqr40NU3.dpbs
VANCOUVER, BC--(Marketwired - Dec 4, 2013) - Klondex Mines Ltd. (TSX: KDX) ("Klondex" or the "Company") is pleased to announce that it has entered into a definitive agreement to acquire the Midas mine and related ore milling facility located in the State of Nevada (collectively, "Midas") for approximately US$83 million (the "Acquisition") from a subsidiary of Newmont Mining Corporation ("Newmont").
The purchase price, which is subject to customary adjustments, is comprised of (i) approximately US$55 million in cash, and (ii) the replacement of Newmont surety arrangements with Nevada and federal regulatory authorities in the amount of approximately US$28 million. In addition, Klondex will issue to Newmont 5 million common share purchase warrants of the Company with a 15-year term, subject to acceleration in certain circumstances, and an exercise price to be specified on the closing date of the Acquisition.
Paul Huet, President and CEO of Klondex, commented, "This acquisition is transformational for Klondex, during a pivotal point in our company's development. I am confident that Klondex's management team can leverage past experience, with some of the core leadership team having previously worked at Midas, to vastly benefit from the synergies and to unlock continued value in Klondex for shareholders going forward. Our team is extremely pleased to be working alongside Newmont to bring together two excellent epithermal deposits with a high-quality central mill."
The Acquisition is anticipated to close in early 2014, subject to the fulfillment of various closing conditions, including the receipt of requisite regulatory approval and other third party consents, and entry into certain ancillary arrangements with Newmont for the provision of transition services.
In addition to acting as exclusive financial advisor with respect to the Acquisition, GMP Securities L.P. has also been engaged by the Company to coordinate the financing of the Acquisition, which is expected to consist of a combination of equity, secured notes and a secured gold loan. Further details on the financing of the Acquisition will be provided once determined.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.
A conference call will be held at 5:00 pm EST on Wednesday, December 4, 2013 to discuss the above transaction. To dial in, please use the following phone numbers, and ask to join the Klondex conference call:
Canada & USA Toll Free Dial-In: 1-800-319-4610 Outside of Canada & USA call: 1-604-638-5340
A replay of the conference call will be available until January 4, 2014.
Advisors GMP Securities L.P. is acting as exclusive financial advisor to the Company and its Board of Directors in connection with the Acquisition. The Company's legal advisors are Bennett Jones LLP and Dorsey & Whitney LLP.
About Midas The Midas underground mine and mill complex is located in north central Nevada, between Elko and Reno. Newmont acquired Midas through its merger with Normandy Mining Limited in 2002.
About Klondex Mines Ltd. (www.klondexmines.com) Klondex Mines is focused on the exploration and development of its high-grade Fire Creek gold deposit in north central Nevada. Fire Creek is a compelling gold project located in a mining-friendly jurisdiction, near major producers, power, transportation, mining infrastructure and milling facilities. As at December 4, 2013, the Company had 79.2 million shares issued and outstanding and 97.2 million shares fully diluted.
As at November 14, 2013, and assuming the conversion of the special warrants to shares, the Company has 79.2 mm shares issued and outstanding and 103.1mm shares, fully diluted.
The Company hereby retracts all statements in its September 16, 2013 news release and in its corporate presentation on the Fire Creek Project regarding "verified continuity" of mineralization at the Fire Creek Project. The majority of the mineral resources disclosed in the 2013 Technical Report comprise indicated and inferred mineral resources, which are estimates based on reasonably assumed, but not verified, geological and grade continuity.
Klondex Mines Provides August Update on Fire Creek Project; Ships Lot #2 to Newmont Date : 09/30/2013 @ 8:19AM Source : OTC Markets Stock : Klondex Mines Ltd. (QX) (KLNDF) Quote : 1.36 0.0 (0.00%) @ 3:24PM
Klondex Mines Provides August Update on Fire Creek Project; Ships Lot #2 to Newmont Print Alert
Klondex Mines Provides August Update on Fire Creek Project; Ships Lot #2 to Newmont
Klondex Mines Provides August Update on Fire Creek Project; Ships Lot #2 to Newmont
RENO, NV and VANCOUVER, BC--(Marketwired - Sep 30, 2013) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF), a Nevada gold exploration and development company, today provides an update on its toll milling and underground development programs, as well as the results of the metallurgical test-work from its Fire Creek Project in Lander County, Nevada.
Toll Milling
Toll milling of Fire Creek's Lot #1 is complete (see press release dated September 23, 2013). Final receivables for Lot #1 totaled $1,967,176, sold at an average gold spot price of US $1,332/oz. Processing of Lot #1 included 1,055 dry tonnes (1,165 dry tons) at an average head grade of 50.7 g/t (1.48 opt) Au.
Toll milling of Lot #2, comprised of 1,812 tonnes (2,000 tons), started on September 18, 2013.
Paul Huet, Klondex President and CEO stated, "Continuing to toll mill and treat our second lot of material from the Fire Creek project is an important step moving forward. We are very fortunate to have multiple options (Newmont and Veris agreements) in place to treat the Fire Creek material. Through toll milling, we are able to better understand the metallurgical characteristics of the Fire Creek material, and the proceeds can be applied towards future exploration and development."
Underground Development
Over the past four months, Klondex's underground development program targeting the Joyce and Vonnie structures within the Main Zone of its Fire Creek project has yielded 4,375 tonnes (4,824 tons) of mineralized material averaging 63.7 g/t (1.86 opt) Au. Development on the Joyce (5370N and 5400S) structure in August consisted of 192 samples taken and submitted for assay. Gold grades ranged from 0.2 g/t Au to 486 g/t Au (0.005 opt Au to 14.172 opt Au) over a vein width ranging from of 0.1 m to 1.3 m (0.2 ft to 3.5 ft). For May - July development results please see press releases dated June 13, 2013, July 29, 2013 and September 12, 2013.
The average grade from the development program is 43% higher than the recent mineral resource estimate average grade (see press release dated September 16, 2013).
Metallurgy
Metallurgical test-work was conducted by McClelland Laboratories (MLI Job #3834), an independent laboratory based in Sparks, Nevada, on two samples taken from the underground development to determine the amenability of the Fire Creek material to gravity/cyanidation treatment. Composite sample FCM1 was taken from material stockpiled during the development of the 5400 and 5370 crosscuts. Sample 3834-01 was generated by compositing coarse assay rejects from the face sampling on the Joyce 5400 N.
Each sample was milled to 80%-212?m (65 mesh) and processed through a Knelson concentrator to determine precious metal recovery via gravity concentration. The tailings from the Knelson concentrator were reground to 80%-75?m (200 mesh). Bottle roll tests were then performed on the tailings to determine precious metal recovery via cyanidation. Results of the test-work are shown in the tables below.
? Table 1. - Combined Metallurgical Results, Gravity/Cyanidation Tests, Fire Creek Metallurgical Samples, 80%-212?m Feed (Grav.), Reground to 80%-75?m (CN)
Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF) ("Klondex" or the "Company") is pleased to announce the results of additional exploration drifting and metallurgical sampling on the Vonnie vein at its Fire Creek gold project in Nevada. Highlights of the channel sampling results (Figures 1 and 2) include assays of 20,231 g/t (590 ounces per ton) Au, 15,891 g/t (463 opt) Au, and 22,396 g/t (653 opt) Au, 63ft, 69ft and 74ft north of the 5400 cross cut, respectively. The complete set of results of channel sample assays is set out in Table 1 below. The high-grade gold mineralization was encountered while following up on a surface drill intercept from FC-12-11S that returned 2,910 g/t Au (85 opt Au) over 1.5m (4.8ft) as announced on September 24, 2012. As a part of the exploration and sampling program, Klondex is assaying the Vonnie vein after each exploration round.
Klondex Drills 0.99 oz/ton Discovering New Gold Zone at South End of Fire Creek Mineral Resource in Nevada
[[color=red]i](first off, ihub admin rocks! because in a matter of a few minutes, they responded to our request to combine the KDX boards to reflect the company's TSX status (no longer Venture) and reference its OTCQX symbol above (KLNDF). Thank you!>[/color]
April 9, 2013 Klondex Mines Ltd. (TSX: KDX; OTCQX: KLNDF) intersected 0.48 ounces per ton (16.6 grams per ton) gold over over 42.8 ft (13.0m) in core drilling at its Fire Creek gold project in Nevada Click for Map.
Within that intercept the Company encountered 0.99 ounces per ton gold (33.7 g/t) over 2 meters.
In volatile gold prices, what this means is that Klondex has sufficient grade to be profitable even in a sub $1000 gold environment - not many can say the same. Of course that would lower production and limit the mine life - but the asset is still productive.
The diamond drill hole confirms gold mineralization in a “South Zone” near the mine portal, located 1300 ft south of the 5400 crosscut. The drill hole was part of a larger surface and underground drill program testing the continuity of the Joyce and Vonnie veins (formerly the A and B veins, respectively) in the south portion of the Main Zone.
For more info on Klondex visit the Website at www.klondexmines.com
I will try to be more diligent about providing updates to this board. Klondex should be the next producing mine in America (under a small scale permit) and potentially the mine with the highest head grade too.
Go to Yahoo Finance board for this info Kdx.To or KLNDF investorshub.advfn.com/boards/read_msg.aspx?message_id=85146845
IAMGOLD Co-Founder, Larry Phillips, Named Chairman of Nevada Gold Explorer, Klondex MinesMarketwire(Mon, Feb 25)
Nevada Gold Explorer Klondex Mines to Present at Red Cloud Mining PDAC Showcase March 1st in Toronto and to Exhibit at PDAC Convention March 3-6th - Booth #2835Marketwire(Tue, Feb 19)
Klondex Discovers a New "West Zone" With Significant Visible Gold Mineralization and 123.9 Grams/Tonne (3.6 oz/ton) Gold Over 1.5 Meters (5 feet)Marketwire(Tue, Jan 22)
Klondex Discovers a New “West Zone” with Significant Visible Gold Mineralization and 123.9 Grams/Tonne (3.6 oz/ton) Gold Over 1.5 Meters (5 feet)Business Wire(Mon, Jan 21)
Klondex Mines Provides Exploration and Development Update On its Fire Creek Nevada Gold ProjectBusiness Wire(Wed, Jan 16)
Paul Huet, CEO of Nevada Gold Explorer Klondex Mines (Booth 1507), to Present at Vancouver Resource Investment Conference Monday, Jan 21st at 2:50 p.m. PDTBusiness Wire(Tue, Jan 15)
496.7 g/t (14.5 oz/ton) Gold over 1.8 meters (6 feet) Extends Continuity of Main Zone A-Vein at Klondex Mines’ Fire Creek Nevada Gold ProjectBusiness Wire(Wed, Jan 2)
Klondex Mines Ltd. Announces Closing of C$23 Million Equity FinancingBusiness Wire(Tue, Nov 20)
Klondex Mines Secures Mining Experts to Advance Fire Creek Gold Project in NevadaBusiness Wire(Mon, Nov 19)
News KDX.TO Klondex Discovers a New "West Zone" With Significant Visible Gold Mineralization and 123.9 Grams/Tonne (3.6 oz/ton) Gold Over 1.5 Meters (5 feet)Marketwire(Tue, Jan 22)
Klondex Discovers a New “West Zone” with Significant Visible Gold Mineralization and 123.9 Grams/Tonne (3.6 oz/ton) Gold Over 1.5 Meters (5 feet)Business Wire(Mon, Jan 21)
Klondex Mines Provides Exploration and Development Update On its Fire Creek Nevada Gold ProjectBusiness Wire(Wed, Jan 16)
Paul Huet, CEO of Nevada Gold Explorer Klondex Mines (Booth 1507), to Present at Vancouver Resource Investment Conference Monday, Jan 21st at 2:50 p.m. PDTBusiness Wire(Tue, Jan 15)
496.7 g/t (14.5 oz/ton) Gold over 1.8 meters (6 feet) Extends Continuity of Main Zone A-Vein at Klondex Mines’ Fire Creek Nevada Gold ProjectBusiness Wire(Wed, Jan 2)
Klondex Mines Ltd. Announces Closing of C$23 Million Equity FinancingBusiness Wire(Tue, Nov 20)
Klondex Mines Secures Mining Experts to Advance Fire Creek Gold Project in NevadaBusiness Wire(Mon, Nov 19)
IIROC Trade Resumption - KDX (all issues)CNW Group(Fri, Nov 2) IIROC Trading Halt - KDX (all issues)CNW Group(Fri, Nov 2)
Klondex Encounters Two Gold Veins with 95.5 g/t (2.79 oz/ton) Gold over 0.9 meters (3.0 feet) and 43.5 g/t (1.27 oz/ton) Gold over 1.5 meters (5.0 feet) During Underground Exploration Development at its Fire Creek Project in NevadaBusiness Wire(Wed, Oct 31)
Klondex Discovers a New "West Zone" With Significant Visible Gold Mineralization and 123.9 Grams/Tonne (3.6 oz/ton) Gold Over 1.5 Meters (5 feet)
ELKO, NV and VANCOUVER, BC--(Jan 22, 2013) - Klondex Mines Ltd. (TSX: KDX) ( OTCQX : KLNDF), a Northern Nevada gold exploration and development company, announces the discovery of new gold mineralization at its flagship Fire Creek project. The discovery (Figure 1 click here) is approximately 165 meters (540 feet) west of the A-Vein mineralization, which forms part of the Main Zone, and represents a new unexplored zone. Klondex intersected 123.9 grams/tonne gold (3.6 oz/ton) over 1.5 Meters (5 feet) while completing a geotechnical drill hole for the design of the planned vent raise. Klondex also encountered visible gold mineralization in three locations in the area: on the left rib of the nearby drift (Figure 2), in a drill hole at the base of the access ramp 5370-RM (Figure 3), and in the geotechnical hole, approximately 6 meters (20 feet) above the access ramp (Figure 4) Click here for Figures 2, 3 & 4.
Paul Huet, CEO of Klondex, commented, "We are very excited by this new discovery at Fire Creek. A discovery of this nature demonstrates that Fire Creek remains under-explored and that ongoing exploration could lead to other zones providing potential growth for Klondex.
"We have designed our underground in-fill drilling program to tighten the drill spacing in the Main Zone to include 16 easterly drill fans of three to four drill holes each, totaling 9,754 meters (32,000 feet). This will refine our resource model with additional data and hopefully identify new areas of mineralization. As a result of the new gold mineralization found in the vent raise access we will be expanding our program to the west as part of Phase 2."
Steve McMillin, Chief Geologist for Fire Creek, added, "This new discovery is very exciting for Klondex as it occurs in an area with very little previous drill information. The find was unexpected and has the team discussing expanded and more comprehensive future drilling at Fire Creek. It occurs within a very large area of alteration, at least 27 meters wide (90 feet) and also has a higher silver content than we have seen elsewhere at Fire Creek."
Sample results cited in this news release were obtained through rib samples performed by Klondex geologists and via a geotechnical hole drilled by independent contractor American Drilling under the direction of Klondex staff. Assays were determined by ALS Minerals of Reno, Nevada and Inspectorate America Corporation of Sparks, Nevada, both independent analytical laboratories. Klondex is not yet able to determine true widths.
The content of this press release has been reviewed by Steven L. McMillin, CPG-11031 (American Inst. of Prof. Geol.), Chief Geologist for Klondex, as a non-independent Qualified Person for the purposes of National Instrument 43-101.
About Klondex Mines Ltd. (www.klondexmines.com) Klondex Mines is focused on the exploration and development of its Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect located in a region of prolific gold production that is near power, transportation, mining infrastructure and several milling facilities. As of January 20, 2012 Klondex had 64.4 million shares issued and outstanding and 84.9 million shares on a fully-diluted basis.
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Newmont still hold over a million shares.
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VANCOUVER, British Columbia, Jul 21, 2011 (BUSINESS WIRE) -- Klondex Mines Ltd. CA:KDX -0.31% , which is focused on the exploration and development of its 100% owned Fire Creek gold deposit in North Central Nevada, announced today an agreement to reprice1,400,000 unlisted common share purchase warrants of the Company. The warrants were issued to Waterton Global Value Fund L.P. (the "Lender") on April 5, 2011 in conjunction with a US$20 million gold loan facility provided to help fund development at Klondex's Fire Creek project.
VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondex Mines Ltd. (TSX: KDX), which is focused on the exploration and development of its 100% owned Fire Creek gold deposit in North Central Nevada, today confirmed the election of six Directors to its Board at its annual shareholders meeting held June 30, 2011 and the subsequent appointment of Ken Stowe as a seventh Director. Mr. Stowe shall also serve in the role of Lead Director. The Klondex Board now includes five independent Directors.
Klondex also announced that Blane Wilson has been named President and Chief Executive Officer of the Company, expanding upon his prior role as President and Chief Operating Officer. William J. Solloway, who has stepped down as CEO, remains as Chairman of the Klondex Board.
The new Board provides substantial precious metals exploration, production, processing and finance experience as Klondex enters an exciting new phase of underground exploration, deposit delineation/verification and bulk sampling, seeking to advance its goal of becoming a successful mid-tier gold mining company. Klondex’s Board is comprised of the following professionals:
Andre Douchane, Director, has extensive experience in developing and managing mines in Nevada, including the Round Mountain gold mine, several projects for Battle Mountain Gold and Battle Mountain North America, and Franco-Nevada’s Ken Snyder (Midas) gold mine. He is Chairman of North American Palladium Ltd. and a Director of Osisko Mining Corporation.
Robin Goad, Director, is a professional geologist with approximately 30 years of experience in the mining and exploration industries in Canada and internationally. He is President, CEO and a Director of Fortune Minerals Limited, a director of the Northwest Territories and Nunavut Chamber of Mines, and a director of Andor Mining Inc.
Warren Moysey, Director, was with CIBC for 28 years, with his last position as director and one of three bank presidents. He has also held senior positions at financial institutions including Chairman and CEO of CI Mutual Funds Inc. and is currently an Independent Review Committee member for Toronto Dominion Asset Management Inc. and a director of a TDAM Mutual Fund.
William Solloway, Chairman, is Barrister/Solicitor and active investor overseeing family interests in mining, natural resource and other public companies. After a career in law, Mr. Solloway held management positions at Canadian Bechtel, Trans Mountain Pipeline and was a principal at Minbanco Corp., Camino Gold Mines and The Marshall Plan asset managers affiliated with CALPERS.
Kenneth Stowe, Lead Director, has over 35 years of mining industry experience. He is the outgoing President and CEO of Northgate Minerals Corporation and the recipient of the Canadian Mineral Processor of the Year Award in 2006. Prior to Northgate, Mr. Stowe worked in various operational, R&D and corporate leadership roles at Noranda, Diamond Fields Resources and Westmin Resources/Boliden. Mr. Stowe is a director of Hudbay Minerals Inc.
Chad Williams, Director, is a professional mining engineer and was a highly ranked institutional equity analyst covering the gold and precious metals sector. He previously served as a Senior Gold Analyst and ultimately Head of Investment Banking at Blackmont Capital Inc. He is a director and former President and CEO of Victoria Gold Corp. and a director of Golden Valley Mines Ltd.
Blane Wilson, Director, President and CEO, has over 25 years of mining, gold refining and processing, permitting, water management, reclamation and construction experience, including serving as Corporate Operations Manager for Queenstake Resources USA's Jerritt Canyon Nevada gold mine. Mr. Wilson is COO of Golden Eagle International, Inc.
Audit & Compensation and Governance Committee Appointments:
Klondex’s new Board of directors has appointed a new Audit Committee and expanded the scope of its prior Compensation Committee to form the Compensation and Governance Committee. Andre Douchane, Robin Goad, and Ken Stowe have each agreed to serve on both the Audit Committee and the Compensation and Governance Committee.
Klondex President and CEO, Blane Wilson, commented, “Klondex has forged a very strong, independent board with an impressive track record of mining industry accomplishment and mine operations experience, including relevant Nevada gold mining involvement. The Board’s guidance will prove instrumental as we execute our active surface and underground programs at Fire Creek which continue to make solid progress. The Board has also made substantial Corporate Governance headway, having formed fully-independent Audit and Compensation and Governance Committees. These are important steps for Klondex that reflect our evolution as a company and represent clear signs of the Board’s responsiveness to shareholders.”
About Klondex Mines Ltd. (www.klondexmines.com):
Klondex Mines is focused on the exploration and development of its 100% owned Fire Creek gold deposit in North Central Nevada. As of July 11, 2011, Klondex had 37.0 million shares issued and outstanding and 43.6 million shares on a diluted basis.
VANCOUVER, British Columbia, Jun 30, 2011 (BUSINESS WIRE) Klondex Mines Ltd. ("Klondex" or "the Company") today announced that the Company and The K2 Principal Fund L.P. ("K2") have entered into a Settlement Agreement that terminates their proxy dispute on mutually agreeable terms. The settlement is expected to be implemented at today's Annual General Shareholders Meeting. Both Klondex and K2 believe this settlement is in the best interests of all shareholders and allows the Company to continue with the development of the Fire Creek gold project in Nevada and build long-term shareholder value.
Under the terms of the Settlement Agreement, the Company and K2 have agreed on a new Klondex board of directors to be constituted by three representatives of the management nominees, namely Blane Wilson, Robin Goad and William Solloway, and three members of K2's slate, namely Andre Douchane, Warren Moysey and Chad Williams. As previously announced, Mr. Kenneth Stowe, the outgoing President and CEO of Northgate Minerals Corporation and a mining industry veteran with over 30 years of accomplishment, is expected to be appointed to the Board immediately after the AGM.
After 30 years of service to the Company, Mr. Solloway will step down as CEO, but remains Chairman of the Board. Mr. Wilson, the current President and COO, will be appointed President and CEO.
"We would like to thank Bill for his leadership and care over the operations of the Company for the past 30 years and look forward to his guidance at the Board level," stated Mr. Wilson.
Mr. Wilson, added, "This settlement has the full support of the Klondex board and management team and enables the Company to move forward with its strategic plans."
Mr. Solloway, stated, "We view this settlement as a positive for the future of our Company and in the best interests of its shareholders. We believe that based on our discussions with our shareholders and how their shares were voted in connection with this meeting, this agreement represents their choice. We welcome the new directors and look forward to working with them in the continued development of our Fire Creek gold project."
Klondex Mines, Inc President and COO, Blane Wilson explains they are engaged in acquiring, exploring and developing gold and silver properties in Nevada. 11/30/10
Klondex to Review Nevada High-Grade Gold Program at Tumazos Metals & Mining Conference Wednesday, November 10th at 2:20 P.M. ET Fri Nov 5, 3:56 PM
•Email Story •IM Story •Printable View VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondex Mines Ltd. (TSX: KDX.TO), a high-grade Nevada gold exploration company moving into underground development, announced today that its President and COO, Blane Wilson, will present at the John Tumazos Very Independent Research LLC Metals & Mining Conference on Wednesday, November 10th at 2:20 p.m. Eastern time. Management will also be available for meetings on Tuesday, November 9th. The conference is being held in New York City at the New York Helmsley Hotel.
Klondex Mines Ltd. is focused on the exploration and development of its 100% owned high-grade Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling, low-Capex mining prospect that is well located near power, transportation, mining infrastructure and several milling facilities. Klondex has identified the following NI 43-101 compliant resource at Fire Creek:
Fire Creek – Indicated and Inferred Resource* As of March 30, 2009 Grams Gold Equivalent Total Ounces
Classification Metric Tonnes Per Metric Tonne Gold Equivalent
Indicated 5,043,033 10.11 1,639,822 Inferred 1,833,423 8.63 508,799 *The resource is approx. 98.3% gold and 1.7% silver and reflects a cutoff grade
of 5 grams per tonne and 60 units of silver equivalent to one unit of gold.
ON BEHALF OF KLONDEX MINES LTD.
William J. Solloway Blane Wilson Chairman and CEO President and COO
How: Live over the Internet -- Simply log on to the web at the address above.
Who: Robert Sibthorpe, Technical Director
If you are unable to participate during the live webcast, the call will be available for replay at www.investorcalendar.com/ClientPage.asp?ID=123522 or http://www.investorcalendar.com/.
Contact: David Collins Klondex Mines (212) 835-8500 Email: kdx@jcir.com
VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondex Mines Ltd. (TSX: KDX - News) announced additional high-grade gold intercepts from recent core drilling under its Phase 6 drilling program at its 100%-owned Fire Creek property in the Battle Mountain-Eureka Trend in Northern Nevada. Source: Klondex Mines Ltd.
A high grade gold intercept was reported in hole FC0724 which returned 18.0 grams per ton (gpt) over 9.1 meters (0.51 oz/ton over 30 feet), including 38.0 gpt gold over 3.05 meters (1.10 oz/ton over 10 feet). Additionally, hole FC0707B in the Main Zone returned an interval of 8.25 gpt over 3.81 meters (0.24 oz/ton over 12 feet) and hole FC0712 tested the New North Zone and returned an interval of 7.18 gpt over 3.05 meters (0.21 oz/ton over 10 feet).
Together with the previously announced results from drilling to the south (October, 2007), hole FC0724 has the effect of extending the Main Zone mineralization along strike. Previously extending from 50m South to 450m North (500 meters) the Main Zone now extends from 250m South to 750m North (1000 meters). Klondex believes that this will result in a significant increase in contained ounces at Fire Creek when the previously announced, September 2006 NI 43-101 defined compliant resource is updated in the first quarter of 2008 after its Phase 6 drilling program is concluded this year.
Klondex also received assays from drill holes FC0715, FC0716 and FC0736 which tested the southern extension of the New North Zone at depth. These holes all encountered the vein system with geochemically anomalous values (0.5 gpt to 2.0 gpt).
Drilling will continue at Fire Creek with two core rigs until mid-December 2007. The Company continues its permitting and mining contractor selection activities for its planned 2008 underground exploration program.
The true width of intercepts of holes reported here are estimated at 70% of reported widths. The intervals reported for FC0724 above incorporates a 371 gpt silver value over 1.52 meters (10.7 oz/ton over 5 feet) at a silver to gold equivalency of 60:1.
As of October 30, 2007, Klondex had 22,944,673 shares issued and cash of approximately $5.82 million CDN invested in Canadian treasury bills and in guaranteed bank accounts. The recent appreciation of the Canadian dollar versus the US dollar has increased Klondex's purchasing power for its US dollar-denominated drilling program. The Company has no exposure to any derivatives, futures, hedges or related risk.
Richard Kern (P.Geo) of Reno, Nevada, is the Company’s qualified person on the project as required under NI 43-101 and has reviewed the technical information contained in this press release.
Klondex has in place a rigorous QA/QC program consistent with National Instrument 43-101 and using best industry practice. ALS Chemex Labs of Reno, Nevada and SGS Minerals services, Toronto responsible for all the Klondex Mine’s assaying.
About Klondex Mines Ltd.:
Klondex Mines (TSX: KDX - News) is a gold exploration company focused on the development and expansion of its high-grade Fire Creek deposit in Nevada. At Fire Creek, Klondex has a NI 43-101 compliant Indicated Mineral Resource estimated at 1,636,555 tonnes grading 19.88 grams per tonne (0.576 oz/ton) containing 1,045,738 oz of gold in two separate mineral zones, and has filed for permits to begin bulk sampling for metallurgical testing of up to 120,000 tons of ore.
Fire Creek is located in the Battle Mountain-Eureka Trend in the Northern Nevada Rift, in North Central Nevada, an area of prolific gold production. Klondex currently has two drill rigs working to expand its resource at Fire Creek. The Company was founded over 30 years ago, and its property portfolio contains three other gold exploration projects, all in Nevada. For more information, please visit www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD. "William J. Solloway" "Robert Sibthorpe" President Technical Director
Klondex's Hits New High-Grade Intercept (41.55 gpt/1.21 oz/ton over 4.5 feet) at Nevada ''Fire Creek'' Deposit
Friday October 19, 2:41 pm ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondex Mines Ltd. (TSX: KDX - News) announced additional high-grade intercepts from recent core drilling under its Phase 6 drilling program at its 100%-owned Fire Creek property in the Battle Mountain-Eureka Trend in Northern Nevada.
High-grade gold intercepts were reported in holes FC0741 and FC0742, the southernmost holes that have been drilled to date at Fire Creek. Hole FC0742 returned 15.39 grams per tonne (gpt)/0.45 ounces per ton (opt) gold over 18 feet (5.5 meters), including 41.55 gpt/1.21 opt gold over 4.5 feet (1.37 meters). FC0742 has an additional over-run (>10 gpt/+0.29 opt) that has not yet been check assayed to determine the final gold value.
FC0741 reported a mineralized zone of 115 feet (35.1m) grading 2.0 gpt/0.06 opt including 3.8 gpt/0.11 opt over 30 feet (9.14 m) including 11.0 gpt/0.32 opt over 5 feet (1.52m). FC0741 has a 195-foot interval on which assays are pending.
FC0741 and FC0742 are returning higher grades than those identified by previous southern discovery holes (FC0701, FC0734, FC0735) drilled on line 100m South on the Main Zone and seem to identify an additional vein. The mineralized zone appears open to the south, and Klondex plans to drill the extension as soon as all assay results are received and reviewed. Silver values are pending for both holes.
FC0741 & FC0742 were drilled on line 200m South at an azimuth of 255 degrees. The dip of FC0741 was -45 degrees and FC0742 was –55 degrees. The holes were core drilled from the surface with little change in dip of the holes. True width of intercepts in FC0742 is estimated at 57% of drilled thickness and true width in FC0741 is estimated at 71% of drilled thickness.
Klondex Mines Drills 0.714 Oz/Ton Over 35 Feet; Discovers Potential New Ore Zone at Battle Mountain-Eureka Trend Property
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 11, 2006) -
Klondex Mines Ltd. (TSX VENTURE: KDX) today reported assay results from its in-fill and exploratory drilling program at its Fire Creek Property in the Battle Mountain-Eureka Trend in Northern Nevada. The drilling program is intended to further explore and expand the Company's current Indicated Mineral Resource as well as to drill test 16 anomalies identified outside of the Main and Far North Zones.
In September 2006, Klondex announced an Indicated Mineral Resource totaling 1,045,738 ounces of gold comprised of two regions: the Main Zone (801,681) ounces and the Far North Zone (244,047) ounces. Since that time, the Company has received assays for 18 completed drill holes totaling 24,116 feet (7,352 m).
Overview -- Most Recent Drilling:
- In-fill drilling in the Main Zone reduced the distance between drill hole vein intercepts from about 50 to 25 meters resulting in an increase in the continuity and high grade nature of the deposit. Since the zone could be accessed relatively easily by a decline, Klondex is amending its Plan of Operations to permit underground operations with this area being the focus of initial testing and bulk sampling activity in 2007. Samples of ore, development waste rock and water are being analyzed and it is hoped to submit the amendment later this year.
- Drilling extended the Main Zone mineralization an additional 100 meters with an intercept on Section 750 North. Additional drilling is planned for this section to attempt to intercept higher grades over longer intervals.
- Drilling was conducted outside the known mineralization on the extremities of the Far North Zone without returning positive results, indicating that the resource estimate for this area may represent an upper limit.
- The drilling program tested six anomalies outside of the two known Zones and returned significant results from a structure located approximately 200 meters northwest of the Far North Zone. This "New North Zone" now represents a target for additional resources at Fire Creek.
William J. Solloway, President of Klondex, commented, "Klondex remains committed to an active drilling program on our Fire Creek property in an effort to further evaluate and confirm our mineral resource. As evidenced by our recent drilling progress, we believe this efficient, well-managed and highly productive effort is an ideal use of our cash position and should support our effort to deliver value to our shareholders. We look forward to reporting on further progress in our drilling activities and are already underway in planning for our 2007 exploration program.
In-Fill Drilling - Drill hole FC0621 returned 0.714 oz/ton over 35 feet (24.6 gpt over 10.67 meters) from the Main Zone. The high-grade result from drill hole FC0621 completed the effort to confirm a high-grade area of the Main Zone over 100 meters from 25 North to 125 North. Results from Veins 2, 3, and 4 indicate a mineral resource drilled off on 25 meter centers of 173,810 tons grading 1.23 oz/ton (157,722 tonnes grading 42.4 gpt) for 15,187 ounces of gold based on the September NI 43-101 Report resource estimate. Since this zone is relatively easily accessed by decline, the Company is amending its Plan of Operations to permit underground operations with this area being the focus of initial testing and bulk sampling activity in 2007.
Extensional Drilling - Drill hole FC0611 extended the Main Zone mineralization an additional 100 meters to the north with an intercept of 0.146 oz/ton over 10 feet (5.03 gpt over 3.05 meters). Since it is now known that the veins at Fire Creek seldom carry ore grades over the entire extent of the 'boiling zone' of this epithermal deposit, additional holes are planned for this section to attempt to intercept higher grades over longer intervals. An additional six holes were drilled outside the known mineralization on the extremities of the Far North Zone without returning positive results indicating that the resource estimate for this area may represent an upper limit.
Outside Target Drilling - Drill hole FC0632 intersected 0.247 oz/ton over 10 feet (8.51 gpt over 3.05m) and 0.203 oz/ton over 10 feet (7.02 gpt over 3.05 m) from a new zone located by drilling geophysical anomalies generated earlier this year. An induced polarization geophysical survey conducted earlier this year detected 16 separate anomalies outside of the known Main and Far North Zones. Eight drill holes tested 6 of these anomalies and hole FC0632 returned significant results from Anomaly # 4 as shown on the Drill Hole Location map referenced below. The FC0632 results are from a structure located some 200 meters northwest of the Far North Zone, which now represents a target for additional resources at Fire Creek. Assays for 1 additional hole from this "New North Zone" are pending and a third hole is currently being drilled. Drilling activity ay Fire Creek will cease in mid to late December and resume when weather conditions improve in the spring of 2007.
Lower grade wide intercepts - The reported drilling included two broad intercepts of lower grade gold mineralization in drill holes FC0639 and FC0612 (0.043 oz/ton over 170 feet and 0.033 oz/ton over 170 feet) respectively. Klondex drilling since 2004 has focused exclusively on deeper drilling for high grade mineralization and these intercepts above were encountered in the upper sections of drill holes targeting deeper high grade mineralization. These lower grade intercepts will be reviewed in conjunction with other shallow drilling results from previous operators for bulk tonnage potential at Fire Creek.
These results and those from additional holes received from Phase 4 and the first holes from Phase 5 drilling that began July 1 are presented in the Table below as well as estimated true widths for each significant intercept.
----------------------------------------------------------------- Significant Drill Results Fire Creek
- Assays received from reverse circulation portion of hole only ----------------------------------------------------------------
A plan map setting out drill hole locations is located on the Company's website at www.klondexmines.com.
The Company's current working capital position is approximately CDN$9.5 million and currently 22,515, 548 shares are issued and outstanding.
Richard Kern (P.Geo) of Reno, Nevada, is the Company's qualified person on the project as required under NI 43-101and has reviewed the technical information contained in this press release.
Klondex has in place a rigorous QA/QC program consistent with National Instrument 43-101 and using best industry practice. Core is sawed in half and assayed on 5-foot maximum lengths by ALS Chemex Labs of Reno, Nevada, responsible for all Klondex Mine's assaying at Fire Creek.
Klondex Mines is a junior gold mining company focused on the development of its Fire Creek property located in Northern Nevada Rift in North Central Nevada, an area of substantial mining activity which has produced in excess of 100 million ounces of gold. Klondex's active deep drilling program has to date identified an Indicated Mineral Resource in excess of 1 million ounces of gold. The company's property portfolio contains five gold exploration projects, all in Nevada. Description of these projects, including maps and photographs, are available at: www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD.
William J. Solloway, President Bob Sibthorpe, Director
- 30 -
FOR FURTHER INFORMATION PLEASE CONTACT: Klondex Mines Ltd. William Solloway (917) 306-3679 or Klondex Mines Ltd. Robert Eadie (604) 602-4935 or Toll Free: 1-866-602-4935 Fax: (604) 602-4936 Email: info@klondexmines.com Website: www.klondexmines.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
INDUSTRY: Manufacturing and Production - Mining and Metals SUBJECT: MEX - MINING EXPLORATION UPDATE
Klondex Mines is a junior gold mining company focused on the development of its Fire Creek property located in Northern Nevada Rift in North Central Nevada, an area of substantial mining activity which has produced in excess of 100 million
ounces of gold. Klondex's active deep drilling program has to date identified an Indicated Mineral Resource in excess of 1 million ounces of gold. The company's property portfolio contains five gold exploration projects, all in Nevada. Description of these projects, including maps and photographs, are available at: www.klondexmines.com.
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