December 11, 2006
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.
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Significant Drill Results Fire Creek
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Hole No. Section Target Elev/Az Angle TD
Feet
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Main
FC0611 750N Ext 6270/75 -45 1540
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Main
FC0620 100N Infill 5975/75 -44 950
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and
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Main
FC 0621 100N Infill 5975/75 -52 1000
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FC0639 150N IP #0 6377/255 -45 60(i)
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FC0632 1150N IP #4 6506/255 -45 1455
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and
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FC0612 750N FN Infill 6184/75 -48 1200
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True
Hole No. Section From To Length Grade Width(i)
Feet Feet Feet Oz/ton Factor
(%)
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FC0611 750N 1480 1490 10 0.146 70
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FC0620 100N 775 783 8 0.191 80
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795 800 5 0.412 80
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FC 0621 100N 790 825 35 0.714 75
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FC0639 150N 200 370 170 0.043 70
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FC0632 1150N 1135 1145 10 0.247 70
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1215 1225 10 0.203 70
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FC0612 750N 790 960 170 0.033 70
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- (Factor) X (Length) equals True Width as estimated from drill hole surveys and assumed vein dips.
- Assays received from reverse circulation portion of hole only
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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
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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
