======================================================================
Re: News - Thursday, January 17, 2008
Klondex's Drills Gold Intercepts of 67.2 gpt over 1.5 meters
======================================================================
(1.95 oz/ton over 5 feet) and 42.3 gpt over 2.4 meters
(1.23 oz/ton over 8 feet) in 2 Holes, Discovering New Gold Zone
and Extending Main Zone at its Nevada "Fire Creek" Deposit
- Klondex Appoints SMD as Underground Contractor; Reviews Productive
2007 Phase 6 Drilling Program of 42 holes Totaling 60,517 feet -
Vancouver, British Columbia: January 17, 2007 - Klondex Mines Ltd.
(TSX: KDX) announced additional high-grade gold and silver 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.
The high-grade intercept from drill hole FC0748 of 1.95 oz/ton gold
over 5 feet, (67.2 grams/tonne gold over 1.52 meters) represents a new
discovery, the "Northeast Zone," on the Fire Creek property and is
located some 600 meters east of the Main Zone mineralization. The
mineralization was found with the final hole of the Phase 6 campaign
while drilling geophysical (induced polarization - "IP") targets in
this area. The intercept validates the exploration technique of
drilling IP targets to locate sulfide-mineralized structures at Fire
Creek. Follow up on this discovery with additional drilling will be a
priority when Phase 7 drilling begins in April of this year.
FC0747 is the southernmost hole that has been drilled to date on the
Main Zone at Fire Creek and returned 1.23 oz/ton gold and 15.7 oz/ton
silver over 8 feet (42.3 grams per tonne gold and 517.9 gpt silver over
2.44 meters) and represents a 50 meter step out and extension of the
Main Zone to the south. The true width of the discovery intercept on
hole FC0748 is unknown while the true width of the intercept on hole
FC0747 is estimated at 70% of the reported width. A plan map setting
out drill hole locations is available on the Company's website at
http://www.klondexmines.com/s/News.asp
Indicated Gold Resource at Fire Creek prior to 2007's Phase 6 Drilling
Program:
At the end of Phase 5 drilling the Indicated Mineral Resource at Fire
Creek was estimated in the NI 43-101 compliant report dated September
2006 to be:
Main Zone; 912,366 tonnes grading 27.3 gpt (801,681 oz gold)
Far North Zone: 724,188 tonnes grading 10.48 gpt (244,047 oz gold)
Total: 1,636,555 tonnes grading 19.88 gpt (1,045,738 oz gold)
Phase 6 Drilling Program Overview:
Phase 6 drilling, which concluded in mid December, consisted of 42
holes totaling 60,517 feet of reverse circulation and NQ core drilling
and effectively doubled the strike length of the Main Zone, although
infill drilling will be required to confirm the continuity of the zone
in this direction.
2007's phase 6 drilling tested IP targets generated by a 2006
geophysical survey that resulted in the discovery of two new
mineralized zones, the New North Zone (discovery hole FC0632: 7.5
gpt/3.1m) and the Northeast Zone (discovery hole FC0748: 62.7
gpt.1.52m). These discoveries will be followed up in Phase 7 and
several other IP targets will be tested. Phase 6 drilling also tested
the Main Zone, extending it to the south some 200 meters with drill
holes:
FC0701 (25.3gpt/1.52m)
FC0734 (5.2gpt/6.1m)
FC0735 (34.3 gpt/1.6m)
FC0741 (3.8 gpt/9.14m)
FC0742 (15.4 gpt/5.5m)
FC0747 (42.3gpt/2.44m)
Drill hole FC0724 (18.0 gpt/9.1m) detected the Main Zone some 300
meters along strike to the north of the boundary used in the resource
calculation. Nine holes from Phase 6 were drilled to investigate
"gaps" in the Main Zone, which had not been drill-tested in previous
campaigns and accordingly were excluded from the resource estimate.
The drill intercepts from these holes generally met or exceeded
expectations within the context of previous drilling. The Company has
not yet received all of its final assays from its Phase 6 drilling
program.
While the changes to the September 2006 resource estimate due to Phase
6 drilling are not tabulated at this time, the Company's technical
staff believes that significant additions have been made. The Company
plans to maintain an aggressive drilling program in 2008.
Fire Creek Underground Mining Contractor Appointed:
Klondex is pleased to announce that it has appointed SMD (Small Mine
Development L.L.C.) of Boise, Idaho as its Mining Contractor for the
underground exploration and development at Fire Creek. The Company's
permitting process, being directed by permitting consultants
Enviroscientists Inc., of Reno, Nevada, is proceeding well, with all
permits currently expected to be on track for issuance in the spring of
2008. Klondex's applications include a permit to extract up to 120,000
tons of Fire Creek ore in a bulk sample for the purposes of
metallurgical testing and determination of gold recovery rates.
Klondex plans to target its bulk sampling effort at ore ranging from
1-2 ounces per ton, creating the potential to generate substantial cash
flows.
As of December 31, 2007, Klondex had 22,989,673 shares issued and cash
of approximately $4.76 million CDN invested in Canadian treasury bills
and in guaranteed bank accounts. The appreciation of the Canadian
dollar versus the U.S. 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 43-101and 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. 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) is a gold exploration company focused on the
exploration and expansion of its high-grade Fire Creek deposit in
Nevada. At Fire Creek, Klondex has a September 2006, NI 43-101
compliant Indicated Mineral Resource of 1,045,738 oz of gold,
comprising 1,636,555 tonnes grading 19.88 grams per tonne (0.576
oz/ton) across two separate mineral zones. Klondex has filed for
permits to commence underground workings for in-fill drilling as well
as bulk sampling for metallurgical testing of up to 120,000 tons of
ore. Receipt of those permits is now anticipated in the spring of
2008.
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 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"
President
"Robert Sibthorpe"
Technical Director
Investor Contact:
David Collins, Steven Hecht
Jaffoni & Collins Incorporated
KDX@jcir.com
(212) 835-8500
Associated Map:
http://www.klondexmines.com/i/maps/kdx-drillingupdate-jan1708.gif
150 KB in size, approx. 29 seconds to download at 56.6Kbps
======================================================================
Copyright (c) 2008 KLONDEX MINES LIMITED (KDX) All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto:info@klondexmines.com
======================================================================
.