Re: News - Wednesday, April 01, 2009
Title: KDX 43-101 Shows 1.640 Million Ounces Gold Equivalent Indicated
KDX 43-101 Shows 1.640 Million Ounces Gold Equivalent Indicated Mineral Resource Plus 508,799 Ounces Inferred at its Fire Creek ProjectVancouver, British Columbia - April 01, 2009 - Klondex Mines Ltd. (TSX: KDX) announced today it has received an NI 43-101-compliant update report on its 100%-owned Fire Creek gold property in the Battle Mountain-Eureka Trend in Northern Nevada which contains the following information:
"Through extensive drill campaigns carried out over the past 5 years Klondex has defined an Indicated Mineral Resource estimated at 5,043,033 metric tons averaging 10.11 grams per metric ton (gpt) for 1,639,822 ounces of gold equivalent with an average interval true width of 5.5 meters using a cut-off grade of 5.0 gpt. This cut-off grade also resulted in an inferred resource estimate of 1,833,423 metric tons tonnes grading 8.63 gpt for 508,799 ounces of gold."
The current mineral resource figures at various cut-off grades are presented in the table below and all represent a significant increase in tonnage and contained gold over the September 2006 resource estimate of an indicated resource of 1,636,555 tonnes grading 19.88 gpt containing 1,045,738 ounces of gold.
This Mineral Resource Update was based on information from an additional 101 drill holes totaling 147,110 feet (44,837 meters) received between August 2006 and December 2008. The estimation method used was the polygonal technique. Key assumptions included an average mining width of 5.5 meters (for the 5.0 gpt cut off estimate) for dilution and a bulk tonnage factor of 2.55 was applied based on specific gravity measurements of representative core. High gold values were not cut but their area of influence was limited by a number of constraints. The Mineral Resource Update reflects three different mineral cutoffs. The September 2006 mineral resource was based on a cutoff of 10 gpt and an average mining width of less than 3 meters. The reduced GPT cutoffs and increased mining widths utilized in the Mineral Resource Update were deemed appropriate given the significant increase in the price of gold over the past 2 � years. The silver to gold grade ratio is approximately 1:1 and silver does not have a significant economic impact on the overall resource at Fire Creek but is important locally within the zones.
Robert Sibthorpe, Technical Director for Klondex Mines commented, "Since the initiation of exploration activity in 2004, the Company has been able to turn a small, low-grade historical gold resource into a significant high-grade gold project in the established mining area of North Central Nevada. The last two years of drilling activity accomplished the dual objectives of extending known areas of gold resources and discovering new zones through testing of geophysical targets. Numerous untested IP chargeabilty targets remain on the property and the Main zone is still open in both directions along strike. Assuming additional capital can be sourced on terms attractive to existing Klondex shareholders, the Company intends to follow the recommendations of the Update Report, to continue an aggressive drill testing program and proceed with the planned underground program to further develop the resources discovered and outlined to date."
The mineral resources mentioned are defined in terms of the National Instrument 43-101 regulations. This report is an update to the NI 43-101 compliant report received in September 2006 and is based on information from site examinations and a review and interpretation of existing data and documents from previous mineral exploration programs. Klondex provided all available reports and data records from files that have been collected from previous exploration efforts by other mining companies and documents generated by Klondex exploration.
The report entitled "
Updated Report on the Fire Creek Gold Property Lander Co., Nevada"
by Edwin Ullmer, M.S., (P.Geo) of Westminster, Colorado and Richard Kern , M.S., (P.Geo) of Reno, Nevada has been filed with the BCSC authorities.
http://www.sedar.com/Edwin Ullmer, M.S., (P.Geo) of Westminster, Colorado, is an Independent Qualified Person as required under NI 43-101and has reviewed and approved the technical information contained in this press release. Richard Kern, M.S., (P.Geo) of Reno, Nevada has managed the exploration program at Fire Creek on behalf of Klondex Mines through MinQuest Inc. since the program's initiation in 2004.
As of March 26, 2009, Klondex had 26,719,804 shares currently issued and outstanding.
About Klondex Mines:Klondex Mines Ltd. is a gold exploration company focused on the development and expansion of its 100%-owned, high-grade Fire Creek deposit in Nevada which consists of 10,708 acres of fee and lease land. In March 2009 Klondex defined an Indicated Mineral Resource at Fire Creek estimated at 5,043,033 tonnes grading 10.11 grams per tonne containing 1,639,822 ounces of gold. The Fire Creek deposit is classified as a "bonanza" grade epithermal gold deposit characterized by high-grade drill intervals including 1.52 meters grading 411 grams per tonne in hole FC0417.
Fire Creek is located in North Central Nevada, an area of prolific gold production, at the intersection of the Battle Mountain-Eureka Trend and the Northern Nevada Rift. The Company was founded over 35 years ago, and its property portfolio consists of four gold exploration projects, all in Nevada. Eighty percent of Klondex' known resource is on private land. For more information, please visit
www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD."William Solloway"
President
"Bob Sibthorpe"
Director
Investor Contact:David Collins, Ratula Roy Velez
Jaffoni & Collins Incorporated
KDX@jcir.com(212) 835-8500
Copyright � 2009 KLONDEX MINES LIMITED (KDX) All rights reserved. For more information visit our website at
http://www.klondexmines.com/ or send email to
info@klondexmines.com ..
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Klondex Mines Ltd
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DEVELOPMENT STAGE |
CODE : KDX.TO |
ISIN : CA4986961031 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Klondex Mines is a gold and silver development stage company based in Canada. Klondex Mines holds various exploration projects in USA. Its main asset in development is FIRE CREEK in USA and its main exploration properties are MAGGIE CREEK, REEF, HOT SPRINGS POINT, CORRAL CANYON and SWALES MOUNTAIN in USA. Klondex Mines is listed in Canada and in United States of America. Its market capitalisation is CA$ 543.8 millions as of today (US$ 414.3 millions, € 344.7 millions). Its stock quote reached its lowest recent point on December 08, 2000 at CA$ 0.06, and its highest recent level on November 04, 2016 at CA$ 7.95. Klondex Mines has 177 130 000 shares outstanding. |