======================================================================
Re: News - Wednesday, March 19, 2008
KDX Confirms Gold Intercept of 0.37 oz/ton (12.7 g/t) over 25
feet (7.6 m), Including 1.47 oz/ton (50.3 g/t) Over 5 feet (1.5
m), in Southern Extension of the Main Zone at its Nevada "Fire
Creek" Deposit
======================================================================
- Phase 7 Drilling Program Commenced Earlier This Week -
Vancouver, British Columbia: March 19, 2008 - Klondex Mines Ltd. (TSX:
KDX) announced an additional high-grade intercept from the conclusion
of drilling under its 2007 Phase 6 drilling program at its 100%-owned
Fire Creek property in the Battle Mountain-Eureka Trend in Northern
Nevada. With the potential to add additional ounces in several
locations the Company's Phase 7 drilling program commenced last Sunday,
ahead of schedule.
The high-grade intercept from drill hole FC0746 was from 740 feet
(225.6 m) to 765 feet (233 m) and assayed 0.37 oz/ton (12.8 g/t) gold
and 0.37 oz/ton (12.7 g/t) silver over 25 feet (7.6 m) including 1.48
oz/ton (50.7 g/t) gold over 5 feet (1.5 meters). The hole was drilled
to test the up dip extension of previously reported hole FC0747 on the
southernmost section drilled to date on Fire Creek's Main Zone. As
previously reported, FC0747 returned 1.22 oz/ton (41.8 g/t) gold and
21.0 oz/ton (719 g/t) silver over 8 feet (2.4 m). True width of the
FC0746 intercept is approximately 19 feet (5.8 m), and true width of
the intercept on hole FC0747 is estimated at 70% of the reported width.
Results from the Phase 6 drilling program are now complete and 2008's
Phase 7 drilling has been initiated with one core and one RC rig.
Phase 7 will consist of 40 to 60 additional core holes targeting
expansion of open-ended vein zones identified in 2007. Open-ended vein
zones include the north and south ends of the Main zone, the New North
zone, and the Northeast zone, a new discovery made late last year. A
map showing the initial planned Phase 7 holes and vein expansion
targets is available on the Klondex website:
http://www.klondexmines.com/s/News.asp.
Phase 6 Drilling Overview:
Phase 6 drilling consisted of 42 holes totaling 60,517 feet of reverse
circulation and HQ core drilling. Phase 6 drilling tested IP targets
generated in a 2006 geophysical survey which resulted in the discovery
of 2 new mineralized zones, the New North Zone (discovery hole FC0632:
0.22 oz/ton gold over 10 feet (7.5 g/t over 3.1 m) and the Northeast
Zone (discovery hole 0748: 1.83 oz/ton gold over 5 feet (62.7 g/t
over1.5 m). These discoveries will be followed up in Phase 7 and other
IP targets will be tested.
Phase 6 drilling also tested the Main Zone, extending it to the south
some 650 feet (200 m) with drill holes:
FC0701: 0.74 oz/ton gold over 5 feet (25.3 g/t over 1.5 m)FC0734: 0.15
oz/ton gold over 20 feet (5.2 g/t over 6.1m)
FC0735: 1.00 oz/ton gold over 5 feet (34.3 g/t over1.5 m)
FC0741: 0.11 oz/ton gold over 30 feet (3.8 g/t over 9.1m)
FC0742: 0.45 oz/ton gold over 20 feet (15.4 g/t over 6.1 m)
FC0747: 1.24 oz/ton gold over 8 feet (42.3 g/t over 2.4 m)
Drill hole FC0724: 0.53 oz/ton gold over 30 feet (18.0 g/t over 9.1m)
detected the Main Zone some 980 feet (300 m) along strike to the north
of the boundary used in the 2006 resource calculation. True width of
hole FC0701 is estimated at 60-80% of reported width. True widths of
holes FC0734 and FC0735 are estimated at 70-80% of reported widths.
True widths of FC0741 and FC0742 are estimated at 71% and 57% of
reported widths, respectively. True widths of FC0632, FC0747 and
FC0724 are estimated at 70% of reported widths.
Phase 6 drilling 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. Nine holes from Phase 6 were drilled to
investigate "gaps" in the Main Zone that had not been drill-tested in
previous campaigns and accordingly were excluded from the 2006 resource
estimate. The drill intercepts from these holes generally met or
exceeded expectations within the context of previous drilling.
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. Klondex
plans to maintain an aggressive drilling program throughout 2008.
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: 1,005,916 short tons @ 0.80 oz/ton gold (912,366 metric tons
@ 27.3 g/t) (801,681 oz)
Far North Zone: 798,443 short tons @ 0.31 oz/ton gold (724,188 metric
tons @ 10.5 g/t) (244,047 oz)
Total: 1,804,359 short tons @ 0.58 oz/ton Au (1,636,555 metric tons @
19.9 g/t) (1,045,738 oz)
Bulk Sampling and Infill Drilling Program:
In addition to its Phase 7 drilling program, Klondex anticipates
receiving in mid 2008 the permits necessary to commence work on the
infrastructure that will allow underground infill drilling of the
resource and bulk sampling for metallurgical testing of up to 120,000
tons of material over a three to five year period. Klondex has
selected Small Mine Development L.L.C. of Boise, Idaho as its Mining
Contractor for the underground exploration and development at Fire
Creek. 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 from the effort.
As of December 31, 2007, Klondex had 22,989,673 shares issued and cash
of approximately CDN $4.76 million invested in Canadian treasury bills
and in guaranteed bank accounts.
Richard Kern (P.Geo), Project Manager, 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 are responsible for all
of Klondex Mines' assays.
About Klondex Mines Ltd.:
Klondex Mines (TSX: KDX) 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 defined an Indicated Mineral
Resource estimated at 1,636,555 tonnes grading 19.88 grams per tonne
(0.576 oz/tonne) 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. Receipt of these
permits is anticipated in mid 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 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 consists of four 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 File:
http://www.klondexmines.com/i/pdf/KDXFCDrillingUpdateMap3.19.08.pdf
143 KB in size, approx. 28 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
======================================================================
.
![]()