Vancouver, BC - February 15, 2011 - Klondex Mines
Ltd. (TSX: KDX) announced new high-grade gold intercepts from its
exploration-drilling program at its Fire Creek property in North Central
Nevada. Results are based on assays for the remaining nine holes (6 core and 3 RC) of the Company's 20-hole drill program
for 2010. Results are reviewed below and a drill plan map is available on
the KDX website.
Drilling Highlights:
- RC drilling (FC1014RC) discovered
a new high-grade vein 150 meters (500 feet) south of the southern
end of the Far North resource. The vein averages 10.76 g/t gold over a
true width of 6.1 meters (0.31 oz/ton Gold over 20 feet), including
41.25 g/t over 1.2 meters true width (1.21 oz/ton over 4.0 feet).
- New
gold-bearing shears (<5 g/t gold) have been found north of
Main Zone and southwest of New North Zone, extending the scope of
these zones.
- In-fill drilling in the
Main Zone yielded the highest gold assays of the year. FC1019
averages 43.16 g/t over a true width of 2.4 meters (1.26 oz/ton over
8.0 feet), including 75.85 g/t gold and 207.00 g/t silver over a true
width of 1.2 meters (2.22 oz/ton gold and 6.0 oz/ton silver over 4
feet).
"Our surface exploration
program continues to discover new high-grade veins while extending the boundaries
and potential of the Fire Creek resource," said Blane
Wilson, President and COO, "with ten new high-grade intercepts found
by our 2010 drilling program. There are numerous IP and other targets still
to pursue, and we also plan to drill a few deeper holes from surface to
test our vein systems at depth. We expect to resume surface exploration
this spring once the snow subsides and we are able to complete surface road
surveys required by the BLM."
Regarding Klondex's underground program, Mr.
Wilson added, "We remain on-track to initiate our underground
exploration and bulk sampling program in March. We believe our permits are
in the final stages of issuance, and our underground contractor SMD has
been on site preparing to initiate the decline upon receipt of regulatory
approvals. Given this timing, we expect Klondex
can start its first bulk sample late in the fourth quarter of this year. We
continue to believe that our progression from pure exploration to a hybrid
model of exploration and production via bulk sampling should create value
for our shareholders."
Klondex's 2010 drilling program consisted of
12,198 feet/3,718 meters of core and 16,045 feet/4,891 meters of RC
drilling. 12 core holes targeted in-fill of the existing resource or
previous IP hits and 8 RC holes targeted IP anomalies. Today's results
include four in-fill drill holes designed to show continuity of veins and
to supply additional data prior to starting underground development. Data
from the 2009 and 2010 drilling programs has not yet been incorporated into
Klondex's NI 43-101 mineral resource, last
updated in March 2009.
Klondex Mines Ltd.
Phase 9 Updated Drill Results Fire Creek - February 2011*
(= 10 feet @ = 0.03 oz/ton gold equivalent)
|
Hole No.
|
From
(feet)
|
To
(feet)
|
Interval
(feet)
|
True
Width
|
Gold
(oz/ton)
|
Silver
(oz/ton)
|
True
Width
(m)
|
Gold
(g/t)
|
Silver
(g/t)
|
Target
Area
|
FC1009
|
890
|
1060
|
170.0
|
119.0
|
0.052
|
0.03
|
36.3
|
1.77
|
1.12
|
N. Main
|
|
900
|
920
|
20.00
|
14.0
|
0.067
|
0.13
|
4.3
|
2.28
|
4.50
|
N. Main
|
Including
|
995
|
1040
|
45.0
|
31.5
|
0.089
|
0.03
|
9.6
|
3.04
|
1.14
|
N. Main
|
FC1011RC
|
No +0.03 oz/ton Gold Values
|
IP Anomaly
|
FC1014RC
|
1490
|
1515
|
25.0
|
20.0
|
0.314
|
0.08
|
6.1
|
10.76
|
2.66
|
IP Anomaly
|
Including
|
1500
|
1505
|
5.0
|
4.0
|
1.205
|
0.20
|
1.2
|
41.25
|
6.80
|
IP Anomaly
|
FC1015RC
|
No +0.03 oz/ton Gold Values
|
IP Anomaly
|
FC1017
|
1060
|
1110
|
50.0
|
40.0
|
0.034
|
0.01
|
12.2
|
1.15
|
0.38
|
New North
|
|
1180
|
1225
|
45.0
|
36.0
|
0.086
|
0.18
|
11.0
|
2.94
|
6.15
|
New North
|
Including
|
1180
|
1185
|
5.0
|
4.0
|
0.144
|
0.50
|
1.2
|
4.92
|
17.10
|
New North
|
& Including
|
1210
|
1225
|
15.0
|
12.0
|
0.152
|
0.19
|
3.7
|
5.21
|
6.60
|
New North
|
FC1018
|
70
|
85
|
15.0
|
13.5
|
0.029
|
<0.015
|
4.1
|
0.98
|
<0.50
|
Main
|
|
135
|
165
|
30.0
|
27.0
|
0.039
|
0.01
|
8.2
|
1.32
|
0.35
|
Main
|
|
195
|
230
|
35.0
|
31.5
|
0.053
|
0.03
|
9.6
|
1.83
|
0.99
|
Main
|
Including
|
195
|
205
|
10.0
|
9.00
|
0.119
|
0.07
|
2.7
|
4.06
|
2.55
|
Main
|
FC1019
|
125
|
205
|
80.0
|
64.0
|
0.071
|
0.01
|
19.5
|
2.43
|
0.21
|
Main
|
|
180
|
195
|
15.0
|
12.0
|
0.285
|
0.01
|
3.7
|
9.75
|
0.50
|
Main
|
|
430
|
440
|
10.0
|
8.0
|
1.260
|
0.37
|
2.4
|
43.16
|
12.50
|
Main
|
Including
|
435
|
440
|
5.0
|
4.0
|
2.215
|
6.04
|
1.2
|
75.85
|
207.00
|
Main
|
|
625
|
685
|
60.0
|
48.0
|
0.034
|
0.14
|
14.6
|
1.15
|
4.75
|
Main
|
Including
|
675
|
680
|
5.0
|
4.0
|
0.116
|
0.17
|
1.2
|
3.97
|
5.70
|
Main
|
FC1020
|
10
|
30
|
20.0
|
16.0
|
0.055
|
0.05
|
4.9
|
1.87
|
1.55
|
Main
|
|
560
|
575
|
15.0
|
12.0
|
0.034
|
0.13
|
3.7
|
1.17
|
4.43
|
Main
|
|
585
|
595
|
10.0
|
8.0
|
0.030
|
0.05
|
2.4
|
1.02
|
1.80
|
Main
|
FC1021
|
550
|
620
|
70.0
|
63.0
|
0.046
|
0.30
|
19.2
|
1.58
|
10.13
|
S. Main
|
*Table contains only results since last press release on 12/13/10.
DRILL HOLE DESCRIPTIONS:
FC1009 Drilled at north end of Main Zone. Crossed two shear zones
within broad anomalous zone (890-1060 feet averaged 1.77 g/t gold).
FC1011RC Tested IP anomaly east of Main Zone. No significant gold
values were encountered.
FC1014RC Tested IP anomaly that extends south of Far North resource.
Intersected two gold-bearing shears (1225-1240 and 1365-1420 feet)
before intersecting the high-grade vein discussed above at 1490-1515 feet.
FC1015RC Drilled well west and south of New North Zone, the hole
tested the western margin of a large IP anomaly. One gold-bearing shear was
intersected between 1160 and 1210 feet.
FC1017 Drilled as an in-fill hole at the New North Zone. The hole
intersected two veins and one gold-bearing shear.
FC1018 Drilled at the Main Zone, this hole intersected three
gold-bearing shears, the strongest of which intersected 10 feet averaging
4.06 g/t gold.
FC1019 Drilled at the Main Zone as an in-fill hole which
intersected two veins including the high-grade vein mentioned above and a
gold bearing shear.
FC1020 Drilled at the Main Zone, this hole intersected three gold
bearing shears (10-30 feet, 195-236 feet and 560-595 feet).
FC1021 Drilled at south end of the Main Zone, this hole intersected
three gold-bearing shears (345-380 feet, 550-620 feet and 835 to 860 feet).
As of December 31, 2010 Klondex Mines had 36,544,089 shares issued and
outstanding, 41,319,089 shares on a fully diluted basis, and approximately
CDN $8 million in cash.
About Klondex Mines (www.klondexmines.com):
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 plans to initiate an underground exploration and bulk
sampling program in Q1 2011, with initial bulk sampling production targeted
by year-end 2011. Klondex has identified the following NI 43-101 compliant
resource at Fire Creek:
Fire Creek
NI 43-101 Compliant Mineral Resource as of March 30, 2009*
|
Classification
|
Metric Tonnes
|
Grams Gold Equivalent
Per Metric Tonne
|
Total Ounces
Gold Equivalent
|
Indicated
Inferred
|
5,043,033
1,833,423
|
10.11
8.63
|
1,639,822
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.
|
Richard Kern (P.Geo), of Reno, Nevada, a
qualified person as defined under National Instrument 43-101, has reviewed
and approved the technical information contained in this press release. All
sample preparation, including crushing, grinding and preparation of the
assay pulps, as well as sample analysis, was performed by ALS/Chemex in their Nevada facilities.
ON BEHALF OF KLONDEX MINES LTD.
William J. Solloway
Chairman and CEO
Blane Wilson
President and COO
Investor Contacts:
Bryson Goodwin
Klondex Mines Ltd.
brysongoodwin@shaw.ca
(604) 341-1531
David Collins
Jaffoni & Collins
KDX@jcir.com
(212) 835-8500
You can also view this News Release on our website at:
http://www.klondexmines.com/s/News.asp?ReportID=442485
|