Initial Underground Drill Results Show Continuity of Gold Mineralization at Klondex Mines� Fire Creek, Nevada Project
Intercept Highlights:
-
7.61 g Au/tonne over 33.5 meters, including 180.5 g Au/tonne over 0.7 meters
- 5.29 g Au/tonne over 9.1 meters, including 11.6 g Au/tonne over 1.5 meters
- 6.16 g Au/tonne over 6.1 meters, including 39.0 g Au/tonne over 0.8 meters
ELKO, Nev. & VANCOUVER, British Columbia Klondex Mines Ltd. (TSX: KDX.TO - News), a Nevada gold exploration and development company, today released initial assay results from its ongoing underground core drilling program at its 100%-owned Fire Creek gold-silver project in Lander County, Nevada. The nine holes reported today tested the southern end of the Main Vein Zone, a northwest trending set of vein-like bodies of mineralization with a known length of over 1,000 meters. Through February 25th Klondex had completed 28 underground infill holes for a total of 6,591 meters (18 holes were completed in 2011 and 10 holes in 2012). Klondex expects to report the remaining 2011 holes in the next several weeks.
Blane Wilson, CEO of Klondex, commented, �With the results from our first nine holes, our underground infill program is off to a strong start. This program is an important component of our strategy to establish continuity of the gold mineralization that is hosted in a series of parallel vein-like zones. The data from these and future holes will help define the nature and extent of gold mineralization that will be further evaluated with through our bulk sampling program. Importantly, both the exploration and bulk sampling program will utilize the same underground workings. We look forward to reporting further underground results in the coming weeks.�
Results from the drilling program, using a 2.00 g Au per tonne cut-off grade, follow:
Klondex Mines Ltd. 2011 Fire Creek Underground Drill Results � March 1, 2012 (= 2.00 g Au per tonne cut-off) |
Hole No. |
|
From (meters) |
|
To (meters) |
|
Length (meters)* |
|
Grade (g Au/tonne) |
FC 11 002 U |
|
139.7 |
|
140.8 |
|
1.1 |
|
3.78 |
and |
|
156.9 |
|
169.1 |
|
12.2 |
|
2.45 |
FC 11 003 U |
|
142.6 |
|
145.6 |
|
3.0 |
|
3.03 |
and |
|
177.7 |
|
181.5 |
|
3.8 |
|
2.97 |
and |
|
199.0 |
|
200.5 |
|
1.5 |
|
2.84 |
FC 11 004 U |
|
70.1 |
|
73.1 |
|
3.0 |
|
3.26 |
and |
|
157.0 |
|
166.1 |
|
9.1 |
|
5.29 |
including |
|
173.7 |
|
175.2 |
|
1.5 |
|
11.16 |
and |
|
192.0 |
|
193.5 |
|
1.5 |
|
2.30 |
and |
|
217.9 |
|
222.2 |
|
4.3 |
|
3.55 |
FC 11 005 U |
|
130.4 |
|
163.9 |
|
33.5 |
|
7.61 |
including |
|
145.7 |
|
149.5 |
|
3.8 |
|
8.2 |
including |
|
157.1 |
|
157.8 |
|
0.7 |
|
180.5 |
|
(continued) Klondex Mines Ltd. 2011 Fire Creek Underground Drill Results � March 1, 2012 (= 2.00 g Au per tonne cut-off) |
Hole No. |
|
From (meters) |
|
To (meters) |
|
Length (meters)* |
|
Grade (g Au/tonne) |
FC 11 006 U |
|
121.9 |
|
124.9 |
|
3.0 |
|
3.35 |
and |
|
128.0 |
|
129.5 |
|
1.5 |
|
2.08 |
and |
|
137.1 |
|
143.2 |
|
6.1 |
|
2.76 |
and |
|
172.2 |
|
173.7 |
|
1.5 |
|
2.37 |
FC 11 009 U |
|
82.3 |
|
91.4 |
|
9.1 |
|
4.69 |
FC 11 010 U |
|
71.0 |
|
75.5 |
|
4.5 |
|
4.99 |
and |
|
80.1 |
|
83.2 |
|
3.1 |
|
2.16 |
and |
|
118.2 |
|
125.8 |
|
7.6 |
|
3.48 |
including |
|
122.8 |
|
124.3 |
|
1.5 |
|
11.35 |
and |
|
136.5 |
|
138.0 |
|
1.5 |
|
4.43 |
and |
|
141.1 |
|
147.2 |
|
6.1 |
|
6.16 |
including |
|
144.1 |
|
144.9 |
|
0.8 |
|
39.00 |
FC 11 012 |
|
74.0 |
|
80.1 |
|
6.1 |
|
2.01 |
and |
|
113.7 |
|
116.7 |
|
3.0 |
|
2.34 |
and |
|
125.9 |
|
128.9 |
|
3.0 |
|
2.11 |
and |
|
135.0 |
|
139.6 |
|
4.6 |
|
2.79 |
and |
|
144.1 |
|
162.4 |
|
18.3 |
|
3.95 |
including |
|
148.7 |
|
156.3 |
|
7.6 |
|
6.19 |
and |
|
203.6 |
|
205.1 |
|
1.5 |
|
2.67 |
FC 11 014 U |
|
119.5 |
|
128.6 (end of hole) |
|
9.1 |
|
3.11 |
*Apparent �true widths� of the mineralized zones range from 50 to 70 percent of the tabulated �length.� |
|
Exploration Overview:
All of the holes included in this report are HQ diameter (96mm hole; 63.5mm core) core holes which were drilled from a single drill station at the southern end of the northwesterly progressing Fire Creek underground mine workings. Hole FC 11 003 U was drilled in a west-southwesterly direction, whereas the remaining holes were drilled in easterly to east-northeasterly directions. This drill program seeks to test the continuity of mineralization along the projected strike, as well as along the dip of the mineralized zones, which was previously indicated from surface drilling. The results from this group of assays have provided an early indication of continuity of gold mineralization between surface drill holes (drilled on nominal 50 meter line spacing).
About Klondex Mines Ltd. (www.klondexmines.com):
Klondex Mines is focused on the exploration and development of its 100% owned Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect located near power, transportation, mining infrastructure and several milling facilities. Fire Creek�s mineral resource is reviewed in the most recent technical report available here with additional disclosure available via SEDAR.
In addition to an active surface exploration program at Fire Creek, in April 2011 Klondex initiated an underground exploration and development program through an underground decline. The program is designed to enable more cost effective in-fill drilling of its existing resource from underground stations as well as to enable bulk sampling for metallurgical testing of up to 120,000 short tons of material (limited to 36,500 short tons per year). Bulk sampling is anticipated to commence by the end of June 2012.
As of February 29, 2012, Klondex had 46.5 million shares issued and outstanding and 59.2 million shares on a diluted basis.
Sample results cited in this news release were obtained from HQ diameter core drill holes completed by American Drilling, an independent contractor working under the direction of Klondex Gold & Silver staff. Assays were determined by ALS Minerals, Reno, Nevada, an independent analytical laboratory.
The content of this press release has been reviewed by Dean T. Wilton, CPG-7659 (American Inst. of Prof. Geol.) and Vice President � Exploration for Klondex Mines Ltd., as a non-independent Qualified Person.
This news release contains forward-looking statements, including about current expectations on the timing of project development. These forward-looking statements entail various risks and uncertainties, are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about the Company�s business are more fully discussed in the Company�s disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING RESOURCES
This press release uses the terms "inferred mineral resources," "indicated mineral resources," and "mineral resources" which are Canadian mining terms defined in accordance with National Instrument 43-101 � Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in SEC Industry Guide 7 under the United States Securities Act of 1933, as amended. While the terms "mineral resource," "indicated mineral resources," and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under SEC Industry Guide 7 and are not normally permitted to be used in reports filed with the Securities and Exchange Commission. Readers are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Readers are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. As such, information regarding resources contained in this press release may not be comparable to similar information made public by United States companies subject to reporting and disclosure requirements under United States federal securities laws and the rules and regulations promulgated thereunder.
On Behalf of Klondex Mines Ltd.
Blane W. Wilson
President & CEO