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Intercept Averaging 0.361 oz/ton Gold over 18 Feet True Width
Extends Klondex's Fire Creek New North Zone
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Vancouver, British Columbia: July 8, 2008 - Klondex Mines Ltd. (TSX:
KDX) has received results for six of the first seven holes, totaling
6,834 feet, of its Phase 7 drilling program at its 100%-owned Fire
Creek property on the Battle Mountain-Eureka Trend in Northern Nevada.
This surface-drilling program will continue at least into the fall.
Of special interest are intercepts for holes FC0807 (20 feet @ 0.361
oz/ton gold -- 18 feet true width), which extends the New North vein
system 100 meters and leaves the zone open to the north, and FC0806 (5
feet @ 0.629 oz/ton gold -- 4.5 feet true width), which extends the Far
North zone 50 meters to the south.
June 2008 Drill Results Fire Creek (>= 10 feet @ >= 0.03 oz/ton gold)
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True
Hole From To Interval Width Gold Silver
No. (feet) (feet) (feet) (feet) (oz/ton) (oz/ton)
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FC0801 260 280 20 18.0 0.039 0.01
450 470 20 18.0 0.035 0.01
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FC0802 755 825 70 49.5 0.053 0.38
Including 805 810 5 3.5 0.270 0.72
960 1035 75 53.0 0.059 0.25
Including 1005 1020 15 10.6 0.132 0.34
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FC0803 390 410 20 12.0 0.050 0.01
685 815 130 78.0 0.080 0.19
Including 810 815 5 3.0 0.232 0.24
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FC0804 550 575 25 17.7 0.031 0.02
755 800 45 31.8 0.086 0.39
Including 785 790 5 3.5 0.218 1.03
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FC0805 Pending
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FC0806 690 745 55 49.5 0.120 0.15
Including 735 740 5 4.5 0.629 0.68
977.5 1077.5 100 90.0 0.113 0.05
Including 1005 1065 60 54.0 0.147 0.06
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FC0807 1170 1200 30 27.0 0.264 0.11
Including 1170 1190 20 18.0 0.361 0.12
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Hole Width Gold Silver Target
No. (m) (g/t) (g/t) Area
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FC0801 5.5 1.35 0.3 IP Anomaly
5.5 1.19 0.3 IP Anomaly
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FC0802 15.1 1.81 12.9 South Main
Including 1.1 9.24 24.7 South Main
16.2 2.03 8.4 South Main
Including 3.2 4.53 11.8 South Main
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FC0803 3.7 1.73 0.2 South Main
23.8 2.73 6.4 South Main
Including 0.9 7.94 8.2 South Main
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FC0804 5.4 1.06 0.7 South Main
9.7 2.93 13.4 South Main
Including 1.1 7.47 35.2 South Main
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FC0805 Main
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FC0806 15.1 4.11 5.0 S. Far North
Including 1.4 21.55 23.1 S. Far North
27.4 3.88 1.7 S. Far North
Including 16.5 5.03 2.0 S. Far North
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FC0807 8.2 9.03 3.7 N. New North
Including 5.5 12.38 4.0 N. New North
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FC0801, which tested IP anomaly "0" located west of Main, intersected a
major fault zone with weak gold values.
FC0802, FC0803 and FC0804 are fill-in holes within the south Main
extension discovered last season. All three holes intersected veins
ranging from 0.218 to 0.270 oz/ton gold (see table above); FC0802 and
FC0803 had thick intercepts (53 to 78 feet true width) of
quartz-opal-calcite stockwork mineralization ("stockwork" is a network
of "veinlets" in the host rock). Opal is normally present only above
high-grade mineralization at Fire Creek, thus deeper drilling is
planned beneath the stockwork zone.
FC0806, which extended the Far North vein zone 50 meters to the south,
intersected 4.5 feet true width of high-grade gold/silver
mineralization, listed above, within a broad fault zone (49.5 feet true
width) averaging 0.120 oz/ton gold. It also intersected a deeper zone,
which contains 54 feet true width averaging 0.147 oz/ton gold.
FC0807, which extended the New North zone 100 meters to the north,
contained a high-grade gold zone, listed above, within the core of a
broader zone 27 feet in true width that averaged 0.264 oz/ton gold.
Additional drilling is planned to extend the New North zone further
north. An updated drill hole location map is available on the company
website www.klondexmines.com.
Underground Permitting and Bulk Sampling Update:
During the third quarter of 2008, Klondex anticipates receiving the
permits necessary to commence work on an underground program which will
involve the driving of a 4,715 feet long decline to access
mineralization underground. Once completed, the decline will enable
underground in-fill drilling of the resource as well as bulk sampling
for metallurgical testing of up to 120,000 tons of material over a
three to five year period. Klondex filed its permit applications in
March 2007 and revised applications in April 2008. Klondex plans to
target its bulk sampling effort within vein mineralization averaging
1-2 oz/ton gold, creating the potential to generate substantial cash
flows to fund further development of the resource.
Gold and silver fire assays were performed by ALS-Chemex Labs in
Sparks, Nevada using 50-gram charges of one-half sawed core. All gold
assays over 0.03 oz/ton are re-analyzed, and random repeats and
standard samples are run on a regular basis.
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.
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, covering 10,708 acres of fee and federal mining claims 100%
controlled by Klondex. At Fire Creek, Klondex has a September 2006, NI
43-101 defined Indicated Mineral Resource estimated at 1,636,555 tonnes
grading 19.88 grams per tonne (0.639 oz/tonne) containing 1,045,738 oz
of gold in two separate mineral zones. Klondex has filed for permits
to begin bulk sampling for metallurgical testing of up to 120,000 tons
of ore and anticipates receipt of these permits during Q3 '08.
Fire Creek is located along the Northern Nevada Rift and on the Battle
Mountain-Eureka Trend in North Central Nevada, an area of prolific gold
production. Klondex currently has three drill rigs working to expand
its resource at Fire Creek. The Company was founded over thirty years
ago, and its property portfolio consists of four gold exploration
projects, all in Nevada. Eighty percent of Klondex's known resource is
on private land. For more information, please visit
www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD.
"William J. Solloway"
President
# # #
Investor Contact:
David Collins, Steven Hecht
Jaffoni & Collins Incorporated
KDX@jcir.com
(212) 835-8500
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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
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