Klondex Mines Ltd

Published : July 09th, 2009

Resumes Drilling Of High-Grade Gold Zones At Fire Creek As It Awaits Grant Of BLM Permits This Month

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Keywords :   Gold | Gold Production | Silver |
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      Klondex Resumes Drilling Of High-Grade Gold Zones At Fire Creek
      As It Awaits Grant Of BLM Permits This Month
=======================================================================

Vancouver, British Columbia - July 9, 2009 - Klondex Mines Ltd. (TSX:
KDX) resumed surface drilling yesterday on its 100%-owned "Fire Creek"
gold property in North Central Nevada.  The drilling, part of the
program recommended in the Company's March 2009 NI 43-101-compliant
resource update, will further test the two high-grade gold vein sets
which make up the Main Zone and which are primary targets for Klondex's
planned bulk sampling initiative.  Later this month Klondex anticipates
the grant of permits by the U.S. Bureau of Land Management which will
allow initiation of underground exploration.

Initially, five holes totaling 1,890 meters (6,200 feet) will be
drilled to test high-grade zones on the two north-northwest striking
gold-bearing structures which make up the Main Zone.  The holes are
intended to confirm above average grades reported in previous drill
intercepts as well as to demonstrate continuity in these locations.  A
map showing the planned holes is available at
www.klondexmines.com/s/News.asp.

Robert Sibthorpe, Klondex's Technical Director, commented, "Recent
funding enables Klondex to embark on a focused drill program to further
confirm our bulk sampling targets.  At the same time, we anticipate the
near-term granting of permits to allow our underground program to move
forward.  We continue to believe that near term catalysts --
permitting, drill results and the initiation of our underground program
- as well as the long-term opportunity we see for Fire Creek, make a
REJECTION of Silvercorp's unsolicited bid the best decision for our
shareholders at this time. 

"We believe shareholders should allow the management team that has
built this 1.6 million-ounce indicated gold resource over five years -
for a cost of just over CDN $13.00 per ounce - to initiate its planned
underground exploration and bulk sampling program.  By following the
course Klondex has outlined, we believe shareholders have the potential
to see a far better return on their investment than that offered by the
Silvercorp's all-stock offer.  Shareholders need 'do nothing' to foil
Silvercorp's predatory bid and preserve their full upside in Klondex's
potential."

Discussion of Drilling Targets:
Two proposed holes (P1 and P5 as shown on the accompanying map) will
test the Main Zone along the 350m and 400m North profiles in the Main
Zone.  Proposed hole P1 will test the hole FC0417 intercept grading
95.2 gpt (grams per metric ton) gold and 53.5 gpt silver over an
estimated true width* of 3.81 meters (including 411 gpt gold and 236.0
gpt silver over 0.76 meters) and the intercept from FC0512 grading 16.8
gpt gold and 54.4 gpt silver over 2.66 m on Vein M2.  This hole will
also test for the up dip extension of the intercept reported in FC0513
of 40.1 gpt gold and 105.4 gpt silver over 2.66 m on Vein M1.  Proposed
hole P5 will be drilled 50 meters to the north of P1 and will test the
intercepts from FC0403 (30.3 gpt gold and 21.8 gpt silver over 2.44 m)
and FC0502 (20.8 gpt gold and 19.5 gpt silver over 6.1 m), both on Vein
M1.

Some 200 to 250 meters to the south, a set of three proposed holes (P2,
P3 and P4) will test the high grade area on Vein M1 characterized by
previously reported high-grade intercepts such as FC0413 (182.5 gpt
gold and 156.0 gpt silver over 1.22m), FC0621 (24.6 gpt gold and 16.2
gpt silver over 8.54m), FC0419 (14.2 gpt gold and 14.0 gpt silver
including 76.0 gpt gold and 76.9 gpt silver over 2.44m) and FC0619
(30.1 gpt gold and 24.3 gpt silver over 6.1m, 60.9 gpt gold and 31.5
gpt silver over 2.8m and 64.2 gpt gold and 30.5 gpt silver over 1.2m).

*All widths reported above are true widths generally estimated to be
50-80% of reported widths.

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 11,098 acres of fee land and
unpatented mining claims.  In March 2009 Klondex defined and disclosed
in a technical report entitled "Updated Report on the Fire Creek Gold
Property Lander Co., Nevada" dated March 30, 2009, an Indicated Mineral
Resource at Fire Creek estimated at 5,043,033 tonnes grading 10.11
grams per metric ton (gpt) containing 1,639,822 ounces of gold
equivalent and an Inferred Mineral Resource Estimated at 1,833,423
tonnes grading 8.63 gpt for 508,799 ounces of gold equivalent.  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 (13 oz.) per metric ton in hole FC0417.
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.

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.  75-80 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
(917) 306-3679

For Further Information Contact:
David Collins, Ratula Roy Velez
Jaffoni & Collins Incorporated
KDX@jcir.com
(212) 835-8500

Cautionary Statement:
This news release may contain forward-looking statements.  Actual
results may differ materially from those indicated by such statements.
All statements, other than statements of historical fact, included in
this news release, are forward looking statements that involve various
risks and uncertainties.  There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements.

=======================================================================
Copyright (c) 2009 KLONDEX MINES LIMITED (KDX)  All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto:info@klondexmines.com
=======================================================================
.
<

Klondex Mines Ltd

DEVELOPMENT STAGE
CODE : KDX.TO
ISIN : CA4986961031
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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.

Your feedback is appreciated, please leave a comment or rate this article.
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4/30/2008Provides Investor Update
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11/27/2007 Highlight Nevada Gold Exploration Progress at Academy & Fin...
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6/27/2007Receives Shareholder Petition
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