- 0.30 oz/ton gold over 54 feet, including 1.05 oz/ton over 3.8 feet, extends Main Zone to the North
- 0.56 oz/ton gold over 2.1 feet and 0.54 oz/ton gold also over 2.1 feet discovered between north Main and Far North Zones
Vancouver, BC and Elko, NV � November 15, 2011 � Klondex Mines Ltd.(TSX: KDX) today reported that its active 2011 surface drilling program continues to find new gold veins and to expand the scope of the resource at its Fire Creek property in North Central Nevada. Klondex has completed 16,947 feet of core and 18,040 feet of reverse circulation (RC) drilling (see accompanying map). Twenty holes have been completed to date, with assays received for 12 holes that are reported below. The 2011 surface program is estimated to comprise 30-35 holes and approximately 56,000 feet of exploration drilling.
Highlights:
- Fire Creek�s north Main Zone mineralization was extended by drill hole FC1104 which intersected the strongest gold values yet ..encountered in this area. The intercepts included 0.298 oz/t gold over a true width of 53.6 feet.
- FC1107RC intersected new veins between the Main and Far North Zones, including true widths of 4.2 feet averaging 0.389 oz/t gold ..and 2.1 feet averaging 0.544 oz/t gold. Further testing of these new vein zones is planned for later this year.
- New North Zone infill hole FC1112 intersected two gold veins of 0.30 oz/t or more, including 4.1 feet averaging 1.41 oz/ton gold.
Klondex CEO, Blane Wilson, commented, �Despite initial delays, our surface exploration program is proceeding very well, with excellent productivity and solid assays from the first set of holes that we are reporting today. In these twelve holes, seven had values over 0.03 oz/ton gold and our team encountered nine gold intercepts greater than 0.29 oz/ton.
�We have already completed more surface drilling this year than in all of 2010 or 2009, with two core rigs, two RC rigs and a directional core rig currently on site. The directional rig is attempting to test feeder faults crossing basement rocks well below identified mineralization. This is the first time we have attempted to test the resource at depth. It has been difficult but is now progressing well, and we should be in position to test the targets later this month.�
Results
Gold and silver results, thickness, depth and target areas are shown in the summary geochemistry table below. The Klondex shows the new veins (+0.15 oz/t gold) in magenta and gold bearing shear zones (0.03 to 0.15 oz/t gold) identified to date in 2011, in gold.
2011 Exploration Program
Klondex�s 2011 drilling program, which began July 1st, was designed to test induced polarization (IP) anomalies as well as targets associated with the known resource. The program has been revised and expanded twice this year to include follow-up testing of new veins discovered in 2010 as well as additional IP targets. IP anomalies remain the best targeting tool for initial drilling, with several Fire Creek anomalies remaining untested. Klondex is increasingly using more cost effective RC drilling to initially test IP targets.
Approximately 30 currently permitted or nearly permitted holes are shown on the accompanying map on the Klondex website and represent future exploration targets for the 2011 and 2012 programs. In addition, approximately 30 more drill sites were submitted for permitting in October, in an effort to provide a good pipeline for future exploration expansion.
DRILL HOLE DESCRIPTIONS:
FC1101, drilled at the north end of Main Zone, intersected 85 feet of strong mineralization including 5 feet of 0.321 oz/t gold in a new extension.
FC1102RC tested an IP anomaly northeast of the Main Zone, finding no significant gold values.
FC1103 tested the north Main Zone west of the FC1104 test and intersected two gold-bearing shears (810-885� and 1220-1260�).
FC1104 extended north Main Zone veins to the north. The best vein intercepts in this area are within a major gold-bearing shear over 100 feet wide (1230-1350�). A second strongly mineralized shear was encountered near the bottom of the hole (1595-1636�).
FC1105RC tested an IP anomaly northeast of the Main Zone, encountering no significant gold values.
FC1106RC tested the area between the north Main Zone and the Far North Zone and an IP anomaly. The hole intersected two gold-bearing shears within a wide structure with anomalous gold (1030-1120�).
FC1107RC also tested the area between the north Main Zone and the Far North Zone and an IP anomaly, and intersected three +0.15 oz/t gold veins in a new area.
FC1112, an infill hole drilled in the New North Zone, intersected three +0.15 oz/t gold veins, two of which are +0.29 oz/t gold.
FC1113, an extension hole drilled in New North Zone, extended one vein and two gold-bearing shears 50 meters at south end of resource.
FC1116RC, FC1117RC and 1118RC tested IP anomalies that may represent deeper mineralization 1,000 meters north of the north Main Zone. No significant gold values were encountered, but opal filled structures indicate deeper drilling is needed.
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 that is located near power, transportation, mining infrastructure and several milling facilities. Fire Creek�s updated mineral resource is reviewed in the table below. For more information on the mineral resource estimates, please refer to Klondex�s disclosure available at the SEDAR website and
In addition to an active surface exploration program at Fire Creek, in April 2011 Klondex initiated an underground exploration and development program being pursued via 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 targeted to begin in Q1 2012.
As of November 09, 2011, Klondex had 37.0 million shares issued and outstanding and 43.8 million shares on a diluted basis.
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.
Blane W. Wilson
President & CEO
Investor & Media Contact:
David Collins
Jaffoni & Collins
KDX@jcir.com
(212) 835-8500