Klondex Mines Intersects 30.9 g/t Gold Over 4.9 meters,
Including 109.3 g/t Gold Over 1.2 Meters, Extending
Main Zone East at its Fire Creek Project in Nevada;
Reports Final 21 Drill Holes of 2011 Surface Exploration Program
2011 Program Highlights:
- Significant Extension of Main Zone Veins to the East
- Two Vein Extension Zones Discovered in North Main Zone
- New Vein Zone Discovered Between Main and Far North Zones
Elko, NV & Vancouver, BC �
February 14, 2012 � Klondex Mines Ltd. (TSX: KDX), a Nevada gold exploration and development company, today released the final results from its 2011 exploration program at its 100%-owned Fire Creek gold-silver project in north-central Nevada. The 2011 program succeeded in locating previously unknown gold- and silver-bearing veins. In this release Klondex reports assay results for the final 21 holes of its 33-hole 2011 surface-drilling program; Klondex reported the first 12 holes in November 2011.
Blane Wilson, CEO of Klondex, commented, �Despite a late start on July 1st, our exploration team made substantial progress in 2011 in what was the largest-ever surface exploration program conducted by Klondex. We are very encouraged by the program�s overall results, with a combination of high-grade intercepts, new vein discoveries and gold bearing shears that warrant follow-up drilling. We are finalizing plans for our 2012 surface drilling program which is expected to exceed 15,000 meters (49,000 feet) of drilling and will be underway in April.
�Our underground in-fill and definition drilling program is also making excellent headway. We hope to have initial results from this program soon. Underground drilling provides the opportunity for tighter drill spacing to better establish continuity of our mineralized zones at a much lower cost than drilling from surface. It is also more accurate and cost effective given its closer proximity to the targets. Since inception in September through January we have drilled 22 underground core holes totaling 5,430 meters (17,815 feet). We expect to exceed 20,000 meters (65,000 feet) of underground drilling in 2012.
�In addition, we are making solid progress with our underground development program. To date we have completed a total advance of 594 meters (1,949 feet), including 436 meters (1,430 feet) of the main decline. This leaves us with approximately 300 meters (980 feet) of decline to complete before we are able to initiate our bulk sample program. We expect to begin extracting the bulk sample by the end of June. Given our strong financial position and the unprecedented level of exploration and development activity planned for Fire Creek this year, we are very optimistic about our prospects to create greater value for Klondex shareholders.� ResultsKlondex�s 2011 surface exploration program included 8,941 meters (29,336 feet) of core and 6,785 meters (22,263 feet) of reverse circulation (RC) drilling. Gold and silver results, thickness, depth and target areas for the latest holes are shown in the summary geochemistry table below. The plan map
(click here) shows the newly encountered veins (+5 g Au/t gold) in magenta and gold bearing shear zones (>1 g Au/t and <5 g Au/t) in yellow that were identified in 2011.
Click here for a longitudinal section showing currently defined gold mineralization.
Exploration Highlights:
Highlights of the 2011 surface drilling program include a significant extension of the east Main Zone veins, the discovery of two vein extension zones at north Main, and the intersection of a new vein zone between the Main and Far North Zones. Three out of four of these new vein zones were identified through drill testing of induced polarization (IP) targets. Klondex plans to pursue additional drill testing of all of the new vein zones once geologic modeling, drill-hole planning and environmental permitting have been completed.
Drilling east of the Main Zone in holes FC1126 and FC1127 extended the mineralized zone associated with an IP anomaly discovered in late 2009. FC1126 intersected 30.9 g Au/t over a true width of 4.9 meters including 109.3 g Au/t over 1.2 meters. FC1127, located 50 meters north intersected four separate +5.0 g Au/t intercepts. The east Main Zone now extends for 150 meters.
Drill Hole Descriptions:
Foot and meter references are down-hole distances, not true depths, as all holes cited are inclined.
FC1108 was designed to test the IP anomaly along the east side of the Main Zone. The hole intersected a shear zone from 1,145 to 1,205 feet [349 to 367 meters], with anomalous gold values ranging up to 0.52 g Au/t;
FC1109, designed to test for an extension of the Far North veins 150 meters south of the resource, intersected a fault zone from 1,630 to 1,680 feet [487 to 512 meters] with only weakly anomalous gold values.
FC1110RC was designed to test an extension of the Far North vein system, 50 meters south of the currently defined NI 43-101 compliant mineral resource. The hole intersected a fault zone from 990 to 1,060 feet [302 to 323 meters] containing two five-foot [1.52 meters] intervals of +1.0 g Au/t gold.
FC1111DB, the first deep hole drilled at Fire Creek to test �feeder� faults nearly 2,000 feet [609 meters] beneath the Main Zone resource, in the underlying sedimentary rocks of the Valmy Formation. Unfortunately, favorable host rocks were not intersected in the hole. Rather, shale and argillite, which are poor host rocks, were encountered. Anomalous gold values were encountered at the contact of the Valmy Formation and the overlying Tertiary-aged volcanic rocks, from 2,100 to 2,190 feet [640 to 667 meters] with a high assay of 0.48 g Au/t gold.
FC1114 tested the Far North Zone and intersected five separate shear zones with an aggregate width of 72 feet [21.9 meters] between 955 to 1,235 feet [291 to 376.4 meters]. Gold grades in the mineralized shear zones ranged from 1.15 to 1.38 g Au/t.
FC1115 was drilled from the same location as FC1114 but tested deeper a deeper portion of the target structure. The hole intersected a fault zone from 965 to 1060 feet [294.1 to 323 meters], with one five-foot [1.52 meter] interval containing +1.0 g Au/t.
FC1119RC was drilled along the southerly projection of the Main Zone, and the hole intersected three separate +1 g/t gold mineralized shear zones (totaling 9.8 meters in width) from 550 to 750 feet [167.6 to 228.6 meters] that carried grades ranging from 1.28 to 1.91 g Au/t.
FC1120RC was drilled on the south extension of the Main Zone to test the shear zone at a more shallow level than 1119RC. This hole intersected a 9.8-meter thick +1 g Au/t mineralized gold shear from 515 to 555 feet [156.97 to 169.16 meters].
FC1121 was drilled into the Far North Zone from the west, and the hole intersected three mineralized shear zones that host +1 g Au/t, and one vein which hosts mineralization at a grade of +5 g Au/t.
FC1122 tested the northern end of the Far North Zone vein system. It intersected a previously unknown vein hosting mineralization grading 7.7 g Au/t over a length of 3.9 feet [1.2 meters] of 5 g Au/t, as well as three +1 g/t mineralized shear zones that contain gold mineralization in excess of 1.0 g Au/t.
FC1123 RC tested an IP anomaly on the eastern side of the Main Zone, but did not intersect any significant mineralization.
FC1124 was an infill hole at the north end of the Main Zone. The hole encountered three mineralized zones, and extended the length of a strongly mineralized vein a further 164 feet [50 meters].
FC1125 was designed as a deeper test of the IP anomaly located east of the Main Zone. The hole crossed a broad zone of shearing from 1,060 to 1,440 feet [323 to 438.9 meters] with anomalous gold but only one 10 foot [23.04 meter] thick vein assaying greater than 1.0 g Au/t.
FC1126 and FC1127 extended the IP anomaly-related discovery made in late 2009 (FC0914RC) to the north. FC1126 intersected 30.90 g Au/t over a true width of 4.9 meters, including 109.25 g Au/t gold over 1.2 meters.
FC1127 intersected four separate zones grading greater than 5.0 g Au/t, as well as five additional zones grading greater than 1.0 g Au/t in shear zones.
FC1130 tested the west side of the Main Zone and encountered a fault zone from 990 to 1055 feet [301.7 to 321.5 meters] with anomalous gold over a 15 foot wide [4.5 meters] that averaged greater than 1.0 g Au/t.
FC1131RC was drilled to test the southern extension of the Far North Zone. It intersected a fault zone from 830 to 845 feet [252.9 to 257.5 meters] with only anomalous gold values.
FC1135RC was drilled to test the southern extension of the Far North Zone and the associated IP anomaly. It contained some weakly altered shear zones but no gold mineralization.
FC1136 tested north end of the Main Zone and extended a new vein discovered in FC1101 50 meters [164.0 meters] to the south. It intersected four shear zones containing gold values in excess of 1.0 g Au/t, within a broad fault that extended nearly continuously from 765 to 1,625 feet [233.2 to 495.3 meters].
FC1137 was drilled to test the southern extension of the Far North Zone and the IP anomaly associated with it. The hole intersected a shear zone from 1,460 to 1,480 feet [445.0 to 451.1 meters] with only anomalous gold values.
FC1138RC was the first hole of a three-hole fence of RC holes designed to test a major IP anomaly near the south end of the Main Zone, and extending approximately 5,250 feet [1,600 meters] to the south. No gold mineralization was intersected in this first hole. The remaining two holes are slated to be drilled in in the 2012 program.
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. For more information on the mineral resource estimates, please refer to Klondex�s disclosure available at the SEDAR website.
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 January 31, 2011, Klondex had 46.4 million shares issued and outstanding and 59.1 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.
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.
Investor & Media Contact:
David Collins
Jaffoni & Collins
KDX@jcir.com(212) 835-8500