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Reno, NV & Vancouver, BC - December 19, 2013 - Klondex Mines Ltd. (TSX: KDX; OTCQX: KLNDF), a Nevada gold exploration and development company, today reports gold assays at its Fire Creek gold Project in Nevada, from surface drilling. The drilling suggests possible extensions of the current mineral resource model.
Four reverse circulation (RC) holes were drilled as part of the Fire Creek hydrology study (see FIGURE 1). RC chips were logged, and samples collected on 5 ft intervals for assaying. Three of the four holes intercepted mineralization outside of the current mineral resource model that are in line with the underground workings. Grades from the surface drilling range from 16.3 g/t (0.47 opt) Au to 5.1 g/t (0.15 opt) Au. See Tables 2 and 3 below, for detailed sample results. Table 1 details significant assays and locations in relation to the mineral resource model at Fire Creek.
|
Drill Hole |
Intercept |
Location |
|
FC-13-27S |
13.0 g/t (0.38 opt) Au over 10.7m (35 ft) |
250 ft north of the known Joyce structure block model, and 1070 ft north of the last blasted Joyce face round. |
|
FC-13-26S |
9.2 g/t (0.27 opt) Au over 4.6m (15 ft) |
480 ft south of the closest modeled vein and west of the main ramp |
|
FC-13-25S |
10.4 g/t (0.30 opt) Au over 1.5m (5 ft) |
250 ft south of the resource model |
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Table 1: RC drilling during the hydrology study |
Mike Doolin, Klondex General Manager stated, "These intercepts continue to support our view that the Fire Creek project is significantly underexplored. The 2014 drill program is designed to follow up on new discoveries as well as extend the strike length and vertical extent of the current known mineralization, as we continue to unlock value at Fire Creek. Based on my personal experience, in these styles of mineral deposits, RC drill holes dilute and underestimate the grades. We expect that additional core drilling in these areas will clarify grades and widths."
The technical information contained in this press release has been reviewed and approved by Steven L. McMillin, CPG-11031 (American Inst. of Prof. Geol.), Chief Geologist for Klondex Mines Ltd., as a non-independent Qualified Person for the purposes of National Instrument 43-101.
RC sample size was monitored during drilling and kept to approximately 10-15kg. Reference chips were collected in standard chip trays for logging. Assays were performed by ALS Minerals in Reno, Nevada (an independent laboratory), under the supervision of Klondex staff. Fire Creek QA/QC protocols include insertion of standards, blanks and duplicates approximately every 20 samples. Standard and blank samples use accredited reference material. Gold analyses were obtained via industry standard fire assay with atomic absorption finish. For samples returning greater than 10.00 g/t Au, a follow-up fire assay analysis with a gravimetric finish was performed.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its high-grade Fire Creek gold deposit in north central Nevada. Fire Creek is a compelling gold project located in a mining-friendly jurisdiction, near major producers, power, transportation, mining infrastructure and milling facilities. As at December 19,2013, the Company had 79.2 million shares issued and outstanding and 97.2 million shares fully diluted.
Contact:
Paul Huet Alison Tullis Toni Trigiani
President & CEO Manager, Investor Relations Investor Relations
Klondex Mines Ltd. Klondex Mines Ltd. Catalyst Global LLC
1-775-284-5757 1-647-233-4348 1-212-924-9800
investors@klondexmines.com atullis@klondexmines.com kdx@catalyst-ir.com
|
Hole No. |
AZI |
DIP |
Depth |
Depth |
|
|
|
|
(m) |
(ft) |
|
FC-13-24S |
227 |
-60 |
452.7 |
1500 |
|
FC-13-25S |
66 |
-60 |
403.9 |
1325 |
|
FC-13-26S |
248 |
-60 |
518.2 |
1700 |
|
FC-13-27S |
60 |
-60 |
518.2 |
1700 |
|
Table 2: RC drilling azimuth, dip and depth |
|
Hole No. |
From |
To |
Length |
From |
To |
Length |
Grade |
Grade |
|
|
(m) |
(m) |
(m) |
(ft) |
(ft) |
(ft) |
(g/t Au) |
(opt Au) |
|
FC-13-24S |
No Significant Intercept |
|
|
|
|
|
|
|
|
|
|
|
FC-13-25S |
126.5 |
131.1 |
4.57 |
415 |
430 |
15 |
8.49 |
0.248 |
|
including |
128.0 |
129.5 |
1.52 |
420 |
425 |
5 |
6.59 |
0.192 |
|
including |
129.5 |
131.1 |
1.52 |
425 |
430 |
5 |
10.40 |
0.303 |
|
|
|
|
|
|
|
|
|
|
|
FC-13-26S |
161.5 |
164.6 |
3.05 |
530 |
540 |
10 |
6.16 |
0.180 |
|
including |
161.5 |
163.1 |
1.52 |
530 |
535 |
5 |
8.17 |
0.238 |
|
and |
233.2 |
234.7 |
1.52 |
765 |
770 |
5 |
6.59 |
0.192 |
|
and |
239.3 |
242.3 |
3.05 |
785 |
795 |
10 |
7.18 |
0.209 |
|
including |
239.3 |
240.8 |
1.52 |
785 |
790 |
5 |
5.13 |
0.149 |
|
including |
240.8 |
242.3 |
1.52 |
790 |
795 |
5 |
9.24 |
0.269 |
|
and |
256.0 |
257.6 |
1.52 |
840 |
845 |
5 |
7.02 |
0.205 |
|
and |
297.2 |
304.8 |
7.62 |
975 |
1000 |
25 |
9.21 |
0.269 |
|
including |
297.2 |
298.7 |
1.52 |
975 |
980 |
5 |
12.50 |
0.365 |
|
including |
298.7 |
300.2 |
1.52 |
980 |
985 |
5 |
8.01 |
0.234 |
|
including |
300.2 |
301.8 |
1.52 |
985 |
990 |
5 |
7.11 |
0.207 |
|
and |
373.4 |
391.7 |
18.29 |
1225 |
1285 |
60 |
5.12 |
0.149 |
|
including |
374.9 |
376.4 |
1.52 |
1230 |
1235 |
5 |
5.09 |
0.148 |
|
including |
376.4 |
378.0 |
1.52 |
1235 |
1240 |
5 |
7.23 |
0.211 |
|
including |
378.0 |
379.5 |
1.52 |
1240 |
1245 |
5 |
7.91 |
0.231 |
|
including |
379.5 |
381.0 |
1.52 |
1245 |
1250 |
5 |
5.65 |
0.165 |
|
including |
384.0 |
385.6 |
1.52 |
1260 |
1265 |
5 |
5.97 |
0.174 |
|
including |
387.1 |
388.6 |
1.52 |
1270 |
1275 |
5 |
6.64 |
0.194 |
|
|
|
|
|
|
|
|
|
|
|
FC-13-27S |
342.9 |
365.8 |
22.86 |
1125 |
1200 |
75 |
8.36 |
0.244 |
|
including |
344.4 |
345.9 |
1.52 |
1130 |
1135 |
5 |
5.94 |
0.173 |
|
including |
349.0 |
350.5 |
1.52 |
1145 |
1150 |
5 |
5.40 |
0.157 |
|
including |
353.6 |
355.1 |
1.52 |
1160 |
1165 |
5 |
11.65 |
0.340 |
|
including |
355.1 |
356.6 |
1.52 |
1165 |
1170 |
5 |
13.85 |
0.404 |
|
including |
356.6 |
358.1 |
1.52 |
1170 |
1175 |
5 |
14.95 |
0.436 |
|
including |
358.1 |
359.7 |
1.52 |
1175 |
1180 |
5 |
16.25 |
0.474 |
|
including |
359.7 |
361.2 |
1.52 |
1180 |
1185 |
5 |
10.90 |
0.318 |
|
including |
361.2 |
362.7 |
1.52 |
1185 |
1190 |
5 |
12.15 |
0.354 |
|
including |
362.7 |
364.2 |
1.52 |
1190 |
1195 |
5 |
10.30 |
0.300 |
|
and |
449.6 |
451.1 |
1.52 |
1475 |
1480 |
5 |
5.56 |
0.162 |
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Table 3: RC drilling widths and grades, true widths are unknown. |
This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation, including information about the magnitude and quality of the Fire Creek Project the results of exploration and assay sampling at the Fire Creek Project, the Company's intention and ability to monetize mineralized material, timing of the updated mineral resource estimate at the Fire Creek Project and the bulk sampling program. This forward-looking information entails various risks and uncertainties are based on current expectations, and actual results may differ materially from those contained in such information. These risks and uncertainties include, but are not limited to the risks and hazards associated with environmental compliance and permitting for its underground operations, 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. 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 information or to update the reasons why actual results could differ from such information unless required by law.
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