February 15, 2011
Vancouver, BC - February 15, 2011
- Klondex Mines Ltd. (TSX: KDX) announced new high-grade gold
intercepts from its exploration-drilling program at its Fire Creek
property in North Central Nevada. Results are based on assays for the
remaining nine holes (6 core and 3 RC) of the Company’s 20-hole drill
program for 2010. Results are reviewed below and a drill plan map is
available on the
- RC drilling (FC1014RC) discovered a new high-grade vein
150 meters (500 feet) south of the southern end of the Far North
resource. The vein averages 10.76 g/t gold over a true width of 6.1
meters (0.31 oz/ton Gold over 20 feet), including 41.25 g/t over 1.2
meters true width (1.21 oz/ton over 4.0 feet).
- New gold-bearing shears (<5 g/t gold) have been found north of Main Zone and southwest of New North Zone, extending the scope of these zones.
- In-fill drilling in the Main Zone yielded the highest gold assays of the year.
FC1019 averages 43.16 g/t over a true width of 2.4 meters (1.26 oz/ton
over 8.0 feet), including 75.85 g/t gold and 207.00 g/t silver over a
true width of 1.2 meters (2.22 oz/ton gold and 6.0 oz/ton silver over 4
“Our surface exploration program continues to discover new high-grade
veins while extending the boundaries and potential of the Fire Creek
resource,” said Blane Wilson, President and COO, “with ten new
high-grade intercepts found by our 2010 drilling program. There are
numerous IP and other targets still to pursue, and we also plan to drill
a few deeper holes from surface to test our vein systems at depth. We
expect to resume surface exploration this spring once the snow subsides
and we are able to complete surface road surveys required by the BLM.”
Regarding Klondex’s underground program, Mr. Wilson added, “We remain
on-track to initiate our underground exploration and bulk sampling
program in March. We believe our permits are in the final stages of
issuance, and our underground contractor SMD has been on site preparing
to initiate the decline upon receipt of regulatory approvals. Given this
timing, we expect Klondex can start its first bulk sample late in the
fourth quarter of this year. We continue to believe that our progression
from pure exploration to a hybrid model of exploration and production
via bulk sampling should create value for our shareholders.”
Klondex’s 2010 drilling program consisted of 12,198 feet/3,718 meters of
core and 16,045 feet/4,891 meters of RC drilling. 12 core holes
targeted in-fill of the existing resource or previous IP hits and 8 RC
holes targeted IP anomalies. Today’s results include four in-fill drill
holes designed to show continuity of veins and to supply additional data
prior to starting underground development. Data from the 2009 and 2010
drilling programs has not yet been incorporated into Klondex’s NI 43-101
mineral resource, last updated in March 2009.
*Table contains only results since last press release on 12/13/10.
DRILL HOLE DESCRIPTIONS:
Drilled at north end of Main Zone. Crossed two shear zones within broad anomalous zone (890-1060 feet averaged 1.77 g/t gold).
Tested IP anomaly east of Main Zone. No significant gold values were encountered.
Tested IP anomaly that extends south of Far North resource. Intersected
two gold-bearing shears (1225-1240 and 1365-1420 feet) before
intersecting the high-grade vein discussed above at 1490-1515 feet.
Drilled well west and south of New North Zone, the hole
tested the western margin of a large IP anomaly. One gold-bearing shear
was intersected between 1160 and 1210 feet.
Drilled as an in-fill hole at the New North Zone. The hole intersected two veins and one gold-bearing shear.
Drilled at the Main Zone, this hole intersected three
gold-bearing shears, the strongest of which intersected 10 feet
averaging 4.06 g/t gold.
Drilled at the Main Zone as an in-fill hole which intersected two veins including the high-grade vein mentioned above and a gold bearing shear
Drilled at the Main Zone, this hole intersected three gold bearing shears (10-30 feet, 195-236 feet and 560-595 feet).
Drilled at south end of the Main Zone, this hole
intersected three gold-bearing shears (345-380 feet, 550-620 feet and
835 to 860 feet).
As of December 31, 2010 Klondex Mines had 36,544,089 shares issued and
outstanding, 41,319,089 shares on a fully diluted basis, and
approximately CDN $8 million in cash.
About Klondex Mines
Klondex Mines Ltd. is focused on the exploration and development of its
100% owned high-grade Fire Creek gold deposit in North Central Nevada.
Fire Creek is a compelling, low-Capex mining prospect that is well
located near power, transportation, mining infrastructure and several
milling facilities. Klondex plans to initiate an underground exploration
and bulk sampling program in Q1 2011, with initial bulk sampling
production targeted by year-end 2011. Klondex has identified the
following NI 43-101 compliant resource at Fire Creek:
*The resource is approx. 98.3% gold and 1.7% silver and reflects a cutoff grade of 5
grams per tonne and 60 units of silver equivalent to one unit of gold.
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.
William J. Solloway
Chairman and CEO
President and COO
Klondex Mines Ltd.
Jaffoni & Collins
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