September 24, 2012
- Preliminary Modeling Indicates Gold Mineralization
Elko, NV & Vancouver, BC
Supports Continuity 152 meters (500 feet) Along Strike -
- September 24, 2012 - Klondex
Mines Ltd. (TSX: KDX and OTCQX: KLNDF), a Nevada gold exploration
company, today reported several intercepts of gold mineralization for
the recently completed surface drilling program at its Fire Creek gold
project in Lander County, Nevada. A total of 2,465 meters (8,086 feet)
of core were drilled to extend ten holes that had been pre-collared with
reverse circulation (RC) drilling; the results are summarized in
All ten core holes encountered gold mineralization, with the best results including:
- 2,910 g/t (85 oz/ton) gold over 1.5 meters (4.8 feet) in hole FC12-11S (the same intercept
also contained 5,960 g/t (174 oz/ton) silver).
- 97.9 g/t (2.9 oz/ton) gold over 0.4 meters (1.7 feet) in hole FC12-13S.
- 57.7 g/t (1.7 oz/ton) gold over 1.1 meters (3.7 feet) in hole FC12-21S.
Preliminary modeling indicates that the gold mineralization in
FC12-11S occurs in a zone that is traceable and supports continuity for
152 meters (500 feet) along strike
, the entire north-south extent of this core drilling program.
Paul Huet, Klondex’s newly appointed President & CEO commented,
“This year’s exploration drilling at our Fire Creek gold project
continued to identify gold mineralization, with FC12-11S returning
grades that confirm the need for continued active exploration. We are
currently developing an enhanced geologic model and updated resource
estimate for Fire Creek and remain focused on unlocking the value of
this deposit in the heart of Nevada gold country.”
The drilling program was designed to delineate gold mineralization in
the Main Zone. Reverse circulation (RC) pre-collar holes were drilled
from the surface to approximately 183 meters (600 feet) in depth and
then extended by core drilling. Nine core extensions were completed to
planned depths, and one was terminated early because of fluid
infiltration between the hole and the underground workings. The program
consisted of drill hole fans, as shown in
with drill hole depths, azimuths and dips summarized in Table 2.
Geology and Mineralization
The highest assays from this program occur within the lower basalt rock
package of the Tertiary volcanic sequence at Fire Creek and are
associated with alteration envelopes of quartz-calcite-pyrite. The
highestgrade intercepts reported here are associated with strongly
silicified breccia cemented by quartz ± calcite ± sulfides.
Underground Development Program
As of September 21, 2012, Klondex’s underground development has totaled
1,253 meters (4,111 feet) of workings, with 949 meters (3,112 feet) of
advance in the main decline. The decline was initiated in 2011 to enable
underground exploration and in-fill drilling of the Main Zone
mineralization. Klondex plans to continue development of the decline and
workings parallel to strike, providing it access for exploration
drilling in the near term, and future access for bulk sampling or
full-scale mining activity. Klondex’s plans for the next 12 months are
focused on the continuation of surface and underground exploration aimed
at expanding both the scope of the resource as well as the
understanding of the deposit’s geologic structure and profile. With this
expanded knowledge, the Company feels it will be in a strong position
to make development decisions for the project.
Locations of intercepts from Table 1
on drill traces highlighted in magenta.
Grid =152.4 meters. FC12-19S was completed as RC, but intercepts are posted for context.
About Klondex Mines Ltd.
Klondex Mines is focused on the exploration and development of its Fire
Creek gold deposit in North Central Nevada. Fire Creek is a compelling
gold mining prospect located in a region of prolific gold production
that is near power, transportation, mining infrastructure and several
milling facilities. As of September 21, 2012, Klondex had 47.3 million
shares issued and outstanding, and 59.6 million shares on a
Sample results cited in this news release were obtained from core holes
completed by American Drilling, an independent contractor working under
the direction of Klondex staff. Assays were determined by ALS Minerals,
Reno, Nevada, an independent analytical laboratory. The content of this
press release has been reviewed by Steven L. McMillin, CPG-11031
(American Inst. of Prof. Geol.), Project Manager and Chief Geologist for
Klondex Mines Ltd., as a non-independent Qualified Person.
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
. 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.
On Behalf of Klondex Mines Ltd.
Paul Andre Huet
President & CEO
Investor & Media Contact:
David Collins, Toni Trigiani
Catalyst Global LLC
Back to the News page