August 29, 2012
Elko, NV & Vancouver, BC
- 1.83 g/t Auover 117.3 meters (385 feet) beginning at 6.1 meters in hole FC12-20S.
- 1.17 g/t Auover 70.1 meters (205 feet) beginning at 1.5 meters in hole FC12-15S.
- 1.08 g/t Au over 99.0 meters (325 feet) beginning at 21.3 meters in hole FC12-21S.
- August 29, 2012 - Klondex Mines
Ltd. (TSX: KDX and OTCQX: KLNDF), a Nevada gold exploration
company,today reported long intercepts of near-surface, oxidized gold
mineralization for the recently completed surface drilling program at
its Fire Creek gold project in Lander County, Nevada. Fifteen reverse
circulation (RC) holes were drilled for a total of 2,781 meters (9,124
feet). Ten of these holes were extended by core drilling to test for
deeper, high-grade gold veins. Results presented here are for the RC
portions of the holes only, as summarized in
Klondex expects to announce assay results for the core-hole extensions in the coming weeks when they are complete.
Historically, exploration at Fire Creek focused on this disseminated,
low-grade, gold mineralization as an open-pit, heap-leach
project.However, since Klondex resumed exploration on the property in
2004, exploration has successfully targeted the deeper, high-grade vein
system. The rise in gold prices since then makes it timely to revisit
the bulk-minable potential of the low-grade mineralization, in addition
to the existing underground resource.
As previously disclosed in the Company’s June 30, 2012 MD&A, in July
Klondex deferred further surface and underground drilling activity at
Fire Creek in order to focus its efforts on the advancement of the Fire
Creek resource model and geology. The Company will report the remaining
results from its 2012 surface and underground drilling programs in the
The Board also decided to delay the preparation of an updated technical
report until the Company has concluded a thorough review of the Fire
Creek project. This is expected to take several months and will delay
the updated technical report until sometime in the first half of 2013.
The 15-hole surface-drilling program was designed to delineate gold
mineralization in the Main Zone. RC pre-collar holes were drilled from
the surface to approximately 183 meters in depth, and then certain holes
were extended by core drilling. The program consisted of five fans of
three holes each, as shown in
Figure 1. Table 2
shows the depths, azimuths and dips of the pre-collars.
Surface projections of drill holes in the Main Zone, with 10 g/t Au grade-shells shown in red (grid=152 meters).
Geology and Mineralization
The target area drilled is composed of a Tertiary basalt lava flow and
interbedded tuff sequence typical of the Northern Nevada Rift, a
NNW-trending regional structural feature which hosts numerous epithermal
gold deposits, including Fire Creek. The stratigraphy is divided into
an upper basalt package, a clay altered tuff unit, and a lower basalt
package. The tuff is a marker unit that may represent a hiatus in
between deposition of the lower and upper basalts; it occurs in all the
holes from a depth of approximately 15 meters to 58 meters.
The highest assays in the RC pre-collars occur in the oxidized material.
Oxidation extends from surface to approximately 96 meters, while the
gold mineralization extends to depths of over 300 meters. Alteration
within the basalts is composed of variable clay, silica, and calcite,
with iron oxides and pyrite defining the transition from oxidized to
reduced material. The mineralized intervals are commonly associated with
either pervasive silica or silica veinlets. Metallurgical test work is
required before assumptions can be made about gold recovery. Klondex is
considering options for modeling, metallurgy, and further drilling.
shows intercepts relative to oxidized and reduced rock.
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 August 29, 2012, Klondex had 47.3 million
shares issued and outstanding, and 59.1 million shares on a fully
Sample results cited in this news release were obtained from reverse
circulation holes completed by RimrockDrilling, an independent
contractor working under the direction of Klondex staff. Assays were
determined by ALS Minerals, Reno, Nevada, an independent analytical
The content of this press release has been reviewed by Steven L.
McMillin, CPG-11031 (American Inst. of Prof. Geol.), Project Manager and
ChiefGeologist for Klondex Mines Ltd., as a non-independent Qualified
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.
Investor & Media Contact:
David Collins, Toni Trigiani
Catalyst Global LLC
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