February 14, 2012
2011 Program Highlights:
Elko, NV & Vancouver, BC
- 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
- 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
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’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.
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
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.
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
, 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.
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.
, 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
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.
was drilled from the same location as FC1114
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.
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.
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].
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.
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.
tested an IP anomaly on the eastern side of the Main Zone, but did not intersect any significant mineralization.
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].
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.
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.
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.
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
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.
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.
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].
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.
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.
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
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
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.
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
On Behalf of Klondex Mines Ltd.
Blane W. Wilson
President & CEO
Investor & Media Contact:
Jaffoni & Collins
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