June 12, 2013
Elko, NV & Vancouver, BC - June 12, 2013 - Klondex Mines Ltd. (TSX: KDX; OTCQX: KLNDF) a
Nevada gold exploration and development company, today reported the
metallurgical sampling program yielded 682 tons of mineralized material
at an average grade of 73.8 g/t (2.15 opt) Au during the month of May (
see May 13, 2013 news release).
Metallurgical sampling is expected to continue monthly through the
remainder of 2013 to gain a better understanding of the mineralogy and
metallurgy of the Type II mineralization that hosts the Joyce and Vonnie
structures. Assays were performed by SGS of Elko, Nevada, under the
supervision of Klondex staff.
Current sampling is within a high-grade zone of the Joyce structure, and
as a result, Klondex will ship the material collected in May for direct
smelting rather than processing it through a conventional milling
facility. The company will begin shipping to Jerritt Canyon later this
year, as planned.
Klondex is in the process of finalizing terms with a third party for the
direct smelting of the high-grade material from the Joyce Structure.
Shipment of the first lot is expected before the end of June.
Paul Huet, President and CEO stated, “This is a pivotal year for Klondex
as we transition from an exploration and development company into
initial production via bulk sampling. Any cash flow received from
metallurgical and bulk sampling will be used for future development and
core drilling as we continue to expand our understanding of the deposit.
With excellent dilution management and geological controls, the grades
from exploration sampling in the 5370 crosscut are exceeding our
Mr. Huet added, “The vent raise access is progressing well. The top
access is complete and the bottom drift is in place. We are putting in a
grout curtain to complete the secondary egress and the hoist has been
received onsite. The raise is expected to be completed in the third
quarter of 2013, after which, we intend to move into our bulk sample
The technical information contained in this press release has been
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.
About Klondex Mines Ltd. (www.klondexmines.com)
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 project located in a mining-friendly jurisdiction, near major
producers, power, transportation, mining infrastructure and its milling
facility. At May 27, 2013, Klondex had 64.4M shares issued and
outstanding and 85.8M shares, fully diluted.
President & CEO
Klondex Mines Ltd.
Manager, Investor Relations
Klondex Mines Ltd.
Catalyst Global LLC
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 and results of exploration at the Fire Creek
Project. 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
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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