February 28, 2014
BC - February 28, 2014 - Klondex Mines Ltd. (TSX: KDX; OTCQX: KLNDF)
today provides an operational update for its Fire Creek gold project and
the Midas gold and silver mine and mill, in Northern Nevada.
Paul Huet, Klondex President and CEO stated, “It’s with a great amount
of pleasure that we provide Klondex’s first operational update since the
acquisition of the Midas mine and mill. We assumed ownership of Midas
on February 11th of this year and immediately started drilling and
blasting the underground stopes. Our initial blast rounds exposed
high-grade gold and silver veins in an area along strike from the
existing workings on the 905 vein. I believe the success of the
operations team hitting the ground running, is a direct result of the
leadership team having previous experiences at Midas.”
Midas Mine and Mill
Transitioning the mine and milling facilities from Newmont to Klondex is
complete, including the hiring and orientation of 110 Midas employees,
and operations are well-underway.
The first underground excavations at Midas were taken in the 7-4640 South area of the mine (FIGURE 1).
After the second blast round, the vein widened and the grade
increased. The average grade in this area is 20.6 g/t (0.6) opt Au and
1975.0 (57.60 opt) Ag over an average vein width of 4.8 ft; assays range
from 97.7 g/t (2.9 opt) Au and 10,821.2 g/t (315.6 opt) Ag to 3.8 g/t
(0.11 opt) Au and 611.8 g/t (17.8 opt) Ag. See
for more details. Since encountering the high grade zone, the drift has
been extended 91 ft along strike of the vein. This drift will serve for
a primary drilling and mucking horizon for future long hole stoping.
The mill began operating on February 19, 2014 and is currently running
at a rate of 600 tpd. It is currently being fed by a blend of the Midas
and Fire Creek mineralized materials. The first dore pour is expected
to be March 4, 2014 with an initial shipment to Johnson Matthey on March
6th. Klondex is currently evaluating opportunities to provide third
party toll milling services.
Taurus Drilling, experts in narrow vein long hole mining have been
contracted for drilling and blasting at Midas. Sandvik has been awarded
the contract for mobile maintenance at both Fire Creek and Midas.
Sandvik are experts in this field and have a proven track record at
Midas as well having worked there for over four years, from 2002 through
Bulk sampling at Fire Creek is fully-commissioned and benching the
Vonnie and Joyce veins is well underway. Shipments of mineralized
material from Fire Creek commenced on February 11, 2014, to the Midas
mill, approximately 100 miles north at a haulage cost of $32/t.
The technical information contained in this press release has been
reviewed and approved by Mark Odell of Practical Mining LLC, an
Independent Qualified Person (Nevada PE 13708 and SME 2402150) for the
purposes of National Instrument 43-101.
Assays were performed at Newmont’s Twin Creeks’ operation.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration, development and production
of its high quality gold and silver projects. The company is operating
an ongoing bulk sampling program at its Fire Creek gold project located
in north central Nevada. Fire Creek is in a mining-friendly
jurisdiction, with onsite power and mining infrastructure, and near
major producers. Midas, Klondex’s newly acquired operating mine and
milling facility are located 112 miles north of Fire Creek.
For More Information
Klondex Mines Ltd.
President & CEO
Manager, Investor Relations
Cautionary Note Regarding Technical Information and Forward-looking Information
A production decision at the Midas mine was made by prior owners of the
mine, prior to the completion of the acquisition of Midas by Klondex. To
the knowledge of Klondex, this production decision was not based on a
feasibility study of mineral reserves demonstrating economic and
technical viability prepared in accordance with National Instrument
43-101. Readers are cautioned that there is increased uncertainty and
higher risk of economic and technical failure associated with such
This news release contains certain information that may constitute
forward-looking information under applicable Canadian securities
legislation, including but not limited to information about current
expectations on the timing and success of exploration and metallurgical
sampling activities, the timing and success of mining operations, the
Company’s intention and ability to monetize mineralized material, the
successful execution of the bulk sampling program at the Fire Creek
Project, project development and related permitting. This
forward-looking information entails various risks and uncertainties that
are based on current expectations, and actual results may differ
materially from those contained in such information. 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; and the ability of Klondex to
fund its substantial capital requirements and 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
www.sedar.com. 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.
Back to the News page