July 26, 2013
NV and VANCOUVER, BC - (Marketwired - Jul 26, 2013) - Klondex Mines Ltd.
(TSX: KDX) (OTCQX: KLNDF) is pleased to announce that it has entered
into an agreement with Newmont Mining Corp. (NYSE: NEM) to begin
processing Klondex’s higher grade mineralized material from the Fire
Creek gold and silver project in Nevada this month.
Under the agreement, Newmont is responsible for the handling, milling
and refining of minerals as well as tailings disposal, and Klondex is
responsible for delivering the material. Shipments will be in lots of
1,000 tons up to 9,000 tons in 2013; the shipments may continue as
needed through the end of 2014 as high grade material is generated. The
first shipment of 1,000 tons is scheduled to begin in August 2013 and
processing is expected to follow immediately upon receipt of the first
An initial partial upfront payment of 60% will be paid to Klondex by
Newmont, based on Newmont assays. The 40% balance will be paid based
upon finalization of settlement assays. The first payment from
processing is expected in August 2013.
Paul Huet, Klondex President and CEO, commented, “Testing this
high-grade material not only gives us the much needed metallurgical
information on Fire Creek mineralization, but it allows us the
opportunity to monetize mineralized material generated from the trial
exploration drifting from the Joyce and Vonnie structures. Proceeds from
the processing of this material will be used towards funding our own
waste development and a second drill to follow up on recent discoveries.
Newmont’s terms to process the Fire Creek material provide great
opportunity and support for both parties based on the processing costs,
improved recoveries and resulting payables. All near-term shipments of
mineralized material will be sent for processing to Newmont, including
May’s material previously slated for direct-smelter processing. The
agreement with Newmont continues our ongoing focus of de-risking Fire
Creek and building Klondex into a profitable and strong mining company.”
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 July 16, 2013, Klondex had 64.4M shares issued and
outstanding and 85.3M 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 the processing of material from the Fire
Creek project and use of proceeds from the processing of material. 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 Corporation’s business are
more fully discussed in the Corporation’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.
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