November 10, 2011
Vancouver, BC and Elko, NV - November 10, 2011
- 0.30 oz/ton gold over 54 feet, including 1.05 oz/ton over 3.8 feet, extends Main Zone to the North
- 0.56 oz/ton gold over 2.1 feet and 0.54 oz/ton gold also over 2.1 feet discovered between north Main and Far North Zones
- Klondex Mines
Ltd. (TSX: KDX) today reported that its active 2011 surface drilling
program continues to find new gold veins and to expand the scope of the
resource at its Fire Creek property in North Central Nevada. Klondex has
completed 16,947 feet of core and 18,040 feet of reverse circulation
(RC) drilling (see accompanying map). Twenty holes have been completed
to date, with assays received for 12 holes that are reported below. The
2011 surface program is estimated to comprise 30-35 holes and
approximately 56,000 feet of exploration drilling.
- Fire Creek’s north Main Zone mineralization was extended by drill hole FC1104
which intersected the strongest gold values yet encountered in this
area. The intercepts included 0.298 oz/t gold over a true width of 53.6
- FC1107RC intersected new veins
between the Main and Far North Zones, including true widths of 4.2 feet
averaging 0.389 oz/t gold and 2.1 feet averaging 0.544 oz/t gold.
Further testing of these new vein zones is planned for later this year.
- New North Zone infill hole FC1112
intersected two gold veins of 0.30 oz/t or more, including 4.1 feet
averaging 1.41 oz/ton gold.
Klondex CEO, Blane Wilson, commented, “Despite initial delays, our
surface exploration program is proceeding very well, with excellent
productivity and solid assays from the first set of holes that we are
reporting today. In these twelve holes, seven had values over 0.03
oz/ton gold and our team encountered nine gold intercepts greater than
“We have already completed more surface drilling this year than in all
of 2010 or 2009, with two core rigs, two RC rigs and a directional core
rig currently on site. The directional rig is attempting to test feeder
faults crossing basement rocks well below identified mineralization.
This is the first time we have attempted to test the resource at depth.
It has been difficult but is now progressing well, and we should be in
position to test the targets later this month.”
Gold and silver results, thickness, depth and target areas are shown in
the summary geochemistry table below. The accompanying map on the
Klondex website shows the new veins (+0.15 oz/t gold) in magenta and
gold bearing shear zones (0.03 to 0.15 oz/t gold) identified to date in
2011, in gold.
2011 Exploration Program
Klondex’s 2011 drilling program, which began July 1st, was designed to
test induced polarization (IP) anomalies as well as targets associated
with the known resource. The program has been revised and expanded twice
this year to include follow-up testing of new veins discovered in 2010
as well as additional IP targets. IP anomalies remain the best targeting
tool for initial drilling, with several Fire Creek anomalies remaining
untested. Klondex is increasingly using more cost effective RC drilling
to initially test IP targets.
Approximately 30 currently permitted or nearly permitted holes are shown
on the accompanying map on the Klondex website and represent future
exploration targets for the 2011 and 2012 programs. In addition,
approximately 30 more drill sites were submitted for permitting in
October, in an effort to provide a good pipeline for future exploration
DRILL HOLE DESCRIPTIONS:
, drilled at the north end of Main Zone, intersected 85
feet of strong mineralization including 5 feet of 0.321 oz/t gold in a
tested an IP anomaly northeast of the Main Zone, finding no significant gold values.
tested the north Main Zone west of the FC1104 test and intersected two gold-bearing shears (810-885’ and 1220-1260’).
extended north Main Zone veins to the north. The best vein
intercepts in this area are within a major gold-bearing shear over 100
feet wide (1230-1350’). A second strongly mineralized shear was
encountered near the bottom of the hole (1595-1636’).
tested an IP anomaly northeast of the Main Zone, encountering no significant gold values.
tested the area between the north Main Zone and the Far
North Zone and an IP anomaly. The hole intersected two gold-bearing
shears within a wide structure with anomalous gold (1030-1120’).
also tested the area between the north Main Zone and the
Far North Zone and an IP anomaly, and intersected three +0.15 oz/t gold
veins in a new area.
, an infill hole drilled in the New North Zone, intersected three +0.15 oz/t gold veins, two of which are +0.29 oz/t gold.
, an extension hole drilled in New North Zone, extended one vein and two gold-bearing shears 50 meters at south end of resource.
FC1116RC, FC1117RC and 1118RC
tested IP anomalies that may
represent deeper mineralization 1,000 meters north of the north Main
Zone. No significant gold values were encountered, but opal filled
structures indicate deeper drilling is needed.
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.
Fire Creek’s updated mineral resource is reviewed in the table below.
For more information on the mineral resource estimates, please refer to
Klondex’s disclosure available at the SEDAR website and here.
In addition to an active surface exploration program at Fire Creek, in
April 2011 Klondex initiated an underground exploration and development
program being pursued via 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 targeted to
begin in Q1 2012.
As of November 9, 2011, Klondex had 37.0 million shares issued and outstanding and 43.8 million shares on a diluted basis.
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
On Behalf of Klondex Mines Ltd.
Blane W. Wilson
President & CEO
Investor & Media Contact:
Jaffoni & Collins
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