The True North mining complex, which Klondex acquired in January of 2016, covers 43,000 hectares and is part of a 400 km2 land package. It is located approximately 250 kilometers northeast of Winnipeg near the town of Bissett, Manitoba. True North is an underground mining operation consisting of several underground narrow-vein gold deposits in addition to a modern, fully-permitted modern gold mill capable of processing up to 2,500 tons per day. This facility will be able to maintain the capacity from True North as well as alternate ore sources.
Gold was originally discovered at True North in 1911. The mine has been in operation intermittently since 1931 and has produced more than 1.5 million ounces of gold. From 2007 until 2015, significant investments were made in the property and approximately 390,000 ounces of gold were produced. The mine is accessed by a 4,050 foot ‘A-Shaft’ and Klondex has undertaken a project to improve the hoisting speed and efficiency of the shaft. At the same time, the Company has been improving the track and main haulage systems to meet future production goals.
To date, Klondex has successfully completed two long hole test stopes with bulk sampling (of the 710) expected to commence in July. Additionally, the Company has also begun initial reprocessing of the tailings left behind from the previous operator with positive results. For 2016, it is expected that between 8,000 to 12,000 ounces will be recovered from the test stope mining and tailings reprocessing. A mineral resource update is expected in the third quarter of 2016 which will form the basis for the True North mine plan.