May 1, 2013
NV & Vancouver, BC - May 1, 2013 - Klondex Mines Ltd. (TSX: KDX;
OTCQX: KLNDF) announces the drill core re-logging program for its Fire
Creek gold project is complete, approximately five weeks ahead of
schedule. An updated resource estimate is on track to be completed in
June 2013. The resource estimate will include 36,639 meters (120,175
feet) of infill core drilling from both surface and underground, in
addition to the re-logged core originally included in the May 2011
resource estimate. The updated resource estimate will be used to develop
a comprehensive mine plan followed by a preliminary economic assessment
(PEA), expected to be complete in Q4 2013.
Initiated in January 2013, the in-depth re-logging program involved the
photographing and re-logging of approximately 73,000 m (240,000 ft) of
archived drill core from Fire Creek’s past exploration programs.
Firstly, the program set out to improve on previous logging by gaining a
better understanding of the Fire Creek metallurgy, including ICP
testing, RMR, RQD and point load testing, all needed to understand and
develop an efficient mine plan. Secondly, the re-logging improved the
geological understanding of the project, through the resolution of gold
mineralization true widths, and better characterization of geology,
alteration, geochemistry, gold distribution, and rock mechanics. In
addition to the re-logging, specific drill intervals were selected for
resampling to better refine limits and tenor of gold mineralization with
respect to geology.
The updated resource estimate due in June, will include 15,863 m (52,044
ft) of surface drilling from 2011, 7461 m (24,447 ft) of surface
drilling from 2012, 13,315 m (43,684 feet) of 2011 through 2013
underground core drilling, in addition to over 600 assays collected from
the re-logged core originally included in the May 2011 resource
estimate. The 2013 data is comprised of infill drilling fans east of
the ramp in addition to recent discoveries in the vent raise access and
the 42.8 ft intercept grading 0.48 opt Au, to the south of the resource
(see press releases dated January 22, 2013 and April 9, 2013
respectively), totaling 1,060 m (3,477 ft) of underground in-fill
Paul Huet, President and CEO stated, “I can’t emphasize enough how
important a quality resource that includes proper geotechnical work is
for us becoming the foundation of everything we do at Fire Creek. The
step was particularly important as we turn to building a mine plan based
on economics, efficiencies and most importantly, profitability. The
re-logging effort will give my team greater comfort in developing and
growing the gold operation set to begin in the second half of the year.”
Klondex Chief Geologist, Steve McMillin, commented: “The re-logging
program significantly advanced the technical understanding of the Fire
Creek project. The recent drilling, coupled with the new discoveries to
the west of the deposit and to the south, is important to include in the
updated resource, to compliment the results of the re-logging program.
We are grateful to the team of geologists and geo-technicians who all
worked extremely hard to finish ahead of schedule; in particular, Jeff
Phinisey, whose previous experience and knowledge of Fire Creek was
instrumental in delivering on this milestone ahead of schedule.”
The content of this press release has been reviewed 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 April 15, 2013, Klondex had 64.4M shares issued and
outstanding and 85.9M shares, fully diluted.
A BTV video profile of Fire Creek’s onsite development is available at http://www.b-tv.com/i/videos/KlondexMinesMar13.wmv.
President & CEO
Klondex Mines Ltd.
Manager, Investor Relations
Klondex Mines Ltd.
Catalyst Global LLC
This news release contains forward-looking information, including
information about current expectations on the timing of project
development, the completion of the updated mineral estimate and the
preliminary economic assessment 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 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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