The Hollister Mine (Ivanhoe Mining
District), which Klondex acquired in August 2016, is located in Elko County,
approximately 130 km (~80 mi.) northeast of the town of Winnemucca, Nevada and
29 km (~18 mi.) southeast of the Midas Mine. The Hollister Mine is a very
well preserved low-sulfidation, epithermal gold-silver deposit associated with
mid-Miocene bimodal volcanism of the NNR. Over 115,000 ounces of
volcanic-hosted, low-grade gold were extracted from 2 open pits. Later drilling
led to the discovery of blind, high-grade veins in the Valmy Formation,
Paleozoic basement rocks, which have produced >450,000 ounces of gold and
>2.5 million ounces of silver from ore averaging ~34 g/t Au (1.00 opt) and
200 g/t Ag (5.83 opt) from cut-and-fill and longhole stoping since 2007.
Typical epithermal vein textures are displayed at Hollister, most commonly
massive, banded, bladed quartz, and vein breccias. Other features
spatially related to the highest grades include the presence of banded quartz,
bladed quartz, and alunite. An underground resource is anticipated to be
released in second quarter of 2017.