Klondex Mines Ltd.

TSX : KDX
OTCQX : KLNDF


Klondex Mines Ltd.

May 21, 2014 06:30 ET

Klondex Exploration Program Extends Joyce Vein and Vonnie Vein at Fire Creek

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 21, 2014) -

  • 40.0 g/t (1.17 opt) Au over 1.49 m (4.9 ft) - FCU-0004
  • 12.8 g/t (0.37 opt) Au over 6.16 m (20.2 ft) - FCU-0008
  • 30.4 g/t (0.90 opt) Au over 2.47 m (8.1 ft) - FCU-0029
  • 158.7 g/t (4.63 opt) Au over 1.13 m (3.7 ft) --FCU-0049
  • 350.0 g/t (10.21 opt) Au over 0.70 m (2.3 ft) -- FCU-0050

Klondex Mines Ltd. (TSX:KDX)(OTCQX:KLNDF) today provides an update on recent underground infill and exploration drilling from its Fire Creek Project near Elko, Nevada. A total of 21 holes have been drilled to the east of the main decline in 2014 from the Joyce drifts (5400 and 5420 South), Spiral 2, and Diamond Drill Station (DDS) 6 (See FIGURE 1).

A total of eight core holes were drilled east from multiple drill stations located in the Joyce 5400 South drift to test the southern extension of the Vonnie Vein. Drilling intersected the Vonnie Vein in seven of the eight drill holes. These holes suggest mineralization continues along the Vonnie Vein another 45.7 m (150 ft) to the south, and at depth 15.2 m (50 ft). Additional 2014 drilling is scheduled to the south of these intercepts to continue defining the southern extension of the Vonnie Vein.

Drilling east from DDS-6 continues to suggest continuity of mineralization along the Joyce Vein and the Vonnie Vein. The drilling intercepted significant mineralized material in seven of the eight drill holes. These drill holes infilled an area 45.7 m (150 ft) along strike and 53.3 m (175 ft) of vertical extent on the Joyce Vein. Additionally, the Joyce Vein widths demonstrate the potential to introduce long hole stoping, which could result in lower costs and more efficiency.

Brent Kristof, Klondex Chief Operating Officer, stated, "These drill results continue to unlock value at Fire Creek. The 2014 drilling program is intended to enhance our understanding of the epithermal mineralization while raising confidence in the resource categories. Fire Creek continues to add value to the Company with its high grades. Excavating an additional level provides a top cut access that may be used to set up long hole stoping as well as providing additional drilling platforms for exploration drilling."

Hole ID Drill Stn Azi Dip TD From To Lth From To Lth Au Grade Ag Grade
(m) (ft) (m) (ft) (g/t) (oz/st) (g/t) (oz/st)
FC14113U DDS-6 106 -57 115.8 380 No Significant Results
FC14114U DDS 6 106 -38 121.0 397.0 52.3 53.6 1.34 171.6 176.0 4.4 4.27 0.125 1.7 0.050
and 57.9 61.3 3.35 190.0 201.0 11.0 18.43 0.538 13.1 0.382
Incl. 57.9 58.6 0.67 190.0 192.2 2.2 66.80 1.949 18.6 0.543
Incl. 58.6 59.4 0.85 192.2 195 2.8 5.79 0.169 11.2 0.327
Incl. 59.4 59.7 0.27 195.0 195.9 0.9 12.95 0.378 18.0 0.525
Incl. 59.7 61.3 1.55 195.9 201.0 5.1 5.47 0.160 10.9 0.318
And 80.5 80.9 0.40 264.0 265.3 1.3 8.59 0.251 7.3 0.213
And 95.1 95.9 0.82 312.0 314.7 2.7 4.42 0.129 3.7 0.108
FCU-0004 DDS 6 69 -39 113.4 372.0 29.6 31.1 1.52 97.0 102.0 5.0 44.50 1.298 6.1 0.178
And 42.2 43.7 1.49 138.5 143.4 4.9 40.01 1.167 38.4 1.119
Incl. 42.2 43.1 0.91 138.5 141.5 3.0 59.30 1.730 54.0 1.575
Incl. 43.1 43.4 0.30 141.5 142.5 1.0 7.19 0.210 8.0 0.233
Incl. 43.4 43.7 0.27 142.5 143.4 0.9 12.20 0.356 20.0 0.583
And 44.8 45.5 0.67 147.0 149.2 2.2 4.01 0.117 9.0 0.263
And 79.9 81.4 1.52 262.0 267 5.0 5.07 0.148 2.0 0.058
FCU-0005 DDS 6 85 -48 122.5 402 54.3 54.4 0.12 178.0 178.4 0.4 42.2 1.231 26.8 0.782
And 57.6 58.5 0.91 189.0 192.0 3.0 8.99 0.262 5.4 0.158
FCU-0006 DDS 6 89 -38 145.7 478 45.4 46.6 1.22 149.0 153.0 4.0 7.38 0.215 6.9 0.200
Incl. 45.4 46.0 0.61 149.0 151.0 2.0 11.50 0.335 6.3 0.184
Incl. 46.0 46.6 0.61 151.0 153.0 2.0 3.25 0.095 7.4 0.216
And 47.2 48.8 1.58 155.0 160.2 5.2 11.56 0.337 15.5 0.453
Incl. 47.2 48.0 0.79 155.0 157.6 2.6 5.33 0.155 10.2 0.298
Incl. 48.0 48.6 0.52 157.6 159.3 1.7 8.56 0.250 11.3 0.330
Incl. 48.6 48.8 0.27 159.3 160.2 0.9 35.20 1.027 38.9 1.135
FCU-0008 DDS 6 64.5 10 93.9 308 4.0 4.2 0.24 13.0 13.8 0.8 96.60 2.818 49.0 1.429
And 10.8 11.0 0.15 35.5 36.0 0.5 14.45 0.422 13.0 0.379
And 32.4 38.6 6.16 106.3 126.5 20.2 12.80 0.373 12.1 0.353
Incl. 32.4 32.6 0.15 106.3 106.8 0.5 14.00 0.408 4.1 0.119
Incl. 36.4 36.6 0.27 119.3 120.2 0.9 27.60 0.805 48.0 1.400
Incl. 36.6 37.8 1.19 120.2 124.1 3.9 1.91 0.056 7.0 0.204
Incl. 37.8 38.0 0.21 124.1 124.8 0.7 247.00 7.205 186.0 5.426
Incl. 38.9 38.6 0.52 124.8 126.5 1.7 3.85 0.112 8.0 0.233
And 78.9 79.6 0.61 259.0 261.0 2.0 4.88 0.142 10.3 0.299
FCU-0009 DDS 6 64.5 20 70.1 230 4.3 4.6 0.34 14.1 15.2 1.1 30.6 0.893 19.0 0.554
And 11.3 11.6 0.30 37.0 38.0 1.0 4.65 0.136 5.5 0.160
And 14.0 15.1 1.10 46.0 49.6 3.6 5.96 0.174 10.0 0.292
Incl. 14.0 14.6 0.61 46.0 48.0 2.0 1.13 0.033 6.0 0.175
Incl. 14.6 15.1 0.49 48.0 49.6 1.6 12.0 0.350 15.0 0.438
And 17.1 19.5 2.44 56.0 64.0 8.0 4.09 0.119 8.8 0.256
Incl. 17.1 17.7 0.61 56.0 58.0 2.0 2.37 0.069 6.0 0.175
Incl. 17.7 18.4 0.76 58.0 60.5 2.5 3.36 0.098 8.0 0.233
Incl. 18.4 19.0 0.52 60.5 62.2 1.7 4.26 0.124 13.0 0.379
Incl. 19.0 19.5 0.55 62.2 64.0 1.8 6.84 0.200 9.0 0.263
And 24.9 25.5 0.58 81.6 83.5 1.9 4.37 0.127 6.0 0.175
And 36.3 37.5 1.22 119.0 123.0 4.0 8.83 0.258 16.1 0.470
Incl. 36.3 36.7 0.40 119.0 120.3 1.3 25.0 0.729 35.0 1.021
Incl. 36.7 37.5 0.82 120.3 123.0 2.7 1.05 0.031 7.0 0.204
FCU-0029 DDS 6 82 10 95.9 314.5 17.3 17.7 0.37 56.8 58.0 1.2 948.00 27.653 409.0 11.931
And 28.3 34.4 6.1 93.0 113.0 20.0 5.81 0.169 1.8 0.054
Incl. 28.3 29.9 1.52 93.0 98.0 5.0 3.43 0.100 3.9 0.114
Incl. 29.9 31.4 1.52 98.0 103.0 5.0 6.13 0.179 1.3 0.038
Incl. 31.4 32.9 1.52 103.0 108.0 5.0 5.69 0.166 0.3 0.007
Incl. 32.9 34.4 1.52 108.0 113.0 5.0 7.99 0.233 1.9 0.055
And 36.0 38.4 2.47 118.0 126.1 8.1 30.41 0.887 25.2 0.735
Incl. 36.0 37.1 1.16 118.0 121.8 3.8 4.47 0.13 2.5 0.073
Incl. 37.1 37.4 0.24 121.8 122.6 0.8 36.6 1.068 51.0 1.488
Incl. 37.6 37.7 0.15 123.2 123.7 0.5 26.6 0.776 34.0 0.992
Incl. 37.7 38.4 0.73 123.7 126.1 2.4 77.80 2.269 57.0 1.663
And 72.2 72.5 0.37 236.8 238.0 1.2 21.70 0.633 14.4 0.420
FCU-0047 Joyce South Drift 77 -30 57.9 190 24.5 24.8 0.30 80.5 81.5 1.0 439.00 12.806 347.0 10.122
And 31.6 31.8 0.21 103.7 104.4 0.7 5.41 0.158 3.7 0.108
FCU-0048 Joyce South Drift 75 -16 57.9 190 22.2 22.3 0.12 72.8 73.2 0.4 256.00 7.468 189.0 5.513
And 25.9 26.6 0.67 85.0 87.2 2.2 15.56 0.454 13.9 0.406
Incl. 25.9 26.2 0.30 85.0 86.0 1.0 7.84 0.229 7.0 0.204
Incl. 26.2 26.6 0.37 86.0 87.2 1.2 22.0 0.642 19.7 0.575
FCU-0049 Joyce South Drift 75 -40 73.2 240 26.3 27.4 1.13 86.3 90.0 3.7 158.69 4.629 122.4 3.573
Incl. 26.3 26.7 0.40 86.3 87.6 1.3 448.00 13.068 346.0 10.093
Incl. 26.7 27.4 0.73 87.6 90.0 2.4 1.99 0.058 1.4 0.041
FCU-0050 Joyce South Drift 102 -36 76.2 250 24.6 25.3 0.70 80.7 83.0 2.3 350.00 10.210 218.0 6.359
And 27.8 29.1 1.31 91.2 95.5 4.3 12.47 0.364 12.0 0.350
Incl. 27.8 28.3 0.55 91.2 93.0 1.8 16.6 0.484 18.0 0.525
Incl. 28.3 28.5 0.18 93.0 93.6 0.6 12.25 0.357 13.0 0.379
Incl. 28.5 29.1 0.58 93.6 95.5 1.9 8.62 0.251 6.0 0.175
FCU-0051 Joyce South Drift 93 3 57.9 190 40.1 41.1 1.10 131.4 135.0 3.6 5.75 0.168 5.6 0.163
Incl. 40.1 40.6 0.52 131.4 133.1 1.7 5.51 0.161 7.9 0.230
Incl. 40.6 41.1 0.58 133.1 135.0 1.9 5.96 0.174 3.5 0.102
FCU-0053 Joyce South Drift No Significant Results
FCU-0054 Joyce South Drift 114 -7 76.2 250 6.3 6.6 0.27 20.8 21.7 0.9 3.55 0.104 2.5 0.073
And 19.8 20.6 0.82 65.0 67.7 2.7 5.12 0.149 7.7 0.224
Incl. 19.8 20.4 0.58 65.0 66.9 1.9 1.78 0.052 2.5 0.073
Incl. 20.4 20.6 0.24 66.9 67.7 0.8 13.05 0.381 20.0 0.583
FCU-0055 Joyce South Drift 95 2 77.7 255 18.0 18.3 0.3 59.0 60.0 1.0 4.66 0.136 30.0 0.875
FCU-0087 Joyce 5420 Drift 66 -2 45.7 150 13.2 13.7 0.52 43.3 45.0 1.7 10.25 0.299 9.5 0.277
And 20.8 21.1 0.27 68.2 69.1 0.9 7.12 0.208 5.4 0.158
And 30.5 32.0 1.52 100.0 105.0 5.0 6.83 0.199 6.2 0.181
And 41.0 42.0 1.01 134.5 137.8 3.3 4.23 0.123 7.8 0.228
FCU-0088 Joyce 5420 Drift No Significant Results
FCU-0094 Spiral 2 62 -18 45.7 150 39.3 39.8 0.52 128.9 130.6 1.7 4.16 0.121 3.2 0.093
FCU-0095 Spiral 2 65 33 45.7 150 19.7 20.3 0.64 64.5 66.6 2.1 10.30 0.300 2.5 0.073
And 30.1 31.2 1.04 98.8 102.2 3.4 23.50 0.685 28.0 0.817
FCU-0096 Spiral 2 No Significant Results

Note: True widths are not yet known.

The technical information contained in this press release has been reviewed and approved by Mark Odell of Practical Mining LLC, an Independent Qualified Person (Nevada PE 13708 and SME 2402150) for the purposes of National Instrument 43-101.

Assays were performed by ALS Chemex of Elko, Nevada (an independent laboratory), as directed under the supervision of Klondex staff.

About Klondex Mines Ltd. (www.klondexmines.com)

Klondex Mines is focused on the exploration, development and production of its high quality gold and silver projects. The Company is operating an ongoing bulk sampling program at its Fire Creek gold project located in north central Nevada. Fire Creek is in a mining-friendly jurisdiction, with onsite power and mining infrastructure, and near major producers. Midas, Klondex's newly acquired operating mine and milling facility are located ~100 miles north of Fire Creek.

Cautionary Note Regarding Technical Information and Forward-looking Information

A production decision at the Midas mine was made by prior owners of the mine, prior to the completion of the acquisition of the Midas mine by Klondex. To the knowledge of Klondex, this production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with NI 43-101 but was based on internal studies conducted by the prior owner of the mine. Klondex has no reason to believe that the data on which such studies were based or that the results of such studies are unreliable. However, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.

This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation, including but not limited to information about the timing and success of exploration drilling activities. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, 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; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital requirements and operations. 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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