SOURCE: Klondex Mines Ltd.

Klondex Mines Ltd.

November 14, 2013 20:06 ET

Klondex Mines Clarifies Technical Disclosure

ELKO, NV and VANCOUVER, BC--(Marketwired - Nov 14, 2013) - As a result of a review by the British Columbia Securities Commission, Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF) ("Klondex" or the "Company") is issuing the following news release to clarify its disclosure.

All non-compliant technical disclosure has been removed from the Company's website in respect of the Company's Fire Creek project in Nevada (the "Fire Creek Project") in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Specifically, the Company has removed from its website disclosure in respect of a non-current mineral resource estimate for the Fire Creek Project, which estimate had an effective date of May 21, 2011 and was supported by a technical report dated August 29, 2011 (the "2011 Technical Report"). Further to the Company's news releases dated September 16, 2013 and October 31, 2013, investors are reminded that the current mineral resource estimate for the Fire Creek Project is disclosed in the technical report titled "Technical Report (Amended): Fire Creek Exploration Project, Lander County, Nevada" dated November 14, 2013 (with an effective date of August 31, 2013), as amended, prepared by Mark Odell, P.E., Principal Engineer, Practical Mining LLC, Karl Swanson, Independent Mining & Geological Consultant, SME, MAusIMM, and Michele White, Geologic Consultant, CPG #11252 AIPG, All One River GIS (the "2013 Technical Report"). The 2013 Technical Report supersedes the 2011 Technical Report in its entirety and the 2011 Technical Report should no longer be relied upon by investors. The 2013 Technical Report is available for review under the Company's profile on SEDAR at www.sedar.com.

In addition, the Company hereby retracts all statements in its September 16, 2013 news release and in its corporate presentation on the Fire Creek Project regarding "verified continuity" of mineralization at the Fire Creek Project. The majority of the mineral resources disclosed in the 2013 Technical Report comprise indicated and inferred mineral resources, which are estimates based on reasonably assumed, but not verified, geological and grade continuity.

The Company has also removed from its website the corporate presentation on the Fire Creek Project and is in the process of modifying and updating the presentation to comply with the requirements of NI 43-101, including the requirements to (i) disclose each category of mineral resources on the Fire Creek Project separately; (ii) disclose the effective date of each mineral resource estimate, the key assumptions, parameters and methods used to estimate the mineral resources and any known risks that could materially affect the potential development of such mineral resources; and (iii) disclose the relationship to the Company of the qualified person who prepared or supervised the technical information contained in the corporate presentation and on the Company's website.

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 facilities. At November 14, 2013, and assuming the conversion of outstanding special warrants to shares, Klondex has 79.2mm shares issued and outstanding and 103.1mm shares, fully diluted.

This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation. 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.

Contact Information

  • Contact:
    Paul Huet
    President & CEO
    Klondex Mines Ltd.
    775-284-5757
    Email Contact

    Alison Tullis
    Manager, Investor Relations
    Klondex Mines Ltd.
    647-233-4348
    Email Contact

    Toni Trigiani
    Investor Relations
    Catalyst Global LLC
    212-924-9800
    Email Contact