SOURCE: Klondex Mines Ltd.

Klondex Mines Ltd.

October 08, 2013 06:30 ET

Klondex Mines Infill Drilling Extends Continuity of Vein Structures to the North and South; Intercepts 286.8 g/t (8.4 opt) Gold Over 2.0m (6.5ft) in the North

RENO, NV and VANCOUVER, BC--(Marketwired - Oct 8, 2013) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF)

Additional Intercepts:

  • 61.9 g/t (1.8 opt) gold over 0.9m (3.1ft) in FC-13-079U
  • 211.0 g/t (6.2 opt) gold over 0.2m (0.6ft) in FC-13-085U
  • 43.3 g/t (1.3 opt) gold over 1.1m (3.7ft) in FC-13-089U
  • 23.2 g/t (0.7 opt) gold over 1.5m (5.0ft) in FC-13-092U

Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF), a Nevada gold exploration and development company, reports the results of 20 drill holes in its continuing underground infill drilling program at its Fire Creek gold project, located in Lander County, Nevada. Assay results are set out in Table 1; Table 2 details the hole locations with azimuth and dip, and maps illustrating the locations of the recently completed drill holes are shown in Figures 1, 2, 3 and 4.

Infill drilling conducted to the east of the ramp extended the continuity of the Vonnie structure on strike by 50m (165ft) north and 110m (360ft) south. The Joyce structure is extended by 91m (300ft) to the south and remains open to the north. Both structures are open at depth and along strike. Twenty-six drill holes were completed for a total of 3,533.1 meters (11,531.9 feet) with encouraging mineralization intercepted in nearly every drill hole. Assays are pending on six holes, including two drill holes to the west.

As a result of a halo effect on the structures, drills are intercepting mineralization on either side of the vein, with gold grades ranging from 3 g/t (0.1 opt) to 30 g/t (0.9 opt). These halos, although not modeled in the recently updated resource estimate, are supported by drilling and sampling the mineralization in the underground development program. More drilling is required to properly define the halo effect on the veins.

Paul Huet, Klondex President and CEO stated, "These recent drill results continue to support our view that Fire Creek requires more drilling. To enhance our exploration program, we plan to follow up on the previously discovered exploration targets to the west and the south of the Main Zone, allowing us to further unlock the potential of Fire Creek. A mineralized halo will assist in managing dilution for any stoping method."

Drilling to the South: Muck Bay (MB) 3 and MB 4 (Figures 1, 2 and 4.)
Drill holes FC-13-073U through FC-13-088U were drilled to the east from MB 3 and MB 4 (located 498 ft south of the 5400 crosscut) to test the southern extensions of the Joyce and Vonnie structures. Multiple intercepts greater than 5 g/t Au were encountered in most holes, and five sub-parallel mineralized envelopes were interpreted (Figure 4). The southern extension of the Joyce vein was demonstrated by 8.3 g/t (0.2 opt) Au over 2.6m (8.6ft) in FC-13-084U, and the Vonnie vein extension was supported by an intercept of 211.0 g/t (6.2 opt) Au over 0.2m (0.6ft) in FC-13-085U, within a larger zone of 1.5m (5ft) at a grade of 20.7 g/t Au (0.6 oz/ton Au). The Joyce vein extension is interpreted by the calcite rich breccia, whereas the Vonnie extension is interpreted as quartz vein hosted gold within a dike similar to the north.

Drilling to the North: MB 5370 and MB 6 (Figures 1, 3 and 4)
Three holes were drilled to the north and east from MB 5370 to test the northern extension of the Joyce and Vonnie structures. All three holes encountered the Joyce vein below the current workings and returned gold grades ranging from 981.0 g/t to 11 g/t (28.6 opt to 0.3 opt). Intercepts of 22.0 g/t (0.6 opt) Au in FC-13-089U, 23.2 g/t (0.7 opt) Au in FC13-092U, and 6.9 g/t (0.2 opt) Au in FC-13-093U suggest the Vonnie structure continues to the northwest. Two holes drilled from MB 5370 and five holes from MB 6, 200 ft north of the 5370 crosscut were also completed, with logging and assay results pending.

Future Drilling
For the remainder of 2013, Klondex intends to continue with its infill drilling to assess the continuity of the Joyce and Vonnie structures to the east of the ramp. Through the addition of a second drill, the company plans to follow up on recent discoveries to the west and the south.

Hole No. From To Length   From   To Length   Grade   Grade   Notes
  (meters) (meters) (meters)   (ft)   (ft) (ft)   (g/t Au)   (opt Au)    
FC-13-073U                           No Significant Results
FC-13-074U 55.5 56.8 1.3   182.0   186.2 4.2   6.9   0.2    
FC-13-075U 74.6 75.6 0.9   244.9   248.0 3.1   20.7   0.6    
FC-13-076U                           No Significant Results
FC-13-077U 56.7 57.0 0.3   186.0   187.0 1.0   13.9   0.4    
and 63.4 64.6 1.3   207.9   212.0 4.1   8.0   0.2    
FC-13-078U 69.5 70.4 0.9   228.0   231.0 3.0   9.4   0.3    
and 81.6 83.2 1.7   267.6   273.0 5.4   14.7   0.4    
including 81.6 82.8 1.2   267.6   271.6 4.0   8.1   0.2    
including 82.8 83.2 0.4   271.6   273.0 1.4   33.8   1.0    
FC-13-079U 55.5 59.0 3.5   182.0   193.6 11.6   17.6   0.5    
including 57.6 58.5 0.9   188.9   192.0 3.1   61.9   1.8    
and 94.9 96.3 1.4   311.2   315.9 4.7   4.4   0.1    
including 94.9 95.6 0.7   311.2   313.5 2.3   6.1   0.1    
FC-13-080U 56.4 58.0 1.6   185.1   190.2 5.1   6.5   0.2    
and 88.5 90.4 2.0   290.2   296.6 6.4   4.5   0.1    
including 89.6 90.4 0.8   294.0   296.6 2.6   4.9   0.1    
FC-13-081U                           No Significant Results
FC-13-082U 73.4 74.2 0.8   240.9   243.4 2.5   17.8   0.5    
FC-13-083U 60.4 61.9 1.5   198.0   203.0 5.0   9.2   0.3    
FC-13-084U 97.4 100.0 2.6   319.4   328.0 8.6   8.3   0.2    
including 97.4 98.5 1.1   319.4   323.0 3.6   15.0   0.4    
and 112.2 113.5 1.3   368.0   372.3 4.3   13.1   0.4    
FC-13-085U 55.5 57.0 1.5   182.0   187.0 5.0   20.7   0.6    
and 56.1 56.4 0.2   184.2   185.0 0.8   38.0   1.1    
and 56.7 56.9 0.2   186   186.6 0.6   211.0   6.2    
FC-13-087U                           No Significant Preliminary Results
FC-13-088U                           No Significant Preliminary Results
FC-13-089U 8.8 11.9 3.05   29.0   39.0 10.0   23.1   0.7    
including 8.8 10.0 1.16   29.0   32.8 3.8   11.8   0.3    
including 10.0 10.5 0.49   32.8   34.4 1.6   12.5   0.4    
including 10.5 11.6 1.13   34.4   38.1 3.7   43.3   1.3    
including 11.6 11.9 0.27   38.1   39.0 0.9   6.2   0.2    
and 49.0 49.3 0.27   160.7   161.6 0.9   22.0   0.6    
FC-13-090U 73.5 74.1 0.58   241.1   243.0 1.9   8.1   0.2   Preliminary results
FC-13-091U 10.6 10.8 0.18   34.9   35.5 0.6   5.2   0.2   Preliminary results
and 82.6 82.9 0.27   271.0   271.9 0.9   30.0   0.9    
FC-13-092U 8.1 10.3 2.16   26.6   33.7 7.1   11.7   0.3    
including 8.1 8.5 0.43   26.6   28.0 1.4   5.3   0.1    
including 8.5 9.0 0.43   28.0   29.4 1.4   40.00   1.2    
including 9.0 10.3 1.31   29.4   33.7 4.3   4.7   0.1    
and 45.1 46.6 1.52   148.0   153.0 5.0   23.2   0.7    
FC-13-093U 6.2 6.7 0.52   20.2   21.9 1.7   6.9   0.2    
and 7.5 9.5 1.98   24.7   31.2 6.5   286.8   8.4    
including 7.5 8.1 0.55   24.7   26.5 1.8   981.0   28.6    
including 8.1 8.6 0.52   26.5   28.2 1.7   31.5   0.9    
including 9.1 9.5 0.37   30.0   31.2 1.2   37.0   1.1    

Table 1: Results from recent Fire Creek drilling. Preliminary results consist of material sampled across veins or veined breccia identified from quick-logs. Complete log and sample results for these holes are pending.
Note: Intervals reported are core lengths; true widths are not known at this time.

Location   Hole Id   Azimuth   Dip   Length (m)   Length (ft)
Main Decline MB 3   FC-13-073U   75   35   64.0   210
Main Decline MB 3   FC-13-074U   75   6   216.7   711
Main Decline MB 3   FC-13-075U   75   -10   122.8   403
Main Decline MB 3   FC-13-076U   75   -25   121.9   400
Main Decline MB 3   FC-13-077U   96   10   85.0   279
Main Decline MB 3   FC-13-078U   94   -20   153.5   503.5
Main Decline MB 3   FC-13-079U   94   -49   153.0   502
Main Decline MB 4   FC-13-080U   71   -38   138.4   454
Main Decline MB 4   FC-13-081U   69   -58   159.4   523
Main Decline MB 4   FC-13-082U   74   -13   106.7   350
Main Decline MB 4   FC-13-083U   72   13   64.9   213
Main Decline MB 4   FC-13-084U   75   -90   136.6   448
Main Decline MB 4   FC-13-085U   65   -60   151.5   497
Main Decline MB 4   FC-13-086U   62   -39   135.6   445
Main Decline MB 4   FC-13-088U   60   15   73.8   242
5370 MB   FC-13-089U   88   -22   147.2   483
5370 MB   FC-13-090U   262   -23   215.8   708
5370 MB   FC-13-091U   255   20   116.7   383
5370 MB   FC-13-092U   60   -20   165.5   543
5370 MB   FC-13-093U   35   -20   128.9   423
            Total   2,658.0   8,720.5

Table 2: Completed drill holes with length, azimuth and dip.

The technical information contained in this press release has been approved and verified 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.

Samples cited in this news release were obtained from in-fill drilling by independent contractor American Drilling of Spokane, Washington under the direction of Klondex staff. Assays were determined by ALS Minerals, an independent analytical laboratory, under the supervision of Klondex staff. Sample preparation is conducted in Elko, Winnemucca, or Reno facilities, and fire-assay analytical work is conducted in Reno. Logging, splitting, and sampling are conducted at the Fire Creek site. Sample intervals are selected by geology and alteration. Core is split, and a 1/2 split is archived for reference. Accredited standards and blanks are inserted approximately every 20 samples. Duplicates are generated by ALS by splitting the sample immediately in advance of the duplicate and assaying one split. Standard sample performance is frequently monitored using statistical spreadsheets. Standard fire assays with a 30g charge are performed on all samples up to 10 g/t, and then gravimetric assays are conducted on samples with 10 g/t over-limit assays. Select metallic-screen assays are then conducted by re-sampling the coarse reject using criteria such as clustering of assays, proximity to veins, and mineralized veins. Multi-element ICP samples are collected on 20ft composites and on individual samples in mineralized rock. Assay data is reviewed by certificate, and again after merging with logged data for footage or numbering discrepancies. Standard, blank, and duplicate performance is then reviewed, and no re-assays were requested. Vein material will likely be further assayed by the metallic screen method, which will be used as the best assay.

About Klondex Mines Ltd. (http://www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its Fire Creek gold project in North-Central Nevada. Fire Creek is located in a mining-friendly jurisdiction, near major producers, transportation, mining infrastructure and its milling facilities. As at September 30, 2013, Klondex had 65.0M shares issued and outstanding and 87.2M shares, fully diluted.

This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation, including information about the magnitude and quality of the Fire Creek Project, the results of exploration and metallurgical sampling at the Fire Creek Project and the potential expansion of mineralization, . 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.
    1-775-284-5757
    Email Contact

    Alison Tullis
    Manager, Investor Relations
    Klondex Mines Ltd.
    1-647-233-4348
    Email Contact

    Toni Trigiani
    Investor Relations
    Catalyst Global LLC
    1-212-924-9800
    Email Contact