Klondex Mines Ltd.

TSX : KDX
OTCQX : KLNDF


Klondex Mines Ltd.

December 19, 2013 06:30 ET

Klondex Mines Intercepts New Areas of Gold Mineralization at Its Fire Creek Project

RENO, NEVADA and VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 19, 2013) - Klondex Mines Ltd. (TSX:KDX)(OTCQX:KLNDF), a Nevada gold exploration and development company, today reports gold assays at its Fire Creek gold Project in Nevada, from surface drilling. The drilling suggests possible extensions of the current mineral resource model.

Four reverse circulation (RC) holes were drilled as part of the Fire Creek hydrology study (see FIGURE 1). RC chips were logged, and samples collected on 5 ft intervals for assaying. Three of the four holes intercepted mineralization outside of the current mineral resource model that are in line with the underground workings. Grades from the surface drilling range from 16.3 g/t (0.47 opt) Au to 5.1 g/t (0.15 opt) Au. See Tables 2 and 3 below, for detailed sample results. Table 1 details significant assays and locations in relation to the mineral resource model at Fire Creek.

Drill Hole Intercept Location
FC-13-27S 13.0 g/t (0.38 opt) Au over 10.7m (35 ft) 250 ft north of the known Joyce structure block model, and 1070 ft north of the last blasted Joyce face round.
FC-13-26S 9.2 g/t (0.27 opt) Au over 4.6m (15 ft) 480 ft south of the closest modeled vein and west of the main ramp
FC-13-25S 10.4 g/t (0.30 opt) Au over 1.5m (5 ft) 250 ft south of the resource model
Table 1: RC drilling during the hydrology study

Mike Doolin, Klondex General Manager stated, "These intercepts continue to support our view that the Fire Creek project is significantly underexplored. The 2014 drill program is designed to follow up on new discoveries as well as extend the strike length and vertical extent of the current known mineralization, as we continue to unlock value at Fire Creek. Based on my personal experience, in these styles of mineral deposits, RC drill holes dilute and underestimate the grades. We expect that additional core drilling in these areas will clarify grades and widths."

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

RC sample size was monitored during drilling and kept to approximately 10-15kg. Reference chips were collected in standard chip trays for logging. Assays were performed by ALS Minerals in Reno, Nevada (an independent laboratory), under the supervision of Klondex staff. Fire Creek QA/QC protocols include insertion of standards, blanks, and duplicates approximately every 20 samples. Standard and blank samples use accredited reference material. Gold analyses were obtained via industry standard fire assay with atomic absorption finish. For samples returning greater than 10.00 g/t Au, a follow-up fire assay analysis with a gravimetric finish was performed.

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

Klondex Mines is focused on the exploration and development of its high-grade 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 milling facilities. As at December 19, 2013, the Company had 79.2 million shares issued and outstanding and 97.2 million shares fully diluted.

Hole No. AZI DIP Depth Depth
(m) (ft)
FC-13-24S 227 -60 452.7 1500
FC-13-25S 66 -60 403.9 1325
FC-13-26S 248 -60 518.2 1700
FC-13-27S 60 -60 518.2 1700
Table 2: RC drilling azimuth, dip and depth
Hole No. From To Length From To Length Grade Grade
(m) (m) (m) (ft) (ft) (ft) (g/t Au) (opt Au)
FC-13-24S No Significant Intercept
FC-13-25S 126.5 131.1 4.57 415 430 15 8.49 0.248
including 128.0 129.5 1.52 420 425 5 6.59 0.192
including 129.5 131.1 1.52 425 430 5 10.40 0.303
FC-13-26S 161.5 164.6 3.05 530 540 10 6.16 0.180
including 161.5 163.1 1.52 530 535 5 8.17 0.238
and 233.2 234.7 1.52 765 770 5 6.59 0.192
and 239.3 242.3 3.05 785 795 10 7.18 0.209
including 239.3 240.8 1.52 785 790 5 5.13 0.149
including 240.8 242.3 1.52 790 795 5 9.24 0.269
and 256.0 257.6 1.52 840 845 5 7.02 0.205
and 297.2 304.8 7.62 975 1000 25 9.21 0.269
including 297.2 298.7 1.52 975 980 5 12.50 0.365
including 298.7 300.2 1.52 980 985 5 8.01 0.234
including 300.2 301.8 1.52 985 990 5 7.11 0.207
and 373.4 391.7 18.29 1225 1285 60 5.12 0.149
including 374.9 376.4 1.52 1230 1235 5 5.09 0.148
including 376.4 378.0 1.52 1235 1240 5 7.23 0.211
including 378.0 379.5 1.52 1240 1245 5 7.91 0.231
including 379.5 381.0 1.52 1245 1250 5 5.65 0.165
including 384.0 385.6 1.52 1260 1265 5 5.97 0.174
including 387.1 388.6 1.52 1270 1275 5 6.64 0.194
FC-13-27S 342.9 365.8 22.86 1125 1200 75 8.36 0.244
including 344.4 345.9 1.52 1130 1135 5 5.94 0.173
including 349.0 350.5 1.52 1145 1150 5 5.40 0.157
including 353.6 355.1 1.52 1160 1165 5 11.65 0.340
including 355.1 356.6 1.52 1165 1170 5 13.85 0.404
including 356.6 358.1 1.52 1170 1175 5 14.95 0.436
including 358.1 359.7 1.52 1175 1180 5 16.25 0.474
including 359.7 361.2 1.52 1180 1185 5 10.90 0.318
including 361.2 362.7 1.52 1185 1190 5 12.15 0.354
including 362.7 364.2 1.52 1190 1195 5 10.30 0.300
and 449.6 451.1 1.52 1475 1480 5 5.56 0.162
Table 3: RC drilling widths and grades, true widths are unknown.

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 assay sampling at the Fire Creek Project, the Company's intention and ability to monetize mineralized material, timing of the updated mineral resource estimate at the Fire Creek Project and the bulk sampling program. 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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