SOURCE: Klondex Mines Ltd.

Klondex Mines Ltd.

October 11, 2016 18:40 ET

Klondex Provides Exploration Update at Hollister

Reports Promising Intercepts at the Gloria Zone

VANCOUVER, BC--(Marketwired - October 11, 2016) - Klondex Mines Ltd. (TSX: KDX) (NYSE MKT: KLDX) ("Klondex"or the "Company") is pleased to provide an update on recent and historic exploration results at its Hollister Mine in Nevada (see FIGURE 1).

Gloria West Drilling Highlights: (see TABLE 1 below)

  • GLOR15-034: 4.18 opt AuEq over 8.4 ft, or 143.3 g/t over 2.6 m
    • Including 18.36 opt AuEq over 1.7 ft, or 629.6 g/t over 0.5 m
  • GLOR14-001: 2.42 opt AuEq over 2.2 ft, or 83.1 g/t over 0.7 m
  • GLOR14-001: 3.63 opt AuEq over 0.5 ft, or 124.3 g/t over 0.2 m
  • GLOR15-006: 3.59 opt AuEq over 1.1 ft, or 123.0 g/t over 0.3 m
  • GLOR15-010: 1.39 opt AuEq over 7.2 ft, or 47.8 g/t over 2.2 m
    • Including 2.48 opt AuEq over 3.3 ft, or 85.2 g/t over 1.0 m
  • GLOR15-011: 2.20 opt AuEq over 1.4 ft, or 75.6 g/t over 0.4 m
  • GLOR15-020: 1.43 opt AuEq over 4.1 ft, or 48.9 g/t over 1.2 m
    • Including 8.07 opt AuEq over 0.7 ft, or 276.7 g/t over 0.2 m
  • GLOR15-025: 3.85 opt AuEq over 0.6 ft, or 132.0 g/t over 0.2 m
  • GLOR15-026: 2.20 opt AuEq over 2.5 ft, or 75.32g/t over 0.8 m
  • GLOR15-032: 3.74 opt AuEq over 1.7 ft, or 128.2 g/t over 0.5 m

A total of 36 underground holes totaling 17,998 ft. (5,486 m) were drilled in 2014 and 2015 by the prior owner and were not previously released. These holes encountered multiple veins and extended the Gloria vein system approximately 800 ft to the West and approximately 300 ft vertically. The Gloria vein system remains open up and down dip and along strike to the West. Klondex intends to infill drill the Gloria vein system in Q4 2016 to develop a Mineral Resource estimate and continue stepping out to the West (see FIGURE 2).

Hatter Graben Historical Drilling Highlights:

  • H8-264: 0.54 opt Au over 7.8 ft, or 18.6 g/t over 2.4 m (est. true width of 5.5 ft, or 1.7 m)
  • H8-269: 1.77 opt Au over 2.1 ft, or 60.7 g/t over 0.6 m (est. true width of 1.5 ft, or 0.5 m)
  • H8-274: 7.8 opt Au over 1.4 ft, or 268.0 g/t over 0.4 m (est. true width of 1.0 ft, or 0.3 m)
  • H8-281: 1.4 opt Au over 2.3 ft, or 48.0 g/t over 0.7 m (est. true width of 1.3 ft, or 0.4 m)
  • H8-285: 0.47 opt Au over 12.5 ft, or 16.0 g/t over 3.8 m (est. true width of 8.8 ft, or 2.7 m)

The historic drilling program was conducted in 2008. Three holes did not render any significant results. This surface exploration drill program discovered the Hatter Graben vein system, an east-west trending structural zone containing several sub-parallel high grade veins. Results of this program indicate the system is approximately 1,800 ft (~550 m) in strike and approximately 1,200 ft (365 m) vertical extent and open in all directions. Klondex intends to infill the widely spaced drill holes from surface to develop a Mineral Resource estimate.

Mr. Paul Huet, President and CEO commented, "We are extremely excited to be reunited with this important asset. Several members of the Klondex team have significant experience with and knowledge of Hollister. We believe the Gloria and the Hatter Graben zones have significant exploration potential." Mr. Huet continued, "We have successfully completed the consolidation of Fire Creek, Midas and Hollister, three high grade underground mines servicing one central mill at Midas, providing a unique opportunity to capture significant synergies among these operations. This has been a long-term vision and we are extremely proud of our team to be the company to finally accomplish this goal."

To the knowledge of Klondex, vein samples were analyzed by either metallic screen or standard fire assay procedures and QA/QC results were within acceptable limits. Assays were performed by ALS Chemex of Reno, Nevada, an ISO 17025 accredited independent laboratory. The historical data was verified by Klondex's technical team led by Brian Morris, Vice President of Exploration of Klondex and a "qualified person" within the meaning of National Instrument 43-101 ("NI 43-101").

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly the Rice Lake Mine) and mill in Manitoba, Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora (formerly known as Esmeralda) mine and ore milling facility, also located in Nevada, USA.

Qualified Person
Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a "qualified person" within the meaning of NI 43-101.

Cautionary Note Regarding Forward-looking Information
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, "forward-looking information"), including but not limited to the exploration potential at the Hollister Mine, future exploration plans of Klondex and any synergies that may be captured by Klondex as a result of the consolidation of Fire Creek, Midas and Hollister. 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 United States available at www.sedar.com and www.sec.gov, respectively. 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.

 
TABLE 1: Gloria West Drill Program - Complete Results            
Hole ID  Azi  Incl  TD  From  To  Length  Au Grade  Ag Grade  AuEq Grade  From  To  Length  Au Grade  Ag Grade  AuEq Grade   
(ft)  (ft)  (ft)  (ft)  (oz/st)  (oz/st)  (oz/st)  (m)  (m)  (m)  (g/Tonne)  (g/Tonne)  (g/Tonne)  Vein
GLOR14-001  357  -45  1244  897.5  900.0  2.5  1.187  3.44  1.235  273.6  274.3  0.8  40.69  118.09  42.33  Gloria
and           1006.0  1007.4  1.4  0.338  6.92  0.434  306.6  307.1  0.4  11.60  237.19  14.89  Gloria
and           1046.0  1048.5  2.5  1.694  2.55  1.730  318.8  319.6  0.8  58.09  87.27  59.30  Gloria
and           1056.0  1061.0  5.0  0.246  0.72  0.256  321.9  323.4  1.5  8.42  24.77  8.76  Gloria
and           1102.5  1103.4  0.9  0.428  4.23  0.487  336.0  336.3  0.3  14.68  145.11  16.70  Gloria
and           1148.8  1151.0  2.2  2.168  18.36  2.422  350.2  350.8  0.7  74.32  629.50  83.05  Gloria
and           1158.5  1161.0  2.5  0.965  5.55  1.042  353.1  353.9  0.8  33.08  190.15  35.72  Gloria
and           1186.7  1187.2  0.5  3.363  19.00  3.626  361.7  361.9  0.2  115.29  651.52  124.33  Gloria
                                                 
GLOR14-002  347  -45  1334  968.0  969.8  1.8  0.638  1.30  0.656  295.0  295.6  0.5  21.86  44.40  22.48  Gloria
and           1031.3  1032.4  1.1  2.456  8.99  2.580  314.3  314.7  0.3  84.12  308.00  88.39  Gloria
and           1110.9  1112.5  1.6  0.864  1.00  0.878  338.6  339.1  0.5  29.60  34.30  30.07  Gloria
and           1183.6  1186.2  2.6  0.525  1.39  0.544  360.8  361.6  0.8  17.98  47.72  18.64  Gloria
incl           1183.6  1184.3  0.7  1.471  3.33  1.517  360.8  361.0  0.2  50.39  114.00  51.97  Gloria
                                                 
GLOR15-003  22  39  413  293.2  294.5  1.3  0.820  10.20  0.961  89.4  89.8  0.4  28.13  319.00  32.55  Gloria
                                                 
GLOR15-004  18  0  380  192.5  194.8  2.3  1.825  1.67  1.848  58.7  59.4  0.7  62.57  57.20  63.37  Gloria
and           261.5  263.1  1.6  0.157  1.30  0.175  79.7  80.2  0.5  5.39  44.40  6.01  Gloria
and           320.5  321.0  0.5  3.439  13.20  3.622  97.7  97.8  0.2  117.92  413.00  123.65  Gloria
and           357.2  358.3  1.1  0.132  27.70  0.516  108.9  109.2  0.3  4.53  866.00  16.54  Gloria
                                                 
GLOR15-005  20  -24  380  212.0  212.7  0.7  1.534  1.55  1.556  64.6  64.8  0.2  52.59  53.20  53.33  Gloria
and           289.7  290.2  0.5  0.113  0.22  0.116  88.3  88.5  0.2  3.86  7.60  3.97  Gloria
and           303.0  306.0  3.0  0.332  3.00  0.374  92.4  93.3  0.9  11.40  100.00  12.78  Gloria
                                                 
GLOR15-006  17  46  425  238.2  238.7  0.5  1.332  6.00  1.415  72.6  72.8  0.2  45.66  218.00  48.68  Gloria
and           270.0  271.1  1.1  3.542  3.30  3.588  82.3  82.6  0.3  121.45  109.00  122.97  Gloria
and           331.8  332.4  0.6  0.531  1.53  0.552  101.1  101.3  0.2  18.20  52.50  18.93  Gloria
                                                 
GLOR15-007  18  34  401  182.5  184.9  2.4  0.645  0.62  0.654  55.6  56.4  0.7  22.13  21.30  22.43  Gloria
and           270.2  271.4  1.2  0.153  20.30  0.434  82.4  82.7  0.4  5.25  695.00  14.89  Gloria
                                                 
GLOR15-008  21  15  379  247.2  247.7  0.5  0.123  9.20  0.251  75.3  75.5  0.2  4.20  316.00  8.58  Gloria
and           260.0  260.5  0.5  0.137  2.16  0.167  79.2  79.4  0.2  4.69  74.10  5.72  Gloria
and           324.6  325.1  0.5  0.200  8.90  0.323  98.9  99.1  0.2  6.87  304.00  11.09  Gloria
                                                 
GLOR15-009  18  -11  430  146.7  147.4  0.7  0.671  0.57  0.679  44.7  44.9  0.2  23.00  19.40  23.27  Gloria
and           162.4  163.6  1.2  0.224  0.21  0.227  49.5  49.9  0.4  7.67  7.30  7.77  Gloria
and           272.0  275.3  3.3  0.240  0.95  0.254  82.9  83.9  1.0  8.24  32.64  8.69  Gloria
and           279.4  280.2  0.8  0.170  12.80  0.347  85.2  85.4  0.2  5.84  440.00  11.94  Gloria
                                                 
GLOR15-010  19  40  426  147.3  154.5  7.2  1.319  5.41  1.394  44.9  47.1  2.2  45.22  184.98  47.79  Gloria
incl           147.3  150.6  3.3  2.340  10.38  2.484  44.9  45.9  1.0  80.23  355.00  85.16  Gloria
and           272.8  276.6  3.8  0.500  16.96  0.735  83.1  84.3  1.2  17.12  582.42  25.20  Gloria
                                                 
GLOR15-011  18  26  377  134.9  136.0  1.1  2.110  4.60  2.174  41.1  41.5  0.3  72.33  157.00  74.50  Gloria
and           236.3  237.7  1.4  2.164  2.88  2.204  72.0  72.5  0.4  74.19  98.80  75.56  Gloria
and           243.7  244.4  0.7  0.113  0.33  0.118  74.3  74.5  0.2  3.88  11.40  4.04  Gloria
and           337.0  338.0  1.0  0.424  4.20  0.482  102.7  103.0  0.3  14.53  144.00  16.53  Gloria
                                                 
GLOR15-012  19  -21  350        No Significant Intercepts           No Significant Intercepts      
                                                 
GLOR15-013  355  4  328  93.9  95.0  1.1  0.495  0.58  0.503  28.6  29.0  0.3  16.97  19.90  17.25  Gloria
and           178.0  179.8  1.8  0.266  0.28  0.270  54.3  54.8  0.5  9.12  9.70  9.26  Gloria
and           241.7  243.0  1.3  1.083  2.06  1.112  73.7  74.1  0.4  37.13  70.50  38.11  Gloria
                                                 
GLOR15-014  14  46  425  70.0  71.3  1.3  0.572  0.93  0.585  21.3  21.7  0.4  19.60  31.90  20.04  Gloria
and           242.1  245.6  3.5  0.695  2.62  0.731  73.8  74.9  1.1  23.82  89.74  25.06  Gloria
incl           244.5  245.6  1.1  1.384  3.70  1.435  74.5  74.9  0.3  47.46  127.00  49.22  Gloria
and           305.0  305.6  0.6  1.126  4.55  1.189  93.0  93.1  0.2  38.60  156.00  40.76  Gloria
                                                 
GLOR15-015  12  27  381  54.5  55.5  1.0  0.620  0.72  0.630  16.6  16.9  0.3  21.26  24.60  21.61  Gloria
and           190.9  192.5  1.6  0.178  1.36  0.197  58.2  58.7  0.5  6.10  46.60  6.75  Gloria
and           257.9  262.7  4.8  0.349  3.83  0.403  78.6  80.1  1.5  11.99  131.27  13.81  Gloria
and           269.7  273.7  4.0  0.526  3.78  0.579  82.2  83.4  1.2  18.06  129.62  19.85  Gloria
                                                 
GLOR15-016  11  -17  325  83.9  85.1  1.2  0.238  0.66  0.247  25.6  25.9  0.4  8.17  22.70  8.48  Gloria
and           171.4  172.1  0.7  0.371  0.37  0.376  52.2  52.5  0.2  12.73  12.60  12.91  Gloria
and           225.3  226.8  1.5  1.095  0.98  1.109  68.7  69.1  0.5  37.53  33.70  38.00  Gloria
and           247.5  253.0  5.5  0.226  0.80  0.237  75.4  77.1  1.7  7.75  27.43  8.13  Gloria
                                                 
GLOR15-017  191  3.6  452        No Significant Intercepts           No Significant Intercepts      
                                                 
GLOR15-018  12  40  415  174.7  175.6  0.9  0.467  1.13  0.483  53.2  53.5  0.3  16.00  38.80  16.54  Gloria
and           276.6  280.3  3.7  1.208  28.47  1.602  84.3  85.4  1.1  41.41  976.00  54.94  Gloria
                                                 
GLOR15-019  12  21  350  157.8  158.3  0.5  0.393  1.12  0.408  48.1  48.2  0.2  13.47  38.30  14.00  Gloria
and           265.5  266.0  0.5  0.126  3.10  0.169  80.9  81.1  0.2  4.33  107.00  5.81  Gloria
                                                 
GLOR15-020  11  -1  325  214.0  218.5  4.5  0.844  0.86  0.856  65.2  66.6  1.4  28.93  29.73  29.35  Gloria
incl           217.4  218.5  1.1  3.191  3.10  3.234  66.3  66.6  0.3  109.39  107.00  110.87  Gloria
and           226.7  227.3  0.6  0.175  1.11  0.190  69.1  69.3  0.2  6.01  38.10  6.54  Gloria
and           229.0  233.1  4.1  1.407  1.28  1.425  69.8  71.0  1.2  48.24  44.09  48.86  Gloria
incl           232.4  233.1  0.7  7.987  5.90  8.069  70.8  71.0  0.2  273.84  203.00  276.65  Gloria
                                                 
GLOR15-021  11  -26  350        No Significant Intercepts           No Significant Intercepts      
                                                 
GLOR15-022  11  44  417  171.7  172.7  1.0  1.384  1.93  1.411  52.3  52.6  0.3  47.46  66.00  48.38  Gloria
and           271.7  272.8  1.1  0.190  37.20  0.706  82.8  83.1  0.3  6.50  1277.00  24.21  Gloria
                                                 
GLOR15-023  9  27  375  203.1  205.6  2.5  0.385  9.10  0.511  61.9  62.7  0.8  13.20  313.00  17.54  Gloria
and           244.3  245.0  0.7  0.193  2.34  0.225  74.5  74.7  0.2  6.63  80.10  7.74  Gloria
                                                 
GLOR15-024  10  2.5  1300  187.0  190.1  3.1  0.704  2.00  0.732  57.0  57.9  0.9  24.12  68.63  25.08  Gloria
incl           187.0  188.0  1.0  1.573  2.81  1.612  57.0  57.3  0.3  53.93  96.40  55.26  Gloria
                                                 
GLOR15-025  10  -14  327  178.8  179.4  0.6  3.830  1.43  3.850  54.5  54.7  0.2  131.32  48.90  132.00  Gloria
and           189.3  190.0  0.7  0.159  1.91  0.186  57.7  57.9  0.2  5.45  65.60  6.36  Gloria
and           196.0  196.5  0.5  0.106  0.92  0.119  59.7  59.9  0.2  3.65  31.60  4.09  Gloria
                                                 
GLOR15-026  350  19  450  182.4  184.9  2.5  2.119  5.60  2.197  55.6  56.4  0.8  72.66  192.00  75.32  Gloria
and           249.0  249.5  0.5  1.396  7.00  1.493  75.9  76.0  0.2  47.86  241.00  51.20  Gloria
and           397.0  397.6  0.6  0.364  7.30  0.465  121.0  121.2  0.2  12.47  250.00  15.93  Gloria
                                                 
GLOR15-027  190  5  452        No Significant Intercepts           No Significant Intercepts      
                                                 
GLOR15-028  12  43  375  159.7  162.5  2.8  0.182  0.20  0.185  48.7  49.5  0.9  6.24  7.00  6.33  Gloria
and           204.3  207.0  2.7  0.529  27.54  0.911  62.3  63.1  0.8  18.13  944.89  31.24  Gloria
and           218.0  222.9  4.9  1.296  60.15  2.130  66.4  67.9  1.5  44.42  2061.67  73.01  Gloria
incl           220.9  222.9  2.0  2.773  147.10  4.813  67.3  67.9  0.6  95.06  5042.00  164.97  Gloria
                                                 
GLOR15-029  11  -4  350  125.5  126.5  1.0  0.303  0.54  0.310  38.3  38.6  0.3  10.40  18.40  10.65  Gloria
and           163.5  166.3  2.8  0.134  1.18  0.150  49.8  50.7  0.9  4.58  40.40  5.14  Gloria
                                                 
GLOR15-030  11  -30  350  200.0  200.6  0.6  0.225  0.22  0.228  61.0  61.1  0.2  7.71  7.40  7.81  Gloria
and           211.5  213.2  1.7  0.122  2.02  0.150  64.5  65.0  0.5  4.17  69.10  5.13  Gloria
                                                 
GLOR15-031  11  33  400  130.0  130.6  0.6  0.165  3.30  0.211  39.6  39.8  0.2  5.66  112.00  7.21  Gloria
and           134.0  136.4  2.4  0.127  5.20  0.199  40.8  41.6  0.7  4.35  177.00  6.80  Gloria
and           146.4  146.9  0.5  0.148  0.83  0.159  44.6  44.8  0.2  5.07  28.40  5.46  Gloria
                                                 
GLOR15-032  12  11  850  109.1  113.5  4.4  0.376  0.33  0.380  33.3  34.6  1.3  12.89  11.44  13.05  Gloria
incl           109.1  110.5  1.4  1.054  0.76  1.065  33.3  33.7  0.4  36.13  26.10  36.49  Gloria
and           122.0  123.7  1.7  3.653  6.20  3.739  37.2  37.7  0.5  125.25  213.00  128.21  Gloria
                                                 
GLOR15-033  13  -18  375  136.1  147.0  10.9  0.358  0.59  0.366  41.5  44.8  3.3  12.28  20.20  12.56  Gloria
incl           146.5  147.0  0.5  1.009  0.68  1.018  44.7  44.8  0.2  34.60  23.20  34.92  Gloria
                                                 
GLOR15-034  13  -35  375  200.2  208.6  8.4  4.093  6.24  4.180  61.0  63.6  2.6  140.35  214.14  143.31  Gloria
incl           203.0  204.7  1.7  17.990  26.90  18.363  61.9  62.4  0.5  616.80  923.00  629.60  Gloria
                                                 
GLOR15-035  349  13  1301  99.4  100.4  1.0  0.999  0.80  1.010  30.3  30.6  0.3  34.26  27.30  34.64  Gloria
and           108.0  117.0  9.0  0.696  3.05  0.739  32.9  35.7  2.7  23.88  104.76  25.33  Gloria
incl           108.0  112.0  4.0  1.445  6.61  1.536  32.9  34.1  1.2  49.53  226.70  52.67  Gloria
                                                 
GLOR15-036  190  7  405        No Significant Intercepts           No Significant Intercepts      
*Calculated gold equivalent ratio 72.12:1                                                     
*intercepts are not true widths                                                     

Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Gloria_Sig_Intercepts_FINAL-ef5ea3892eb0a02b964c1d9e47cb040f.pdf
Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Figure_1_Hollister_Exploration_PR-4726d77f4319adcd9ecf607cdfc413b4.pdf
Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Figure_2_for_Hollister_Exploration_PR-00e441b8e5c48d68b5922460a0aad804.pdf

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