SOURCE: Klondex Mines Ltd.

Klondex Mines Ltd.

July 10, 2013 06:30 ET

Klondex Sampling Averages 132.8g/t (3.87opt) Au Over Strike Length of 144.2m (473ft); Demonstrates Joyce Structure Continuity by Exploration Development

Sampling Highlights: 30,228.7g/t (881.7opt) Au Over 0.2m (0.7ft) 106' South of 5400 Crosscut; 632.8g/t (18.5opt) Au Over 0.5m (1.6ft) 135' North of 5370 Crosscut

ELKO, NV and VANCOUVER, BC--(Marketwired - Jul 10, 2013) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF) is pleased to announce results from its ongoing 2013 exploration and development program on the Joyce (A1) structure at its Fire Creek project, located in Nevada. The weighted average grade of samples from the Joyce structure is 132.8g/t (3.87opt) Au along 144.2m (473ft) strike, with an average width of 0.6m (2.0ft). This information was derived from 94 face samples ranging from 1.4g/t (0.04opt) Au to 30,228.7g/t (881.6opt) Au. Joyce channel samples taken from north and south of the 5370 and the 5400 crosscuts are summarized and detailed in tables 1 and 2, respectively.

To date, 144.2m (473ft) of exploration development is now complete on the Joyce Structure. Previous drilling near the 5400 and 5370 crosscuts demonstrate that the mineralization extends beyond the current boundaries, both along strike and at depth.

Mike Doolin, Fire Creek General Manager commented, "We are obviously very pleased with the results and the valuable perspective the data provides. Not only do these results confirm the continuity of the mineralization along strike, but they also demonstrate the overall grade consistency within the Joyce Structure."

Joyce A1 Structure

Length (ft) from Crosscut  Width
(m)
Width
(ft)
Grade
(g/t Au)
Grade
(opt Au)
N 106-143 0.6 2.0 130.3 3.8
N 80-106 0.8 2.6 98.6 2.9
N 40-80 0.8 2.6 183.5 5.4
N 0-40 0.9 3.0 140.8 4.1
5370 Crosscut        
S 0-40 0.6 2.0 164.2 4.8
S 40-82 0.7 2.3 95.5 2.8
S 82-127 0.5 1.6 121.4 3.5
N 42-90 0.5 1.6 106.8 3.1
N 0-42 0.4 1.3 212.4 6.2
5400 Crosscut        
S 0-40 0.4 1.3 81.6 2.4
S 40-78 0.3 1.0 119.7 3.5
S 78-100 0.5 1.6 104.8 3.1
S 100-113 0.2 0.7 9330.7 272.1
Joyce weighted average 0.6 2.0 132.8 3.87
Joyce total length 144.2 473.0    

Table 1: Channel sample summary assays along the Joyce Vein from 5370 and 5400 crosscuts.

The potential quantities and grades of the mineralization reported above are conceptual in nature and there has been insufficient work to date to define a mineral resource in the Joyce Vein structure. Furthermore, it is uncertain if further exploration will result in discovery of a mineral resource in this area of the Fire Creek project.

Sampling a given face is conducted after the face location has been measured, photographed, and mapped in detail. Continuous rock-chip channel samples are then collected by Klondex staff in 11" x 17" sample bags from the footwall, vein, and hanging wall. Salient features including sample number, channel length, location on face, rock type, and alteration are documented. Samples are sent to SGS Mineral Services Division lab in Elko, Nevada, an independent laboratory, for gravimetric fire assay analysis with blanks and standards.

The information contained in this press release has been 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.

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 facility. At July 10, 2013, Klondex had 64.4M shares issued and outstanding and 85.8M 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 and the results of exploration and metallurgical testing at the Fire Creek project. 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 Corporation's business are more fully discussed in the Corporation'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.

Joyce A1 Structure

Length from Crosscut
(ft)
Width
(m)
Width
 (ft)
Grade
(g/t Au)
Grade
(opt Au)
N 140-143 0.6 2.0 29. 0.85
N 135-140 0.5 1.6 632.8 18.46
N 129-135 0.6 2.0 193.6 5.65
N 123-129 0.8 2.6 60.7 1.77
N 117-123 0.8 2.6 65.6 1.91
N 111-117 0.9 3.0 85.2 2.49
N 106-111 0.8 2.6 15.3 0.45
N 98-106 0.8 2.6 102.2 2.98
N 92-98 1.1 3.6 89.8 2.62
N 88-92 1.1 3.6 142.4 4.15
N 85-88 0.2 0.7 44.6 1.30
N 80-85 0.4 1.3 24.6 0.72
N 74-80 0.7 2.3 73.7 2.15
N 69-74 0.7 2.3 153.4 4.47
N 65-69 1.2 3.9 195.7 5.71
N 62-65 0.8 2.6 138.4 4.04
N 56-62 1.1 3.6 136.2 3.97
N 50-56 0.6 2.0 408.3 11.91
N 45-50 0.6 2.0 205.2 5.99
N 40-45 0.9 3.0 214.5 6.25
N 33-40 0.9 3.0 151.2 4.41
N 29-33 1.1 3.6 143.1 4.17
N 25-29 0.8 2.6 125.3 3.65
N 15-25 1.3 4.3 76.2 2.22
N 11-15 0.5 1.6 282.1 8.23
N 6-11 0.4 1.3 55.8 1.63
N 0-6 0.6 2.0 226.3 6.60
 5370 access
S 0-8 0.9 3.0 406.3 11.85
S 8-14 0.6 2.0 84.6 2.47
S 14-21 0.5 1.6 112.6 3.28
S 21-25 1.1 3.6 61.0 1.81
S 25-30 0.3 1.0 128.3 3.74
S 30-34 0.2 0.7 58.4 1.70
S 34-40 0.3 1.0 166.4 4.85
S 40-45 0.6 2.0 38.0 1.11
S 45-50 0.6 2.0 157.2 4.58
S 50-55 0.7 2.3 41.2 1.20
S 55-59 0.8 2.6 155.9 4.55
S 59-64 0.5 1.6 55.6 1.621
S 64-71 0.8 2.6 81.7 2.38
S 71-77 1.0 3.3 65.6 1.91
S 77-82 0.6 2.0 176.8 5.17
S 82-86 0.8 2.6 52.2 1.52
S 86-88 1.0 3.3 32.1 0.94
S 88-92 0.4 1.3 99.5 2.90
S 92-96 0.6 2.0 182.9 5.34
S 96-99 0.8 2.6 220.6 6.43
S 99-110 0.6 2.0 156.1 4.56
S 110-112 0.5 1.6 360.7 10.51
S 112-114 0.6 2.0 33.7 0.98
S 114-118 0.2 0.7 107.2 3.13
S 118-121 0.2 0.7 45.7 1.33
S 121-127 0.3 1.0 1.8 0.05
N 86-90 0.5 1.6 26.7 0.78
N 80-86 0.5 1.6 18.4 0.54
N 74-80 0.3 1.0 28.6 0.83
N 68-74 0.6 2.0 44.8 1.31
N 65-68 0.5 1.6 25.1 0.73
N 60-65 0.5 1.6 206.3 6.02
N 55-60 0.4 1.3 70.3 2.05
N 52-55 0.2 0.7 12.8 0.37
N 48-52 0.4 1.3 151.2 4.41
N 42-48 0.5 1.6 424.0 12.37
N 38-42 0.4 1.3 342.7 9.99
N 35-38 0.2 0.7 519.1 15.14
N 32-35 0.3 1.0 553.1 16.13
N 26-32 0.8 2.6 157.6 4.60
N 20-26 0.7 2.3 182.0 5.31
N 16-20 0.3 1.0 9.1 0.26
N 11-16 0.2 0.7 54.2 1.58
N 6-11 0.3 1.0 37.7 1.10
N 0-6 0.4 1.3 140.0 4.08
 5400 access
S 0-6 0.3 1.0 369.6 10.78
S 6-11 0.3 1.0 168.9 4.93
S 11-16 0.4 1.3 39.0 1.14
S 16-21 0.5 1.6 75.7 2.21
S 21-26 0.3 1.0 74.6 2.18
S 26-32 0.5 1.6 26.3 0.77
S 32-37 0.6 2.0 46.4 1.35
S 37-40 0.6 2.0 6.3 0.18
S 40-44 0.1 0.3 6.8 0.20
S 44-47 0.0 0.1 1.4 0.04
S 47-53 0.4 1.3 12.3 0.356
S 53-57 0.3 1.0 70.3 2.05
S 57-62 0.4 1.3 59.0 1.72
S 62-65 0.5 1.6 116.9 3.41
S 65-71 0.5 1.6 67.3 1.96
S 71-76 0.3 1.0 34.7 1.01
S 76-78 0.5 1.6 437.7 12.77
S 78-84 0.1 0.3 83.2 2.43
S 84-90 0.5 1.6 86.7 2.53
S 90-94 0.7 2.3 57.8 1.69
S 94-100 0.7 2.3 169.7 4.95
S 100-106 0.2 0.7 234.3 6.83
S 106-111 0.2 0.7 30228.7 881.56
S 111-113 0.3 1.0 6447.2 188.02
  Joyce weighted average 0.6 2.0 132.8 3.87

Table 2: Channel sample summary assays along the Joyce Vein from 5370 and 5400 access'.

Contact Information

  • Contact:
    Paul Huet
    President & CEO
    Klondex Mines Ltd.
    807-939-2841
    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