RENO, NV–(Marketwired – May 03, 2017) – Klondex Mines Ltd. (TSX: KDX) (NYSE MKT: KLDX) (“Klondex” or the “Company”) is pleased to provide an update on project development activities and underground drilling at its Hollister Mine (“Hollister”) located in northern Nevada, USA. These drill results will be included in the Company’s initial mineral resource estimate scheduled to be released in the second quarter.
Project Development Highlights:
- Rehabbed approximately 4,000 feet of underground workings in the main zone
- Replaced approximately 4,000 feet of air and water lines
- Repaired the dewatering system, ventilation system, electrical sub-station and underground mobile equipment
- Actively developing the Gloria vein system including approximately 1,025 feet and 2,600 feet of waste and ore development, respectively
- Initial mineral resource estimate for the Gloria vein system in the second quarter
Gloria Vein System Underground Drilling Highlights: (see TABLE 1 for complete results)
- G17-041: 12.96 opt AuEq over 1.4 ft., or 444.3 g/t over 0.4 m
- G17-044: 4.18 opt AuEq over 4.0 ft., or 143.3 g/t over 1.2 m
- G16-021: 2.57 opt AuEq over 1.6 ft., or 88.1 g/t over 0.5 m
- G16-018: 1.35 opt AuEq over 4.3 ft., or 46.3 g/t over 1.3 m
- G16-010: 0.75 opt AuEq over 4.2 ft., or 25.7 g/t over 1.3 m
Thirty Nine underground core holes totaling 14,656 ft. (4,467 m) were drilled during this reporting period.
The intent of this drill program was to infill the pre-existing drill holes to increase the drill hole density in the Gloria zone. This will allow the Company to produce an initial mineral resource estimate for the Gloria vein system, which is expected to be released in the second quarter.
Mr. Brian Morris, Senior Vice President, Exploration said, “We are seeing excellent grades and widths in the drill results which are consistent with what was historically mined in the main Hollister Mine.” Mr. Morris continued, “Moreover the mineralized vertical extent appears to be similar to the Main Hollister workings.”
Assays were performed by American Assay of Sparks, Nevada, as directed under the supervision of Klondex staff. This organization is an ISO 17025 accredited independent laboratory. Underground drill core samples were assayed using a fire assay one-assay ton method with an ICP finish. If initial Au assays were > 5ppm or Ag was > 200ppm the sample is re-assayed with a gravimetric finish. The quality control and assurance program included the insertion of standards and blanks, the retention of pulps and rejects. The core lengths are actual lengths as drilled and were not adjusted for the true width of the mineralized zones.
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 known as 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 mine and ore milling facility (formerly known as Esmeralda), also located in Nevada, USA.
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; and the preparation of an initial resource estimate and the timing thereof. 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 mineral reserve estimates are reflective of actual mineral reserves; 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.
Cautionary Note to U.S. Investors Regarding the Use of Mining Terms
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. All resource and reserve estimates included or referred to in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101″). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the mineral reserve disclosure requirements of the U.S. Securities and Exchange Commission (the SEC”) set out in Industry Guide 7. Consequently, reserve and resource information contained in this news release is not comparable to similar information that would generally be disclosed by U.S. companies in accordance with the rules of the SEC.
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