Klondex Provides Operational Update
February 28 2014 - 6:30AM
Marketwired
Klondex Provides Operational Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 28, 2014) -
Klondex Mines Ltd. (TSX:KDX)(OTCQX:KLNDF) today provides an
operational update for its Fire Creek gold project and the Midas
gold and silver mine and mill, in Northern Nevada.
Paul Huet, Klondex President and CEO stated, "It's with a great
amount of pleasure that we provide Klondex's first operational
update since the acquisition of the Midas mine and mill. We assumed
ownership of Midas on February 11th of this year and immediately
started drilling and blasting the underground stopes. Our initial
blast rounds exposed high-grade gold and silver veins in an area
along strike from the existing workings on the 905 vein. I believe
the success of the operations team hitting the ground running, is a
direct result of the leadership team having previous experiences at
Midas."
Midas Mine and Mill
Transitioning the mine and milling facilities from Newmont to
Klondex is complete, including the hiring and orientation of 110
Midas employees, and operations are well-underway.
The first underground excavations at Midas were taken in the
7-4640 South area of the mine (Figure 1). After the second blast
round, the vein widened and the grade increased. The average grade
in this area is 20.6 g/t (0.6) opt Au and 1975.0 (57.60 opt) Ag
over an average vein width of 4.8 ft; assays range from 96.0 g/t
(2.8 opt) Au and 10,800 g/t (315.0 opt) Ag to 3.1 g/t (0.1 opt) Au
and 536.1 g/t (18.9 opt) Ag. See Table 1 below for more details.
Since encountering the high grade zone, the drift has been extended
91 ft along strike of the vein. This drift will serve for a primary
drilling and mucking horizon for future long hole stoping.
The mill began operating on February 19, 2014 and is currently
running at a rate of 600 tpd. It is currently being fed by a blend
of the Midas and Fire Creek mineralized materials. The first dore
pour is expected to be March 4th, 2014 with an initial shipment to
Johnson Matthey on March 6th. Klondex is currently evaluating
opportunities to provide third party toll milling services.
Taurus Drilling, experts in narrow vein long hole mining have
been contracted for drilling and blasting at Midas. Sandvik has
been awarded the contract for mobile maintenance at both Fire Creek
and Midas. Sandvik are experts in this field and have a proven
track record at Midas as well having worked there for over four
years, from 2002 through 2006.
Fire Creek
Bulk sampling at Fire Creek is fully-commissioned and benching
the Vonnie and Joyce veins is well underway. Shipments of
mineralized material from Fire Creek commenced on February 11,
2014, to the Midas mill, approximately 100 miles north at a haulage
cost of $32/t.
The technical information contained in this press release has
been reviewed and approved by Mark Odell of Practical Mining LLC,
an Independent Qualified Person (Nevada PE 13708 and SME 2402150)
for the purposes of National Instrument 43-101.
Assays were performed at Newmont's Twin Creeks' operation.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration, development and
production of its high quality gold and silver projects. The
company is operating an ongoing bulk sampling program at its Fire
Creek gold project located in north central Nevada. Fire Creek is
in a mining-friendly jurisdiction, with onsite power and mining
infrastructure, and near major producers. Midas, Klondex's newly
acquired operating mine and milling facility are located 112 miles
north of Fire Creek.
Cautionary Note Regarding Technical Information and
Forward-looking Information
A production decision at the Midas mine was made by prior
owners of the mine, prior to the completion of the acquisition of
Midas by Klondex. To the knowledge of Klondex, this production
decision was not based on a feasibility study of mineral reserves
demonstrating economic and technical viability prepared in
accordance with National Instrument 43-101. Readers are cautioned
that there is increased uncertainty and higher risk of economic and
technical failure associated with such production
decisions.
This news release contains certain information that may
constitute forward-looking information under applicable Canadian
securities legislation, including but not limited to information
about current expectations on the timing and success of exploration
and metallurgical sampling activities, the timing and success of
mining operations, the Company's intention and ability to monetize
mineralized material, the successful execution of the bulk sampling
program at the Fire Creek Project, project development and related
permitting. 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 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.
Table 1: 7S4640 Heading, GP Vein
|
|
|
|
|
Gold |
Silver |
length, feet |
vein width, meter |
vein width, feet |
mining width, meter |
mining width, feet |
vein channel, g/t |
vein channel, auopt |
mining channel, g/t |
mining channel, auopt |
vein channel, g/t |
vein channel, agopt |
mining channel, g/t |
mining channel, agopt |
414-423 |
0.34 |
1.1 |
1.86 |
6.1 |
21.4 |
0.76 |
4.1 |
0.14 |
4176.0 |
147.3 |
776.8 |
27.4 |
423-427 |
0.88 |
2.9 |
2.47 |
8.1 |
22.6 |
0.80 |
9.4 |
0.33 |
4079.5 |
143.9 |
1501.1 |
52.9 |
427-446 |
1.95 |
6.4 |
2.26 |
7.4 |
33.6 |
1.19 |
29.1 |
1.03 |
3837.8 |
135.4 |
3319.5 |
117.1 |
446-456 |
1.16 |
3.8 |
2.74 |
9.0 |
4.8 |
0.17 |
3.1 |
0.11 |
831.4 |
29.3 |
536.1 |
18.9 |
456-463 |
1.55 |
5.1 |
2.13 |
7 |
21.2 |
0.75 |
15.9 |
0.56 |
1852.6 |
65.3 |
1384.5 |
48.8 |
Notes:
- Mining width assays are a weighted average of the vein and
surrounding rock exposed across the full width of the drift.
Klondex Mines Ltd.Paul HuetPresident &
CEO775-284-5757investors@klondexmines.comKlondex Mines Ltd.Alison
TullisManager, Investor
Relations647-233-4348atullis@klondexmines.comwww.klondexmines.com
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