🕐28.04.11 - 17:54 Uhr
PORTAL BLAST FORMALLY LAUNCHES UNDERGROUND GOLD MINING AT KLONDEXS HIGH-GRADE NE
VADA GOLD MINE, FIRE CREEK
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Re: News - Thursday, April 28, 2011
Portal Blast Formally Launches Underground Gold Mining at
Klondexs High-Grade Nevada Gold Mine, Fire Creek
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- Klondex Plans Initial Gold Production Via Bulk Sampling By Year-End -
Elko, NV & Vancouver, BC - April 28, 2011 - Klondex Mines Ltd.
(TSX:
KDX) is proud to announce the official start of underground mining at
its high-grade Fire Creek mine site in Northern Nevada.
Yesterday
afternoon Klondex completed the inaugural blast of its underground
decline at the mouth of the Fire Creek portal.
Klondex plans to drive a 1,113 meter (3,650 foot) decline to access
Fire Creeks Main Zone mineralization to enable further evaluation of
the resource at depth as well as for bulk sampling production.
Including the decline and all development, maintenance and support
requirements, Klondex expects to complete a total of 1,974 meters
(6,475 feet) of underground development in 2011.
Klondex anticipates first gold production from bulk sampling by
year-end 2011, with production increasing in 2012 and beyond.
The
decline will also provide in fill drill sites to further test Main Zone
mineralization, providing valuable data for underground development and
Klondexs mineral resource.
Fire Creek has shown strong indicators of continuity and high grades
favorable to underground mining.
The project has low capital costs and
offers high potential operating margins.
In the underground
development Klondex is utilizing small-scale mechanized mining
performed by Small Mines Development (SMD), an experienced and
respected underground contract miner.
KDX plans to utilize toll
processing of the bulk sample.
The outsourcing of mining and
processing activities, under the close supervision of KDXs experienced
Nevada team, serves to limit capital investment while ensuring the
program is able to meet its development timelines and production
schedule.
For additional information or photos of the development
activity please visit www.klondexmines.com
Plans for 43-101 Resource Update
As previously announced, Klondex plans to update its 43-101 resource
estimate by year-end 2011.
The resource update will incorporate over
48,000 feet of additional surface drilling data from Klondexs 2009 and
2010 drill programs, results to date from this years 59,000-foot
surface drill program and available data from underground in-fill
drilling.
As of April 28, 2011, Klondex Mines had approximately 36.6 million
shares issued and outstanding, approximately 43.2 million shares on a
diluted basis, and approximately CDN $14.5 million in cash and an
additional $10 million available on demand.
About Klondex Mines (www.klondexmines.com):
Klondex Mines Ltd.
is focused on the exploration and development of its
100% owned high-grade Fire Creek gold deposit in North Central Nevada.
Fire Creek is a compelling, low-Capex mining prospect that is well
located near power, transportation, mining infrastructure and several
milling facilities.
Klondex has identified the following NI 43-101
compliant resource at Fire Creek:
View Table Online:
http://www.klondexmines.com/s/News.asp?ReportID=453723
ON BEHALF OF KLONDEX MINES LTD.
William J.
Solloway
Chairman and CEO
Blane Wilson
President and COO
# # #
Investor Contacts:
Bryson Goodwin
Klondex Mines Ltd.
(604) 341-1531
David Collins
Jaffoni & Collins
(212) 835-8500
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Copyright (c) 2011 KLONDEX MINES LIMITED (KDX) All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto:
Message sent on Thu Apr 28, 2011 at 8:34:21 AM Pacific Time
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