🕐16.09.13 - 22:54 Uhr
KLONDEX MINES REPORTS UPDATED RESOURCE ESTIMATE
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Klondex Mines Updated Resource Estimate
Verifies Continuity and High Grades
at Fire Creek
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Elko, NV & Vancouver, BC - September 16, 2013 - Klondex Mines Ltd.
(TSX: KDX; OTCQX:
KLNDF), a Nevada gold exploration and development company,reports that its mineral
resource estimate for its 100%-owned Fire Creek underground gold project is complete.
The new resource estimate consists of Measured and Indicated resources totaling
295,900 ounces of gold at 44.7 g/t (1.304 opt) Au and Inferred resources of 421,400
ounces of gold at 19.2 g/t (0.560 opt) Au at Fire Creek, applying a 7 g/t Au cut
off (see Table 1 below).
The new mineral resource estimate illustrates the high
grades at Fire Creek, confirming the continuity of gold mineralization down dip
and along strike from work completed mainly in the Main Zone.
A technical report
prepared by Practical Mining, LLC (Practical Mining or PM) will be posted on SEDAR
within 45 days of the date of this news release.
Paul Huet, Klondex President and CEO stated, "We have reached a major milestone
in defining the Fire Creek deposit, only limited by the completed drilling and underground
development program.
This high quality resource estimate shows the potential of
Fire Creek and is substantiated by the underground development program.
The deposit
remains open along strike and at depth providing Klondex with upside for resource
growth given that 93% of Fire Creeks property is unexplored.
Weve focused drilling
to define the Main Zone and can now begin to expand exploration and step out our
drilling, providing the needed data to convert the existing known mineralization
into additional resource ounces and as a result, further unlock the value at Fire
Creek."
Mr.
Huet continued, "We will use this resource and the knowledge gained from our
underground development program to complete a Preliminary Economic Assessment (PEA)
prepared by PM, which is anticipated to be completed by the end of 2013.
The high-grade
nature of this deposit will play a key role in assessing economic scenarios for
Fire Creek."
TABLE 1: New Fire Creek Resource Estimate
Gold Cutoff
(g/t)
Category
Short
Tons
Grade
(g/t)
Grade
(opt)
Contained Au (oz)
Measured
8,000
237.6
6.93
57,200
Indicated
219,000
37.4
1.09
238,700
Inferred
752,000
19.2
0.56
421,400
Notes:
(1) Mineral resources which are not mineral reserves do not have demonstrated economic
viability.
The estimate of mineral resources may be materially affected by environmental,
permitting, legal, title, socio-political, marketing, or other relevant issues.
(2) The quantity and grade of reported inferred mineral resources in this estimation
are uncertain in nature and there has been insufficient exploration to define these
inferred mineral resources as an indicated or measured mineral resource and it is
uncertain if further exploration will result in upgrading them to an indicated or
measured mineral resource category.
New Mineral Resource Estimate:
The new mineral resource estimate prepared by PM is based primarily on data from
380 surface and underground drill holes, available up to September 1, 2013, and
includes information obtained from relogging 240,000 feet of core earlier this
year.
It also utilized over 1,381 independently assayed channel samples from underground
drifting on the Joyce and Vonnie structures.
Infill drilling on 75ft (22.9m) centres
in conjunction with the underground development program increased the confidence
level of the resource and therefore introduced the Measured category to the new
resource estimate.
Wire frame solid models were constructed for thirty-two veins striking approximately
N15W and steeply dipping both east and west.
The vein models were constructed from
cross sections on 50 foot intervals.
Assay values were composited into 10 foot lengths
and truncated at the vein hanging wall and footwall.
Only composites flagged as
representing vein material were used in the grade estimation.
Grades greater than
1,370 g/t (40 opt) were restricted to the block containing the intercept and the
capped value of 1,370 g/t (40 opt) was then used to estimate nearby blocks.
Grades
were assigned to individual blocks using the inverse distance cubed method (ID3).
The search orientation for each of the 32 veins was determined based on the individual
veins approximate strike and dip.
Measured blocks require a minimum of 5 drill hole
intercepts within 25 feet while indicated blocks required 2 intercepts within 100
feet.
Inferred blocks required two intercepts within 1,000 feet.
Grades were estimated
only for blocks contained within the modeled vein wireframe.
Block extents are 5
feet along strike and vertically.
Across the strike the block extents were limited
to the width of the vein with 0.5 foot resolution.
This method allows veins as narrow
as foot perpendicular to strike to be modeled accurately.
A density of 0.0774
tons per cubic foot was used for all veins.
This value was derived from 15 samples
collected from the Joyce and Vonnie veins and analyzed by SGS Laboratories of Elko.
The majority of ounces delineated in the new resource estimate are in the Main Zone.
The veins are open along strike to the north and south, and at depth, demonstrating
excellent continuity of both grade and width.
PM used "inverse distance cubed" (ID3)
constrained to wireframe vein solid models, which is an effective method to estimate
narrow-vein gold deposits.
A block model with 0.5 m constraints will overlay the
wireframe.
In the view of both Practical Mining and Klondex, the conservative methodology
provides the best framework for the planning and execution of underground exploration,
development and future production, allowing Klondex to optimize the efficiency of
its operations.
Opportunity for Continued Resource Growth:
The Fire Creek deposit, onsite infrastructure and mine workings represent only 7%
of the 17.5 sq.
mi.
land package with 93% remaining untested.
Future exploration
programs will follow up on recent discoveries near the ramp and mine workings to
the south (see news release dated April 9, 2013
and to the west (see news release dated May 30, 2013
as well as in the North Zone and the parallel zones identified to the east by an
IP survey completed in 2011.
Preliminary Economic Assessment:
This estimate will be incorporated into a PEA being prepared by PM and is expected
to be completed by the end of 2013.
The new mineral resource estimate provides PM
with a detailed model to build an efficient mine plan on Fire Creek.
Practical Mining, LLC:
PM, under the management of Mark Odell, Karl Swanson and Michele White, is well-respected
for its resource, PEA, and feasibility studies in Nevada.
Its experience and background
in high-grade gold systems similar to Fire Creek made them the obvious consultant
for Klondex; the company has completed models for Agnico-Eagle, Newmont, Barrick
and others.
Most importantly, the company is well versed with the narrow-vein epithermal
vein systems of the Northern Nevada Rift and was used by Klondex CEO, Paul Huet,
while operating well-known mines in the Northern Nevada rift.
A technical review
of site data was undertaken for the purpose of gaining an understanding of previous
mining, proposed new mining methods, as well as a review of other data needed for
reporting on the technical aspects of mining these deposits.
A review of historical
databases and sampling protocol was performed by Michele White for the purpose of
validating data integrity.
The authors reviewed the land tenure situation in terms
of verifying good standing with the Bureau of Land Management (BLM) for Klondexs
unpatented lode mining claims and reviewed a title opinion report dated November
14, 2012 by Erwin & Thompson LLP.
The legal status or ownership of the fee properties
and/or any agreements that pertain to the Fire Creek gold deposit for all relevant
mining claims have been provided by Bill Houston, RPL, independent land consultant
to Klondex.
Assumptions made as to accuracy of land tenure are based on his opinion.
The technical 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.
For Practical Mining LLC, Michele White (CPG 11252), Mark Odell (Nevada PE 13708
and SME 2402150) and Karl Swanson (SME 443076 and AusIMM 304871) have reviewed
and approved the contents of the press release, for the purposes of National Instrument
43-101.
These three individuals are considered Independent Qualified Persons as
defined by Canadian National Instrument 43-101.
The technical information contained in this press release has also been reviewed
and 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 facilities.
At September 16, 2013, Klondex
had 65.5mm shares issued and outstanding and 88.4mm shares, fully diluted.
Contact:
Paul Huet Alison Tullis Toni Trigiani
President & CEO Manager, Investor Relations Investor
Relations
Klondex Mines Ltd.
Klondex Mines Ltd.
Catalyst
Global LLC
807-939-2841 647-233-4348 212-924-9800
[mailto:]
[mailto:] [mailto:]
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, statements regarding
estimated mineral resources and the potential for delineation of additional mineral
resources through further exploration at the Fire Creek project; the accuracy of
current interpretation of drill and other exploration results, the execution of
the Companys existing plans or exploration programs for the Fire Creek project,
the results of exploration and metallurgical sampling at the Fire Creek Project,
the Companys intention and ability to monetize mineralized material, timing of
the updated mineral resource estimate at the Fire Creek Project and the bulk sampling
program.
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 Companys business are more fully discussed in
the Companys 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.
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