Press release from Marketwire
Klondex Mines Completes Core Re-Logging
Another Milestone Delivered Ahead of Schedule
Wednesday, May 01, 2013
Klondex Mines Completes Core Re-Logging07:30 EDT Wednesday, May 01, 2013
ELKO, NV and VANCOUVER, BC--(Marketwired - May 01, 2013) -Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF) announces the drill core re-logging program for its Fire Creek gold project is complete, approximately five weeks ahead of schedule. An updated resource estimate is on track to be completed in June 2013. The resource estimate will include 36,639 meters (120,175 feet) of infill core drilling from both surface and underground, in addition to the re-logged core originally included in the May 2011 resource estimate. The updated resource estimate will be used to develop a comprehensive mine plan followed by a preliminary economic assessment (PEA), expected to be complete in Q4 2013.
Initiated in January 2013, the in-depth re-logging program involved the photographing and re-logging of approximately 73,000m (240,000ft) of archived drill core from Fire Creek's past exploration programs. Firstly, the program set out to improve on previous logging by gaining a better understanding of the Fire Creek metallurgy, including ICP testing, RMR, RQD and point load testing, all needed to understand and develop an efficient mine plan. Secondly, the re-logging improved the geological understanding of the project, through the resolution of gold mineralization true widths, and better characterization of geology, alteration, geochemistry, gold distribution, and rock mechanics. In addition to the re-logging, specific drill intervals were selected for resampling to better refine limits and tenor of gold mineralization with respect to geology.
The updated resource estimate due in June, will include 15,863m (52,044ft) of surface drilling from 2011, 7461m (24,447ft) of surface drilling from 2012, 13,315m (43,684ft) of 2011 through 2013 underground core drilling, in addition to over 600 assays collected from the re-logged core originally included in the May 2011 resource estimate. The 2013 data is comprised of infill drilling fans east of the ramp in addition to recent discoveries in the vent raise access and the 42.8ft intercept grading 0.48 opt Au, to the south of the resource (see press releases dated January 22, 2013 and April 9, 2013 respectively), totaling 1,060m (3,477ft) of underground in-fill drilling.
Paul Huet, President and CEO, stated, "I can't emphasize enough how important a quality resource, that includes proper geotechnical work, is for us; becoming the foundation of everything we do at Fire Creek. The step was particularly important as we turn to building a mine plan based on economics, efficiencies and most importantly, profitability. The re-logging effort will give my team greater comfort in developing and growing the gold operation set to begin in the second half of the year."
Klondex Chief Geologist, Steve McMillin, commented: "The re-logging program significantly advanced the technical understanding of the Fire Creek project. The recent drilling, coupled with the new discoveries to the west of the deposit and to the south, is important to include in the updated resource, to compliment the results of the re-logging program. We are grateful to the team of geologists and geo-technicians who all worked extremely hard to finish ahead of schedule; in particular, Jeff Phinisey, whose previous experience and knowledge of Fire Creek was instrumental in delivering on this milestone ahead of schedule."
The content of this press release has been reviewed 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 April 29, 2013, Klondex had 64.4M shares issued and outstanding and 85.7M shares, fully diluted.
A BTV video profile of Fire Creek's onsite development is available at http://www.b-tv.com/i/videos/KlondexMinesMar13.wmv.
This news release contains forward-looking information, including information about current expectations on the timing of project development, the completion of the updated mineral estimate and the preliminary economic assessment 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 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.
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Klondex Mines Ltd.
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