ResultsIt shouldn't take too many more results like these to convince people that this is a multimillion ounce high grade gold deposit owned by a company with 20 million shares outstanding and cash in the bank.
Klondex Mines cuts 6.1 m of 16.68 gpt Au at Fire Creek
Klondex Mines Ltd (TSX-V:KDX)
Shares Issued 17,151,317
Last Close 1/19/2006 $2.31
Friday January 20 2006 - News Release
Mr. William Solloway reports
HIGH GRADE "FEEDER VEIN' INTERCEPT GRADING 0.49 OZ/TON GOLD OVER 20 FEET AT FAR NORTH ZONE, FIRE CREEK, NEVADA
Klondex Mines Ltd. has received assays results from an additional six holes from phase IV drilling at its wholly owned Fire Creek property in the Battle Mountain/Eureka trend in Northern Nevada.
Drill holes FC0522 through FC0524 were drilled to test a steeply west-dipping vein target known as the far north zone, which was discovered during phase II drilling in 2004. The mineralization in this area is characterized by wider, lower-grade zones than the main and west veins, about 400 metres to the south. Previously reported drill hole FC04-18 returned an interval grading 3.75 grams per tonne gold over 51.8 metres from the far north zone. Drill holes FC0522, FC0523 and FC0524 confirmed the continuity of the thick intervals here and drilling on Section 950N may have located a feeder structure for this mineralization. FC0522 reported an interval of 0.49 ounce per ton gold over 20 feet (16.7 grams per tonne over 6.1 metres) within a broader zone of 0.177 ounce per ton gold over 120 feet (6.06 grams per tonne over 31.6 metres).
Drill holes FC0521 and FC0528 were drilled on Section 450N to test for the northern extension of the main vein system. While hole FC0521 encountered only the west vein zone, hole FC0528 intersected six five-to-15-foot-thick veins grading over 0.25 ounce per ton within broad, ore-grade intervals. The best intercept is 15 feet averaging 0.4 ounce per ton gold and 0.52 ounce per ton silver.
The company considers the current drill results to be very positive because:
the grade and thicknesses of the far north zone were confirmed. This is a separate mineralized system from the main and west zones, and is open in all directions. The grades here are generally lower than the high-grade main and west zones, but the grades and thicknesses indicated may be amenable to underground bulk mining techniques; and
the drilling results from Section 450N indicate that both the main and west zones are open to the north.
Results for 17 holes totalling 24,314 feet (7,413 metres) have now been received from phase IV, planned for 25 to 30 holes totalling 30,000 to 40,000 feet (9,000 to 12,000 metres). The objectives of the program are to test continuity of mineralization within the known zones of mineralization and expand the resource along strike. After the Christmas break, drilling has resumed on the far north zone and the northern extension of the main, middle and west veins. Due to weather delays, drilling is now expected to proceed at least through February, 2006.
Further results from phase IV will be released as received. An updated location map is posted on the corporate website.
FIRE CREEK PROPERTY SUMMARY
DRILLING RESULTS PHASE IV
DH 0521-0524, 0528, 0529
Hole Depth From To Int. Au
FC- feet feet feet m gpt
0522 1300 985.0 995.0 3.05 3.30
1010 1020 3.05 1.78
1040.0 1160.0 31.6 6.06
incl. 1040.0 1060.0 6.1 16.68
0523 1299 795.0 850.0 16.8 3.40
1107.5 1122.5 4.6 6.54
1140.0 1175.0 10.7 3.62
0529 1300 No values over five gpt
0524 1300 910.0 925.0 4.6 4.34
980.0 1020.0 12.2 4.77
0521 1500 985.0 1010.0 7.6 4.00
0528 1400 1045.0 1075.0 9.15 4.10
1120.0 1260.0 42.7 5.07
incl. 1160.0 1190.0 9.15 10.70
Hole Depth From To Int. Ag
FC- feet feet feet m gpt
0522 1300 985.0 995.0 3.05 +0.50
1010 1020 3.05 2.75
1040.0 1160.0 31.6 6.79
incl. 1040.0 1060.0 6.1 9.85
0523 1299 795.0 850.0 16.8 +0.50
1107.5 1122.5 4.6 3.53
1140.0 1175.0 10.7 1.13
0529 1300 No values over five grams/tonne
0524 1300 910.0 925.0 4.6 2.42
980.0 1020.0 12.2 5.13
0521 1500 985.0 1010.0 7.6 2.50
0528 1400 1045.0 1075.0 9.15 7.38
1120.0 1260.0 42.7 11.03
incl. 1160.0 1190.0 9.15 13.43
True widths are estimated to be 50 to 75 per cent of reported intervals.
The company has received bids for underground development from mining contractors and is considering commencement of permitting activities required for the inclusion of underground excavation, drilling and bulk sampling during the next phase of exploration at Fire Creek. The favourable topography at Fire Creek would facilitate access to all target zones through a simple decline from the south rather than a more expensive shaft or spiral ramp.
The company currently has a working capital position of $3.25-million.
Richard Kern, PGeo, of Reno, Nev., is the company's qualified person on the project, as required under National Instrument 43-101, and has reviewed the technical information contained in this news release.
Klondex has in place a rigorous QA/QC program consistent with National Instrument 43-101 and using best-industry practices. ALS Chemex Labs of Reno, Nev., is responsible for all assaying.
© 2006 Canjex Publishing Ltd.