RE:can somebody discuss what appears to be the smallKDX has advantages of hi-grade gold ounces in its Nevada Mines and 2.19m ounces of hi-volume proven and inferred reserves of gold ounces in its Manitoba mine – due to start production this quarter.
The reserves disclosed by narrow vein mines, such as in Nevada, are usually low, since it is not usually costs effective to expand the level of reserves, which may not be accessible for some years in the future.
The 2.19m ounces at December 2014 in KDX’s former Rice Lake mine are referred to in its December 2015 press release, referred to below.
https://www.klondexmines.com/investors/news/klondex-announces-acquisition-of-rice-lake-mine-and-mill-complex Key Highlights of the Acquisition: - Cash Transaction with Zero Dilution to Klondex Shareholders;
- Production Ready Asset in a Top Ranked Mining Jurisdiction: Fully permitted operation consisting of three main deposits that comprise the Rice Lake Mine and a milling complex in Manitoba, Canada;
- Leverages Klondex’s Technical Expertise in Narrow-vein Underground Mining: Klondex will apply the same principles used at Fire Creek and Midas at Rice Lake;
- Extensive Surface and Underground Infrastructure: Approximately C$375 million in historical capital investment since 2007, including extensive underground development and a fully functional 2,500 tons per day milling facility;
- Immediate Value Opportunities: Potential to re-process gold contained in tailings and redeploy excess equipment to Fire Creek and Midas as the Rice Lake Mine is “right-sized”;
- Significant Exploration Opportunity and 400km2 Land Package: Several opportunities to extend mineralized zones down-dip and along strike as well as excellent targets for new discoveries; and
- Proven Gold Production: Over 450 kozs of gold production since 2000; as of December 31, 2014, estimated proven and probable gold reserves were 455kozs and measured and indicated mineral resources were 634 kozs of gold and inferred mineral resources were 1,101 kozs of gold. (see “Rice Lake Historical Mineral Estimate” below)
Rice Lake Action Plan Klondex intends to implement at Rice Lake the same grade and dilution control methods it has applied to the narrow veined Fire Creek and Midas operations. By applying a more selective mining approach to the Rice Lake operation, Klondex will reduce tonnage, minimize dilution and focus on producing higher margin ounces.