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Reports Promising Intercepts at the Gloria Zone
VANCOUVER, BC--(Marketwired - October 11, 2016) - Klondex Mines Ltd. (TSX: KDX) (NYSE MKT: KLDX) ("Klondex"or the "Company") is pleased to provide an update on recent and historic exploration results at its Hollister Mine in Nevada (see FIGURE 1).
Gloria West Drilling Highlights: (see TABLE 1 below)
GLOR15-034: 4.18 opt AuEq over 8.4 ft, or 143.3 g/t over 2.6 mIncluding 18.36 opt AuEq over 1.7 ft, or 629.6 g/t over 0.5 m
Including 18.36 opt AuEq over 1.7 ft, or 629.6 g/t over 0.5 m
GLOR14-001: 2.42 opt AuEq over 2.2 ft, or 83.1 g/t over 0.7 m
GLOR14-001: 3.63 opt AuEq over 0.5 ft, or 124.3 g/t over 0.2 m
GLOR15-006: 3.59 opt AuEq over 1.1 ft, or 123.0 g/t over 0.3 m
GLOR15-010: 1.39 opt AuEq over 7.2 ft, or 47.8 g/t over 2.2 mIncluding 2.48 opt AuEq over 3.3 ft, or 85.2 g/t over 1.0 m
Including 2.48 opt AuEq over 3.3 ft, or 85.2 g/t over 1.0 m
GLOR15-011: 2.20 opt AuEq over 1.4 ft, or 75.6 g/t over 0.4 m
GLOR15-020: 1.43 opt AuEq over 4.1 ft, or 48.9 g/t over 1.2 mIncluding 8.07 opt AuEq over 0.7 ft, or 276.7 g/t over 0.2 m
Including 8.07 opt AuEq over 0.7 ft, or 276.7 g/t over 0.2 m
GLOR15-025: 3.85 opt AuEq over 0.6 ft, or 132.0 g/t over 0.2 m
GLOR15-026: 2.20 opt AuEq over 2.5 ft, or 75.32g/t over 0.8 m
GLOR15-032: 3.74 opt AuEq over 1.7 ft, or 128.2 g/t over 0.5 m
A total of 36 underground holes totaling 17,998 ft. (5,486 m) were drilled in 2014 and 2015 by the prior owner and were not previously released. These holes encountered multiple veins and extended the Gloria vein system approximately 800 ft to the West and approximately 300 ft vertically. The Gloria vein system remains open up and down dip and along strike to the West. Klondex intends to infill drill the Gloria vein system in Q4 2016 to develop a Mineral Resource estimate and continue stepping out to the West (see FIGURE 2).
Hatter Graben Historical Drilling Highlights:
H8-264: 0.54 opt Au over 7.8 ft, or 18.6 g/t over 2.4 m (est. true width of 5.5 ft, or 1.7 m)
H8-269: 1.77 opt Au over 2.1 ft, or 60.7 g/t over 0.6 m (est. true width of 1.5 ft, or 0.5 m)
H8-274: 7.8 opt Au over 1.4 ft, or 268.0 g/t over 0.4 m (est. true width of 1.0 ft, or 0.3 m)
H8-281: 1.4 opt Au over 2.3 ft, or 48.0 g/t over 0.7 m (est. true width of 1.3 ft, or 0.4 m)
H8-285: 0.47 opt Au over 12.5 ft, or 16.0 g/t over 3.8 m (est. true width of 8.8 ft, or 2.7 m)
The historic drilling program was conducted in 2008. Three holes did not render any significant results. This surface exploration drill program discovered the Hatter Graben vein system, an east-west trending structural zone containing several sub-parallel high grade veins. Results of this program indicate the system is approximately 1,800 ft (~550 m) in strike and approximately 1,200 ft (365 m) vertical extent and open in all directions. Klondex intends to infill the widely spaced drill holes from surface to develop a Mineral Resource estimate.
Mr. Paul Huet, President and CEO commented, "We are extremely excited to be reunited with this important asset. Several members of the Klondex team have significant experience with and knowledge of Hollister. We believe the Gloria and the Hatter Graben zones have significant exploration potential." Mr. Huet continued, "We have successfully completed the consolidation of Fire Creek, Midas and Hollister, three high grade underground mines servicing one central mill at Midas, providing a unique opportunity to capture significant synergies among these operations. This has been a long-term vision and we are extremely proud of our team to be the company to finally accomplish this goal."
To the knowledge of Klondex, vein samples were analyzed by either metallic screen or standard fire assay procedures and QA/QC results were within acceptable limits. Assays were performed by ALS Chemex of Reno, Nevada, an ISO 17025 accredited independent laboratory. The historical data was verified by Klondex's technical team led by Brian Morris, Vice President of Exploration of Klondex and a "qualified person" within the meaning of National Instrument 43-101 ("NI 43-101").
About Klondex Mines Ltd. (www.klondexmines.com) Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly the Rice Lake Mine) and mill in Manitoba, Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora (formerly known as Esmeralda) mine and ore milling facility, also located in Nevada, USA.
Qualified Person Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a "qualified person" within the meaning of NI 43-101.
Cautionary Note Regarding Forward-looking Information This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, "forward-looking information"), including but not limited to the exploration potential at the Hollister Mine, future exploration plans of Klondex and any synergies that may be captured by Klondex as a result of the consolidation of Fire Creek, Midas and Hollister. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, 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; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital requirements and operations. 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 United States available at www.sedar.com and www.sec.gov, respectively. 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.
TABLE 1: Gloria West Drill Program - Complete Results Hole ID Azi Incl TD From To Length Au Grade Ag Grade AuEq Grade From To Length Au Grade Ag Grade AuEq Grade (ft) (ft) (ft) (ft) (oz/st) (oz/st) (oz/st) (m) (m) (m) (g/Tonne) (g/Tonne) (g/Tonne) Vein GLOR14-001 357 -45 1244 897.5 900.0 2.5 1.187 3.44 1.235 273.6 274.3 0.8 40.69 118.09 42.33 Gloria and 1006.0 1007.4 1.4 0.338 6.92 0.434 306.6 307.1 0.4 11.60 237.19 14.89 Gloria and 1046.0 1048.5 2.5 1.694 2.55 1.730 318.8 319.6 0.8 58.09 87.27 59.30 Gloria and 1056.0 1061.0 5.0 0.246 0.72 0.256 321.9 323.4 1.5 8.42 24.77 8.76 Gloria and 1102.5 1103.4 0.9 0.428 4.23 0.487 336.0 336.3 0.3 14.68 145.11 16.70 Gloria and 1148.8 1151.0 2.2 2.168 18.36 2.422 350.2 350.8 0.7 74.32 629.50 83.05 Gloria and 1158.5 1161.0 2.5 0.965 5.55 1.042 353.1 353.9 0.8 33.08 190.15 35.72 Gloria and 1186.7 1187.2 0.5 3.363 19.00 3.626 361.7 361.9 0.2 115.29 651.52 124.33 Gloria GLOR14-002 347 -45 1334 968.0 969.8 1.8 0.638 1.30 0.656 295.0 295.6 0.5 21.86 44.40 22.48 Gloria and 1031.3 1032.4 1.1 2.456 8.99 2.580 314.3 314.7 0.3 84.12 308.00 88.39 Gloria and 1110.9 1112.5 1.6 0.864 1.00 0.878 338.6 339.1 0.5 29.60 34.30 30.07 Gloria and 1183.6 1186.2 2.6 0.525 1.39 0.544 360.8 361.6 0.8 17.98 47.72 18.64 Gloria incl 1183.6 1184.3 0.7 1.471 3.33 1.517 360.8 361.0 0.2 50.39 114.00 51.97 Gloria GLOR15-003 22 39 413 293.2 294.5 1.3 0.820 10.20 0.961 89.4 89.8 0.4 28.13 319.00 32.55 Gloria GLOR15-004 18 0 380 192.5 194.8 2.3 1.825 1.67 1.848 58.7 59.4 0.7 62.57 57.20 63.37 Gloria and 261.5 263.1 1.6 0.157 1.30 0.175 79.7 80.2 0.5 5.39 44.40 6.01 Gloria and 320.5 321.0 0.5 3.439 13.20 3.622 97.7 97.8 0.2 117.92 413.00 123.65 Gloria and 357.2 358.3 1.1 0.132 27.70 0.516 108.9 109.2 0.3 4.53 866.00 16.54 Gloria GLOR15-005 20 -24 380 212.0 212.7 0.7 1.534 1.55 1.556 64.6 64.8 0.2 52.59 53.20 53.33 Gloria and 289.7 290.2 0.5 0.113 0.22 0.116 88.3 88.5 0.2 3.86 7.60 3.97 Gloria and 303.0 306.0 3.0 0.332 3.00 0.374 92.4 93.3 0.9 11.40 100.00 12.78 Gloria GLOR15-006 17 46 425 238.2 238.7 0.5 1.332 6.00 1.415 72.6 72.8 0.2 45.66 218.00 48.68 Gloria and 270.0 271.1 1.1 3.542 3.30 3.588 82.3 82.6 0.3 121.45 109.00 122.97 Gloria and 331.8 332.4 0.6 0.531 1.53 0.552 101.1 101.3 0.2 18.20 52.50 18.93 Gloria GLOR15-007 18 34 401 182.5 184.9 2.4 0.645 0.62 0.654 55.6 56.4 0.7 22.13 21.30 22.43 Gloria and 270.2 271.4 1.2 0.153 20.30 0.434 82.4 82.7 0.4 5.25 695.00 14.89 Gloria GLOR15-008 21 15 379 247.2 247.7 0.5 0.123 9.20 0.251 75.3 75.5 0.2 4.20 316.00 8.58 Gloria and 260.0 260.5 0.5 0.137 2.16 0.167 79.2 79.4 0.2 4.69 74.10 5.72 Gloria and 324.6 325.1 0.5 0.200 8.90 0.323 98.9 99.1 0.2 6.87 304.00 11.09 Gloria GLOR15-009 18 -11 430 146.7 147.4 0.7 0.671 0.57 0.679 44.7 44.9 0.2 23.00 19.40 23.27 Gloria and 162.4 163.6 1.2 0.224 0.21 0.227 49.5 49.9 0.4 7.67 7.30 7.77 Gloria and 272.0 275.3 3.3 0.240 0.95 0.254 82.9 83.9 1.0 8.24 32.64 8.69 Gloria and 279.4 280.2 0.8 0.170 12.80 0.347 85.2 85.4 0.2 5.84 440.00 11.94 Gloria GLOR15-010 19 40 426 147.3 154.5 7.2 1.319 5.41 1.394 44.9 47.1 2.2 45.22 184.98 47.79 Gloria incl 147.3 150.6 3.3 2.340 10.38 2.484 44.9 45.9 1.0 80.23 355.00 85.16 Gloria and 272.8 276.6 3.8 0.500 16.96 0.735 83.1 84.3 1.2 17.12 582.42 25.20 Gloria GLOR15-011 18 26 377 134.9 136.0 1.1 2.110 4.60 2.174 41.1 41.5 0.3 72.33 157.00 74.50 Gloria and 236.3 237.7 1.4 2.164 2.88 2.204 72.0 72.5 0.4 74.19 98.80 75.56 Gloria and 243.7 244.4 0.7 0.113 0.33 0.118 74.3 74.5 0.2 3.88 11.40 4.04 Gloria and 337.0 338.0 1.0 0.424 4.20 0.482 102.7 103.0 0.3 14.53 144.00 16.53 Gloria GLOR15-012 19 -21 350 No Significant Intercepts No Significant Intercepts GLOR15-013 355 4 328 93.9 95.0 1.1 0.495 0.58 0.503 28.6 29.0 0.3 16.97 19.90 17.25 Gloria and 178.0 179.8 1.8 0.266 0.28 0.270 54.3 54.8 0.5 9.12 9.70 9.26 Gloria and 241.7 243.0 1.3 1.083 2.06 1.112 73.7 74.1 0.4 37.13 70.50 38.11 Gloria GLOR15-014 14 46 425 70.0 71.3 1.3 0.572 0.93 0.585 21.3 21.7 0.4 19.60 31.90 20.04 Gloria and 242.1 245.6 3.5 0.695 2.62 0.731 73.8 74.9 1.1 23.82 89.74 25.06 Gloria incl 244.5 245.6 1.1 1.384 3.70 1.435 74.5 74.9 0.3 47.46 127.00 49.22 Gloria and 305.0 305.6 0.6 1.126 4.55 1.189 93.0 93.1 0.2 38.60 156.00 40.76 Gloria GLOR15-015 12 27 381 54.5 55.5 1.0 0.620 0.72 0.630 16.6 16.9 0.3 21.26 24.60 21.61 Gloria and 190.9 192.5 1.6 0.178 1.36 0.197 58.2 58.7 0.5 6.10 46.60 6.75 Gloria and 257.9 262.7 4.8 0.349 3.83 0.403 78.6 80.1 1.5 11.99 131.27 13.81 Gloria and 269.7 273.7 4.0 0.526 3.78 0.579 82.2 83.4 1.2 18.06 129.62 19.85 Gloria GLOR15-016 11 -17 325 83.9 85.1 1.2 0.238 0.66 0.247 25.6 25.9 0.4 8.17 22.70 8.48 Gloria and 171.4 172.1 0.7 0.371 0.37 0.376 52.2 52.5 0.2 12.73 12.60 12.91 Gloria and 225.3 226.8 1.5 1.095 0.98 1.109 68.7 69.1 0.5 37.53 33.70 38.00 Gloria and 247.5 253.0 5.5 0.226 0.80 0.237 75.4 77.1 1.7 7.75 27.43 8.13 Gloria GLOR15-017 191 3.6 452 No Significant Intercepts No Significant Intercepts GLOR15-018 12 40 415 174.7 175.6 0.9 0.467 1.13 0.483 53.2 53.5 0.3 16.00 38.80 16.54 Gloria and 276.6 280.3 3.7 1.208 28.47 1.602 84.3 85.4 1.1 41.41 976.00 54.94 Gloria GLOR15-019 12 21 350 157.8 158.3 0.5 0.393 1.12 0.408 48.1 48.2 0.2 13.47 38.30 14.00 Gloria and 265.5 266.0 0.5 0.126 3.10 0.169 80.9 81.1 0.2 4.33 107.00 5.81 Gloria GLOR15-020 11 -1 325 214.0 218.5 4.5 0.844 0.86 0.856 65.2 66.6 1.4 28.93 29.73 29.35 Gloria incl 217.4 218.5 1.1 3.191 3.10 3.234 66.3 66.6 0.3 109.39 107.00 110.87 Gloria and 226.7 227.3 0.6 0.175 1.11 0.190 69.1 69.3 0.2 6.01 38.10 6.54 Gloria and 229.0 233.1 4.1 1.407 1.28 1.425 69.8 71.0 1.2 48.24 44.09 48.86 Gloria incl 232.4 233.1 0.7 7.987 5.90 8.069 70.8 71.0 0.2 273.84 203.00 276.65 Gloria GLOR15-021 11 -26 350 No Significant Intercepts No Significant Intercepts GLOR15-022 11 44 417 171.7 172.7 1.0 1.384 1.93 1.411 52.3 52.6 0.3 47.46 66.00 48.38 Gloria and 271.7 272.8 1.1 0.190 37.20 0.706 82.8 83.1 0.3 6.50 1277.00 24.21 Gloria GLOR15-023 9 27 375 203.1 205.6 2.5 0.385 9.10 0.511 61.9 62.7 0.8 13.20 313.00 17.54 Gloria and 244.3 245.0 0.7 0.193 2.34 0.225 74.5 74.7 0.2 6.63 80.10 7.74 Gloria GLOR15-024 10 2.5 1300 187.0 190.1 3.1 0.704 2.00 0.732 57.0 57.9 0.9 24.12 68.63 25.08 Gloria incl 187.0 188.0 1.0 1.573 2.81 1.612 57.0 57.3 0.3 53.93 96.40 55.26 Gloria
*Calculated gold equivalent ratio 72.12:1 *intercepts are not true widths
Attachment Available: https://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Gloria_Sig_Intercepts_FINAL-ef5ea3892eb0a02b964c1d9e47cb040f.pdf Attachment Available: https://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Figure_1_Hollister_Exploration_PR-4726d77f4319adcd9ecf607cdfc413b4.pdfAttachment Available: https://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Figure_2_for_Hollister_Exploration_PR-00e441b8e5c48d68b5922460a0aad804.pdf
For More Information John Seaberg Senior Vice President, Investor Relations and Corporate Development O: 775-284-5757 M: 303-668-7991jseaberg@klondexmines.com
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