FINALLY SOME REAL NEWS ABOUT FIRE CREEK: VERY GOOD!! Extremely good news. Total boosted to 2.2 M of Au resource just at Fire Creek...stock at $ 451 M USD market cap closing price is a complete joke and not in synch with the properties' true value. Key points highlighted in yellow. Wait until Q1 2018 corporate wide resource update.
JIN
Klondex Mines Announces New Open Pit Mineral Resource Estimate at Fire Creek; Total Indicated of 1.1M AuEq Oz and Inferred of 1.1M AuEq Oz
Vancouver, BC - December 21, 2017 - Klondex Mines Ltd. (TSX: KDX; NYSE American: KLDX) (“Klondex” or the “Company”) is pleased to provide an initial open pit Mineral Resource estimate for its Fire Creek mine (“Fire Creek”) located in northern Nevada, USA, which incorporates the results from the 2017 open pit surface and underground exploration drill programs. This Mineral Resource estimate is in addition to the Company’s previously announced underground Mineral Resources. Klondex plans to provide a complete Mineral Reserve and Resource update, for all sites, during the first quarter of 2018.
Fire Creek Open Pit Mineral Resource Highlights: (See Table 1 and Figures 1-3)
- Total Indicated Mineral Resource estimate of 42.9M tons grading 0.026 AuEq opt (0.88 AuEq g/t) for a total of 1.1M AuEq ounces
- Total Inferred Mineral Resource estimate of 31.7M tons grading 0.035 AuEq opt (1.19 AuEq g/t) for a total of 1.1M AuEq ounces
- This initial Mineral Resource estimate excludes all underground Mineral Resources reported at Fire Creek, however there is potential to mine relatively higher grade underground resources, outside the underground mine plan, from surface
- The open pit mineralization is open to the north, south and west
- The Company will remain focused on mining and further delineating the high grade underground veins while looking for strategic alternatives to advance and develop the bulk tonnage open pit Mineral Resource
Table 1: Fire Creek Open Pit Mineral Resource Estimate
| Category | Tons
(M) | Au
opt | Au
g/t | Ag
opt | Ag
g/t | AuEq
opt | AuEq
g/t | Au
Moz | Ag
Moz | AuEq
Moz |
| Indicated | 42.9 | 0.025 | 0.87 | 0.055 | 1.88 | 0.026 | 0.88 | 1.093 | 2.350 | 1.105 |
| Inferred | 31.7 | 0.034 | 1.17 | 0.091 | 3.12 | 0.035 | 1.19 | 1.085 | 2.882 | 1.101 |
- Mineral resources are calculated at a gold price of US$1,400 per ounce and a silver price of US$19.83 per ounce.
- Metallurgical recoveries for gold and silver are 65% and 30%, respectively for oxide mineralization and 60% and 25% respectively for mixed mineralization.
- One ounce of gold is equivalent to 183.53 ounces of silver.
- Mineral Resources include 10% dilution and 5% mining losses.
- Cut off grades for the Mineral Resources are 0.01opt AuEq.
- The effective date for the Mineral Resource is November 30, 2017.
- Mineral Resources which are not Mineral Reserves have not yet demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
- The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred 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.
- The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
Mr. Paul Huet, President and CEO, commented, “The results of this initial open pit drill program are extremely exciting for Klondex. We believe that the addition of these open pit mineral resources has the potential to significantly extend Fire Creek’s mine life.” Mr. Huet continued, “Fire Creek continues to demonstrate it is a world-class property and we now have data suggesting the underground and open pit potential is robust with the possibility for these resources to significantly expand with our continued district exploration programs. We will continue to maximize the full value of this asset for our shareholders. Management will continue to focus our efforts on the higher grade, underground mineralization while exploring and evaluating strategic alternatives to advance and develop the open pit potential of this asset.”
In 2017, a total of 21 surface and 10 underground core drill holes were drilled for a total of 14,758 ft (4,498 m). This drilling targeted wide zones of low grade mineralization above the high grade vein system currently in production, with the intent to develop a bulk minable resource. Also included in these new resources is historical drilling conducted since 2004, which consists of 1,474 surface and underground drill holes totaling 1,022,240 ft (311,578 m).
A technical report in support of the Mineral Resource estimate described herein and prepared in accordance with National Instrument 43-101 will be filed on SEDAR and EDGAR within 45 days from the date hereof.
Assays were performed by American Assay Laboratories of Sparks, Nevada, as directed under the supervision of Klondex staff. This organization is an ISO 17025 accredited independent laboratory.
Qualified Person
Scientific and technical information in this press release has been reviewed and approved by Mark Odell, P.Eng. (NV Lic#13708) of Practical Mining LLC, an “independent qualified person” within the meaning of National Instrument 43-101.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a 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 four producing mineral properties: the Fire Creek Mine, the Midas Mine and ore milling facility, the Hollister Mine, all of which are located in the state of Nevada, USA, and the True North Mine and mill in Manitoba, Canada. The Company also has a 100% interest in the Aurora mine and ore milling facility, also located in Nevada, USA.