NEVADA FIRE CREEK PROJECT NEARS BULK SAMPLING
Fire Creek expected to begin Bulk Sampling Program by end of 2013
Message: Klondex Announces Expanded 2011 Surface Exploration Program at its
High Grade Nevada Gold Project, Fire Creek
Apr. 18, 2011 (Business Wire) -- Klondex Mines Ltd. (TSX: KDX) is pleased to announce its greatly expanded surface drill program for 2011. This follows 2010 which was a very successful year for exploration at Klondex. The discovery of new veins and areas of mineralization outside our resource encouraged Klondex to increase the area of exploration and the depth and quantity of areas tested. Drilling is expected to commence as soon as conditions allow drill rigs to reach the site.
Blane Wilson, President and COO commented; “We felt it was important to expand our drill program and get as much data assembled prior to our new 43-101 expected in Q4 of this year. As you may be aware, our resource calculation does not include any data from the 2009 or 2010 exploration drill programs. We are eager to update and maximize the return delivered by that revised 43-101 to shareholders.”
This exploration program will include the following:
- Core drilling of new veins intersected in 2010
- Step out and in-fill RC drilling of additional untested IP anomalies
- Directional drilling of possible deep extensions of the known vein system beneath Main
- Step out drilling on the southern extension of the high grade Main zone
- In-fill and resource expansion drilling
The 2011 surface exploration program builds upon the highly productive 2009 and 2010 programs and will include approximately 36,000 feet (11,000 meters) of core and 23,000 feet (7,000 meters) of RC. The focus of the 2011 program will be the following initiatives:
In-Fill and Resource Expansion Drilling
Core drilling will continue to in-fill the Main, Far North and New North zones with 50 meter spaced holes. Current drill spacing is 100 meters in some areas and new 50 meter intercepts will help Klondex design the upcoming underground drilling and bulk sampling program. Drilling of possible extensions of the resource, as done with drill holes FC1013 and FC1016 at the south end of Main, is also planned in 2011.
Follow-Up Core Drilling of New Veins
New veins intersected by RC drilling of IP anomalies will be followed up with core drilling to determine their extent. Current targets include two new intersections south of Far North and one located east of Main.
Directional Drilling of Possible Deep Extensions
The veins at Fire Creek are primarily hosted by high-angle faults in brittle mafic rocks. The bottom of the veins often correlates with the occurrence of a water-lain tuff that does not normally allow vein formation. However, additional brittle rocks that should be good vein hosts occur at depth. By using directional drilling, which allows near-vertical holes to be turned nearly horizontal, Klondex will test for possible extensions of the Main resource veins. This will be the first targeting of deeper mineralization done at Fire Creek.
RC Drilling of Additional Untested IP Anomalies
Drill testing of IP anomalies identified by major Klondex geophysical surveys conducted from 2006 through 2009 has identified three new veins to date. A total of ten anomalies have not been drill tested. These anomalies will all be tested in 2011 along with additional drilling of anomalies where gold-bearing structures were identified, but no ore grade values (+5.0 g/t gold) were intersected to date.
As of April 11, 2011, Klondex Mines had approximately 36.6 million shares issued and outstanding, approximately 43.2 million shares on a diluted basis, and approximately CDN $14.5 million in cash and an additional $10 million available on demand.
About Klondex Mines (www.klondexmines.com):
Klondex Mines Ltd. is focused on the exploration and development of its 100% owned high-grade Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling, low-Capex mining prospect that is well located near power, transportation, mining infrastructure and several milling facilities. Klondex has identified the following NI 43-101 compliant resource at Fire Creek:
NI 43-101 Compliant Mineral Resource as of March 30, 2009*
Grams Gold Equivalent
Per Metric Tonne
|*The resource is approximately 98.3% gold and 1.7% silver and reflects a cutoff grade of 5 grams per tonne. 60 units of silver are equivalent to one unit of gold.|
Richard Kern (P.Geo), of Reno, Nevada, a qualified person as defined under National Instrument 43-101, has reviewed and approved the technical information contained in this press release.
ON BEHALF OF KLONDEX MINES LTD.
|William J. Solloway||Blane Wilson|
|Chairman and CEO||President and COO|
Source: Business Wire (April 18, 2011 - 8:58 AM EDT)
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