ELKO, Nev. & VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondex Mines Ltd. (TSX: KDX or OTCQX: KLNDF), a Northern Nevada gold exploration and development company, announces the discovery of new gold mineralization at its flagship Fire Creek project. The discovery (Figure 1 click here) is approximately 165 meters (540 feet) west of the A-Vein mineralization, which forms part of the Main Zone, and represents a new unexplored zone. Klondex intersected 123.9 grams/tonne gold (3.6 oz/ton) over 1.5 Meters (5 feet) while completing a geotechnical drill hole for the design of the planned vent raise. Klondex also encountered visible gold mineralization in three locations in the area: on the left rib of the nearby drift (Figure 2), in a drill hole at the base of the access ramp 5370-RM (Figure 3), and in the geotechnical hole, approximately 6 meters (20 feet) above the access ramp (Figure 4) Click here for Figures 2, 3 & 4.
Paul Huet, CEO of Klondex, commented, “We are very excited by this new discovery at Fire Creek.. A discovery of this nature demonstrates that Fire Creek remains under-explored and that ongoing exploration could lead to other zones providing potential growth for Klondex.
“We have designed our underground in-fill drilling program to tighten the drill spacing in the Main Zone to include 16 easterly drill fans of three to four drill holes each, totaling 9,754 meters (32,000 feet). This will refine our resource model with additional data and hopefully identify new areas of mineralization. As a result of the new gold mineralization found in the vent raise access we will be expanding our program to the west as part of Phase 2”.
Steve McMillin, Chief Geologist for Fire Creek, added, “This new discovery is very exciting for Klondex as it occurs in an area with very little previous drill information. The find was unexpected and has the team discussing expanded and more comprehensive future drilling at Fire Creek. It occurs within a very large area of alteration, at least 27 meters wide (90 feet) and also has a higher silver content than we have seen elsewhere at Fire Creek.”
Sample results cited in this news release were obtained through rib samples performed by Klondex geologists and via a geotechnical hole drilled by independent contractor American Drilling under the direction of Klondex staff. Assays were determined by ALS Minerals of Reno, Nevada and Inspectorate America Corporation of Sparks, Nevada, both independent analytical laboratories. Klondex is not yet able to determine true widths.
The content of this press release has been reviewed by Steven L. McMillin, CPG-11031 (American Inst. of Prof. Geol.), Chief Geologist for Klondex, as a non-independent Qualified Person for the purposes of National Instrument 43-101.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect located in a region of prolific gold production that is near power, transportation, mining infrastructure and several milling facilities. As of January 20, 2012 Klondex had 64.4 million shares issued and outstanding and 84.9 million shares on a fully-diluted basis.
This news release contains forward-looking statements, including about current expectations on the timing and success of exploration activities, project development and related permitting. These forward-looking statements entail various risks and uncertainties, are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. 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. 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 available at www.sedar.com. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.