MW: New High-Grade Gold Intercepts Extend Vein Zones to North and South at Fire Creek
VANCOUVER, British Columbia, Oct 14, 2008 (BUSINESS WIRE) -- Klondex Mines Ltd. (TSX: KDX) today reported new high-grade intercepts and the extension of two vein zones resulting from its Phase 7 drilling program at its 100%-owned Fire Creek gold property in the Battle Mountain-Eureka Trend in Northern Nevada. Klondex has completed 17 drill holes, totaling 25,652 feet, since its last update. Highlights include:
-- the extension of the Main South Zone another 325 feet;
-- the discovery of a new high-grade vein under IP anomaly 14, and
-- good continuity of veining in 50 meter in-fill holes at the Far North and New North zones.
Phase 7 surface drilling at Fire Creek is nearing completion and a final drilling report will be issued later this fall when remaining assay results are received. Thereafter Klondex plans to update its NI 43-101 resource estimate to incorporate drilling data over the two years since the company's last update in September 2006. At Fire Creek, Klondex has defined an Indicated Mineral Resource estimated at 1,636,555 tonnes grading 19.88 grams per tonne (0.576 oz/ton) containing 1,045,738 oz of gold in two separate mineral zones. An updated drill hole location map is available on the company website www.klondexmines.com and geochemical results are listed in the table below.
Richard Kern, Project Manager, commented, "Klondex's drilling program continues to expand the potential scope of the Fire Creek gold resource, thereby justifying the investments we have been making. Our recent holes further expanded the strike length of vein systems in both the north and south, while in-fill drilling in the Far North and New North encountered additional high-grade intercepts, further demonstrating the continuity of veining in these systems. It is clear that these results will further contribute to the updated resource estimate we plan to initiate later this year."
Main South Zone Extension
FC0812, FC0816, FC0819, FC0821 and FC0824 all tested the Main South Extension. FC0821 (17.7 feet true width averaging 0.213 oz/ton gold and 0.60 oz/ton silver) and FC0824 (3.5 feet true width averaging 0.311 oz/ton gold and 0.60 oz/ton silver) extend the high-grade vein zone another 325 feet to the south. The zone is still open to the south. FC0812, located 164 feet north of FC0821 contains 170 feet true thickness of 0.062 oz/ton gold and 0.31 oz/ton silver. FC0816 and FC0819 tested to the east of the above intercepts and returned thick intercepts of 0.030 to 0.059 oz/ton gold.
IP Anomalies
Drill holes FC0814 and FC0826 tested IP anomaly 14. FC0814 penetrated tuff, an unfavorable vein host, before reaching the IP associated fault, but FC0826 intersected 3.5 feet true width averaging 0.293 oz/ton gold and 0.16 oz/ton silver. Another hole is planned above FC0814 to test the vein to the north. FC0813 tested IP anomaly 13 and no significant gold values were found.
New North Zone In-Fill Drilling
In-fill drilling at the New North Zone by FC0810 (9.0 feet true width averaging 0.641 oz/ton gold and 0.40 oz/ton silver) and FC0809 (4.5 feet true width averaging 0.159 oz/ton gold and 0.23 oz/ton silver) show continuity of the veining. Drill hole FC0808 penetrated unfavorable tuff beds before reaching the vein structure, as a result of the vein being offset to the west. Including the new intersection in FC0807 (see July 8, 2008 drilling update), the New North Zone has been extended by 328 feet this drilling season to 650 feet. Drill holes FC0832 and FC0833 are in progress and will test the New North Zone another 100 meters to the north.
Far North Zone Extended 164 Feet to the North
Drill hole FC0817 (two 3.5 feet true width intercepts averaging 0.163 and 0.183 oz/ton gold and <0.015 oz/ton silver) extends the Far North vein system 164 feet north. FC0822 (13.5 feet true width averaging 0.439oz/ton gold and 1.26 oz/ton silver + 4.5 feet true width averaging 0.307 oz/ton gold and 0.31 oz/ton silver + 4.5 feet true width averaging 0.225 oz/ton gold and 0.56 oz/ton silver) shows continuity of two veins from 50 meters to the north with excellent vein thickness and grades. Drill hole FC0806 (see July 8th press release) had earlier increased the zone's length 164 feet. Far North now has a strike length of over 1,475 feet. Additional holes to test the south extension of Far North are planned.
Northeast Zone
Finally, the three holes completed in the Northeast zone (FC0811, FC0815, FC0820) were disappointing. FC0820B, contained 5 feet averaging 0.03 oz/ton gold, the highest value of the three. The geology in the Northeast Zone is proving very challenging mainly because of very large fault offsets disrupting the strata but remains an attractive area of opportunity given the substantial high grade that identified the zone last year.
Underground Permitting and Bulk Sampling Update:
Klondex anticipates receiving permits necessary to commence work on an underground program during the fourth quarter of 2008. Pending financing and the receipt of permits Klondex plans to drive a 4,715 feet long decline to access mineralization underground. Once completed, the decline will enable underground in-fill drilling of the resource as well as bulk sampling for metallurgical testing of up to 120,000 tons of material over a three to five year period. Klondex plans to target its bulk sampling effort within vein mineralization averaging 1-2 oz/ton gold, creating the potential to generate substantial cash flows to fund further development of the resource.
Gold and silver analyses are 50-gram fire assays of one-half sawed core conducted by ALS-Chemex Labs of Sparks, Nevada. All gold assays over 0.03 oz/ton are re-analyzed and random repeats and standard samples run on a regular basis.
Richard Kern (P.Geo), Project Manager, of Reno, Nevada, is the Company's qualified person on the project as required under NI 43-101and has reviewed the technical information contained in this press release.
About Klondex Mines Ltd.:
Klondex Mines (TSX: KDX) is a gold exploration company focused on the development and expansion of its high-grade Fire Creek deposit in Nevada, covering 10,708 acres of fee and lease land 100% owned by Klondex. At Fire Creek, Klondex has defined an Indicated Mineral Resource estimated at 1,636,555 tonnes grading 19.88 grams per tonne (0.576 oz/ton) containing 1,045,738 oz of gold in two separate mineral zones, and has filed for permits to begin bulk sampling for metallurgical testing of up to 120,000 tons of material and anticipates receipt of these permits by year-end 2008.
Fire Creek is located in the Battle Mountain-Eureka Trend in the Northern Nevada Rift, in North Central Nevada, an area of prolific gold production. The Company was founded over 30 years ago, and its property portfolio consists of four gold exploration projects, all in Nevada. Eighty percent of Klondex' known resource is on private land. For more information, please visit www.klondexmines.com.
On Behalf of Klondex Mines Ltd.
"William J. Solloway" "Richard Kern"
President Project Manager
Fire Creek Drill Results Update September, 2008 (â?¥
10 feet @ â?¥ 0.03 oz/ton gold)
Hole No. From To Interval True Gold Silver True Gold Silver Target
(feet) (feet) (feet) Width (oz/ton) (oz/ton) Width (m) (g/t) (g/t) Area
FC0805B In Progress Main
FC0808 No +0.03 oz/ton Gold Values N. New North
FC0809 905 915.0 10.0 8.0 0.041 0.07 2.4 1.40 2.40 N. New North
1175 1187.0 12.0 10.8 0.098 0.07 3.3 3.36 2.40 N. New North
Including 1175 1180.0 5.0 4.5 0.159 0.23 1.4 5.45 7.81 N. New North
1260 1270.0 10.0 9.0 0.038 0.07 2.7 1.30 2.40 N. New North
FC0810 1115 1125.0 10.0 9.0 0.067 0.28 2.7 2.29 9.59 N. New North
1155 1165.0 10.0 9.0 0.641 0.40 2.7 21.95 13.70 N. New North
Including 1160 1165.0 5.0 4.5 1.244 0.70 1.4 42.60 23.97 N. New North
1230 1235.0 5.0 4.5 0.097 0.14 1.4 3.32 4.79 N. New North
FC0811 No +0.03 oz/ton Gold Values Northeast
FC0812 475 715.0 240.0 169.7 0.062 0.20 51.7 2.12 6.85 Main South
Including 590 605.0 15.0 11.6 0.241 0.67 3.5 8.25 22.95 Main South
FC0813 No +0.03 oz/ton Gold Values IP Anomaly 13
FC0814 No +0.03 oz/ton Gold Values IP Anomaly 14
FC0815 No +0.03 oz/ton Gold Values Northeast
FC0816 1055 1090.0 35.0 24.7 0.059 0.37 7.5 2.02 12.67 South Main
FC0817 960 975.0 15.0 10.6 0.060 <0.015 3.2 2.05 <0.50 N. Far North
1000 1045.0 45.0 31.8 0.082 <0.015 9.7 2.81 <0.50 N. Far North
Including 1015 1020.0 5.0 3.5 0.163 <0.015 1.1 5.58 <0.50 N. Far North
1040 1045.0 5.0 3.5 0.183 <0.015 1.1 6.27 <0.50 N. Far North
FC0818 In Progress Main South
FC0819 810 820.0 10.0 7.1 0.032 0.22 2.2 1.10 7.53 Main South
825 835.0 10.0 7.1 0.030 0.21 2.2 1.03 7.19 Main South
855 870.0 15.0 10.6 0.033 0.43 3.2 1.13 14.73 Main South
1010 1020.0 10.0 7.1 0.036 0.10 2.2 1.03 7.19 Main South
FC0820B No +0.03 oz/ton Gold Values Northeast
FC0821 565 630.0 65.0 46 0.116 0.31 14.0 3.97 10.62 Main South
Including 595 620.0 25.0 17.7 0.213 0.60 5.4 7.29 20.55 Main South
730 875.0 145.0 102.5 0.039 0.18 31.3 1.34 6.16 Main South
FC0822 780 835.0 55.0 49.5 0.040 0.15 15.1 1.37 5.14 Far North
865 895.0 30.0 27 0.262 0.93 8.2 8.97 31.85 Far North
Including 870 885.0 15.0 13.5 0.439 1.26 4.1 15.03 43.15 Far North
985 1000.0 15.0 13.5 0.161 0.13 4.1 5.51 4.45 Far North
Including 995 1000.0 5.0 4.5 0.307 0.31 1.4 10.51 10.62 Far North
1090 1125.0 35.0 31.5 0.069 0.28 9.6 2.36 9.59 Far North
Including 1125 1130.0 5.0 4.5 0.225 0.56 1.4 7.71 19.18 Far North
1165 1175.0 10.0 9 0.040 0.26 2.7 1.37 8.90 Far North
FC0823 In Progress Northeast
FC0824 575 620.0 45.0 31.8 0.097 0.10 9.7 3.32 3.42 Main South
590 595.0 5.0 3.5 0.311 0.60 1.1 10.65 20.55 Main South
Including 775 780.0 5.0 3.5 0.100 0.34 1.1 3.42 11.75 Main South
790 800.0 10.0 7.1 0.031 0.12 2.2 1.06 4.11 Main South
Including 825 837.5 12.5 8.8 0.037 0.37 2.7 1.27 12.67 Main South
880 910.0 30.0 21.2 0.072 0.47 6.5 2.47 16.10 Main South
Including 905 910.0 5.0 3.5 0.187 1.30 1.1 6.40 44.52 Main South
FC0825 In Progress Northeast
FC0826 800 810.0 10.0 7 0.191 0.31 2.1 6.54 10.62 IP Anomaly 14
805 810.0 5.0 3.5 0.293 0.16 1.1 10.03 5.48 IP Anomaly 14
FC0827 In Progress Main N. Ext.
FC0828 820 840.0 20.0 14.1 0.052 0.33 4.3 1.78 11.30 Main South
855 890.0 35.0 24.7 0.044 0.30 7.5 1.51 10.27 Main South
