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Klondex Reports 2016 Surface Exploration Drill Program Results from Fire Creek Mine

Klondex Mines Ltd. ("Klondex" or the "Company") is pleased to provide results on the completed 2016 surface exploration drill program at its Fire Creek Mine ("Fire Creek") located in northern Nevada, USA. The following drill results are not included within the mineral reserve and mineral resource estimates released on September 14, 2016.

Fire Creek Mine Surface Drilling Highlights: (see TABLE 1 for complete results)

  • FCC-0068: 0.43 opt Au over 17.1 ft, or 14.6 g/t over 5.2 m - West Zone
  • Including 3.92 opt Au over 1.0 ft, or 134.5 g/t over 0.3m
  • FCC-0065: 0.95 opt Au over 5.0 ft, or 32.5 g/t over 1.5 m - West Zone
  • Including 2.36 opt Au over 1.8 ft, or 80.9 g/t over 0.5 m
  • FCC-0061: 0.56 opt Au over 1.9 ft, or 19.1 g/t over 0.6 m - East Zone
  • FCC-0050: 0.28 opt Au over 1.2 ft, or 9.5 g/t over 0.4 m - East Zone
  • FCC-0057: 0.24 opt Au over 3.7 ft, or 8.3 g/t over 1.1 m - North Expansion


Eighteen surface holes totaling 28,721 ft (8,754.2 m) were drilled during the reporting period. These exploration holes primarily targeted mineralization extensions in the West, North and East Zones.

Holes FCC-0064, FCC-0065, and FCC-0068 are follow-up holes to FCC-0020 (previously reported in press release dated November 10, 2016) which targeted a 6,500 ft (1,981.2 m) north-south striking geophysical anomaly located about 4,000 ft (1,219.2 m) west of the current mine workings (FIGURE 2). Drill results from these holes suggest the potential for four parallel structures in this zone. This drilling has extended the mineralization approximately 600 ft (182.9 m) along strike, 250 ft (76.2 m) vertically, is within 400 ft (121.9 m) of the surface and is open in all directions. Hole FCC-0067 targeted and successfully confirmed a previously untested geophysical anomaly approximately 5,500 ft (1,676.4 m) to the west of the current mine workings, suggesting the Fire Creek District could be much larger than what is currently known.

Holes FCC-0050, FCC-0060 and FCC-0061 (FIGURE 3) were drilled to infill between two previously drilled holes testing the East Zone structure, a north-south striking approximately 19,000 ft (5,791.2 m) geophysical anomaly. Assay results support a 1,200 ft (365.8 m) north-south strike and 450 ft (137.2 m) vertical extension of mineralization within this structure and is open in all directions. The East Zone structure is located approximately 2,000 ft (609.6 m) east of the current mine workings.

The North Expansion drilling continues to offset and extend known mineralization beyond the current Fire Creek underground footprint (FIGURE 4). Holes FCC-0056 and FCC-0057 have collectively extended at least one of the underground veins approximately 1,500 ft (457.2 m) to the north and is open to the north and vertically.

Mr. Brian Morris, Vice President, Exploration said, "The 2016 surface drill program at Fire Creek ended successfully with follow up drilling in the West, East, and North Zones. These drill results continue to extend mineralization along strike and vertically and demonstrate the potential to contain high-grade mineralization, similar to what is currently being mined." Mr. Morris continued, "Geophysics are proving to be an effective exploration tool in the Fire Creek District. We have numerous similar untested geophysical signatures in the district suggesting the potential for substantial resource expansion in the near future." (FIGURE 5)

Assays were performed by ALS Chemex of Reno, Nevada, as directed under the supervision of Klondex staff. This organization is an ISO 17025 accredited independent laboratory.

A description of the data verification methods, quality assurance program and quality control measures applied can be found in the technical report titled "Technical Report for the Fire Creek Project, Lander County, Nevada", dated March 28, 2016 and with an effective date of June 30, 2015 which is available under the Company's issuer profile on SEDAR at


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