Feb 16 2011
Klondex Mines Ltd. (TSX: KDX) announced new high-grade gold intercepts from its exploration-drilling program at its Fire Creek property in North Central Nevada.
Results are based on assays for the remaining nine holes (6 core and 3 RC) of the Company's 20-hole drill program for 2010.
“Our surface exploration program continues to discover new high-grade veins while extending the boundaries and potential of the Fire Creek resource”
Drilling Highlights:
- RC drilling (FC1014RC) discovered a new high-grade vein 150 meters (500 feet) south of the southern end of the Far North resource. The vein averages 10.76 g/t gold over a true width of 6.1 meters (0.31 oz/ton Gold over 20 feet), including 41.25 g/t over 1.2 meters true width (1.21 oz/ton over 4.0 feet).
- New gold-bearing shears (<5 g/t gold) have been found north of Main Zone and southwest of New North Zone, extending the scope of these zones.
- In-fill drilling in the Main Zone yielded the highest gold assays of the year. FC1019 averages 43.16 g/t over a true width of 2.4 meters (1.26 oz/ton over 8.0 feet), including 75.85 g/t gold and 207.00 g/t silver over a true width of 1.2 meters (2.22 oz/ton gold and 6.0 oz/ton silver over 4 feet).
"Our surface exploration program continues to discover new high-grade veins while extending the boundaries and potential of the Fire Creek resource," said Blane Wilson, President and COO, "with ten new high-grade intercepts found by our 2010 drilling program. There are numerous IP and other targets still to pursue, and we also plan to drill a few deeper holes from surface to test our vein systems at depth. We expect to resume surface exploration this spring once the snow subsides and we are able to complete surface road surveys required by the BLM."
Regarding Klondex's underground program, Mr. Wilson added, "We remain on-track to initiate our underground exploration and bulk sampling program in March. We believe our permits are in the final stages of issuance, and our underground contractor SMD has been on site preparing to initiate the decline upon receipt of regulatory approvals. Given this timing, we expect Klondex can start its first bulk sample late in the fourth quarter of this year. We continue to believe that our progression from pure exploration to a hybrid model of exploration and production via bulk sampling should create value for our shareholders."
Klondex's 2010 drilling program consisted of 12,198 feet/3,718 meters of core and 16,045 feet/4,891 meters of RC drilling. 12 core holes targeted in-fill of the existing resource or previous IP hits and 8 RC holes targeted IP anomalies. Today's results include four in-fill drill holes designed to show continuity of veins and to supply additional data prior to starting underground development. Data from the 2009 and 2010 drilling programs has not yet been incorporated into Klondex's NI 43-101 mineral resource, last updated in March 2009.
DRILL HOLE DESCRIPTIONS:
FC1009 Drilled at north end of Main Zone. Crossed two shear zones within broad anomalous zone (890-1060 feet averaged 1.77 g/t gold).
FC1011RC Tested IP anomaly east of Main Zone. No significant gold values were encountered.
FC1014RC Tested IP anomaly that extends south of Far North resource. Intersected two gold-bearing shears (1225-1240 and 1365-1420 feet) before intersecting the high-grade vein discussed above at 1490-1515 feet.
FC1015RC Drilled well west and south of New North Zone, the hole tested the western margin of a large IP anomaly. One gold-bearing shear was intersected between 1160 and 1210 feet.
FC1017 Drilled as an in-fill hole at the New North Zone. The hole intersected two veins and one gold-bearing shear.
FC1018 Drilled at the Main Zone, this hole intersected three gold-bearing shears, the strongest of which intersected 10 feet averaging 4.06 g/t gold.
FC1019 Drilled at the Main Zone as an in-fill hole which intersected two veins including the high-grade vein mentioned above and a gold bearing shear.
FC1020 Drilled at the Main Zone, this hole intersected three gold bearing shears (10-30 feet, 195-236 feet and 560-595 feet).
FC1021 Drilled at south end of the Main Zone, this hole intersected three gold-bearing shears (345-380 feet, 550-620 feet and 835 to 860 feet).
As of December 31, 2010 Klondex Mines had 36,544,089 shares issued and outstanding, 41,319,089 shares on a fully diluted basis, and approximately CDN $8 million in cash.
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.
Source: Klondex Mines Ltd.