Welcome!

News Feed Item

Klondex Provides Operational Update

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/28/14 -- Klondex Mines Ltd. (TSX:KDX)(OTCQX:KLNDF) today provides an operational update for its Fire Creek gold project and the Midas gold and silver mine and mill, in Northern Nevada.

Paul Huet, Klondex President and CEO stated, "It's with a great amount of pleasure that we provide Klondex's first operational update since the acquisition of the Midas mine and mill. We assumed ownership of Midas on February 11th of this year and immediately started drilling and blasting the underground stopes. Our initial blast rounds exposed high-grade gold and silver veins in an area along strike from the existing workings on the 905 vein. I believe the success of the operations team hitting the ground running, is a direct result of the leadership team having previous experiences at Midas."

Midas Mine and Mill

Transitioning the mine and milling facilities from Newmont to Klondex is complete, including the hiring and orientation of 110 Midas employees, and operations are well-underway.

The first underground excavations at Midas were taken in the 7-4640 South area of the mine (Figure 1). After the second blast round, the vein widened and the grade increased. The average grade in this area is 20.6 g/t (0.6) opt Au and 1975.0 (57.60 opt) Ag over an average vein width of 4.8 ft; assays range from 96.0 g/t (2.8 opt) Au and 10,800 g/t (315.0 opt) Ag to 3.1 g/t (0.1 opt) Au and 536.1 g/t (18.9 opt) Ag. See Table 1 below for more details. Since encountering the high grade zone, the drift has been extended 91 ft along strike of the vein. This drift will serve for a primary drilling and mucking horizon for future long hole stoping.

The mill began operating on February 19, 2014 and is currently running at a rate of 600 tpd. It is currently being fed by a blend of the Midas and Fire Creek mineralized materials. The first dore pour is expected to be March 4th, 2014 with an initial shipment to Johnson Matthey on March 6th. Klondex is currently evaluating opportunities to provide third party toll milling services.

Taurus Drilling, experts in narrow vein long hole mining have been contracted for drilling and blasting at Midas. Sandvik has been awarded the contract for mobile maintenance at both Fire Creek and Midas. Sandvik are experts in this field and have a proven track record at Midas as well having worked there for over four years, from 2002 through 2006.

Fire Creek

Bulk sampling at Fire Creek is fully-commissioned and benching the Vonnie and Joyce veins is well underway. Shipments of mineralized material from Fire Creek commenced on February 11, 2014, to the Midas mill, approximately 100 miles north at a haulage cost of $32/t.

The technical information contained in this press release has been reviewed and approved by Mark Odell of Practical Mining LLC, an Independent Qualified Person (Nevada PE 13708 and SME 2402150) for the purposes of National Instrument 43-101.

Assays were performed at Newmont's Twin Creeks' operation.

About Klondex Mines Ltd. (www.klondexmines.com)

Klondex Mines is focused on the exploration, development and production of its high quality gold and silver projects. The company is operating an ongoing bulk sampling program at its Fire Creek gold project located in north central Nevada. Fire Creek is in a mining-friendly jurisdiction, with onsite power and mining infrastructure, and near major producers. Midas, Klondex's newly acquired operating mine and milling facility are located 112 miles north of Fire Creek.

Cautionary Note Regarding Technical Information and Forward-looking Information

A production decision at the Midas mine was made by prior owners of the mine, prior to the completion of the acquisition of Midas by Klondex. To the knowledge of Klondex, this production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101. Readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.

This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation, including but not limited to information about current expectations on the timing and success of exploration and metallurgical sampling activities, the timing and success of mining operations, the Company's intention and ability to monetize mineralized material, the successful execution of the bulk sampling program at the Fire Creek Project, project development and related permitting. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. 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; and the ability of Klondex to fund its substantial capital requirements and 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 information or to update the reasons why actual results could differ from such information unless required by law.

Table 1: 7S4640 Heading, GP Vein

                                        ------------------------------------
                                                        Gold                
----------------------------------------------------------------------------
               vein   vein mining mining     vein     vein   mining   mining
length,      width, width, width, width, channel, channel, channel, channel,
feet          meter   feet  meter   feet      g/t    auopt      g/t    auopt
----------------------------------------------------------------------------
414-423        0.34    1.1   1.86    6.1     21.4     0.76      4.1     0.14
423-427        0.88    2.9   2.47    8.1     22.6     0.80      9.4     0.33
427-446        1.95    6.4   2.26    7.4     33.6     1.19     29.1     1.03
446-456        1.16    3.8   2.74    9.0      4.8     0.17      3.1     0.11
456-463        1.55    5.1   2.13      7     21.2     0.75     15.9     0.56

            ------------------------------------
                           Silver               
------------------------------------------------
                 vein     vein   mining   mining
length,      channel, channel, channel, channel,
feet              g/t    agopt      g/t    agopt
------------------------------------------------
414-423        4176.0    147.3    776.8     27.4
423-427        4079.5    143.9   1501.1     52.9
427-446        3837.8    135.4   3319.5    117.1
446-456         831.4     29.3    536.1     18.9
456-463        1852.6     65.3   1384.5     48.8

Notes:

1.  Mining width assays are a weighted average of the vein and surrounding
    rock exposed across the full width of the drift. 

Contacts:
Klondex Mines Ltd.
Paul Huet
President & CEO
775-284-5757
[email protected]

Klondex Mines Ltd.
Alison Tullis
Manager, Investor Relations
647-233-4348
[email protected]
www.klondexmines.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...