Click here to close now.

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.

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
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
"AgilData is the next generation of dbShards. It just adds a whole bunch more functionality to improve the developer experience," noted Dan Lynn, CEO of AgilData, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
In the midst of the widespread popularity and adoption of cloud computing, it seems like everything is being offered “as a Service” these days: Infrastructure? Check. Platform? You bet. Software? Absolutely. Toaster? It’s only a matter of time. With service providers positioning vastly differing offerings under a generic “cloud” umbrella, it’s all too easy to get confused about what’s actually being offered. In his session at 16th Cloud Expo, Kevin Hazard, Director of Digital Content for SoftL...
"A lot of the enterprises that have been using our systems for many years are reaching out to the cloud - the public cloud, the private cloud and hybrid," stated Reuven Harrison, CTO and Co-Founder of Tufin, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare...