Exploration Update at Hollister
Vancouver, BC – October 11, 2016– Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE MKT) (“Klondex”or the “Company” - https://www.commodity-tv.net/c/mid,3159,Companies_und_Projects/?v=294628 ) is pleased to provide an update on recent and historic exploration results at its Hollister Mine in Nevada (see FIGURE 1).
Gloria West Drilling Highlights: (see TABLE 1 below for complete results)
- GLOR15-034: 4.18 opt AuEq over 8.4 ft, or 143.3 g/t over 2.6 m
- Including 18.36 opt AuEq over 1.7 ft, or 629.6 g/t over 0.5 m
- GLOR14-001: 2.42 opt AuEq over 2.2 ft, or 83.1 g/t over 0.7 m
- GLOR14-001: 3.63 opt AuEq over 0.5 ft, or 124.3 g/t over 0.2 m
- GLOR15-006: 3.59 opt AuEq over 1.1 ft, or 123.0 g/t over 0.3 m
- GLOR15-010: 1.39 opt AuEq over 7.2 ft, or 47.8 g/t over 2.2 m
- Including 2.48 opt AuEq over 3.3 ft, or 85.2 g/t over 1.0 m
- GLOR15-011: 2.20 opt AuEq over 1.4 ft, or 75.6 g/t over 0.4 m
- GLOR15-020: 1.43 opt AuEq over 4.1 ft, or 48.9 g/t over 1.2 m
- Including 8.07 opt AuEq over 0.7 ft, or 276.7 g/t over 0.2 m
- GLOR15-025: 3.85 opt AuEq over 0.6 ft, or 132.0 g/t over 0.2 m
- GLOR15-026: 2.20 opt AuEq over 2.5 ft, or 75.32g/t over 0.8 m
- GLOR15-032: 3.74 opt AuEq over 1.7 ft, or 128.2 g/t over 0.5 m
A total of 36 underground holes totaling 17,998 ft. (5,486 m) were drilled in 2014 and 2015 by the prior owner and were not previously released. These holes encountered multiple veins and extended the Gloria vein system approximately 800 ft to the West and approximately 300 ft vertically. The Gloria vein system remains open up and down dip and along strike to the West. Klondex intends to infill drill the Gloria vein system in Q4 2016 to develop a Mineral Resource estimate and continue stepping out to the West (see FIGURE 2).
Hatter Graben Historical Drilling Highlights:
- H8-264: 0.54 opt Au over 7.8 ft, or 18.6 g/t over 2.4 m (est. true width of 5.5 ft, or 1.7 m)
- H8-269: 1.77 opt Au over 2.1 ft, or 60.7 g/t over 0.6 m (est. true width of 1.5 ft, or 0.5 m)
- H8-274: 7.8 opt Au over 1.4 ft, or 268.0 g/t over 0.4 m (est. true width of 1.0 ft, or 0.3 m)
- H8-281: 1.4 opt Au over 2.3 ft, or 48.0 g/t over 0.7 m (est. true width of 1.3 ft, or 0.4 m)
- H8-285: 0.47 opt Au over 12.5 ft, or 16.0 g/t over 3.8 m (est. true width of 8.8 ft, or 2.7 m)
The historic drilling program was conducted in 2008. Three holes did not render any significant results. This surface exploration drill program discovered the Hatter Graben vein system, an east-west trending structural zone containing several sub-parallel high grade veins. Results of this program indicate the system is approximately 1,800 ft (~550 m) in strike and approximately 1,200 ft (365 m) vertical extent and open in all directions. Klondex intends to infill the widely spaced drill holes from surface to develop a Mineral Resource estimate.
Mr. Paul Huet, President and CEO commented, “We are extremely excited to be reunited with this important asset. Several members of the Klondex team have significant experience with and knowledge of Hollister. We believe the Gloria and the Hatter Graben zones have significant exploration potential.” Mr. Huet continued, “We have successfully completed the consolidation of Fire Creek, Midas and Hollister, three high grade underground mines servicing one central mill at Midas, providing a unique opportunity to capture significant synergies among these operations. This has been a long-term vision and we are extremely proud of our team to be the company to finally accomplish this goal.”
To the knowledge of Klondex, vein samples were analyzed by either metallic screen or standard fire assay procedures and QA/QC results were within acceptable limits. Assays were performed by ALS Chemex of Reno, Nevada, an ISO 17025 accredited independent laboratory. The historical data was verified by Klondex's technical team led by Brian Morris, Vice President of Exploration of Klondex and a "qualified person" within the meaning of National Instrument 43-101 ("NI 43-101").
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly the Rice Lake Mine) and mill in Manitoba, Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora (formerly known as Esmeralda) mine and ore milling facility, also located in Nevada, USA.
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Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a "qualified person" within the meaning of NI 43-101.
Cautionary Note Regarding Forward-looking Information
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, "forward-looking information"), including but not limited to the exploration potential at the Hollister Mine, future exploration plans of Klondex and any synergies that may be captured by Klondex as a result of the consolidation of Fire Creek, Midas and Hollister. 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 United States available at www.sedar.com and www.sec.gov, respectively. 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.