Klondex Mines Ltd.

Klondex Reports Quarterly Production of ~37,000 GEOs; Records First Sales at True North

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Vancouver, BC - October 13, 2016- Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE MKT) (“Klondex” or the “Company” - http://www.commodity-tv.net/c/mid,2697,Company_Presentation/?v=296881 ) is pleased to report its preliminary production results for the third quarter of 2016 for its Fire Creek, Midas, and True North mines.

 

Three months ended September 30, 2016

 

Nine months ended September 30, 2016

 

Fire Creek

Midas

Nevada Total

True North(2)

Total

 

Fire Creek

Midas

Nevada Total

True North(2)

Total

Ore tons milled

26,122

 

43,934

 

70,056

 

31,748

 

101,804

 

 

92,832

 

137,173

 

230,005

 

31,748

 

261,753

 

Average gold equivalent mill head grade (oz/ton)(1)

0.98

 

0.28

 

0.55

 

0.06

 

 

 

0.86

 

0.26

 

0.50

 

0.06

 

 

Average gold mill head grade (oz/ton)

0.97

 

0.18

 

0.48

 

0.06

 

 

 

0.85

 

0.15

 

0.43

 

0.06

 

 

Average silver mill head grade (oz/ton)

0.66

 

7.59

 

5.00

 

 

 

 

0.76

 

8.24

 

5.22

 

 

 

Average gold recovery rate (%)

93.4

%

93.4

%

93.3

%

88.7

%

 

 

93.6

%

94.1

%

93.7

%

88.7

%

 

Average silver recovery rate (%)

87.2

%

87.2

%

87.3

%

%

 

 

87.4

%

87.7

%

87.7

%

%

 

Gold equivalent produced (ounces)(1)

23,858

 

11,445

 

35,263

 

1,752

 

37,070

 

 

74,480

 

32,374

 

106,901

 

1,752

 

108,634

 

Gold produced (ounces)

23,654

 

7,523

 

31,177

 

1,752

 

32,929

 

 

73,673

 

19,287

 

92,960

 

1,752

 

94,712

 

Silver produced (ounces)

15,023

 

291,031

 

306,054

 

 

306,054

 

 

61,864

 

990,672

 

1,052,536

 

 

1,052,536

 

Gold equivalent sold (ounces)(1)

27,500

 

13,036

 

40,488

 

1,000

 

41,553

 

 

72,644

 

36,933

 

109,629

 

1,000

 

110,610

 

Gold sold (ounces)

27,254

 

8,394

 

35,648

 

1,000

 

36,648

 

 

71,688

 

23,423

 

95,111

 

1,000

 

96,111

 

Silver sold (ounces)

18,100

 

344,400

 

362,500

 

 

362,500

 

 

73,351

 

1,022,739

 

1,096,090

 

 

1,096,090

 

(1) Gold equivalent ounces ("GEO") and grades are computed as the applicable gold ounces/grade plus the silver ounces/grade divided by a GEO ratio. GEO ratios are computed by dividing the average realized gold price per ounce by the average realized silver price per ounce received by the Company in the respective period. Preliminary GEO ratios for each respective segment are as follows:

GEO Ratio

73.7

74.2

74.9

1.0

73.9

 

76.7

75.7

75.5

1.0

75.6

(2) True North's operations were comprised of the re-processing of existing tailings.

The Company reiterates its 2016 production guidance of:
Nevada Operations: 145,000 to 150,000 GEOs which is split approximately 45%-50% in the first half of 2016 and 50%-55% in the second half of 2016.
True North: 8,000 to 12,000 gold ounces from mining and processing tailing.

Mr. Paul Huet, President and CEO commented, “Our third quarter production was in line with our mine plans as we advanced waste development at both Fire Creek and Midas. We have positioned ourselves to finish the year on a high note and remain on track to achieve our annual production guidance.” Mr. Huet continued, “We are also excited to report first sales at True North. We recently completed reprocessing the tailings and have begun running ore through the mill and continue to expect to achieve our annual production targets."

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 Esmeralda mine and ore milling facility, also located in Nevada, USA.

Webcast and Conference Call
Klondex will report its third quarter 2016 financial results after market close on Thursday, November 3, 2016. A conference call and webcast will be held the following morning on Friday, November 4, 2016 at 10:30 am ET/7:30 am PT. The conference call telephone numbers are listed below:
Canada & USA Toll Free Dial In: 1-800-319-4610
Toronto: +1 1-416-915-3239
International: +1-604-638-5340
Callers should dial in 5 to 10 minutes prior to the scheduled start time and ask to join the Klondex call. The webcast will be available on the Company's website or by clicking: services.choruscall.ca/links/klondex20161104.html.

For More Information
John Seaberg
Senior Vice President, Investor Relations and Corporate Development
O: 775-284-5757
M: 303-668-7991
jseaberg@klondexmines.com
In Europe:
Swiss Resource Capital AG
Jochen Staiger
info@resource-capital.ch
www.resource-cpaital.ch

 

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 U.S. securities legislation (collectively, "forward looking information"), including but not limited to information about current expectations on the timing, success and growth of exploration and development activities, the timing and success of mining operations, the Company's ability to produce and sell gold and silver, the Company’s achievement of the full-year projections for GEO and gold production, metal grades and production costs, the Company's ability to meet annual operations estimates, the ability to maintain and improve average daily milling rates and mill head grades, the Company's intention and ability to monetize mineralized material, the successful execution and project development at all of the Company's mines and projects, 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 and silver; 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.

 



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