Klondex Drilling Confirms New West Zone Gold Mineralization; All Five Drill Holes Intercepted Mineralization
77.8 g/t (2.3 opt) Gold Over 0.7m (2.3ft) FC-13-065U; 67.4 g/t (2.0 opt) Gold Over 0.3m (1.0ft) FC-13-064U; 23.4 g/t (0.7 opt) Gold Over 1.4m (4.5ft) FC-13-063UELKO, NV and VANCOUVER, BC -- (Marketwired) -- 05/30/13 -- Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF) today confirms mineralization in the new West Zone at its Fire Creek gold project in Nevada. Five holes drilled west from drill station 9 affirm new mineralization extending south from the vent-raise access discovery (Figure 1). The longest interpreted vein now extends at least 97.5m (320ft) to the south from the vent raise access discovery. Significant mineralization was intercepted in all five drill holes.
Chief Geologist Steve McMillin stated, "In response to the vent-raise access discovery earlier this year, we interrupted the infill drill program in the east and turned the drills around to test for an extension of the new-found mineralization. We are extremely pleased we hit multiple intercepts in three of five drill holes and shown additional continuity in a previously unexplored area of Fire Creek. The new zone supports our thesis that the exploration upside at Fire Creek extends well-beyond our current mineral resource borders and the project is underexplored at the current time."
Five holes totaling over 1,071.37m (3,515ft) in length were drilled to the west of the ramp, and all encountered mineralization. FC13-064U cut 67.4 gold/t at 158.07m (518.6 ft) that is a likely candidate for an extension of vent raise mineralization located 320 feet southeast from the vent raise. FC13-063U and FC13-065U contain intercepts that are at least 60.96m (200ft) west of the vent raise mineralization and may represent new zones but require further exploration drilling. Intercepts in FC13-063U, FC13-065U, and FC13-067U are associated with vuggy bladed calcite veins, similar to the Joyce Vein in the Main Zone to the east.
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Drill From To
Hole No. Station AZI DIP (m) (m)
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FC-13-063U 9 239 -20 223.72 224.76
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and 230.61 231.98
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including 230.61 231.34
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including 231.34 231.98
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FC-13-064U 9 248 19 158.07 158.37
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and 161.03 163.04
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including 161.03 161.42
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including 161.42 162.15
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including 162.15 163.04
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FC-13-065U 9 254 -19 45.42 46.94
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and 260.06 260.76
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and 263.16 264.23
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FC-13-066U 9 255 19 5.79 6.10
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FC-13-067U 9 236 -19 88.79 90.83
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Gold Gold
Length From To Length Grade Grade
Hole No. (m) (ft) (ft) (ft) (g/t) (oz/t)
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FC-13-063U 1.04 734.00 737.40 3.40 20.90 0.61
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and 1.37 756.60 761.10 4.50 23.39 0.68
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including 0.73 756.60 759.00 2.40 26.00 0.76
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including 0.64 759.00 761.10 2.10 20.40 0.60
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FC-13-064U 0.30 518.60 519.60 1.00 67.40 1.97
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and 2.01 528.30 534.90 6.60 4.95 0.14
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including 0.40 528.30 529.60 1.30 9.28 0.27
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including 0.73 529.60 532.00 2.40 3.32 0.10
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including 0.88 532.00 534.90 2.90 4.35 0.13
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FC-13-065U 1.52 149.00 154.00 5.00 6.46 0.19
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and 0.70 853.20 855.50 2.30 77.80 2.27
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and 1.07 863.40 866.90 3.50 5.27 0.15
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FC-13-066U 0.30 19.00 20.00 1.00 9.86 0.29
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FC-13-067U 2.04 291.30 298.00 6.70 10.90 0.32
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Table 1: West Zone Drilling Note: Intervals reported are core lengths; true widths are not known at this time.
Figure 1: Drill location overview
Figure 2: Close-up view of 2013 drill holes to the west of drill station 9.
Grid = 152.4m (500ft). Intercept locations are highlighted by colored discs. Dashed lines indicate probable veins.
Figure 3: Cross section of drill station 9 facing 345 degrees.
Grid = 60.96m (200ft). Vein mineralization to west and main zone veins are shown.
Samples cited in this news release were obtained from in-fill drilling by independent contractor American Drilling of Spokane, Washington under the direction of Klondex staff. Assays were determined by ALS Minerals of Reno, Nevada, an independent analytical laboratory. Sample preparation is conducted in Elko, Winnemucca, or Reno facilities, and fire-assay analytical work is conducted in Reno. Standard fire assays with a 30g charge are performed on all samples up to 10 g/t, and then gravimetric assays are conducted on samples with 10g over-limit assays. Select metallic-screen assays are then conducted by re-sampling the coarse reject using criteria such as clustering of assays, proximity to veins, and mineralized veins. Multi-element ICP samples are collected on 20ft composites and on individual samples in mineralized rock. For QA/QC monitoring, standards and blanks are inserted approximately every 20 samples using accredited reference material. Duplicates are generated by ALS by splitting the sample immediately in advance of the duplicate and assaying one split. Standard sample performance is frequently monitored using statistical spreadsheets provided by Micon International.
The content of this press release has been reviewed by Steven L. McMillin, CPG-11031 (American Inst. of Prof. Geol.), Chief Geologist for Klondex Mines Ltd., as a non-independent Qualified Person for the purposes of National Instrument 43-101.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its Fire Creek gold deposit in North-Central Nevada. Fire Creek is a compelling gold project located in a mining-friendly jurisdiction, near major producers, power, transportation, mining infrastructure and its milling facility. At May 27, 2013, Klondex had 64.4M shares issued and outstanding and 85.8M shares, fully diluted.
This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation, including information about the magnitude and quality of the Fire Creek Project and results of exploration at the Fire Creek Project. This forward-looking information entails various risks and uncertainties are based on current expectations, and actual results may differ materially from those contained in such information. These risks and uncertainties include, but are not limited to the risks and hazards associated with environmental compliance and permitting for its underground operations, 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. 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.
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