Klondex Drills 2,910 g/t (85 oz/ton) Gold over 1.5 Meters at the Fire Creek, Nevada Project

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Klondex Drills 2,910 g/t (85 oz/ton) Gold over 1.5 Meters at the Fire Creek, Nevada Project

- Preliminary Modeling Indicates Gold Mineralization Supports Continuity 152 meters (500 feet) Along Strike -

ELKO, Nev. & VANCOUVER, British Columbia--(BUSINESS WIRE)-- Klondex Mines Ltd. (TSX: KDX and OTCQX: KLNDF), a Nevada gold exploration company, today reported several intercepts of gold mineralization for the recently completed surface drilling program at its Fire Creek gold project in Lander County, Nevada. A total of 2,465 meters (8,086 feet) of core were drilled to extend ten holes that had been pre-collared with reverse circulation (RC) drilling; the results are summarized in Table 1.


Highlights:

All ten core holes encountered gold mineralization, with the best results including:

  • 2,910 g/t (85 oz/ton) gold over 1.5 meters (4.8 feet) in hole FC12-11S (the same intercept also contained 5,960 g/t (174 oz/ton) silver).
  • 97.9 g/t (2.9 oz/ton) gold over 0.4 meters (1.7 feet) in hole FC12-13S.
  • 57.7 g/t (1.7 oz/ton) gold over 1.1 meters (3.7 feet) in hole FC12-21S.

Preliminary modeling indicates that the gold mineralization in FC12-11S occurs in a zone that is traceable and supports continuity for 152 meters (500 feet) along strike (Figure 1 -click here), the entire north-south extent of this core drilling program.

Paul Huet, Klondex's newly appointed President & CEO commented, "This year's exploration drilling at our Fire Creek gold project continued to identify gold mineralization, with FC12-11S returning grades that confirm the need for continued active exploration. We are currently developing an enhanced geologic model and updated resource estimate for Fire Creek and remain focused on unlocking the value of this deposit in the heart of Nevada gold country."

Drilling Overview

The drilling program was designed to delineate gold mineralization in the Main Zone. Reverse circulation (RC) pre-collar holes were drilled from the surface to approximately 183 meters (600 feet) in depth and then extended by core drilling. Nine core extensions were completed to planned depths, and one was terminated early because of fluid infiltration between the hole and the underground workings. The program consisted of drill hole fans, as shown in Figure 1 (click here), with drill hole depths, azimuths and dips summarized in Table 2.

Geology and Mineralization

The highest assays from this program occur within the lower basalt rock package of the Tertiary volcanic sequence at Fire Creek and are associated with alteration envelopes of quartz-calcite-pyrite. The highest-grade intercepts reported here are associated with strongly silicified breccia cemented by quartz ± calcite ± sulfides.

Underground Development Program

As of September 21, 2012, Klondex's underground development has totaled 1,253 meters (4,111 feet) of workings, with 949 meters (3,112 feet) of advance in the main decline. The decline was initiated in 2011 to enable underground exploration and in-fill drilling of the Main Zone mineralization. Klondex plans to continue development of the decline and workings parallel to strike, providing it access for exploration drilling in the near term, and future access for bulk sampling or full-scale mining activity. Klondex's plans for the next 12 months are focused on the continuation of surface and underground exploration aimed at expanding both the scope of the resource as well as the understanding of the deposit's geologic structure and profile. With this expanded knowledge, the Company feels it will be in a strong position to make development decisions for the project.

Table 1

Significant intercepts from the core portions of the 2012 surface drilling program.

Hole Id From (m) To

(m)

 Thickness (m) From (ft) To

(ft)

 Thickness

(ft)

 Grade gpt

Au

FC12-07S 224.9 235.3 10.4 738.0 772.0 34.0 4.81
including 224.9 225.8 0.9 738.0 740.8 2.8 29.20
including 234.1 235.3 1.2 768.0 772.0 4.0 16.0
and 238.1 239.5 1.4 781.2 785.8 4.6 3.64
FC12-09S 182.9 188.2 5.3 600.0 617.3 17.3 3.73
including 186.9 188.2 1.3 613.1 617.3 4.2 8.34
FC12-10S 219.7 221.1 1.4 720.7 725.5 4.8 9.16
and 225.3 226.5 1.2 739.2 743.2 4.0 20.30
FC12-11S 238.7 242.6 3.9 783.2 795.8 12.6 1,113.16
including 238.7 240.2 1.5 783.2 788.0 4.8 2,910.00
including 240.2 240.8 0.6 788.0 790.0 2.0 16.75
FC12-13S 230.0 231.0 1.0 754.7 757.8 3.1 45.80
including 230.6 231.0 0.4 756.4 757.8 1.4 96.40
FC12-16S 254.6 258.2 3.6 835.2 847.0 11.8 4.54
including 254.6 255.1 0.5 835.2 837.0 1.8 12.75
including 256.7 258.2 1.5 842.2 847.0 4.8 6.27
and 261.8 263.0 1.2 859.0 862.7 3.7 57.70
FC12-17S 190.4 201.2 10.8 624.7 660.0 35.3 3.20
including 193.5 194.3 0.8 634.9 637.6 2.7 8.25
including 194.3 195.1 0.8 637.6 640.0 2.4 4.97
and 214.4 215.9 1.5 703.3 708.3 5.0 4.36
and 319.8 321.0 1.2 1,049.1 1,053.0 3.9 24.30
FC12-18S 218.2 225.6 7.4 716.0 740.0 24.0 2.92
including 218.2 219.5 1.3 716.0 720.0 4.0 8.82
FC12-20S 191.8 193.0 1.2 629.3 633.3 4.0 5.48
and 214.1 215.8 1.7 702.5 708.0 5.5 3.33
and 296.2 297.4 1.2 971.9 975.6 3.7 5.42
and 332.1 334.7 2.6 1,082.5 1,098.0 15.5 7.45
including 329.9 330.2 0.3 1,082.5 1,083.2 0.7 37.1
and 332.1 333.8 1.7 1,089.5 1,095.0 5.5 14.53
FC12-21S 183.9 184.3 0.4 603.3 604.5 1.2 19.95
and 190.3 196.4 6.1 624.4 644.3 19.9 2.23
True widths cannot be determined at this time.
Table 2

Final Depths for the combined core and RC program

Hole Id Depth

(m)

 Depth

(ft)

 Azimuth Dip
FC12-07S 273.6 898 78.3 -51.2
FC12-08S* 182.8 600 80.4 -70.3
FC12-09S 270.9 889 77.1 -45.4
FC12-10S 334.0 1096 85.4 -45.3
FC12-11S 304.1 998 93.7 -51.0
FC12-12S* 182.8 600 93.6 -65.6
FC12-13S 273.6 898 103.0 -45.2
FC12-14S* 182.8 600 103.9 -51.5
FC12-15S* 182.8 600 104.4 -66.5
FC12-16S 334.3 1097 116.3 -43.7
FC12-17S 387.0 1270 114.2 -60.9
FC12-18S 276.4 907 116.3 -42.8
FC12-19S* 355.1 1165 129.2 -40.0
FC12-20S 363.2 1192 129.8 -50.6
FC12-21S 227.3 746 128.9 -53.9
*Drilled entirely RC

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 mining prospect located in a region of prolific gold production that is near power, transportation, mining infrastructure and several milling facilities. As of September 21, 2012, Klondex had 47.3 million shares issued and outstanding, and 59.6 million shares on a fully-diluted basis.

Sample results cited in this news release were obtained from core holes completed by American Drilling, an independent contractor working under the direction of Klondex staff. Assays were determined by ALS Minerals, Reno, Nevada, an independent analytical laboratory.

The content of this press release has been reviewed by Steven L. McMillin, CPG-11031 (American Inst. of Prof. Geol.), Project Manager and Chief Geologist for Klondex Mines Ltd., as a non-independent Qualified Person.

This news release contains forward-looking statements, including about current expectations on the timing of project development. These forward-looking statements entail various risks and uncertainties, are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. 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. 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 statement or to update the reasons why actual results could differ from such statements unless required by law.

On Behalf of Klondex Mines Ltd.
Paul Andre Huet
President & CEO



Investor & Media:
Catalyst Global LLC
David Collins, Toni Trigiani
212-924-9800
KDX@catalyst-ir.com

KEYWORDS:   United States  North America  Canada  Nevada

INDUSTRY KEYWORDS:

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