Klondex Mines Reports on May Metallurgical Sampling
June 12, 2013 — ELKO, NV and VANCOUVER, BC (Source: Marketwired) — Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF), a Nevada gold exploration and development company, today reported the metallurgical sampling program yielded 682 tons of mineralized material at an average grade of 73.8 g/t (2.15 opt) Au during the month of May (see May 13, 2013 news release). Metallurgical sampling is expected to continue monthly through the remainder of 2013 to gain a better understanding of the mineralogy and metallurgy of the Type II mineralization that hosts the Joyce and Vonnie structures. Assays were performed by SGS of Elko, Nevada, under the supervision of Klondex staff.
Current sampling is within a high-grade zone of the Joyce structure, and as a result, Klondex will ship the material collected in May for direct smelting rather than processing it through a conventional milling facility. The company will begin shipping to Jerritt Canyon later this year, as planned.
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Klondex is in the process of finalizing terms with a third party for the direct smelting of the high-grade material from the Joyce Structure. Shipment of the first lot is expected before the end of June.
Paul Huet, President and CEO, stated, “This is a pivotal year for Klondex as we transition from an exploration and development company into initial production via bulk sampling. Any cash flow received from metallurgical and bulk sampling will be used for future development and core drilling as we continue to expand our understanding of the deposit. With excellent dilution management and geological controls, the grades from exploration sampling in the 5370 crosscut are exceeding our expectations.”
Mr. Huet added, “The vent raise access is progressing well. The top access is complete and the bottom drift is in place. We are putting in a grout curtain to complete the secondary egress and the hoist has been received onsite. The raise is expected to be completed in the third quarter of 2013, after which, we intend to move into our bulk sample program.”
The technical information contained in this press release has been approved 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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