Klondex Announces Updated Mineral Resource Estimate at True

New Post Public Reply Private Reply Replies (0) Message Board
News Desk 2018
49
Klondex Announces Updated Mineral Resource Estimate at True North; ~32% Increase in M&I Mineral Resource, ~45% Increase in Inferred Mineral Resource

RENO, NV --(Marketwired - March 29, 2017) - Klondex Mines Ltd. ( TSX : KDX ) ( NYSE MKT : KLDX ) ("Klondex" or the "Company") is pleased to announce a Mineral Resource Estimate update for its True North Gold Mine ("True North") in Manitoba, Canada, which incorporated our assayed drill results subsequent to our acquisition of the property and with an effective date of February 14, 2017.

Mineral Resource Estimate Highlights (see TABLE 1) :

  • Total Measured and Indicated ("M&I") Mineral Resource Estimate of 1,797k tons grading 0.216 opt (7.40 g/t)(388,000 Au oz), an increase of ~32% Au ounces from the September 2016 Mineral Resource Estimate
  • Total Inferred Mineral Resource Estimate of 3,676k tons grading 0.182 opt (6.24 g/t)(668,000 Au oz), an increase of ~45% Au ounces from the September 2016 Mineral Resource Estimate
  • An increase in the grade of both M&I and Inferred Mineral Resource Estimates of 2% and 10%, respectively
  • Continued to extend mineralization in the 710 and 711 zones (see FIGURE 1 )
  • Addition of the Deep East zone located within the SAM unit near the bottom of the current mine workings
  • Continued growth of the Cohiba resource through drilling of down dip extension

TABLE 1: True North Mineral Resource Estimate

Category Tons (k) Au opt Au g/t Au k oz
Measured 521 0.220 7.54 115
Indicated 1,276 0.214 7.34 273
Total M&I 1,797 0.216 7.40 388
Inferred 3,676 0.182 6.24 668
  1. Mineral Resource Estimate is inclusive of Mineral Reserves.
  2. Gold Price US$ 1,400 per oz.
  3. Exchange Rate: C$ to US$: 0.80.
  4. Mine and Mill Cost C$141.52 per ton.
  5. Process recovery 94%.
  6. Cut-off grade 0.090 opt Au (3.09 grams per tonne).
  7. CIM definitions were followed for the Mineral Resource Estimate.
  8. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
  9. The effective date for True North mineral resources is February 14, 2017.

Paul Huet, President and CEO stated, "True North continues to evolve into an important asset in our portfolio. We believed our initial Mineral Resource Estimate was just the beginning and this update confirms that belief. Using the results from our own drilling program post acquisition, we continue to unlock the true potential of this asset by adding ounces at depth with additional tons at higher grades."

The True North Mineral Resources Estimate is based on 7,877 drill holes totaling 4,937,265 ft (1,504,878 m) and includes data from 131 new drill holes totaling 59,268 ft (18,065 m), completed by Klondex since May 2016. In addition to the drilling, the Mineral Resource Estimate also includes 29,124 channel samples provided from mining on the mineralized structures.

The updated Mineral Resource Estimate was prepared under the supervision of P&E Mining Consultants Inc.

Mineral Resource Assumptions Classification of the Mineral Resource Estimate as Measured, Indicated or Inferred was done based on the number of drill and channel sample composites used and the average distance from the block to the composites. For the Measured Mineral Resource, a block must have used a minimum of four composites within a distance of 50 feet. For an Indicated Mineral Resource, a block must have used a minimum of four composites within 100 feet, and an Inferred Mineral Resource must have used a minimum of four composites within 500 feet. The search orientation ellipse was maintained approximately parallel to each vein. Only gold values were estimated at True North.

Drill interval assays for True North were performed by TSL Laboratories Inc. of Saskatoon, Saskatchewan (independent laboratory). Channel sample assays were performed by Klondex's in-house laboratory at True North, using fire assaying with gravimetric finish and check samples were sent to TSL Laboratories Inc. of Saskatoon, Saskatchewan.

Drill samples cited in this news release for True North were acquired by independent drilling contractors under the direction of Klondex staff. Standards and blanks were inserted every 20 samples or at least one per hole in the case where there are less than 20 samples in a hole. Duplicates are generated by the lab and re-assayed internally. QA/QC samples are tracked and if a result plots outside of predetermined QA/QC gate limits, the batch is re-assayed and the new results replace the previous values.

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 known as 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 mine and ore milling facility (formerly known as Esmeralda), also located in Nevada, USA.

Qualified Person Scientific and technical information in this press release has been reviewed and approved for Klondex by "Qualified Person" Brian Morris (AIPG CPG-11786) and by Fred Brown, P.Geo., Eugene Puritch, P.Eng., and William Stone, P.Geo. of P&E Mining Consultants Inc., who are independent "Qualified Persons" within the meaning of National Instrument 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 production and exploration potential at the True North Gold Mine, and future exploration and production plans of Klondex. 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 mineral reserve estimates are reflective of actual mineral reserves; 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.

Cautionary Note to U.S. Investors Regarding the Use of Mining Terms This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. All resource and reserve estimates included or referred to in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the mineral reserve disclosure requirements of the U.S. Securities and Exchange Commission (the SEC") set out in Industry Guide 7.

The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Consequently, resource information contained in this news release is not comparable to similar information that would generally be disclosed by U.S. companies in accordance with the rules of the SEC.

For More Information John Seaberg Senior Vice President, Investor Relations and Corporate Development O: 775-284-5757 M: 303-668-7991 jseaberg@klondexmines.com

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Sandbox VR Expands to Melbourne, Betting on Immersive Fun

Updated Category News Views 2

Sandbox VR Ventures into Melbourne's Heart Every now and then, a venture takes its ambitions and rolls the dice on a prime location. Sandbox VR is swaggering into Melbourne's bustling Central Business District, fresh out of its success on the Gold Coast. Opening this Melbourne venue on September 14 marks a significant leap in the company's Aussie expansion—a bold nod to...

Continue Reading
ZEEKR's Shooting Brakes Dominate: Over 400K Sold

Updated Category News Views 3

ZEEKR's Stellar Performance in a Crowded Market Another month, another bumper crop for ZEEKR's shooting brakes. These beauties aren't just hanging in there; they're leading the pack. In August alone, global deliveries marched past the 10,000 mark for the third month running—a feat not easily achieved in today's saturated automotive landscape. It's no wonder the...

Continue Reading
LeoLabs and SciTec Partner for $93.7M Space Force Deal

Updated Category News Views 2

LeoLabs and SciTec Join Forces for Space Dominance The space race ain't just about rockets blasting off anymore. It's about making sure we've got eyes everywhere, even on the back of our heads, so to speak. Enter LeoLabs teaming up with SciTec to help the U.S. Space Force upgrade their radar systems to something out of a sci-fi flick, armed with a $93.7 million contract...

Continue Reading
Law Firm Gains Strength with Strategic New Hires

Updated Category News Views 1

Catching the latest twist in the legal scene, veteran criminal defense attorney John T. Floyd is stiffening the backbone of his Houston-based firm. Snagging both Christopher Choate and Mia Floyd, he's set to fortify his team representing folks caught in the snarl of Texas and federal criminal courts. New Faces, Massive Expertise Let's dig into Choate's credentials first....

Continue Reading
Veho's Role in Redefining Beauty E-Commerce Delivery

Updated Category News Views 1

Veho Grabs Headlines with BeautyMatter Awards Nod Here's something a bit off the beaten path: Veho's been tapping into new wells of opportunity in the e-commerce sector, and their latest accolade demonstrates just that. Named a finalist in the 2026 BeautyMatter Awards under the Logistics category, they're making noise in all the right circles. Beyond Boxes: Transforming...

Continue Reading
Midlife ADHD in Women: New Challenges and Solutions

Updated Category News Views 4

ADHD Evolution in Women's Midlife They say change is the only constant, and boy, does that ring true for women navigating the turbulent seas of ADHD as they hit 40 and beyond. According to Germaine Swanson, the ADHD landscape changes dramatically in midlife, especially for women. We're talking about a mix of hormonal shifts, increasing life demands, and changes in brain...

Continue Reading
Push Notification Security Transforms Healthcare IT Support

Updated Category News Views 2

Cutting the Fat on IT Help Desk Bottlenecks Healthcare IT teams are fighting an uphill battle with password resets, a mundane task consuming up to half of all help desk calls. It's like trying to stop a leaking dam with duct tape. For health systems, these calls aren't just a minor annoyance—they're a full-fledged budget hog. Try telling a CIO that an agent-friendly...

Continue Reading
Cove Capital Secures $9.96M for Debt-Free Logistics DST

Updated Category News Views 2

Unpacking Cove Capital's Latest Victory Cove Capital Investments has pulled off another coup, raising a hefty $9,964,510 for its Cove Essential Net Lease Industrial 108 DST. It's a Regulation D, Rule 506(c) offering, now fully subscribed, spotlighting a debt-free investment ethos and a rock-solid logistics site in Anchorage, Alaska. Strategic Facility Anchoring Investment...

Continue Reading
Tampa General’s Innovation Excellence Earns No. 20 Spot

Updated Category News Views 4

A Bold Leap into Innovation at Tampa General There's a heck of a lot going on down in Tampa that's worth more than just a golf clap. Tampa General Hospital (TGH) just snagged the 20th spot on Fast Company's Best Workplaces for Innovators list, and let me tell you, that’s no small feat amidst the heavy hitters in verticals like biotech and consumer goods. It takes guts...

Continue Reading
RevSystems Joins Elite OpenAI Partner Network

Updated Category News Views 3

RevSystems Inks Deal with OpenAI Partner Network In the latest shuffle of the AI advisory deck, RevSystems just found itself elbowing into the exclusive OpenAI Partner Network. Based out of New York, RevSystems has carved a niche by spinning tech wizardry into tangible business results. Their new status as an OpenAI Select Partner puts them on a playing field where AI...

Continue Reading

Top 5 Most Recently Viewed Articles

Celebrate Love and Growth with Keynode's Staking Rewards

Updated Category News Views 197

KeyNode's Exciting Staking Event for Valentine’s Day As Keynode marks a significant milestone in its journey, it presents an exciting limited-time staking event designed to reward crypto enthusiasts and those looking to expand their assets. This exclusive offer, which started recently, continues to capture the hearts of many users around the world during this festive...

Continue Reading
Civix Consulting Group Launches as a Leader in Government Services

Updated Category News Views 271

Civix Consulting Group Launches for Enhanced Government Services Civix has proudly launched Civix Consulting Group (CCG), a new chapter in its longstanding commitment to providing top-notch services in disaster recovery and community planning. This new initiative consolidates the company’s nationally recognized groups specializing in resilience, right-of-way practices,...

Continue Reading
Insights on RLI's Upcoming Earnings Report and Expectations

Updated Category News Views 60

Insights into RLI's Earnings Outlook RLI is on the verge of releasing its quarterly earnings, and investor anticipation is building. With earnings reports often serving as a catalyst for stock movements, understanding what lies ahead is crucial for both new and seasoned investors. Analysts have estimated that RLI will report an earnings per share (EPS) of $0.99, a figure...

Continue Reading
Jefferies Predicts Limited Growth for Semiconductor Stocks

Updated Category News Views 133

Analyzing the Future of Semiconductor Stocks Recent insights from Jefferies suggest that semiconductor stocks may reach a peak in their performance soon, following a substantial rise in 2024. The surge in interest surrounding AI has significantly driven up demand for chips that power data centers. 2024 Performance Highlights The semiconductor sector, as indicated by the...

Continue Reading
Local Soda Brands Flourish Amid Coca-Cola and Pepsi Boycott

Updated Category News Views 405

Coca-Cola and PepsiCo Face Challenges Amid Consumer Boycotts Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP) have been significant players in the global beverage industry, investing heavily to build their brands in predominantly Muslim countries. However, a recent wave of consumer boycotts linked to global political tensions has posed a serious challenge for these...

Continue Reading