Klondex Reports Record Second Quarter Operating Results

New Post Public Reply Private Reply Replies (0) Message Board
News Desk 2018
50
Klondex Reports Record Second Quarter Operating Results Producing 66,629 GEOs, An Increase of 94% from the First Quarter

VANCOUVER, BC --(Marketwired - July 18, 2017) - Klondex Mines Ltd. ( TSX : KDX )( NYSE MKT : KLDX ) ("Klondex" or the "Company") is pleased to report its preliminary operating results for the second quarter of 2017 for its Nevada and Canadian operations.

Second Quarter 2017 Operating Highlights:

  • Produced and sold a record quarterly total of 66,629 and 69,522 gold equivalent ounces, respectively, up 94% and 107%, respectively, from the first quarter.
  • Mined a total 53,248 gold equivalent ounces (1) , in line with Company expectations.
  • Processed all of the ore that was stockpiled at the Midas mill at the end of the first quarter.
  • YTD production of 101,019 gold equivalent ounces from Midas, Fire Creek and True North. The Company will begin processing Hollister ore through the Midas mill in the second half of the year.
  • Produced 6,911 gold equivalent ounces at True North, up 82% from the first quarter.
  • The Company remains on track to meet its annual production guidance of 210,000 to 225,000 gold equivalent ounces, up 36% from 2016.
  • The Company will report its financial results for the first quarter of 2017 after market close on Wednesday, August 9, 2017.

(1) Mined ounces are calculated using tons hauled to surface multiplied by the assays from production sampling.

Mr. Paul Huet, President and CEO commented, "As expected, the operating results for the second quarter were the best in the Company's history. We processed all of the ore that was stockpiled at the Midas mill at the end of the first quarter plus we continued to execute our mine plans, mining an additional 53,248 gold equivalent ounces in the second quarter." Mr. Huet continued, "We continue to make solid progress ramping up True North and Hollister, both of which are expected to make significant contributions to our production in the second half of the year. We are well positioned to meet our annual Company-wide production guidance of 210,000 to 225,000 gold equivalent ounces."

Second Quarter and year to date 2017 Operating Results

    Three months ended June 30, 2017   Six months ended June 30, 2017
Consolidated   Nevada Total   Canada Total   Total   Nevada Total   Canada Total   Total
Ore tons mined   89,524   44,896   134,420   168,745   73,582   242,327
Gold equivalent grade mined (opt) (1)   0.52   0.14   0.40   0.60   0.14   0.46
Gold equivalent ounces mined (1)   46,934   6,333   53,248   100,533   10,249   110,768
Ore tons milled   92,232   69,675   161,907   153,198   98,612   251,810
Gold equivalent grade milled (opt) (1)   0.71   0.11   0.45   0.64   0.12   0.44
Gold equivalent ounces produced (1)   59,735   6,911   66,629   90,319   10,711   101,019
Gold equivalent ounces sold (1)   62,708   6,832   69,522   91,950   11,246   103,184
GEO Ratio (1)   72.5   70.8   72.8   71.3   70.8   71.4
(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 are listed above:
           
    Three months ended June 30, 2017   Six months ended June 30, 2017  
Nevada   Fire Creek     Midas     Hollister     Nevada Total   Fire Creek     Midas     Hollister     Nevada Total  
Ore tons mined   33,929     40,433     15,162     89,524   65,659     80,586     22,500     168,745  
Gold equivalent grade mined (opt) (1)   0.78     0.33     0.47     0.52   0.97     0.34     0.40     0.60  
Gold equivalent ounces mined (1)   26,331     13,534     7,069     46,934   63,919     27,510     9,120     100,533  
Ore tons milled   49,060     43,172     -     92,232   70,719     82,479     -     153,198  
Gold equivalent grade milled (opt) (1)   1.01     0.36     -     0.71   0.99     0.34     -     0.64  
Average gold recovery rate (%)   92.3 %   92.4 %   - %   92.3 % 92.6 %   92.2 %   - %   92.5 %
Average silver recovery rate (%)   85.5 %   83.3 %   - %   83.5 % 84.8 %   83.7 %   - %   83.8 %
Gold equivalent ounces produced (1)   45,773     13,962     -     59,735   64,966     25,366     -     90,319  
Gold equivalent ounces sold (1)   47,370     15,338     -     62,708   63,906     28,061     -     91,950  
GEO Ratio (1)   72.5     72.5     72.5     72.5   72.0     71.1     71.3     71.3  
(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 are listed above:  
    Three months ended June 30, 2017     Six months ended June 30, 2017  
Canada   True North Mine     True North Tailings     Canada Total     True North Mine     True North Tailings     Canada Total  
Ore tons mined   44,896     -     44,896     73,582     -     73,582  
Gold equivalent grade mined (opt) (1)   0.14     -     0.14     0.14     -     0.14  
Gold equivalent ounces mined (1)   6,333     -     6,333     10,249     -     10,249  
Ore tons milled   44,484     25,191     69,675     73,421     25,191     98,612  
Gold equivalent grade milled (opt) (1)   0.14     0.05     0.11     0.14     0.05     0.12  
Average gold recovery rate (%)   93.0 %   89.0 %   92.0 %   94.0 %   89.0 %   94.0 %
Gold equivalent ounces produced (1)   5,798     1,113     6,911     9,598     1,113     10,711  
Gold equivalent ounces sold (1)   5,732     1,100     6,832     10,146     1,100     11,246  
GEO Ratio (1)   70.8     70.8     70.8     70.8     70.8     70.8  
(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 are listed above:

Fire Creek - Nevada: At Fire Creek, the Company milled 49,060 ore tons in the second quarter at an average milled head grade of 1.01 gold equivalent ounces per ton, producing 45,733 gold equivalent ounces. YTD, Fire Creek has produced 64,966 gold equivalent ounces, approximately 66% of its annual production guidance. In the second half of the year, Fire Creek will increase waste development activities. This will result in producing fewer ore tons at similar grades. We continue to expect to meet our annual production guidance of 97,000 to 100,000 gold equivalent ounces.

Midas - Nevada: At Midas, the Company milled 43,172 ore tons in the second quarter at an average milled head grade of 0.36 gold equivalent ounces per ton, producing 13,962 gold equivalent ounces. YTD, Midas has produced 25,366 gold equivalent ounces, approximately 59% of its annual production guidance. Midas will increase its development activities in the second half of the year, thus producing fewer ore tons at similar grades. We continue to expect to meet our annual production guidance of 42,000 to 45,000 gold equivalent ounces.

Hollister - Nevada: At Hollister, the Company mined 15,162 ore tons in the second quarter at an average mined head grade of 0.47 gold equivalent ounces per ton for a total of 7,069 gold equivalent ounces, which were stockpiled at the end of the second quarter. Stockpiled ore is expected to be processed at the Midas mill in the second half of the year after metallurgical test work is completed. Mining rates are expected to increase significantly in the second half of the year as we complete development activities and increase cut and fill and long hole mining rates. We continue to expect to meet our annual production guidance of 30,000 to 35,000 gold equivalent ounces.

True North - Canada: At True North in Canada, the Company milled 44,484 ore tons in the second quarter from the True North Mine at an average milled head grade of 0.14 gold ounces per ton, producing a total of 5,798 gold ounces. The Company also milled 25,191 tons from the True North Tailings at an average milled head grade of 0.05 gold ounces per ton producing an additional 1,113 gold ounces. Additional ore tons are expected to come from the Cohiba mine as development work commenced in the second quarter. We expect to meet our annual production guidance of 41,000 to 45,000 gold ounces from multiple ore sources.

Webcast and Conference Call Klondex will report its financial results for the second quarter of 2017 after market close on Wednesday, August 9, 2017. A conference call and webcast will be held the following morning on Thursday, August 10, 2017 at 10:30am ET/7:30am PT. The conference call telephone numbers are listed below.

Canada & USA Toll Free Dial In: +1 800-319-4610 Toronto: +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 http://services.choruscall.ca/links/klondex20170810.html

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 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, also located in Nevada, USA.

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 guidance, exploration, development and production potential at Fire Creek, Midas, Hollister and True North, future exploration, development and production plans of Klondex and timing relating to the Company's expected releases of mineral resource and mineral reserve estimates. 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.

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

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Fibocom Unveils U6G Solutions Advancing Global 5G Tech

Updated Category News Views 244

Breaking Barriers with U6G-Capable Technology Sneaking into the industry's spotlight at MWC Doha 2026, Fibocom flaunts a robust lineup of next-gen 5G solutions. It's as if they're shuffling every card they’ve got to win over the broadband world. With breakthroughs like the FG390, FG370, and FG670 modules, alongside PCBA-level innovations, Fibocom is not just throwing...

Continue Reading
Rosti Group Expands with Alvi Acquisition

Updated Category News Views 156

Rosti Bets on Expansion with Alvi Buyout Rosti Group just rolled the dice big by swallowing Alvi Group, marking another bold move in the ever-swinging industrial and medical device manufacturing rodeo. Suddenly, we’re talking about a company with roughly 3,000 employees on its roster and a neat EUR 450 million in combined revenue. Don't overlook the power play...

Continue Reading
Mazda Bolsters Los Angeles Schools with $40K Donation

Updated Category News Views 57

A Surprise for Los Angeles Educators Picture this: you're grinding through another ordinary day at the school, preaching the wonders of math or orchestrating a PE class, when bang, in walks Mazda and the Chargers, handing out checks like Santa on a mission. Happened to four lucky educators in Los Angeles, thanks to Mazda North American Operations and their Southern...

Continue Reading
Routeware's AI Tech Transforming Waste Management

Updated Category News Views 64

Transforming Waste Management through AI The waste and recycling game just got a facelift with Routeware's latest AI-powered tools. Right out of Austin, Texas, they're throwing down with Routeware Pulse, a fresh AI data and analytics platform that promises to revolutionize how operators handle their reporting and decision-making. It’s no fluff—they’re talking...

Continue Reading
Global Museum of Illusions Comes to San Francisco

Updated Category News Views 143

Illusions on Market Street The Global Museum of Illusions, the fast-growing sensation in private museums, is setting its sights on San Francisco with a new location opening on Market Street this November 13. They're dangling a juicy 50% off presale ticket offer for the early birds. A Mind-Bending Experience This museum isn't your run-of-the-mill art gallery or historical...

Continue Reading
AI Faces Accountability Trials in Business 2027

Updated Category News Views 71

Charting the AI Accountability Course In 2027, the corporate AI landscape won't be the Wild West anymore; it's morphing into a structured battlefield where the winners will be those who successfully enforce accountability. The hands-off, carte blanche days of AI are fading fast, and businesses are starting to scrutinize the AI tools they've been throwing money at. "The...

Continue Reading
Segway Powersports Ventures into Baja 1000: Ambitions Run High

Updated Category News Views 149

They're gunning for glory in the sands of Baja, folks—Segway Powersports is about to rev up the excitement with its Baja 1000 debut. Never heard before in this legendary race's chronicles, Segway aims to shake up the game with their two brawny Super Villain UTVs. These aren't your run-of-the-pavement ride-ons; they're built for the rough stuff—and if there's a stage...

Continue Reading
Onodrim Raises $300M to Propel EU Defence Future

Updated Category News Views 182

Onodrim Industries' Bold Bid to Reshape European Security Right out of the gate, Onodrim Industries is thundering onto the scene with a hefty $300 million Series A round to flex its muscles across Europe's defence and industrial sectors. This ain't your run-of-the-mill startup story. This is about flexing hard-earned capital to snap up established players and inject a...

Continue Reading
Zions Bank Spurs Idaho's Small Biz Boom in 2026

Updated Category News Views 45

Riding the Small Business Tsunami in Idaho You don't hear it every day, but Idaho's small business scene is hotter than a frypan—a nod to the entrepreneurial fire blazing in the state, and Zions Bank is holding the torch. In 2026, despite dealing with the uphill battles of inflation, tariffs, and labor scarcity, those entrepreneurs still managed to carve out a spot at...

Continue Reading
Tax Planning vs. Preparation: Strategic Differences

Updated Category News Views 95

Tax Strategy: Not All About April 15 Ready to fend off that taxman? Well, don’t just wait for that dreaded April deadline. Greg Harrison over at Harrison Financial Management spills some wisdom on the oft-overlooked nuances between tax planning and tax preparation. It’s not just semantics; it’s the difference between shaping your financial future and simply...

Continue Reading

Top 5 Most Recently Viewed Articles

Digital Ally's Growth Strategy Powered by Innovative Video Solutions

Updated Category News Views 112

Digital Ally's Commitment to Innovative Video Technologies Digital Ally, Inc. (NASDAQ: DGLY) has made remarkable progress in the field of video solutions, focusing on cutting-edge technology designed for law enforcement and emergency management. The company specializes in the development of advanced video recording products that enhance safety and operational efficiency...

Continue Reading
Theratechnologies Examines EVAF's Role in CVD Risk for HIV Patients

Updated Category News Views 136

Impact of Excess Visceral Abdominal Fat on Cardiovascular Disease MONTREAL — Theratechnologies Inc. (“Theratechnologies” or the “Company”) (NASDAQ: THTX), a biopharmaceutical company engaged in the development and commercialization of innovative therapies, recently announced significant findings from two poster presentations that highlight the relationship...

Continue Reading
Exploring the Future of Web Content Management Trends

Updated Category News Views 134

Web Content Management Market Growth and Insights The global web content management market is poised for tremendous growth, exhibiting a notable CAGR of 19.4% predicted through to 2031. Currently valued at $9.63 billion, it’s set to expand to a staggering $33.32 billion by the end of the forecast period. This expansion is largely propelled by the ongoing shift towards...

Continue Reading
HaemaLogiX Triumphs with Award for Innovative CAR-T Pipeline

Updated Category News Views 216

HaemaLogiX Celebrates Award Recognition for CAR-T Pipeline HaemaLogiX Ltd, a rising star in the biotech sector, has recently achieved significant recognition by winning the prestigious "Most Promising CAR-T Pipeline in APAC". This accolade, awarded at the Asia Pacific CGT Excellence Awards, acknowledges companies that are at the forefront of innovation in cell and gene...

Continue Reading
Artelo Biosciences Showcases Innovations in Cannabinoid Research

Updated Category News Views 73

Artelo Biosciences Highlights Key Innovations in Cannabinoid Development Artelo Biosciences, Inc. (Nasdaq: ARTL), a dynamic clinical-stage pharmaceutical firm, is set to showcase pivotal data on its cutting-edge development programs for treating complex conditions, including cancer and pain. Professor Saoirse O’Sullivan, the Vice President of Translational Sciences at...

Continue Reading