VANCOUVER--(BUSINESS WIRE)--Klondex Mines Ltd. (TSX: KDX) announced today an update on permitting
for its underground development program focused on bulk sampling and
exploration drilling.
KDX has posted a U.S. $1.4 reclamation bond required pursuant to the
Company’s U.S. Bureau of Land Management permits (BLM) issued in late
December 2009. To fund the bond without issuing common stock at current
levels, Klondex has secured a U.S. $1.4 million loan facility bearing
interest at 6% per year. KDX has also executed a contract with Western
Cultural Resource Management (WCRM) to perform archeological site work
also required pursuant to KDX’s BLM permits. The WCRM work will commence
in the next few weeks, assuming suitable weather, and should be
completed within six weeks thereafter. Klondex continues to anticipate
the receipt of remaining state permits for its underground program
between April and June 2010.
William Solloway, Klondex’s President, commented, “We believe investors
have yet to realize the significant accomplishment and value being
created through our permitting process. Permitting is amongst the most
difficult hurdles faced by mining companies. Once completed, it will
enable KDX to graduate from a focus solely on exploration to a dual
focus on exploration and production/cash generation, via bulk sampling.
Our progress in permitting clearly demonstrates to investors that we are
delivering on our commitments and entering an exciting new stage in our
corporate development. With our recent management appointments, we are
very well positioned to execute on our underground program during 2010
and to secure greater investor awareness and appreciation for the value
and potential of our high-grade gold resource at Fire Creek.”
About Klondex Mines (www.klondexmines.com):
Klondex Mines Ltd. is focused on bringing into production, via bulk
sampling, its 100% owned high-grade Fire Creek gold deposit in North
central Nevada. Fire Creek is centrally located near power and
transportation and represents a compelling mining prospect. Klondex has
identified the following NI 43-101 compliant resource:
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Fire Creek Project – Indicated and Inferred Resource *
As of March 30, 2009
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Classification
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Metric
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Grams Gold Equivalent
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Total Ounces
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Tonnes
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Per Metric Tonne
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Gold Equivalent
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Indicated
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5,043,033
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10.11
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1,639,822
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Inferred
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1,833,423
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8.63
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508,799
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* Fire Creek has a gold-to-silver ratio of approximately 1:1, indicating
the resource is approximately 98.3% gold and 1.7% silver. Reflects a
cutoff grade of 5 grams per tonne and 60 units of silver equivalent to
one unit of gold.
ON BEHALF OF KLONDEX MINES LTD.
“William Solloway” President