Klondex Mines Reports Encouraging Results at Fire Creek

Klondex Mines (KDX.TSX) announced the first set of assay results from its 2012 underground in-fill drilling program at its Fire Creek project in North Central Nevada.  The emerging gold company reported that in-fill drilling in the south end of the Main Zone continues to demonstrate apparent continuity, including mineralization that is continuous for at least 90 meters (295 feet) along strike, which runs to the north-northwest. Recent drill results have also yielded a new, preliminary interpretation of the orientation of Main Zone mineralization.

In addition, Klondex Mines announced the start of its 2012 surface drilling program.  The program targets 15,000 meters (49,000 feet) of surface drilling, principally to support the underground in-fill drilling program in further defining Main Zone mineralization.  The Company also confirmed plans for an updated technical report in the third quarter of this year and reported progress on its underground decline and workings.

Follow us   Follow @IBTimesUK

Highlights:

* 8.1 grams per tonne (g/t) of gold over 7.0 meters (m), including 38.7 g/t over 0.9m, at hole FC-12-001U

* 12.5 g/t of gold over 2.3m, including 16.2 g/t over 0.5m, at hole FC12-033U

* To lower exploration costs, Klondex is using a reverse circulation rig to pre-collar 15 holes to about 600 feet

Blane Wilson, CEO of Klondex Mines:

“We continue to encounter encouraging signs of Main Zone continuity through our in-fill program, as well as data that could present a more favorable view of the orientation of mineralization. We are complementing our underground effort to better define the Main Zone mineralization with our surface drilling program that started May 29th.”

Company Management:

“Though there remains much modeling and additional drilling to be done, we are seeing some positive initial signs of apparent continuity from this data. The knowledge we garner from the infill program will help better define our Main Zone mineralization as well as shape the strategy of our bulk sampling efforts. We expect to report periodic underground drill results for the foreseeable future and look forward to the preparation of an updated technical report this year.”