Klondex Records Drill Intercept of 8.32 Oz/Ton Gold Over 2.6 Feet From Fire Creek
Klondex Mines Ltd. (TSX: KDX). The company has received assay results from the first four complete holes from Phase 6 drilling at its 100%-owned Fire Creek property in the Battle Mountain-Eureka Trend in Northern Nevada. These four holes were sited to fill in gaps in the “boiling zone” of the MAIN and WEST ZONES remaining from previous drill campaigns and test for additional veins south of the resource. An additional six drill holes from Phase 6 are completed and are pending assays and an additional seven holes are currently in progress. There are two core rigs and one reverse circulation rig drilling at Fire Creek.
All four holes returned at least one significant intercept. Hole FC0701 reported 25.3 gpt gold over 1.52 meters and represents a 100 meter extension to the south of the previously known MAIN ZONE mineralization. Hole 0702 intersected 287.0 gpt gold over 0.8 meters extending to depth by approximately 80 meters the high grade mineralization on Section 50N represented by previously drilled 0619 (64.2 gpt over 1.52 meters). Hole 0711 was sited primarily to test an IP anomaly some 150 meters west of the MAIN ZONE and returned a 6.3 gpt interval over 3 meters from this area. This hole also encountered MAIN ZONE mineralization higher up the hole with 11.3 gpt over 3 meters in a portion of the veining previously assumed to be unmineralized. Finally, Hole 0704 intersected 11.1 gpt over 4.9 meters, improving upon the nearby previously reported 0517 (15.5 gpt over 0.7 meters).
All four holes are believed to have contributed valuable information regarding the structural control of the MAIN ZONE veining and to have increased the tonnage and grade from the previously announced NI 43-101 compliant resource estimate of 801,861 ounces in 912,366 tonnes (27.33 gpt) within the larger Fire Creek resource of 1,054,738 ounces in 1,636,555 tonnes (19.88 gpt). Drilling will continue at Fire Creek through the autumn of 2007 with one core rig drilling geophysical targets to find new zones and the other attempting to expand the tonnage of the known mineralized zones.
The permitting and contractor selection processes associated with the MAIN ZONE underground program scheduled to begin later this year appear to be on schedule. Based on preliminary estimates developed in-house for permitting, underground access, exploration, drilling, mining and other costs, Klondex believes it could generate a substantial operating profit during the three-year underground development/bulk sampling program. Klondex currently believes that proceeds from such an effort could be more than sufficient to fund the Company’s move into full production of the Fire Creek property, as well as to pursue other development opportunities.
Significant Drill Results Fire Creek Phase 6 ———————————————————————- Hole No. Section Elevation Azimuth Angle TD From To Length Feet Feet Feet Feet Feet ———————————————————————- ———————————————————————- FC 0701 100S 5856 88 -45 905 465 470 5 ———————————————————————- ———————————————————————- FC 0702 50N 5923 75 -51 1181 1077.7 1115 37.3 including 1077.7 1080.3 2.6 ———————————————————————- ———————————————————————- FC 0711 100N 6027 255 -45 1400 220 230 10 and 1115 1125 10 ———————————————————————- ———————————————————————- FC 0704 150N 6005 75 -45 1292 935 951 16 ———————————————————————- Hole No. Grade Au Grade Ag Length Grade Au Grade Ag Oz/ton* Oz/ton* Meters Gpt** Gpt** ———————————————————————- ———————————————————————- FC 0701 0.734 0.3 1.5 25.3 11.1 ———————————————————————- ———————————————————————- FC 0702 0.630 0.3 11.4 21.7 11.4 8.323 3.7 0.8 287 128 ———————————————————————- ———————————————————————- FC 0711 0.327 0.6 3.0 11.3 20.8 0.182 0.6 3.0 6.3 22.4 ———————————————————————- ———————————————————————- FC 0704 0.322 0.1 4.9 11.1 4.9 ———————————————————————- True widths are estimated to be between 60-80% of reported widths * Ounces per short ton **Grams per metric tonne Sections are metric. The distance between 100S and 150N is 250 meters. ———————————————————————-
A plan map setting out hole locations is attached to a copy of this news release available on the Company’s website at www.klondexmines.com under “News.”
As at March 30, 2007 the Company currently had a working capital position of approximately $CDN 8,471,000 and 22,654,173 shares are currently issued and outstanding.
Richard Kern (P.Geo) of Reno, Nevada, is the Company’s qualified person on the project as required under NI 43-101 and has reviewed the technical information contained in this press release.
Klondex has in place a rigorous QA/QC program consistent with National Instrument 43-101 and using best industry practice. ALS Chemex Labs of Reno, Nevada is responsible for all the Klondex Mine’s assaying.
About Klondex Mines Ltd.:
Klondex (TSX: KDX) is a gold exploration company focused on the development and expansion of its high-grade Fire Creek deposit in Nevada. Klondex has identified an Indicated Mineral Resource of over 1,000,000 ounces of gold at Fire Creek and has filed for permits to begin bulk sampling of over 120,000 tonnes. Fire Creek is located in the Battle Mountain-Eureka Trend in the Northern Nevada Rift, in North Central Nevada, an area of prolific gold production. Klondex currently has three drill rigs working to expand its resource at Fire Creek. The Company was founded over 30 years ago, and its property portfolio contains four other gold exploration projects, all in Nevada. For more information, please visit www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD. “William J. Solloway” President “Robert Sibthorpe” Technical Director
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