Drilling Results Increase Klondex's Gold Resource By Extending Main and Far North Gold Zones at Fire Creek



    Klondex Updates Progress on Permitting for Underground Development

    VANCOUVER, BRITISH COLUMBIA, September 14 /CNW/ - Klondex Mines Ltd.
(TSX: KDX) reviewed progress from the Phase 6 drilling program at its
100%-owned Fire Creek property in the Battle Mountain-Eureka Trend in Northern
Nevada. The goal of the drilling program is to add to the existing mineral
resource base and find new zones of significant gold mineralization at the
Fire Creek property. These goals are being accomplished utilizing:

    1. "Extension" drilling in the boiling zone of the Main and Far North
resource area, and

    2. "Exploration" drilling of potential mineralization targets identified
by an induced polarization (IP) survey conducted last year.

    All thirteen Phase 6 "extension" holes have contributed valuable
information regarding the structural control and continuity of the Main Zone
and Far North Zone veining and are expected to increase both the tonnage and
grade from the previously announced NI 43-101 compliant indicated resource at
Fire Creek of 1,054,738 ounces of gold in 1,636,555 tonnes (19.88 grams per
ton "gpt"). The Company has also completed eleven "exploration" holes to test
IP anomalies. While these holes have not encountered new economic intercepts,
several have reported anomalous gold values and a few are considered highly
encouraging.

    Commenting on the Company's progress, Robert Sibthorpe, Technical
Director, commented, "Our Phase 6 drilling program progresses well and ahead
of schedule, with results that will certainly enable Klondex to expand its
indicated mineral resource in our next formal resource update. We believe our
investment in exploration this year, estimated at approximately $3.3 million
CDN, is delivering a very attractive return on investment to our shareholders
in terms of driving an increase in our gold and silver resource and the
inherent value of our company.

    "On the permitting front, we are making good progress with several
agencies, however some unavoidable regulatory delays have required that we
extend our timelines for approvals and the commencement of underground
development by a few months. In the interim, we continue to develop our
underground plans, and our dialogue and negotiations with several potential
mining contractors continue, as do our conversations with potential milling
partners. While regulatory delay is unfortunate but not unusual during this
very active period in the industry, we are making good use of the extra time
to advance our planning."

    As previously announced, Fire Creek's current Plan of Operations is being
amended to include up to 3,000 meters of underground workings to permit access
to the Main Zone on two levels. The permitting and contractor selection
processes associated with the Main Zone underground program are progressing,
though behind the company's original schedule. Final permits are now
anticipated by year-end 2007 or early 2008 with development work commencing
immediately thereafter. The underground workings will facilitate in-fill
drilling to further improve knowledge regarding grade and vein continuity.

    Klondex has made application for designation as a "Small Scale Facility"
as defined by Nevada Regulation NAC 445A.377, allowing for the extraction and
processing in the Main Zone of a series of bulk samples of not more than
33,180 metric tonnes of ore per year and no more than 109,090 metric tonnes in
total. Based on the Company's NI 43-101 compliant resource estimate, the
weighted average grade of the target areas for the bulk sample is 67 grams of
gold per tonne.

    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 a
three-to-four year underground development/bulk sampling program, assuming no
unforeseen circumstances.

    PHASE 6 DRILLING RESULTS TO DATE

    A plan map setting out hole locations is available on the Company's
website at http://www.klondexmines.com/s/News.asp

    Fire Creek Resource Zone

    The gold mineralization in the Main Area is in a swarm of epithermal
low-sulfidation quartz-carbonate veins striking NNW within a corridor about
300 meters wide and about 1 kilometer in length. There are at least 12 veins
carrying significant gold values in the Main and Far North Zones. The
individual veins are usually 100-400 meters in length. Important gold values
are generally restricted in a vertical sense to a "boiling zone" between 1750
to 1500 meters above sea level. Thirteen new holes have been drilled during
Phase 6 to test the large gaps between or beyond drill intercepts used in the
calculation of the September 2006 resource estimate in an effort to increase
the overall indicated mineral resource while staying within its given
restrictions.

    From north to south, these holes produced the following results:

    SECTION 800N: Hole FC0727 tested the 100 meter gap between FC0525
(13.2gpt/9.8m) and FC0612 (34.1/3.2 m) and reported intervals of 7.8 gpt over
6.1 meters and 29.5 gpt over 1.52 meters in the Far North Zone.

    SECTION 400N: Hole FC 0709 tested the high grade Vein Set 7 through 4 at
the bottom of the "boiling zone." As it approached Vein 7 from the west, a low
grade interval (1.3 gpt over 13 meters) was reported followed by 1.5 meters of
42.5 gpt and at the projection of Vein 4 a 0.3 meter sample assayed 98.5 gpt.
These veins are linked to the strong gold values on Section 350N.

    SECTION 250N: Hole 0706 reported no significant values on the down dip
extension of Vein 3 on this section.

    SECTION 200N: Hole FC0705 tested the 120 meter gap between intercepts on
Vein 3 in holes FC0408 (14.2 gpt/2.1m) and FC0416 (5.6gpt/3.66m). It returned
a broad zone of 1.7 gpt over 13.7 meters, indicating that the vein may have
entered a porous host rock. Higher up the hole, between projections of Vein 5
and 6, an interval of 13.0 gpt over 3.05 meters was recorded.

    SECTION 150N: Hole FC0704 (previously reported) had an intercept of 11.1
gpt over 5 meters. Hole FC0710 was collared on top of the Main Zone to test IP
anomaly "0" to the west and thus did not impact the main Zone resource. It
produced sub-ore intercepts, possibly representing the new vein at IP anomaly
"0".

    SECTION 100N: Hole FC0703 targeted the down dip extensions of the
high-grade intercept in FC0621 on Vein 3. FC0703 returned an intercept of 10.5
gpt gold and 160 gpt silver over 2.1m, 50 meters deeper. Hole FC0711
(previously reported) was drilled westward, directed at IP anomaly "0" outside
of the Main Zone. As it passed through the siliceous cap rock over the Main
Zone it intersected 11.3 gpt over 3.05 meters in the RC portion of the hole
about 50 meters below surface. FC0711 also returned an intercept of 6 gpt over
3 meters which could represent the IP "0" anomaly, a new vein some 100 meters
west of the current Main Zone boundary.

    
    Fire Creek Drill Hole Status 2007; Phase 6 through August 2007

    ----------------------------------------------------------------------
    Section Status Hole#  Azim  Angle   TD        Area       From   To
                                       Feet                  Feet  Feet
    ----------------------------------------------------------------------
    800N    New    FC0727    75    -45  1293 Far North         920   940
                                             and               975   980
    ----------------------------------------------------------------------
    400N    New    FC0709    75    -45  1709 Main             1255  1260
                                             and              1402  1403
    ----------------------------------------------------------------------
                                                            No economic
    250N    New    FC0706    75    -47  1202 Main            intervals
    ----------------------------------------------------------------------
    200N    New    FC0705    75    -49  1205 Main              230   240
                                             and               845   890
    ----------------------------------------------------------------------
    150N    New    FC0704    75    -45  1292 Main              935   951
                                                            No economic
    150N    New    FC0710   255    -45  1409 East Main       intervals
    ----------------------------------------------------------------------
    100N    New    FC0703    75    -47  1188  Main             998  1005
    100N    PR     FC0711   255    -45  1400 West Main         220   230
                                             and              1115  1125
    ----------------------------------------------------------------------
    50N     PR     FC0702    75    -51  1181 Main           1077.7  1115
    50N     New    FC0708    85    -45   900 East Main         590   625
    ----------------------------------------------------------------------
    100S    PR     FC0701    88    -45   905 Main              465   470
    100S    New    FC0734    87    -44  1022 Main              515   535
    100S    New    FC0735    87    -70  1000 Main              605 717.5
    ----------------------------------------------------------------------
            New    FC0714    75    -64  1300 IP Anomaly 4      729   732
                                                            No economic
            New    FC0717    75    -58  1480 IP Anomaly 4    intervals
    ----------------------------------------------------------------------
                                                            No economic
            New    FC0719    75    -45  1303 IP Anomaly 1    intervals
            New    FC0720    75    -45  1750 IP Anomaly 1      970  1115
            New    FC0722    75    -45  1580 IP Anomaly 1      980  1050
    ----------------------------------------------------------------------
                                                            No economic
            New    FC0728    75    -45  1300 IP Anomaly 2    intervals
                                                            No economic
            New    FC0729    75    -45  1300 IP Anomaly 2    intervals
    ----------------------------------------------------------------------
                                                            No economic
            New    FC0732    75    -45  1489 IP Anomaly 10   intervals
                                                            No economic
            New    FC0733    75    -45  1499 IP Anomaly 10   intervals
    ----------------------------------------------------------------------

    Fire Creek Drill Hole Status 2007; Phase 6 through August 2007

    ----------------------------------------------------------------------
     Section  Status   Hole#      Interval      Interval   Au       Ag
                                  Feet (1)     Meters (1)  gpt     gpt
    ----------------------------------------------------------------------
    800N      New      FC0727               20       6.10  7.80      12.90
                                             5       1.52 29.50       5.40
    ----------------------------------------------------------------------
    400N      New      FC0709                5       1.52 42.50      10.10
                                             1       0.30 98.50      43.80
    ----------------------------------------------------------------------
                                                                No
                                                                 economic
    250N      New      FC0706                                    intervals
    ----------------------------------------------------------------------
    200N      New      FC0705               10       3.05 13.00      10.30
                                            45      13.72  1.70       4.20
    ----------------------------------------------------------------------
    150N      New      FC0704               16       4.88 11.10       4.87
                                                                No
                                                                 economic
    150N      New      FC0710                                    intervals
    ----------------------------------------------------------------------
    100N      New      FC0703                7       2.13 10.50     160.70
    100N      PR       FC0711               10       3.05 11.30       9.00
                                            10       3.05  6.30      22.30
    ----------------------------------------------------------------------
    50N       PR       FC0702             37.3      11.37 21.73      11.40
    50N       New      FC0708               35      10.67  3.13       9.07
    ----------------------------------------------------------------------
    100S      PR       FC0701                5       1.52 25.30      11.10
    100S      New      FC0734               20       6.10  5.20       3.90
    100S      New      FC0735            112.5      34.30  1.60       7.20
    ----------------------------------------------------------------------
              New      FC0714                3       0.91  3.70      84.10
                                                                No
                                                                 economic
              New      FC0717                                    intervals
    ----------------------------------------------------------------------
                                                                No
                                                                 economic
              New      FC0719                                    intervals
              New      FC0720              145      44.21  1.60       2.10
              New      FC0722               70      21.34  1.20       0.00
    ----------------------------------------------------------------------
                                                                No
                                                                 economic
              New      FC0728                                    intervals
                                                                No
                                                                 economic
              New      FC0729                                    intervals
    ----------------------------------------------------------------------
                                                                No
                                                                 economic
              New      FC0732                                    intervals
                                                                No
                                                                 economic
              New      FC0733                                    intervals
    ----------------------------------------------------------------------
    

    PR = Previously reported holes

    New = New holes

    (1) True width = approximately 70-80% interval width

    SECTION 050N: Hole FC0702 (previously reported) targeted the down dip
extension of the high grade intercept from FC0619 on Vein 2 and returned 21.7
gpt over 11.4 meters. Hole FC0708 filled the gap between FC90143 (5.9
gpt/7.3m) and FC0507 (12.5gpt/2.44m) on Vein 2 and returned 3.1 gpt over 9.1
meters.

    Section 100S: Hole FC0701 (previously reported) intersected 1.5 meters of
26 gpt gold about 180 meters below surface. It occurs on Vein 3 and represents
the southernmost economic intercept drilled to date at Fire Creek. This hole
was offset with FC0734 which returned 5.2 gpt over 6.1 meters at the same
depth but 30 meters to the east. Hole FC0735 was drilled beneath these 2 holes
and returned a broad intercept of 1.6 gpt over 34 meters, some 75 meters
deeper. There has been very limited drilling on this Vein further to the south
and additional holes have been scheduled.

    Exploration Holes:

    Assay results have been received for an additional nine holes, which were
directed at IP anomalies outside of the Main and Far North Resource Zone.
Although no economic intercepts were reported in these holes, several IP
anomalies reported anomalous gold values and a few are considered highly
encouraging. For instance, drill holes FC0732 and FC0733, which tested IP
anomaly 10, both contained +1.5 g/t gold intercepts but below favorable host
rocks. Testing of this gold-bearing structure within rocks favorable for
veining higher in the section has been scheduled.

    As of August 31, 2007, Klondex had 22,836,173 shares issued with and cash
of approximately $7.1 million CDN invested in Canadian treasury notes and in
guaranteed bank accounts. The Company has no exposure to any derivatives,
futures, hedges or related risks.

    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 and SGS Minerals services, Toronto 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 up
to 120,000 tons ore. 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 two 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"           "Robert Sibthorpe"
    President                       Technical Director
    




For further information:

For further information: Investors: Jaffoni & Collins Incorporated David
Collins, Steven Hecht 212-835-8500 KDX@jcir.com

Organization Profile

Klondex Mines Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890