- Findings Extend Main Zone to the North -
VANCOUVER, BRITISH COLUMBIA, November 26 /CNW/ - Klondex Mines Ltd. (TSX:
KDX) announced additional high-grade gold intercepts from recent core drilling
under its Phase 6 drilling program at its 100%-owned Fire Creek property in
the Battle Mountain-Eureka Trend in Northern Nevada.
A high grade gold intercept was reported in hole FC0724 which returned
18.0 grams per ton (gpt) over 9.1 meters (0.51 oz/ton over 30 feet), including
38.0 gpt gold over 3.05 meters (1.10 oz/ton over 10 feet). Additionally, hole
FC0707B in the Main Zone returned an interval of 8.25 gpt over 3.81 meters
(0.24 oz/ton over 12 feet) and hole FC0712 tested the New North Zone and
returned an interval of 7.18 gpt over 3.05 meters (0.21 oz/ton over 10 feet).
Together with the previously announced results from drilling to the south
(October, 2007), hole FC0724 has the effect of extending the Main Zone
mineralization along strike. Previously extending from 50m South to 450m North
(500 meters) the Main Zone now extends from 250m South to 750m North (1000
meters). Klondex believes that this will result in a significant increase in
contained ounces at Fire Creek when the previously announced, September 2006
NI 43-101 defined compliant resource is updated in the first quarter of 2008
after its Phase 6 drilling program is concluded this year.
Klondex also received assays from drill holes FC0715, FC0716 and FC0736
which tested the southern extension of the New North Zone at depth. These
holes all encountered the vein system with geochemically anomalous values (0.5
gpt to 2.0 gpt).
Drilling will continue at Fire Creek with two core rigs until
mid-December 2007. The Company continues its permitting and mining contractor
selection activities for its planned 2008 underground exploration program.
A plan map showing drill hole locations is available on the Company's
website at http://www.klondexmines.com/s/News.asp
The true width of intercepts of holes reported here are estimated at 70%
of reported widths. The intervals reported for FC0724 above incorporates a 371
gpt silver value over 1.52 meters (10.7 oz/ton over 5 feet) at a silver to
gold equivalency of 60:1.
As of October 30, 2007, Klondex had 22,944,673 shares issued and cash of
approximately $5.82 million CDN invested in Canadian treasury bills and in
guaranteed bank accounts. The recent appreciation of the Canadian dollar
versus the US dollar has increased Klondex's purchasing power for its US
dollar-denominated drilling program. The Company has no exposure to any
derivatives, futures, hedges or related risk.
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
About Klondex Mines Ltd.:
Klondex Mines (TSX: KDX) is a gold exploration company focused on the
development and expansion of its high-grade Fire Creek deposit in Nevada. At
Fire Creek, Klondex has a NI 43-101 compliant Indicated Mineral Resource
estimated at 1,636,555 tonnes grading 19.88 grams per tonne (0.576 oz/ton)
containing 1,045,738 oz of gold in two separate mineral zones, and has filed
for permits to begin bulk sampling for metallurgical testing of up to 120,000
tons of 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 three 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: Investor: Jaffoni & Collins Incorporated David
Collins, Steven Hecht 212-835-8500 KDX@jcir.com