Mr. Mike Beckstead reports
KLONDEX CONTINUES TO UNLOCK VALUE AT HATTER GRABEN
Klondex Mines Ltd. has provided the final results from the 2017 surface exploration drill program at the Hatter Graben target near its Hollister mine. Initial results for the first five holes of the drill program were published on Nov. 20, 2017. Hollister is located in northern Nevada in the United States.
Hatter Graben surface drilling highlights from last five holes:
H17-010: 4.12 ounces per ton (oz/t) gold equivalent (AuEq) over 1.2 feet, or 141.30 grams per tonne (g/t) over 0.4 metre, and 2.63 oz/t AuEq over 1.1 feet, or 90.13 g/t over 0.3 metre;H17-007: 0.89 oz/t AuEq over 2.4 feet, or 30.46 g/t over 0.7 metre;H17-008: 0.79oz/t AuEq over 2.9 feet, or 26.98 g/t over 0.9 metre.
Key points
The final phase of the Hatter Graben exploration program was completed in December, 2017, with 10 surface core holes totalling 26,714.5 feet (8,142.6 metres). Nine drill holes successfully tested the Hatter Graben vein system, while one drill hole (H17-009) was lost short of the designed targets due to poor ground conditions. This program was designed to infill drilling completed during 2008, with the intent to develop an initial inferred resource at Hatter Graben, which is anticipated to be released during the first quarter of this year.
Drilling from the most recent five holes continued to intersect multiple subparallel veins that extend mineralization along strike by approximately 800 feet (243.8 metres) and downdip approximately 200 feet (61.0 metres), bringing the known extent of the multiple subparallel mineralized veins to approximately 1,400 feet (426.7 metres) of vertical height and 2,000 feet (609.6 metres) of strike length.Mineralization remains open in all directions.
In addition, the drill data suggest that mineralization appears to be strengthening to the east and is hosted in more competent rock compared with the Hollister mine. The preferable ground conditions at Hatter Graben should allow for better vein development, superior dilution control and provides the option for the more efficient long-hole stoping mining method.
Brian Morris, senior vice-president, exploration, said: "Drilling from the more desirable drill sites that were permitted later in the drill season returned significant results. These preferred drill locations allowed us to target the vein system at optimal elevations and extend mineralization to the east. The drill data indicates that the vein system becomes more robust to the east in grade and vein concentrations." Mr. Morris continued: "Moreover, analysis of the drill data shows the evidence of mineralization above the unconformity in the older Eocene-age volcanic rocks. This favourable stratigraphic horizon thickens to the west and offers the possibility to extend mineralization several hundred feet updip in this area."
Assays were performed by American Assay Laboratories, of Sparks, Nev., as directed under the supervision of Klondex staff. This organization is an ISO 17025-accredited independent laboratory.
A description of the data verification methods, quality assurance program and quality control measures applied can be found in the technical report titled "Technical Report and Pre-Feasibility Study for the Hollister Underground Mine," as amended on Aug. 9, 2017, with an effective date of May 31, 2017, which is available under the company's issuer profile on SEDAR and on EDGAR.
Qualified person
Scientific and technical information in this press release has been reviewed and approved by Mr. Morris (AIPG CPG-11786), a qualified person within the meaning of National Instrument 43-101.
About Klondex Mines Ltd.
Klondex is a junior-tier gold and silver mining company focused on exploration, development and production in a safe, environmentally responsible and cost-effective manner. The company has 100-per-cent interests in four producing mineral properties: the Fire Creek mine, the Midas mine and ore milling facility, and the Hollister mine, all of which are located in the state of Nevada in the United States, and the True North mine and mill in Manitoba, Canada. The company also has a 100-per-cent interest in the Aurora mine and ore milling facility, also located in Nevada.
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