Mr. Brian Morris reports
KLONDEX CONTINUES TO EXTEND HIGH GRADE MINERALIZATION AT FIRE CREEK'S ZEUS TARGET, INCLUDING 1.65 OPT AU OVER 35.0 FT; COMPANY SCHEDULES ANNOUNCEMENT OF 2017 OPERATING RESULTS AND 2018 GUIDANCE
Klondex Mines Ltd. has provided the final results of the 2017 surface exploration drill program on the Zeus target at its Fire Creek mine located in northern Nevada, United States.
Surface exploration drilling highlights:
FCC-0095 --1.65 ounces per ton gold over 35.0 feet, or 56.65 grams per tonne over 10.7 metres;Including 16.05 ounces per ton gold over 2.3 feet, or 550.3 grams per tonne over 0.7 metre; Including 6.52 ounces per ton gold over 1.2 feet, or 223.41 grams per tonne over 0.4 metre and 0.41 ounce per ton gold over 3.4 feet, or 13.95 grams per tonne over 1.0 metre; FCC-0097 -- 0.14 ounce per ton gold over 15.8 feet, or 4.75 grams per tonne over 4.8 metres;FCC-0107 -- 0.16 ounce per ton gold over 15.0 feet, or 5.57 grams per tonne over 4.6 metres.
Surface exploration drill summary
Seven surface holes were drilled in 2017 totalling 9,868.5 feet (3,007.9 metres). The final results from the last four holes of the drill program were recently received. The focus of this drill program was to infill and step out from last year's drilling with the intent to develop a resource within this mineralized structural corridor. Klondex expects to release an updated resource estimate for Nevada operations during the first quarter of 2018.
Surface exploration drilling key points
This surface exploration drill program builds on results previously released in 2017 (reported in a press release dated Nov. 15, 2017) and the 2016 exploration program which successfully tested a north-south geophysical anomaly located about 4,000 feet (1,219 metres) northwest of the current mine workings. This drilling has identified a zone of high-grade mineralization within the Zeus structural corridor, approximately 900 feet (274 metres) in length and 400 feet (122 metres) vertical. This high-grade zone is within 400 feet (122 metres) of surface and is open in all directions. Additional drilling is scheduled in 2018 as Klondex expects to continue to infill and extend this significant high-grade mineralization.
Brian Morris, senior vice-president, exploration, said, "The final 2017 drill results continue to support the tremendous potential to expand the high-grade resource in the Fire Creek district." Mr. Morris elaborated: "In addition, we are seeing evidence of a halo of lower-grade mineralization outside the high-grade structures, similar to the Fire Creek open-pit resource. Moreover, geophysics suggest that Zeus is part of a major 6,500-foot/1,981.2-metre structural corridor which we plan to continue to define along strike in 2018."
2017 operating results and 2018 guidance
Klondex will provide 2017 operating results and 2018 guidance metrics before the U.S. and Canadian financial markets open on Wednesday, Feb. 7, 2018. The company will further discuss this information during its investor day meeting to take place the same day at 9 a.m. Eastern Standard Time.
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 for the Fire Creek Project, Lander County, Nevada," dated March 28, 2016, and with an effective date of June 30, 2015, 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 Brian Morris, AIPG CPG-11786, a qualified person within the meaning of National Instrument 43-101.
About Klondex Mines Ltd.
Klondex Mines 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, United States, as well as 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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