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Klondex Mines Ltd. (KDX:CA)
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Web site:
http://www.klondexmines.com/
Klondex Mines (TSX: KDX; OTCQX: KLNDF) is primarily engaged in the surface and underground exploration and development of its 100% owned Fire Creek gold property in North Central Nevada. Fire Creek is strategically located between the past producing Mule Canyon Mine to the north and the world-class Pipeline and Cortez gold deposits to the south. The property comprises 11,208 acres (17.5 square miles) and is readily accessible via Federal and state roads with close access to the electrical power grid.
Klondex’s secondary focus is acquiring, exploring and developing other gold and silver properties in Nevada. Currently Klondex has three other gold exploration properties, and it reviews and considers other projects for inclusion.
On September 12, 2011, Klondex announced an updated Technical report and resource estimation that produced an Indicated Mineral Resource of 1.65 million ounces of gold and an Inferred Mineral Resource of 0.46 million ounces of gold identified via its deep surface drilling program at its Fire Creek Property. The resource figures, which are as of May 21, 2011, reflect a 4 grams per tonne cutoff. In late April 2011, Klondex initiated an underground program at Fire Creek including a 1,113 meter (3,650 foot) decline that will enable underground in-fill exploration drilling.
Fire Creek Project
Fire Creek is Klondex Mines' flagship property in North Central Nevada where the Company has discovered an NI 43-101 compliant Indicated Mineral Resource exceeding 1.6 million ounces of gold equivalent and an Inferred Mineral Resource of 0.46 million ounces of gold. Fire Creek's updated resource is detailed in the table below (Click here to link to Klondex's updated technical report on it's 100% controlled Fire Creek Project.)
Fire Creek Project - Indicated and Inferred Resource
 Fire Creek Drill RigClick to Enlarge |
Fire Creek is located in Lander County near the center of the Battle Mountain gold belt in Crescent Valley, approximately ten miles northwest of the massive Pipeline deposit of Barrick (7 million ounces) and five miles southeast of the Mule Canyon deposits of Newmont (3 million ounces). All of this mineralization exists in volcanics within the trend in Crescent Valley that runs south as far as Buckhorn (Barrick).
For much of its history, Fire Creek was considered to be a low-grade, high tonnage "Carlin" type open pit deposit. However geologic data in the late 1980s from the nearby Midas and Mule Canyon deposits suggested Fire Creek was more likely a deeper, higher-grade epithermal deposit.
Deep Drilling Program Finds High-Grade Gold
Klondex's journey from zero to 1.65 million ounces of indicated gold resource and 0.465 million ounces of inferred gold resource was achieved through the focused effort of a streamlined management team. The resource was discovered in a very cost effective manner, with total drilling and related costs of approximately $28.2 million through June 30, 2011. This puts Klondex's finding costs for its 1.65 million ounce indicated resource at approximately $17.14 per ounce. This finding cost is very attractive relative to other gold exploration costs and in light of current gold prices in the range of US $1,700-$1,800 per ounce. Accordingly, Klondex believes its exploration activity has created substantial long-term value for Klondex shareholders.
Reef
The 8 Reef claims in the Fairchild district of Churchill County are in the heart of an old silver mining district with production dating back to the late 19th century. The geologic formation is volcanic. Anomalous gold and silver have been detected along a siliceous reef which runs about half a mile. The claims were staked in 1986 and cover much of the exposed mineralized zone which shows evidence of pits, shallow shafts and trench work from prior examinations. The claims are surrounded on all sides with land staked by a major mining conglomerate.
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KDX:CA
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