Klondex Confirms Zone of Gold Mineralization South of Mineral Resource, Drills 6.7m of 33.7g/t Au Within a Larger Intercept of 13.0m of 16.6 g/t Au

Marketwired

ELKO, NV and VANCOUVER, BC--(Marketwired - Apr 9, 2013) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF) reports drill hole FC12-029U intersected 0.48 opt (16.6 g/t) Au over 42.8 ft (13.0m) at its Fire Creek gold project in Nevada (Figure 1 click here). The diamond drill hole confirms gold mineralization in a "South Zone" near the mine portal, located 1300 ft south of the 5400 crosscut. The drill hole was part of a larger surface and underground drill program testing the continuity of the Joyce A1 and Vonnie B1 veins (formerly named the A and B veins, respectively) in the south portion of the Main Zone.

The south-Main Zone is characterized by clay and pyrite alteration with disseminated mineralization and intervals of calcite-quartz veinlets with higher grades. In contrast, the Joyce A1 vein, intersecting crosscuts 5400 and 5370, consists of mainly quartz-calcite veins within very limited envelopes of clay-pyrite alteration, but with higher grades. Previous surface and underground drilling in the southern portion of the Main Zone defined a probable fault zone approximately 850 ft long, 200 ft wide and 600 ft in height composed of broad intervals of clay-pyrite alteration that is highlighted by the zones of higher grade mineralization. FC12-029U mineralization is closely associated with clay-pyrite alteration and calcite veinlets. The Vonnie's B1 clay-pyrite alteration is stronger than the Joyce A1, and it may be possible that the FC12-029U mineralization is an extension of the Vonnie B1 from crosscut 5400 based on an initial interpretation of intercepts in widely-spaced surface drill holes.

The next drill fan of the 2013 infill drilling program will be located halfway between the South Zone mineralization and the 5400 crosscut to test the continuity, character and vertical extent of the Joyce A1 and Vonnie B1 veins in the central Main Zone. Once completed, the infill program will continue north along the decline on 23m (75 ft) centers.

                                 
                                 
Hole No.   From
(m)
  To
(m)
  Length
(m)
  From
(ft)
  To
(ft)
  Length
(ft)
  Grade
(Au g/t)
  Grade
(Au opt)
FC-12-029U   157.7   170.7   13.0   517.4   560.2   42.8   16.6   0.48
Including   157.7   159.1   1.4   517.4   522.0   4.6   20.9   0.61
Including   159.1   161.1   2.0   522.0   528.7   6.7   33.8   0.99
Including   162.2   163.2   1.1   532.0   535.5   3.5   17.3   0.50
Including   163.2   164.2   1.0   535.5   538.8   3.3   17.9   0.52
Including   168.6   169.8   1.1   553.3   557.0   3.7   11.8   0.34
Including   169.8   170.7   1.0   557.0   560.2   3.2   41.0   1.20
                                 
Note: Intervals reported are core lengths; true widths are not known at this time.
 
 

Steve McMillin, Fire Creek's Chief Geologist, commented, "Today, we announced our widest gold mineralization intercept to date, at a grade of 0.48 ounces per ton. Its location, 1300 ft from where we intend to start bulk sampling later this year is encouraging as far as the potential strike length of the mineralization. This new find follows our January discovery of a new West Zone where we encountered visible gold mineralization. I'm extremely pleased to be contributing to the exploration success at Fire Creek, and will do my best to continue identifying new mineralized zones and extending the continuity of the veins."

Paul Huet, Klondex President and CEO, elaborated, "I've operated on mineralization similar to Fire Creek in Nevada. Intercepting this zone is quite encouraging but requires more understanding. This continues to support our plan on additional definition and exploration drilling from the underground. I am privileged to be developing Fire Creek with my team."

Several assays remain pending from the 2012 drill program. In addition, Klondex has assays pending from Fan 9 (see press release dated March 7, 2013), testing the continuity of the vein structures between the two crosscuts, and on either side. All assays will be included in the updated mineral resource estimate, expected to be completed by Micon International in Q2 2013.

Klondex Mines recently hosted BTV crews at Fire Creek to profile the recent onsite development as it readies to begin a bulk sampling program in Q3 2013. The video may be accessed at:
http://www.b-tv.com/i/videos/KlondexMinesMar13.wmv

Samples cited in this news release were obtained from in-fill drilling by independent contractor American Drilling under the direction of Klondex staff. Assays were determined by ALS Minerals in Reno, Nevada, an independent analytical laboratory.

The content of this press release has been reviewed by Steven L. McMillin, CPG-11031 (American Inst. of Prof. Geol.), Chief Geologist for Klondex Mines Ltd., as a non-independent Qualified Person for the purposes of National Instrument 43-101.

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect located in a region of prolific gold production that is near power, transportation, mining infrastructure and several milling facilities. As of April 4, 2013 Klondex had 64.4 million shares issued and outstanding, and 85.9 million shares on a fully-diluted basis.

This news release contains forward-looking information, including about current expectations on the timing of project development. This forward-looking information entails various risks and uncertainties, are based on current expectations, and actual results may differ materially from those contained in such information. These risks and uncertainties include, but are not limited to the risks and hazards associated with environmental compliance and permitting for its underground operations, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.

Contact:

Paul Huet
President & CEO
Klondex Mines Ltd.
807-939-2841
Email Contact

Alison Tullis
Manager, Investor Relations
Klondex Mines Ltd.
647-233-4348
Email Contact

Toni Trigiani
Investor Relations
Catalyst Global LLC
212-924-9800
Email Contact
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