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Re: News - Wednesday, April 30, 2008
Klondex Mines Provides Investor Update
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Vancouver, British Columbia: April 30, 2008 - Klondex Mines Ltd. (TSX:
KDX) today updated investors on recent progress and developments
concerning the Company and its 100%-owned Fire Creek property in the
Battle Mountain-Eureka Trend in Northern Nevada.
William Solloway, President, stated, "The Fire Creek exploration
program has never been more active nor more productive in the past 32
years that Klondex has owned the property. Despite challenged share
prices within the junior gold market, we remain excited and optimistic
regarding the substantial potential at Fire Creek and the progress of
our exploration efforts. We are moving our surface and underground
programs ahead as fast as possible, and are pleased to provide a brief
update on these and other efforts.
"Finally, we are embarking on an active outreach program in May and
June, combining both institutional investor meetings with our
participation in the upcoming Hard Assets conference in New York in May
and the Vancouver Cambridge House conference in June. We look forward
to meeting with investors and updating them on our progress at these
venues."
.. Phase 7 Drilling: Klondex is operating one core rig and is in the
process of adding two additional core rigs for its Phase 7 surface
exploration project at Fire Creek. Phase 7 drilling has been underway
since mid-March, and three holes having been completed to date, with
quartz intercepts in holes FC0801 and FC0802. Assay results on the
initial holes are expected by late May. The Phase 7 program
contemplates drilling 40-60 holes between mid-March and mid-December
2008.
.. NI 43-101 Update: Klondex announced that it intends to file an
update to its Indicated Mineral Resource later this year using drilling
results from its full year Phase 6 program in 2007 and the most
up-to-date results available from Phase 7 drilling in 2008. The
Company's last resource calculation was announced more than a year and
a half ago in September 2006. Since that time Klondex has engaged in a
very productive surface-drilling program, completing over forty drill
holes with 29 separate intercepts in excess of 0.3 ounces per ton. At
September 2006, Fire Creek's NI 43-101 compliant indicated mineral
resource was:
Main Zone; 912,366 tonnes grading 27.3 gpt (801,681 oz gold)
Far North Zone: 724,188 tonnes grading 10.48 gpt (244,047 oz gold)
Total: 1,636,555 tonnes grading 19.88 gpt (1,045,738 oz gold)
.. Underground Permitting: In addition to its Phase 7 drilling program,
Klondex anticipates receiving by the end of the summer permits
necessary to commence work on an underground program which will involve
the driving of a 1,437.6 meter decline to access mineralization
underground. Once completed, the decline will enable underground
in-fill drilling of the resource as well as bulk sampling for
metallurgical testing of up to 120,000 tons of material over a three to
five year period. Klondex filed its permit applications in March 2007
and revised applications in April 2008. Klondex plans to target its
bulk sampling effort at vein mineralization averaging 1-2 ounces per
ton, creating the potential to generate substantial cash flows to fund
further development of the resource.
.. Underground Contractor: As previously announced, Klondex has
selected Small Mine Development, LLC (SMD) of Boise, ID as its mining
contractor for the underground program at Fire Creek and is currently
working with SMD on the overall underground plan as well as the final
details of the contract.
As of March 31, 2008, Klondex had 22,989,673 shares issued and cash of
approximately CDN $3.18 million invested in Canadian treasury bills and
in guaranteed bank accounts.
Richard Kern (P.Geo), Project Manager, of Reno, Nevada, is the
Company's qualified person on the project as required under NI
43-101and has reviewed the technical information contained in this
press release.
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, covering 10,708 acres of fee and lease land 100% owned by
Klondex. At Fire Creek, Klondex has defined an Indicated Mineral
Resource estimated at 1,636,555 tonnes grading 19.88 grams per tonne
(0.576 oz/tonne) 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. Receipt of these
permits is anticipated before the end of the summer.
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 consists of four gold exploration projects, all
in Nevada. For more information, please visit www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD.
"William J. Solloway"
President
Investor Contact:
David Collins, Steven Hecht
KDX@jcir.com
(212) 835-8500
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Copyright (c) 2008 KLONDEX MINES LIMITED (KDX) All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto:info@klondexmines.com
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