The start of mining at the Hollister project in Nevada edged closer, as Klondex Mines Ltd (NYSE:KLDX, TSE:KDX) issued a very encouraging maiden resource for the property.
Notably 74% of the new resource is in the higher confidence measured and indicated (M&I) category.
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READ - Klondex Mines encouraged by Hollister mine drilling and development work
The total M&I resource is 428,600 tons at a grade of 17.4 grams per tonne (g/t) gold equivalent, or 217,500 gold equivalent ounces.
The total inferred estimate is 176,000 tons grading 15.3 grams per tonne gold equivalent , or 78,300 gold equivalent ounces.
This initial estimate is based on 2,863 drill holes and includes data from 39 new drill holes completed by Klondex since the acquisition of the property in October last year.
The resource estimate also includes 14,821 channel samples provided from mining on the mineralized structures.
Klondex chief Paul Huet said the initial mineral resource estimate was "very encouraging".
"Approximately 74 per cent of the total mineral resource estimate is in the M&I category and sits within both the newly discovered Gloria system that remains completely open to the west and in the Hollister main zone.
"As previously communicated, these results do not include any mineral resources from the Hatter Graben zone, which we started drilling this week.
"This new resource provides us a platform and several select areas to begin our mining at Hollister.
"The ramp-up continues as expected with the initial tons from the stockpile to be processed in the Midas mill during the third quarter.
"Initially, we intend to batch process the Hollister ore independent from Midas and Fire Creek ore.
"Production from bulk sampling is expected to continue to progressively increase over the second half of the year, and we continue to expect to meet our annual operational guidance."
Klondex has three producing mineral properties - the Fire Creek mine and the Midas mine and ore milling facility in Nevada, US and the True North gold mine and mill in Manitoba, Canada.
It has also recently acquired two projects - the Hollister mine and the Aurora mine and ore milling facility, also in Nevada.
Klondex shed around 7% in Toronto to $4.57.