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Klondex Mines says latest drilling results continue to point to "tremendous potential" of Fire Creek

Last updated: 09:35 26 Jan 2018 EST, First published: 04:35 26 Jan 2018 EST

The Zeus target at Fire Creek
"We are seeing evidence of a halo of lower-grade mineralization outside the high-grade structures"

Klondex Mines Ltd (TSE:KDX) continues to extend high-grade mineralization with its drilling program at the Zeus target on its Fire Creek mine in northern Nevada.

The miner released the final results of its 2017 surface exploration drill program.

Highlights included:

  • Hole 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.

In all, seven surface holes were drill in 2017 totaling just over 9,868 feet (3,008 metres).

The focus of the program was to fill-in and step-out from the previous year's drilling, hopefully to develop a resource within the mineralized structural corridor.

Klondex expects to release an updated resource estimate for Nevada operations during the first quarter of 2018.

READ Klondex Mines new open pit estimates confirm Fire Creek as “a world class property”

“The final 2017 drill results continue to support the tremendous potential to expand the high-grade resource in the Fire Creek district," said Brian Morris, the senior vice-president of exploration at Klondex.

"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," he added.

Shares in Klondex were up 2.2% at C$2.82 on Friday.

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on 08/01/2017