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Wednesday, 1 May 2013
Klondex Mines wraps up re-logging campaign at Fire Creek ahead of schedule, new resource estimate expected in June
Klondex Mines (TSE:KDX) (OTCQX:KLNDF) says that it has now completed its drill core re-logging program for its Fire Creek gold project in Nevada five weeks ahead of schedule, with an updated resource estimate on track to be released in June.
The new estimate will include 36,639 metres of infill core drilling - from both surface and underground - as well as more than 600 assays collected from the re-logged core originally included in the resource report from May 2011.
The upcoming resource report will be used to develop a new and "comprehensive" mine plan, the company said Wednesday, followed by a preliminary economic assessment study expected to wrap up in the fourth quarter.
Klondex, which brought on a new CEO and an entire new management team late last year, started the core re-logging program in January, which involved the photographing and re-logging of around 73,000 metres of archived drill core from previous operators at Fire Creek.
In its release, the company said the program set out to improve on previous logging in order to develop an efficient mine plan, as well as improve the geological understanding of the project through the resolution of true widths, among other work.
In addition to the re-logging, specific drill intervals were also selected for resampling to "better refine limits and tenor of gold mineralization" with respect to geology, the company said.
The 2013 data to be included in the upcoming resource estimate will include infill drilling fans east of the ramp, as well as recent discoveries in the vent, and a 42.8 feet intercept grading 0.48 ounces per ton of gold south of the existing resource, Klondex said Wednesday.
"I can't emphasize enough how important a quality resource, that includes proper geotechnical work, is for us; becoming the foundation of everything we do at Fire Creek," said president and CEO of Klondex, Paul Huet.
"The step was particularly important as we turn to building a mine plan based on economics, efficiencies and most importantly, profitability. The re-logging effort will give my team greater comfort in developing and growing the gold operation set to begin in the second half of the year."
Fire Creek sits in North Central Nevada near major producers, power, transportation, mining infrastructure and its milling facility.
Shares of Vancouver-based Klondex were trading at $1.19 in Toronto late this morning, giving the gold and silver exploration and development company a market cap of $76.6 million.