Klondex makes positive Manitoba production decision
The Klondex Mines True North Gold Mine in Manitoba, Canada.
Klondex Mines Ltd. [KDX-TSX; KLDX-NYSE MKT] reported a positive production decision at its underground True North Gold Mine in Manitoba, Canada. Additionally, the company is pleased to provide an updated mineral reserve and resource for True North.
Preliminary Estimated Operating Statistics:
- Annual mill throughput of 600-1,000 tpd
- Initial annual production of 45,000-65,000 Au oz
- Average All-in Sustaining Costs of C$950 – C$1,050/oz gold
- Annual capital expenditures of C $15-$25 million
- NI 43-101 Technical Report will be issued within 45 days of this press release
Mineral Reserve and Mineral Resource Highlights:
- True North Proven and Probable Reserve is 85.5k Au oz grading 0.24 oz/ton gold contained within 352k tons
- True North Measured and Indicated Resource is 294k oz gold grading 0.21 oz/ton gold contained within 1,386k tons
- True North Reserve and Mineral Resource are exclusive of the results of 35 of the 50 initial drill holes completed in Q2 of this year
- True North year end Mineral Resource update is expected in Q1 2017
TABLE 1: True North Mineral Reserve
| Category | Tons (k) | Au opt | Au g/t | Au koz |
| Proven | 153 | 0.241 | 8.26 | 36.7 |
| Probable | 199 | 0.245 | 8.40 | 48.8 |
| Total P&P | 352 | 0.243 | 8.33 | 85.5 |
TABLE 2: True North Mineral Resource
| Category | Tons (k) | Au opt | Au g/t | Au koz |
| Measured | 455 | 0.232 | 7.95 | 106 |
| Indicated | 931 | 0.202 | 6.93 | 188 |
| Total M&I | 1,386 | 0.212 | 7.27 | 294 |
| Inferred | 2,793 | 0.165 | 5.66 | 460 |
Paul Huet, President and CEO, stated, “I am pleased to have been able to deliver a positive production decision on our True North asset ahead of our initial expected timeframe. This will be our third operational mine and we believe it will deliver significant value to our shareholders.” Mr. Huet continued, “We are also pleased with the updated Mineral Reserve and Resource estimate at True North knowing that it only includes the results of 15 of our initial 50 drill holes from 2016. We are optimistic about the potential to continue to increase our Mineral Reserves and Mineral Resources in Canada.”
The True North Mineral Reserve and Mineral Resource is based on 7,746 drill holes totaling 213,206 m (699,496 ft) and includes data from 15 new drill holes totaling 1,949 m (6,393 ft), completed by Klondex since May 2016. In addition to the drilling, the Mineral Reserve and Mineral Resource estimate also utilizes 28,763 channel samples provided from mining on the mineralized structures.
The updated Mineral Reserve and Mineral Resource estimates for True North were prepared by P&E Mining Consultants, Inc.
Klondex has 100% interests in two producing mineral properties: the Fire Creek Mine and the Midas Mine and ore processing facility, both in Nevada as well as the recently acquired True North Gold mine and ore processing facility in Manitoba. The company is in the process of acquiring the Hollister Mine and Esmeralda mill, located in northern Nevada.