Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) released its new mineral resource estimate for its Fire Creek gold deposit in North-Central Nevada. The new mineral resource estimate illustrates the high grades at Fire Creek and confirms continuity of gold mineralization down dip and along strike from work completed in the Main Zone. The new resource estimate consists of Measured and Indicated resources totaling 295,900 ounces of gold at 44.7 g/t (1.304 opt) Au and Inferred resources of 421,400 ounces of gold at 19.2 g/t (0.560 opt) Au at Fire Creek, applying a 7 g/t Au cut off (see Table 1 below).
As quoted in the press release:
TABLE 1: New Fire Creek Resource Estimate
Contained Au (oz) > 7.0 Measured 8,000 237.6 6.93 57,200 > 7.0 Indicated 219,000 37.4 1.09 238,700 > 7.0 Inferred 752,000 19.2 0.56 421,400
Notes: (1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues. (2) The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Klondex President and CEO, Paul Huet, said:
We have reached a major milestone in defining the Fire Creek deposit, only limited by the completed drilling and underground development program. This high quality resource estimate shows the potential of Fire Creek and is substantiated by the underground development program. The deposit remains open along strike and at depth providing Klondex with upside for resource growth given that 93% of Fire Creek’s property is unexplored. We’ve focused drilling to define the Main Zone and can now begin to expand exploration and step out our drilling, providing the needed data to convert the existing known mineralization into additional resource ounces and as a result, further unlock the value at Fire Creek.
Get our expert guide to gold investing!
Click here to discover what the experts see coming in 2016 and beyond with our INN Insider's Report (value of $49) for FREE.
Limited time offer. No credit card required.