Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) reported that toll milling of Fire Creek’s Lot #1 is complete, and toll milling of Lot #2 started on September 18, 2013. The Company also reported updates on underground development programs, and results of the metallurgical test-work from the Fire Creek Project in Nevada.
As quoted in the press release:
Toll milling of Fire Creek’s Lot #1 is complete (see press release dated September 23, 2013). Final receivables for Lot #1 totaled $1,967,176, sold at an average gold spot price of US $1,332/oz. Processing of Lot #1 included 1,055 dry tonnes (1,165 dry tons) at an average head grade of 50.7 g/t (1.48 opt) Au.
Toll milling of Lot #2, comprised of 1,812 tonnes (2,000 tons), started on September 18, 2013.
Over the past four months, Klondex’s underground development program targeting the Joyce and Vonnie structures within the Main Zone of its Fire Creek project has yielded 4,375 tonnes (4,824 tons) of mineralized material averaging 63.7 g/t (1.86 opt) Au.
Results indicate both samples were readily amenable to gravity/cyanidation treatment. Gold and silver recoveries achieved from Composite FCM1 were 94.8% and 82.4%, respectively. Gold and silver recoveries achieved from Sample 3834-01 were 99.0% and 89.5%, respectively. Cyanide consumption was low, averaging 0.2 kg/mt material.
Klondex Mines President and CEO, Paul Huet, said:
Continuing to toll mill and treat our second lot of material from the Fire Creek project is an important step moving forward. We are very fortunate to have multiple options (Newmont and Veris agreements) in place to treat the Fire Creek material. Through toll milling, we are able to better understand the metallurgical characteristics of the Fire Creek material, and the proceeds can be applied towards future exploration and development.