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Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) has entered into a toll milling agreement with Veris Gold Corp. to process Klondex material from its Fire Creek project near Elko, Nevada. Veris Gold will accept for processing, delivery of the Fire Creek material to the Jerritt Canyon Mill. In exchange, Klondex will pay Veris Gold the costs to mill and transport the mineralized material and a toll-milling fee with quarterly adjustments reflecting the change in contributing costs associated with processing of mineralized material.
Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) has entered into a toll milling agreement with Veris Gold Corp. to process Klondex material from its Fire Creek project near Elko, Nevada. Veris Gold will accept for processing, delivery of the Fire Creek material to the Jerritt Canyon Mill. In exchange, Klondex will pay Veris Gold the costs to mill and transport the mineralized material and a toll-milling fee with quarterly adjustments reflecting the change in contributing costs associated with processing of mineralized material.
As quoted in the press release:
Under the terms of the agreement, Veris Gold will accept for processing, delivery of the Fire Creek material to the Jerritt Canyon Mill, approximately 120 miles northeast of Fire Creek. Klondex will pay to Veris Gold the costs to mill and transport the mineralized material and a toll-milling fee with quarterly adjustments reflecting the change in contributing costs associated with processing of mineralized material. All precious metals milled pursuant to the agreement will be the property of Klondex. The total costs for shipping (transportation) and milling will be $148.50 per ton. Klondex will receive the recoveries achieved by Veris Gold’s circuit.
Klondex Mines CEO Paul Huet said:
The Nevada team delivers another important milestone for Klondex; the group has a reputation of consistently delivering and this is another great example. 2013 is a pivotal year for us as we continue to de-risk the Fire Creek asset. The excavation of the secondary egress, necessary to begin our bulk sampling, is now 20% complete and is on-track to be commissioned mid-June, 2013. Now, through this milling agreement with Veris Gold, we have a place to process mineralized material from Fire Creek. I have had the opportunity to work with this group at Veris Gold in the past and look forward to a continued relationship with such a professional team.
Click here to read the Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) press release
