Klondex Mines Releases Initial Mineral Reserves for Fire Creek and Midas
Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) announced its initial mineral reserves for its Fire Creek project and Midas mine in Nevada: Fire Creek holds 241,400 AuEq Ounces, US$492/Au oz Total Cost, net of Ag by-product; while Midas holds 132,600 AuEq Ounces, US$485/Au oz Total Cost, net of Ag by-product.
Klondex Mines previously released an updated mineral resource estimate for its Fire Creek project in January, 2015, announcing a 47% increase in measured and indicated ounces. Klondex also recently received a “Buy” rating from Dundee Securities, with a target price of $3.15,
As quoted in the press relase:
Mineral Reserve Highlights:
Fire Creek
- 241,400 AuEq Ounces
- 1.3 opt AuEq / 44.6 g/T AuEq
- US$492/Au oz Total Cost, net of Ag by-product
- US$503/Au oz Total Cost
Midas
- 132,600 AuEq Ounces
- 0.548 opt AuEq /18.9 g/T AuEq
- US$485/Au oz Total Cost, net of Ag by-product
- US$932/Au oz Total Cost
Total Costs include all capital spent at the projects. The mineral reserves were calculated assuming $1,000/oz Au and $15.83/oz Ag, representing approximately 80% of the mineral resource price assumptions. Klondex intends to update the mineral resources and mineral reserves annually.
Klondex President and CEO, Paul Huet, said:
Our production is coming from what we believe to be two of the highest grade mines in North America. Fire Creek exhibits a gold mineral reserve grade of 1.28 opt extending over a 3.8 year mine plan. The mine plan confirms Fire Creek as a low cost gold project, flexible to metal prices, and with an undiscounted cash flow of $83.6 million. If we assume the same plan, and a $1,200 gold price, our cash flow increases by 39% to $115.9 million. Fire Creek’s free cash flow provides the funding to invest in its continued growth. We are confident that our ongoing exploration and development programs will demonstrate that Fire Creek is a world-class deposit.
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