Klondex Mines Releases Initial Mineral Reserves for Fire Creek and Midas

- February 23rd, 2015

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 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. The initial mineral reserve numbers at Fire Creek, “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.” says CEO Paul Huet; and regarding the Midas mine, “A 2.8 year reserve at the Midas Mine is a major milestone for Klondex. It provides us with the much needed time to pursue our exploration programs.”

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.

Click here to read the Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) press release
Click here to see the Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) profile.

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