• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login

    Investing News NetworkYour trusted source for investing success

    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Precious Metals Market
    Precious Metals News
    Precious Metals Stocks
    • Precious Metals Market
    • Precious Metals News
    • Precious Metals Stocks
    gold investing

    Drill Tracker Weekly: Klondex Drilling Tests Historic High-grade Zones Outside Existing Reserves at Midas

    Wayne Hewgill
    Apr. 14, 2015 12:45PM PST
    Precious Metals

    Klondex Mines announced results from infill and step-out drilling at the 100-percent-owned Midas mine in Northern Nevada.

    Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

    Klondex Mines (TSX:KDX)

    Price: $2.70

    Market cap: $303 million

    Cash estimate: $43 million

    Project: Midas

    Country: Nevada, US

    Ownership: 100 percent

    Resources: proven and probable reserves of 242,000 tonnes at 18.8 g/t gold

    Project status: mining since 1988

    Image courtesy of Big Charts.

    • Klondex Mines announced results from infill and step-out drilling at the 100-percent-owned Midas mine in Northern Nevada. Klondex acquired the Midas mine and mill facility from Newmont Mining (NYSE:NEM) for US$55 million in cash, 5 million warrants and the assumption of a US$28-million reclamation bond. The mine and mill is fully permitted with three years of tailings capacity; an expansion permit is expected in Q3 2015. Franco-Nevada (TSX:FNV,NYSE:FNV) holds a 2.5-percent net smelter royalty (NSR) starting in 2019.
    • Highlights from underground drilling include 1.5 meters grading 280.3 g/t gold and 2.1 meters of 41.6 g/t gold in the 505 vein (uncut). Additional drilling in the 905 vein intersected 1.3 meters grading 108.3 g/t gold. The objective of the current 7,600-meter underground drilling program is to test gaps in the existing reserve and follow up on historic drill results from additional vein systems outside of the current resource outline.
    • The Midas mine currently has proven and probable reserves of 242,000 tons grading 18.8 g/t gold with a remaining mine life of 2.8 years. In Q3 2014, the mine reported production costs of US$613 per gold equivalent ounce.
    • The acquisition of the Midas mill provided Klondex with a path to a relatively quick start up for its 100-percent-owned Fire Creek project, located 180 kilometres to the south. The 90-percent-permitted Fire Creek deposit has proven and probable reserves of 185,800 tons grading 1.3 ounces per ton gold (44.6 g/t gold equivalent). Shipping costs between Fire Creek and Midas are expected to be $34 per ton ore. The total operating costs for Fire Creek are projected at $492 per ounce gold net of silver by-product.

    Development history (Newmont 1998 to 2013): past production at Midas mine of approximately 2 million ounces gold; Klondex acquired the Midas mine and mill facility in December 2013 for US$83 million

    Current holes: 1.5 meters at 280.3 g/t gold; 2.1 meters at 41.6 g/t gold; 1.3 meters at 108.3 g/t gold

    Risks Analysis

    Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

    Relevant Disclosures Applicable to: Drill Tracker Weekly

    1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following company: Fission Uranium Corp. (TSX.FCU)
    2. Integra Gold Corp. (ICG) is currently under coverage at Mackie Research Capital by analyst Peter Campbell
    3.  In March 2014, Peter Campbell visited the Lamaque Gold Project in Val-d’Or, Québec. Travel to and from the site in Val d’Or were paid by Integra Gold Corp. 

    Analyst Certification

    I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. 

    Editorial Disclosure: Klondex Mines is a client of the Investing News Network. This article is not paid-for content. 

    klondex minesdrill resultsmine lifemackie research capitalgold investingfission uranium corp
    The Conversation (0)
    Go Deeper
    AI Powered

    Drill Tracker Weekly: Callinex Confirms Historical Drilling at Pine Bay Copper Project

    TSX:III

    Drill Tracker Weekly: Skeena Extends Mineralization to Depth at Spectrum

    Latest News

    Pinnacle Increases Non-Brokered Private Placement

    Metals & Mining Virtual Investor Conference: Presentations Now Available for Online Viewing

    Metals & Mining Virtual Investor Conference: Presentations Now Available for Online Viewing

    Quarterly Activities/Appendix 5B Cash Flow Report

    Music Well Heritage Protection Agreement Signed

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Precious Metals Stocks

    LaFleur Minerals

     
    LFLR:CNX

    Pacgold

     
    PGO:AU

    Surface Metals

     
    SUR:CC

    Maritime Resources

     
    MAE:CC

    Triumph Gold

     
    TIG:CA

    Quimbaya Gold

     
    QIM:CC
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×