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Klondex Mines Gold Upgrade Shows Yet More Potential To Be Unlocked

|Includes: Klondex Mines Ltd. (KLDX)


Klondex Mines (TSE:KDX, OTCMKTS:KLNDF) told investors it continues to unlock the potential of the Fire Creek and Midas mines, in Nevada, as it unveiled resource upgrades to both projects this morning.

In Toronto, Klondex shares advanced around 2% on Wednesday morning, as the stock traded up to $3.30.

Measured and Indicated gold resources at Fire Creek increased by 13% net of mining depletion to 473,300 ounces, the company said, while inferred gold resources rose 22% to 441,500 ounces.

This resource comes whilst the vast majority of the Fire Creek area remains unexplored.

At Midas, meanwhile, measured and indicated resources net of depletion increased by 7% - 35,600 ounces - to 561,600 ounces and inferred gold ounces reduced 8% to 267,500.

The new assessments are based on additional data from 147 holes (15,050 metres) drilled at Fire Creek in 2015, and 145 new holes (for a total of 25,984 metres) at Midas.

Paul Huet, Klondex chief executive, in a statement, said: "I am pleased that our 2015 exploration and development programs are performing as expected; invest the necessary capital to replace depletion and extend the mine life of our assets on an annual basis.

"We are just beginning to understand the true potential of these assets, particularly at Fire Creek where ~93% of our land package remains untested.

"With the rest of the year's exploration and development programs still ahead of us, we are excited about continuing to unlock the true potential of these deposits."

Klondex, last week, raised C$26.3mln of new equity through a share placing. The cash proceeds are earmarked for debt repayment as well as working capital purposes.

Previously, in August, it revealed record gold production volumes - with just under 26,700 ounces of gold coming from Fire Creek and Midas, as well as just under 472,500 ounces of silver.