Klondex Mines (KDX-T) Dec 3rd 2015 updates mineral reserves for its Fire Creek project and Midas mine in northern Nevada. The mineral reserves were calculated using $1,000/ounce gold and $15.83/ounce silver assumptions.
Highlights:
Total mineral reserves of 444,488 gold equivalent ounces ("GEOs"), an increase of ~19%, net of depletion;
Total Fire Creek mineral reserves of 321,324 GEOs, an increase of ~33%, net of depletion, at a grade of 1.34 opt AuEq, an increase of ~3%;
Total Midas mineral reserves decreased slightly by 7% due to lower grades, partially offset by higher tons.
KLONDEX MINERAL RESERVES
| | | | | | | | | | | | | | | | | | | Tons (000s) | | Au opt | | Ag opt | | AuEq opt | | Au Ounces (000s) | | Ag Ounces (000s) | | AuEq Ounces (000s) | | Fire Creek Project | | Proven Reserves | | 105.0 | | 2.055 | | 1.479 | | 2.098 | | 216.1 | | 155.5 | | 220.6 | | Probable Reserves | | 135.0 | | 0.730 | | 0.577 | | 0.747 | | 98.5 | | 77.8 | | 100.7 | | Proven and Probable | | 240.0 | | 1.311 | | 0.972 | | 1.339 | | 314.6 | | 233.4 | | 321.3 | | | | | | | | | | | | | | | | | | Midas Mine | | Proven Reserves | | 94.0 | | 0.284 | | 14.611 | | 0.510 | | 26.7 | | 1,374.3 | | 48.0 | | Probable Reserves | | 215.0 | | 0.210 | | 8.971 | | 0.349 | | 45.3 | | 1,930.4 | | 75.2 | | Proven and Probable | | 309.0 | | 0.233 | | 10.686 | | 0.398 | | 72.0 | | 3,304.8 | | 123.2 | | | | | | | | | | | | | | | | | | Klondex Totals | | Proven Reserves | | 199.0 | | 1.218 | | 7.682 | | 1.348 | | 242.8 | | 1,529.8 | | 268.6 | | Probable Reserves | | 350.0 | | 0.411 | | 5.733 | | 0.503 | | 143.8 | | 2,008.2 | | 175.9 | | Proven and Probable | | 549.0 | | 0.704 | | 6.439 | | 0.809 | | 386.6 | | 3,538.2 | | 444.5 | | | | | | | | | | | | | | | | |
Notes and Assumptions:
Proven and probable mineral reserves of 444,488 GEO's are contained within Measured and Indicated resources of 1,035,000 GEO's;
Mineral reserves have been estimated with a gold price of $1,000/ounce and a silver price of $15.83/ounce;
Metallurgical recoveries for gold and silver are 94% and 92% respectively;
Gold equivalent ounces are calculated based on 64.53 ounces of silver being equivalent to one ounce of gold;
Fire Creek Mineral Reserves are estimated at a cutoff grade of 0.312 Au opt and an incremental cutoff grade of 0.115 Au opt;
Midas Mineral Reserves are estimated at a cutoff grade of 0.282 Au opt and an incremental cutoff grade of 0.067 Au opt;
Mining losses of 5% and unplanned mining dilution of 10% have been applied to the designed mine excavations; and,
Fire Creek Mineral Reserves use an effective date of June 30, 2015; Midas uses an effective date of May 31, 2015.
Brian Morris, Vice President of Exploration, stated, "We continue to demonstrate our ability to unlock additional value imbedded in our assets. With only six months of drill results at Fire Creek and nine months of drill results at Midas, we have increased the Company's mineral reserves by 19%. Fire Creek continues to outperform our expectations as we not only increased total proven and probable GEOs, but the grade improved as well. And having tested only 7% of our land position, I expect that Fire Creek will continue to grow."
Mineral resources and mineral reserve estimates have been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's ("CIM") "CIM Definition Standards -- For Mineral Resources and Mineral Reserves" adopted by the CIM Council on May 10, 2014. Proven and probable mineral reserves are the economically minable portions of the measured and indicated mineral resources after the application of appropriate modifying factors. Such factors include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
The updated mineral reserves were prepared by Practical Mining, LLC.
For complete mineral resource assumptions from Fire Creek and Midas, with effective dates of June 30, 2015 and May 31, 2015, respectively, and a description of relevant drill sampling and procedures, please see the Company's press release dated September 16, 2015.
About Klondex Mines Ltd. ( www.klondexmines.com)
We are a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. We have 100% interests in two producing mineral properties: the Fire Creek project and the Midas mine and ore milling facility, both of which are located in the State of Nevada, USA. Fire Creek is located approximately 100 miles south of Midas.
Qualified Person
Scientific and technical information in this press release has been reviewed and approved by Brian Morris, a "qualified person" within the meaning of NI 43-101.
For More Information
John Seaberg
Senior Vice President, Investor Relations
O: 775-621-5512
M: 303-668-7991
jseaberg@klondexmines.com |
