🕐02.04.13 - 16:54 Uhr
KLONDEX SECURES TOLL MILLING AGREEMENT W/ VERIS GOLD FOR FIRE CREEK NEVADA PROJECT
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Klondex Mines is Successful in Achieving Major Milestone for 2013;
Finalizes Toll Milling Agreement with Veris Gold for Fire Creek Project
Vancouver, BC & Elko, NV - April 2, 2013- Klondex Mines Ltd.
(TSX: KDX or OTCQX:
KLNDF) ("Klondex") today announces that it has entered into a toll milling agreement
with Veris Gold Corp.
("Veris Gold") to process Klondex material from its Fire Creek
project near Elko, Nevada.
Under the terms of the agreement, Veris Gold will accept for processing, delivery
of the Fire Creek material to the Jerritt Canyon Mill, approximately 120 miles northeast
of Fire Creek.
Klondex will pay to Veris Gold the costs to mill and transport the
mineralized material and a toll-milling fee with quarterly adjustments reflecting
the change in contributing costs associated with processing of mineralized material.
All precious metals milled pursuant to the agreement will be the property of Klondex.The
total costs for shipping (transportation) and milling will be $148.50 per ton.
Klondex will receive the recoveries achieved by Veris Golds circuit.
Mike Doolin, General Manager of the Fire Creek project stated, "Im happy to report
we continue to gain momentum in the development of the Fire Creek gold project towards
a production decision via our bulk sampling program.
Finalizing this milling agreement
is another major step forward for us, and we are extremely pleased to be working
with the team at Veris Gold."
Paul Huet, Klondex Mines CEO commented, "The Nevada team delivers another important
milestone for Klondex; the group has a reputation of consistently delivering and
this is another great example.
2013 is a pivotal year for us as we continue to
de-risk the Fire Creek asset.
The excavation of the secondary egress, necessary
to begin our bulk sampling, is now 20% complete and is on-track to be commissioned
mid-June, 2013.
Now, through this milling agreement with Veris Gold, we have a place
to process mineralized material from Fire Creek.
I have had the opportunity to work
with this group at Veris Gold in the past and look forward to a continued relationship
with such a professional team."
Randy Reichert, Co-CEO and COO of Veris stated, "This second toll milling agreement
adds to our third party ore processing revenue stream and provides an excellent
additional source of ore as the Klondex team ramps up their mining operations into
2014.
This agreement will further reduce our costs by making use of the excess capacity
at the Jerritt Canyon Mill when we begin processing the Fire Creek ore in the third
quarter of 2013.
We look forward to working with yet another gold producing neighbour
in Nevada."
About Klondex Mines Ltd.
(www.klondexmines.com):
Klondex Mines is focused on the exploration and development of its Fire Creek gold
deposit in North Central Nevada.
Fire Creek is a compelling gold mining prospect
located in a region of prolific gold production that is near power, transportation,
mining infrastructure and several milling facilities.
As of March 25, 2013 Klondex
had 64.4 million shares issued and outstanding, and 85.3 million shares on a fully
diluted basis.
Contact:
Paul Huet Alison Tullis
Toni Trigiani
President & CEO Manager, Investor Relations Investor
Relations
Klondex Mines Ltd.
Klondex Mines Ltd.
Catalyst Global
LLC
807-939-2841 647-233-4348 212-924-9800
[mailto:]
[mailto:] [mailto:]
Forward-looking Information
This news release contains forward-looking information, including about current
expectations on the timing of project development.
This forward-looking information
entails various risks and uncertainties, are based on current expectations, are
subject to a number of uncertainties and risks, and actual results may differ materially
from those contained in such information.
These uncertainties and risks include,
but are not limited to, the strength of the global economy; the price of gold;
operational, funding and liquidity risks; the degree to which mineral resource estimates
are reflective of actual mineral resources; the degree to which factors which would
make a mineral deposit commercially viable are present; the risks and hazards associated
with underground operations.
Risks and uncertainties about the Companys business
are more fully discussed in the Companys disclosure materials filed with the securities
regulatory authorities in Canada and available at www.sedar.com.
Readers are urged
to read these materials.
Klondex assumes no obligation to update any forward-looking
information or to update the reasons why actual results could differ from such information
unless required by law.
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