🕐23.04.14 - 12:54 Uhr
KLONDEX ENTERS INTO TOLL MILLING AGREEMENT WITH FRENCH GULCH
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Klondex Enters into Toll Milling Agreement with French Gulch
Vancouver, BC - April 23, 2014 - Klondex Mines Ltd.
(TSX: KDX; OTCQX: KLNDF) announces
that its subsidiary, Klondex Midas Operations, today entered into a toll milling
agreement with French Gulch Nevada Mining Corp.
to process gravity concentrates
produced from the Washington Mine at Klondexs Midas mill.
Mike Doolin, Klondex VP Corporate Development stated, "This is a mutually beneficial
agreement for both parties.
Processing third party material makes excellent use
of the excess capacity at the Midas Mill.
Toll milling provides the Company with
additional revenue, which will increase the cash flow from the operations."
The toll milling agreement with French Gulch Nevada Mining Corp has a one-year term
beginning April 17, 2014, and is subject to be renewed annually.
Under the terms
of the agreement, gravity concentrates from the Washington Mine, located in French
Gulch, California, will be delivered to the Midas Mill for processing.
The toll
milling agreement is structured so that all dore produced from the concentrate
will become the property of Klondex, and Klondex will pay French Gulch the value
of the recovered gold minus all toll mill charges.
Klondex is presently evaluating other toll milling opportunities to determine which
materials are best suited to being processed at the Companys Midas Mill.
About Klondex Mines Ltd.
(www.klondexmines.com)
Klondex Mines is focused on the exploration, development and production of its high
quality gold and silver projects.
The company is operating an ongoing bulk sampling
program at its Fire Creek gold project located in north central Nevada.
Fire Creek
is in a mining-friendly jurisdiction, with onsite power and mining infrastructure,
and near major producers.
Midas, Klondexs newly acquired operating mine and milling
facility are located ~100 miles north of Fire Creek.
For More Information:
Klondex Mines Ltd.
Paul Huet
President & CEO
775-284-5757
Alison Tullis,
Manager, Investor Relations
647-233-4348
Cautionary Note Regarding Technical Information and Forward-looking Information
A production decision at the Midas mine was made by prior owners of the mine, prior
to the completion of the acquisition of the Midas mine by Klondex.
To the knowledge
of Klondex, this production decision was not based on a feasibility study of mineral
reserves demonstrating economic and technical viabilityprepared in accordance with
NI 43-101 but was based on internal studies conducted by the prior owner of the
mine.
Klondex has no reason to believe that the data on which such studies were
based or that the results of such studies are unreliable.
However, readers are cautioned
that there is increased uncertainty and higher risk of economic and technical failure
associated with such production decisions.
This news release contains certain information that may constitute forward-looking
information under applicable Canadian securities legislation, including but not
limited to information about the ability to generate revenue from the provision
of toll milling services to third parties, the impact of toll milling on the Companys
cash flows and the availability of potential toll milling opportunities.
This forward-looking
information entails various risks and uncertainties that are based on current expectations,
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; and the
ability of Klondex to fund its substantial capital requirements and 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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Klondex Mines Ltd.
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Suite 600, 595 Howe Street, Vancouver, BC
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