More gold in new and old places for Klondex

Klondex Mines (KDX-T) continues to find new mineralized zones at its Fire Creek property in North Central Nevada

The company says it has found a new high-grade vein 150 metres south of the southern end of the Far North resource as an RC drill hole returned 10.76 grams gold over a true width of 6.1 metres, including 41.25 grams over 1.2 meters true width.

In all, the company says its 2010 drill program hit upon 10 new high-grade intercepts.

In addition to the new zone Klondex is also expanding mineralization in the Main zone as it has found new gold-bearing shears greater than 5 grams gold just north of Main zone and southwest of New North zone.

Concurrent with the new discoveries came impressive results from in-fill drilling at the Main zone as it yielded the highest gold assays of the year at 43.16 grams per tonne over a true width of 2.4 metres, including 75.85 grams gold and 207 grams silver over 1.2 metres.

And while the company has already had considerable success on the property, it doesn’t think its done finding gold.

“There are numerous IP and other targets still to pursue, and we also plan to drill a few deeper holes from surface to test our vein systems at depth,” Blane Wilson, Klondex’ president and chief operating officer said in a statement.

Klondex plans to resume surface exploration this spring after the snow melts.

The company also said it is on-track to start an underground exploration and bulk sampling program in March. Provided the remaining permits come in on-time it will be able to start its first bulk sample in the fourth quarter of this year.

If it does, it will help realized the company’s plan of building itself into an exploration and gold producing hybrid via production from bulk sampling.

Fire Creek currently has indicated resources of 5 million tonnes grading 10.11 equivalent grams of gold for 1.6 million equivalent ounces and an inferred resource of 1.8 million tonnes grading 8.63 grams gold for 508,799 equivalent gold ounces.

In Toronto on Feb. 15, Klondex shares were up 9¢ or 2.5% to $3.70 on 159,000 shares traded.