Klondex Mines Begins Drifting on new Karen Vein at Fire Creek

VANCOUVER - Klondex Mines Ltd. reported that it began initial drifting at its Fire Creek Project, in north central Nevada, on the Karen Vein, located 150 ft. west of the main decline, parallel to the Joyce Vein and Vonnie Vein. This structure is one of the western veins initially discovered in 2013 during development work on the secondary egress. In addition, nine drill holes were drilled to the west of the decline with the intent to define and extend the Karen Vein and test for additional paralleling structures in this zone.

To date, 82 ft. of exploration development has been completed along strike of the Karen Vein. The weighted average grade of samples from the Karen Vein is 2.18 opt Au with an average width of 1.5 ft. This information was derived from face samples ranging from 0.14 opt Au to 5.1 opt Au.

Brent Kristof, Klondex Mines COO, commented, "This is very encouraging news for Fire Creek because it is further evidence of the asset's considerable potential and a classic example of how additional mineralization is typically discovered during underground development in these epithermal vein systems. These initial results further support our theory that Fire Creek is under drilled. The addition of the Karen Vein provides us additional flexibility to execute the 2014 mine plan. At this stage, we do not know how many ounces will result but are encouraged by the fact that a mineralized vein is visible on the North and South Faces. We will continue to extend the drift along strike while our drills define the vertical extensions."