Klondex Mines encouraged by Hollister mine drilling and development work

Klondex Mines Ltd (NYSE:KLDX, TSE:KDX) has reported encouraging drill results from its Hollister mine project, as it updated on other development work at the property in Nevada.

The firm said 39 underground holes were sunk at the Gloria zone.

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The aim was to infill pre-existing drill holes to increase the density in this area, and to produce an initial resource estimate for the Gloria vein system – expected in the second quarter.

Highlight assays include 4.18 opt (ounces per ton) of gold equivalent over 4ft, or 143.3 g/t (grams per ton) over 1.2 metres. Also unearthed was 12.96 opt (ounces per ton) of gold equivalent over 1.4 feet (ft)

Brian Morris, Klondex’s senior vice president of exploration, said: “We are seeing excellent grades and widths in the drill results which are consistent with what was historically mined in the main Hollister Mine.

“Moreover the mineralized vertical extent appears to be similar to the Main Hollister workings.”

Work at Hollister has included the rehabilitation of around 4,000 feet of underground workings in the main zone, and the repair of the dewatering system, ventilation system, electrical sub-station and underground mobile equipment

Klondex said it was actively developing the Gloria vein system including around 1,025 feet and 2,600 feet of waste and ore development, respectively.

Klondex acquired the Hollister mine in Elko County last summer.

It described it as a “very well preserved” low-sulfidation, epithermal gold-silver deposit.

Over 115,000 ounces of volcanic-hosted, low-grade gold were extracted from two open pits, while later drilling led to Paleozoic basement rocks, which have produced over 450,000 ounces of gold and over 2.5 million ounces of silver.

Story by ProactiveInvestors