Klondex Mines, Ltd. (OTC: KLNDF) engages in acquiring, exploring and developing gold and silver properties in Nevada. The company holds mineral interests in approximately 9,750 acres of land in the northern area of Nevada’s mining industry. Their principal property is the 100% owned Fire Creek property, which comprises 7,588 acres of fee simple and leasehold land along the Northern Nevada Rift in North Central Nevada. To date the property has produced in excess of 100 million ounces of gold with additional silver production as well.
Fire Creek is strategically located between the past producing Mule Canyon Mine to the north and the world-class Pipeline and Cortez gold deposits to the south. The property contains high-grade gold and silver mineralization, making it a compelling prospect for the company. The company had a contract with Aurenco Partners to develop and mine the property, but after ten years they opted out of the contract due to adverse conditions in the gold market, having spent $4.25 million on the project.
The company reached phase 6 of drilling at Fire Creek as they brought in three rigs (two core rigs and one reverse circulation rig) to work on the property. The drilling previously identified a number of new high-grade mineral intercepts, including new areas to the south, both confirming existing mineral data and providing evidence that should help to expand the overall mineral resource. Further results from prior drilling programs support this evidence as the company continues to work diligently on researching and analyzing the mineral make-up of properties. In total the company owns 367 claims in strategic locations elsewhere in the Battle Mountain and Carlin trends, plus a highly prized 8-claim group, the “Reef” claims, which are situated in Churchill County near Fallon, with each claim consisting of 20 acres.
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