Klondex Provides Exploration Update at Hollister

Table 1

VANCOUVER, BC--(Marketwired - October 11, 2016) - Klondex Mines Ltd. (KDX.TO) (NYSE MKT: KLDX) ("Klondex"or the "Company") is pleased to provide an update on recent and historic exploration results at its Hollister Mine in Nevada (see FIGURE 1).

Gloria West Drilling Highlights: (see TABLE 1 below)

  • GLOR15-034: 4.18 opt AuEq over 8.4 ft, or 143.3 g/t over 2.6 m
    • Including 18.36 opt AuEq over 1.7 ft, or 629.6 g/t over 0.5 m
  • GLOR14-001: 2.42 opt AuEq over 2.2 ft, or 83.1 g/t over 0.7 m
  • GLOR14-001: 3.63 opt AuEq over 0.5 ft, or 124.3 g/t over 0.2 m
  • GLOR15-006: 3.59 opt AuEq over 1.1 ft, or 123.0 g/t over 0.3 m
  • GLOR15-010: 1.39 opt AuEq over 7.2 ft, or 47.8 g/t over 2.2 m
    • Including 2.48 opt AuEq over 3.3 ft, or 85.2 g/t over 1.0 m
  • GLOR15-011: 2.20 opt AuEq over 1.4 ft, or 75.6 g/t over 0.4 m
  • GLOR15-020: 1.43 opt AuEq over 4.1 ft, or 48.9 g/t over 1.2 m
    • Including 8.07 opt AuEq over 0.7 ft, or 276.7 g/t over 0.2 m
  • GLOR15-025: 3.85 opt AuEq over 0.6 ft, or 132.0 g/t over 0.2 m
  • GLOR15-026: 2.20 opt AuEq over 2.5 ft, or 75.32g/t over 0.8 m
  • GLOR15-032: 3.74 opt AuEq over 1.7 ft, or 128.2 g/t over 0.5 m

A total of 36 underground holes totaling 17,998 ft. (5,486 m) were drilled in 2014 and 2015 by the prior owner and were not previously released. These holes encountered multiple veins and extended the Gloria vein system approximately 800 ft to the West and approximately 300 ft vertically. The Gloria vein system remains open up and down dip and along strike to the West. Klondex intends to infill drill the Gloria vein system in Q4 2016 to develop a Mineral Resource estimate and continue stepping out to the West (see FIGURE 2).

Hatter Graben Historical Drilling Highlights:

  • H8-264: 0.54 opt Au over 7.8 ft, or 18.6 g/t over 2.4 m (est. true width of 5.5 ft, or 1.7 m)
  • H8-269: 1.77 opt Au over 2.1 ft, or 60.7 g/t over 0.6 m (est. true width of 1.5 ft, or 0.5 m)
  • H8-274: 7.8 opt Au over 1.4 ft, or 268.0 g/t over 0.4 m (est. true width of 1.0 ft, or 0.3 m)
  • H8-281: 1.4 opt Au over 2.3 ft, or 48.0 g/t over 0.7 m (est. true width of 1.3 ft, or 0.4 m)
  • H8-285: 0.47 opt Au over 12.5 ft, or 16.0 g/t over 3.8 m (est. true width of 8.8 ft, or 2.7 m)

The historic drilling program was conducted in 2008. Three holes did not render any significant results. This surface exploration drill program discovered the Hatter Graben vein system, an east-west trending structural zone containing several sub-parallel high grade veins. Results of this program indicate the system is approximately 1,800 ft (~550 m) in strike and approximately 1,200 ft (365 m) vertical extent and open in all directions. Klondex intends to infill the widely spaced drill holes from surface to develop a Mineral Resource estimate.

Mr. Paul Huet, President and CEO commented, "We are extremely excited to be reunited with this important asset. Several members of the Klondex team have significant experience with and knowledge of Hollister. We believe the Gloria and the Hatter Graben zones have significant exploration potential." Mr. Huet continued, "We have successfully completed the consolidation of Fire Creek, Midas and Hollister, three high grade underground mines servicing one central mill at Midas, providing a unique opportunity to capture significant synergies among these operations. This has been a long-term vision and we are extremely proud of our team to be the company to finally accomplish this goal."

To the knowledge of Klondex, vein samples were analyzed by either metallic screen or standard fire assay procedures and QA/QC results were within acceptable limits. Assays were performed by ALS Chemex of Reno, Nevada, an ISO 17025 accredited independent laboratory. The historical data was verified by Klondex's technical team led by Brian Morris, Vice President of Exploration of Klondex and a "qualified person" within the meaning of National Instrument 43-101 ("NI 43-101").

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly the Rice Lake Mine) and mill in Manitoba, Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora (formerly known as Esmeralda) mine and ore milling facility, also located in Nevada, USA.

Qualified Person
Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a "qualified person" within the meaning of NI 43-101.

Cautionary Note Regarding Forward-looking Information
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, "forward-looking information"), including but not limited to the exploration potential at the Hollister Mine, future exploration plans of Klondex and any synergies that may be captured by Klondex as a result of the consolidation of Fire Creek, Midas and Hollister. 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 Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada and United States available at www.sedar.com and www.sec.gov, respectively. 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.

...
 
TABLE 1: Gloria West Drill Program - Complete Results            
Hole ID   Azi   Incl   TD   From   To   Length   Au Grade   Ag Grade   AuEq Grade   From   To   Length   Au Grade   Ag Grade   AuEq Grade    
(ft)   (ft)   (ft)   (ft)   (oz/st)   (oz/st)   (oz/st)   (m)   (m)   (m)   (g/Tonne)   (g/Tonne)   (g/Tonne)   Vein
GLOR14-001   357   -45   1244   897.5   900.0   2.5   1.187   3.44   1.235   273.6   274.3   0.8   40.69   118.09   42.33   Gloria
and               1006.0   1007.4   1.4   0.338   6.92   0.434   306.6   307.1   0.4   11.60   237.19   14.89   Gloria
and               1046.0   1048.5   2.5   1.694   2.55   1.730   318.8   319.6   0.8   58.09   87.27   59.30   Gloria
and               1056.0   1061.0   5.0   0.246   0.72   0.256   321.9   323.4   1.5   8.42   24.77   8.76   Gloria
and               1102.5   1103.4   0.9   0.428   4.23   0.487   336.0   336.3   0.3   14.68   145.11   16.70   Gloria
and               1148.8   1151.0   2.2   2.168   18.36   2.422   350.2   350.8   0.7   74.32   629.50   83.05   Gloria
and               1158.5   1161.0   2.5   0.965   5.55   1.042   353.1   353.9   0.8   33.08   190.15   35.72   Gloria
and               1186.7   1187.2   0.5   3.363   19.00   3.626   361.7   361.9   0.2   115.29   651.52   124.33   Gloria
                                                                 
GLOR14-002   347   -45   1334   968.0   969.8   1.8   0.638   1.30   0.656   295.0   295.6   0.5   21.86   44.40   22.48   Gloria
and               1031.3   1032.4   1.1   2.456   8.99   2.580   314.3   314.7   0.3   84.12   308.00   88.39   Gloria
and               1110.9   1112.5   1.6   0.864   1.00   0.878   338.6   339.1   0.5   29.60   34.30   30.07   Gloria
and               1183.6   1186.2   2.6   0.525   1.39   0.544   360.8   361.6   0.8   17.98   47.72   18.64   Gloria
incl               1183.6   1184.3   0.7   1.471   3.33   1.517   360.8   361.0   0.2   50.39   114.00   51.97   Gloria
                                                                 
GLOR15-003   22   39   413   293.2   294.5   1.3   0.820   10.20   0.961   89.4   89.8   0.4   28.13   319.00   32.55   Gloria
                                                                 
GLOR15-004   18   0   380   192.5   194.8   2.3   1.825   1.67   1.848   58.7   59.4   0.7   62.57   57.20   63.37   Gloria
and               261.5   263.1   1.6   0.157   1.30   0.175   79.7   80.2   0.5   5.39   44.40   6.01   Gloria
and               320.5   321.0   0.5   3.439   13.20   3.622   97.7   97.8   0.2   117.92   413.00   123.65   Gloria
and               357.2   358.3   1.1   0.132   27.70   0.516   108.9   109.2   0.3   4.53   866.00   16.54   Gloria
                                                                 
GLOR15-005   20   -24   380   212.0   212.7   0.7   1.534   1.55   1.556   64.6   64.8   0.2   52.59   53.20   53.33   Gloria
and               289.7   290.2   0.5   0.113   0.22   0.116   88.3   88.5   0.2   3.86   7.60   3.97   Gloria
and               303.0   306.0   3.0   0.332   3.00   0.374   92.4   93.3   0.9   11.40   100.00   12.78   Gloria
                                                                 
GLOR15-006   17   46   425   238.2   238.7   0.5   1.332   6.00   1.415   72.6   72.8   0.2   45.66   218.00   48.68   Gloria
and               270.0   271.1   1.1   3.542   3.30   3.588   82.3   82.6   0.3   121.45   109.00   122.97   Gloria
and               331.8   332.4   0.6   0.531   1.53   0.552   101.1   101.3   0.2   18.20   52.50   18.93   Gloria
                                                                 
GLOR15-007   18   34   401   182.5   184.9   2.4   0.645   0.62   0.654   55.6   56.4   0.7   22.13   21.30   22.43   Gloria
and               270.2   271.4   1.2   0.153   20.30   0.434   82.4   82.7   0.4   5.25   695.00   14.89   Gloria
                                                                 
GLOR15-008   21   15   379   247.2   247.7   0.5   0.123   9.20   0.251   75.3   75.5   0.2   4.20   316.00   8.58   Gloria
and               260.0   260.5   0.5   0.137   2.16   0.167   79.2   79.4   0.2   4.69   74.10   5.72   Gloria
and               324.6   325.1   0.5   0.200   8.90   0.323   98.9   99.1   0.2   6.87   304.00   11.09   Gloria
                                                                 
GLOR15-009   18   -11   430   146.7   147.4   0.7   0.671   0.57   0.679   44.7   44.9   0.2   23.00   19.40   23.27   Gloria
and               162.4   163.6   1.2   0.224   0.21   0.227   49.5   49.9   0.4   7.67   7.30   7.77   Gloria
and               272.0   275.3   3.3   0.240   0.95   0.254   82.9   83.9   1.0   8.24   32.64   8.69   Gloria
and               279.4   280.2   0.8   0.170   12.80   0.347   85.2   85.4   0.2   5.84   440.00   11.94   Gloria
                                                                 
GLOR15-010   19   40   426   147.3   154.5   7.2   1.319   5.41   1.394   44.9   47.1   2.2   45.22   184.98   47.79   Gloria
incl               147.3   150.6   3.3   2.340   10.38   2.484   44.9   45.9   1.0   80.23   355.00   85.16   Gloria
and               272.8   276.6   3.8   0.500   16.96   0.735   83.1   84.3   1.2   17.12   582.42   25.20   Gloria
                                                                 
GLOR15-011   18   26   377   134.9   136.0   1.1   2.110   4.60   2.174   41.1   41.5   0.3   72.33   157.00   74.50   Gloria
and               236.3   237.7   1.4   2.164   2.88   2.204   72.0   72.5   0.4   74.19   98.80   75.56   Gloria
and               243.7   244.4   0.7   0.113   0.33   0.118   74.3   74.5   0.2   3.88   11.40   4.04   Gloria
and               337.0   338.0   1.0   0.424   4.20   0.482   102.7   103.0   0.3   14.53   144.00   16.53   Gloria
                                                                 
GLOR15-012   19   -21   350           No Significant Intercepts               No Significant Intercepts        
                                                                 
GLOR15-013   355   4   328   93.9   95.0   1.1   0.495   0.58   0.503   28.6   29.0   0.3   16.97   19.90   17.25   Gloria
and               178.0   179.8   1.8   0.266   0.28   0.270   54.3   54.8   0.5   9.12   9.70   9.26   Gloria
and               241.7   243.0   1.3   1.083   2.06   1.112   73.7   74.1   0.4   37.13   70.50   38.11   Gloria
                                                                 
GLOR15-014   14   46   425   70.0   71.3   1.3   0.572   0.93   0.585   21.3   21.7   0.4   19.60   31.90   20.04   Gloria
and               242.1   245.6   3.5   0.695   2.62   0.731   73.8   74.9   1.1   23.82   89.74   25.06   Gloria
incl               244.5   245.6   1.1   1.384   3.70   1.435   74.5   74.9   0.3   47.46   127.00   49.22   Gloria
and               305.0   305.6   0.6   1.126   4.55   1.189   93.0   93.1   0.2   38.60   156.00   40.76   Gloria
                                                                 
GLOR15-015   12   27   381   54.5   55.5   1.0   0.620   0.72   0.630   16.6   16.9   0.3   21.26   24.60   21.61   Gloria
and               190.9   192.5   1.6   0.178   1.36   0.197   58.2   58.7   0.5   6.10   46.60   6.75   Gloria
and               257.9   262.7   4.8   0.349   3.83   0.403   78.6   80.1   1.5   11.99   131.27   13.81   Gloria
and               269.7   273.7   4.0   0.526   3.78   0.579   82.2   83.4