KLONDEX MINES LTD. TSX: KDX; OTC: KLNDF) is a gold exploration company focused on the continued development and expansion of its high-grade "Fire Creek" deposit in North Central Nevada.  Through an active program of drilling over more than six years, Klondex has defined a 43-101 compliant indicated gold equivalent resource reviewed in the following table.  Of particular note, Klondex's gold equivalent resource is 98.3% gold and 1.7% silver, in stark comparison to many resources that have high concentrations of base metals.  

But in case over $2 billion of gold in the ground doesn't get your interest (with a market cap under $50 million), Klondex has initiated an underground program that will enable it to initiate production under a bulk sampling permit as well as commence in-fill confirmation drilling from underground stations.  In March 2007 Klondex filed for permits for its underground program and in December 2009 it received approvals from the U.S Bureau of Land Management.  The remaining State approvals are anticipated by June and initiation of the underground access and decline is targeted for July 2010.

The permits will enable Klondex to produce and process up to 36,500 tons of ore per year, with a limit of 120,000 tons.  Klondex will focus on ore containing one ounce per ton or more, giving the bulk sampling process a potential production of 120,000 ounces or in excess of $120 million dollars at current gold prices.  In addition, the underground program will allow Klondex to further confirm its resource via underground drilling which is far more cost effective than drilling long holes from the surface.  The company is working on various financing approaches including debt, gold linked debentures and or common equity to fun the underground program's estimated $19 million in costs.  Once bulk sampling is commenced, the company expects to be profitable and self funding and will enable it to pursue full scale mining permits.

In summary, Klondex represents an investment in a high-grade Nevada gold deposit with over 2mm ounces of resource and the initiation of underground operations and  production under a bulk sampling authorization.    Klondex believes that progress toward its production and exploration goals will deliver substantial value to its shareholders, making this an opportune time to take a closer look.

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Blane Wilson of Klondex Mines Ltd. talks about the company's projects that include a gold property in Nevada that should open production in 2011. 

Properties

Klondex Mines' property portfolio contains four gold exploration properties, covering over 12,615 aceres or 19.7 square miles.   Following are descriptions of our major holdings:

Fire Creek | Maggie Creek | Hot Springs Point | Reef 

Management & Board of Directors
William J. Solloway - President and Director, Member of Audit and Compensation Committees.
Barrister/Solicitor; Investor; Corporate Director.
Blane W. Wilson - Executive Mining Advisor, Nevada Operations
Robert Sibthorpe - Technical Director, Member of Audit and Compensation Committees
James L. Balagna III - Senior Geologist
Richard Kern - Consulting Geologist (MinQuest)
Jorge Avelino - Chief Financial Officer since July 2004
Brendan Donohoe - Treasurer since 1997; Director since 2007
Bryson Goodwin - Director, Investor Relations
Ronald Shorr, CFA - Director
Dr. Weiguo Lang - Director

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