By Deborah Bacal
Proactive Investors
Klondex Mines provided investors Monday with an update on its underground development and toll milling programs — from which it yielded almost $2 million so far — as well as the results of the metallurgical test work from its Fire Creek project in Nevada as the company prepares for initial production.
As a first step to unlocking value, it has been undertaking an underground development program at the Joyce and Vonnie structures on the property as a way to monetize its high grades, with Klondex having toll milling agreements in place with both and Veris Gold to treat the material.
In the release Monday, Klondex said that toll milling of the property’s first lot is complete, with final receivables totaling $1.97 million, sold at an average gold spot price of US$1,332 an ounce. Processing of the first lot comprised 1,055 dry tonnes, at an average head grade of 50.7 grams per tonne (g/t). Milling of the second lot, which is comprised of 1,812 tonnes, started earlier this month.