Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) announced its Preliminary Economic Assessment for the Fire Creek Exploration Project near Elko, Nevada: total production of 280k ozs Au; 139k oz Ag, with an estimated $157.3 mm after-tax cash flow, a $141.5mm after-tax net present value at a 5% discount rate and a $128.3 mm after-tax NPV at a 10% discount rate.

Fire Creek Project Estimates Highlights at $1250/oz Gold:
All-in sustaining (including Ag by-product) $636/oz
Cash costs (including Ag by-product) $459/oz
LOM estimate 5 yrs
Average LOM gold grade 0.68 opt Au; 23.3 g/t Au
Average LOM silver grade 0.34 opt Ag; 11.7 g/t Ag
Total production 280k ozs Au; 139k oz Ag
Capital costs $49.6 mm
Pay-back period 0.5 yrs
After-tax cash flow $157.3 mm
After-tax 5% NPV $141.5 mm
Profitability Index (see definition: http://www.klondexmines.com/s/definitions.asp) 4.1

Klondex Mines President and CEO, Paul Huet, said:

The Fire Creek PEA represents a significant and encouraging milestone for Klondex. The PEA details an initial mine plan with immediate positive cash flows that have the potential to remain economic in low gold price environments. We believe Fire Creek is a unique project, and what sets it apart are the gold grades, short path to production, and the substantial exploration upside. The PEA establishes that our mining operation has the potential to be the cornerstone for our growth for many years.

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