KLONDEX MINES LTD - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - PRESS RELASED DATED MAY 3, 2017 - May 2, 2017

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Klondex Announces Project Development and Drilling Updates at Hollister; Intercepts 12.96 AuEq opt over 1.4 Feet


Reno, NV - May 3, 2017- Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE MKT) (“Klondex” or the “Company”) is pleased to provide an update on project development activities and underground drilling at its Hollister Mine (“Hollister”) located in northern Nevada, USA. These drill results will be included in the Company’s initial mineral resource estimate scheduled to be released in the second quarter.

Project Development Highlights:
•
Rehabbed approximately 4,000 feet of underground workings in the main zone
•
Replaced approximately 4,000 feet of air and water lines
•
Repaired the dewatering system, ventilation system, electrical sub-station and underground mobile equipment
•
Actively developing the Gloria vein system including approximately 1,025 feet and 2,600 feet of waste and ore development, respectively
•
Initial mineral resource estimate for the Gloria vein system in the second quarter

Gloria Vein System Underground Drilling Highlights: (see TABLE 1 for complete results)
•
G17-041: 12.96 opt AuEq over 1.4 ft., or 444.3 g/t over 0.4 m
•
G17-044: 4.18 opt AuEq over 4.0 ft., or 143.3 g/t over 1.2 m
•
G16-021: 2.57 opt AuEq over 1.6 ft., or 88.1 g/t over 0.5 m
•
G16-018: 1.35 opt AuEq over 4.3 ft., or 46.3 g/t over 1.3 m
•
G16-010: 0.75 opt AuEq over 4.2 ft., or 25.7 g/t over 1.3 m

KEY POINTS:
Thirty Nine underground core holes totaling 14,656 ft. (4,467 m) were drilled during this reporting period.

The intent of this drill program was to infill the pre-existing drill holes to increase the drill hole density in the Gloria zone. This will allow the Company to produce an initial mineral resource estimate for the Gloria vein system, which is expected to be released in the second quarter.

Mr. Brian Morris, Senior Vice President, Exploration said, “We are seeing excellent grades and widths in the drill results which are consistent with what was historically mined in the main Hollister Mine.” Mr. Morris continued, “Moreover the mineralized vertical extent appears to be similar to the Main Hollister workings.”

Assays were performed by American Assay of Sparks, Nevada, as directed under the supervision of Klondex staff. This organization is an ISO 17025 accredited independent laboratory. Underground drill core samples were assayed using a fire assay one-assay ton method with an ICP finish. If initial Au assays were > 5ppm or Ag was > 200ppm the sample is re-assayed with a gravimetric finish. The quality control and assurance program included the insertion of standards and blanks, the retention of pulps and rejects. The core lengths are actual lengths as drilled and were not adjusted for the true width of the mineralized zones.

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TABLE 1
Hole ID
Azi
Incl
TD
From
To
Length
Au Grade
Ag Grade
AuEq Grade
 
TD
From
To
Length
Au Grade
Ag Grade
AuEq Grade
 
 
 
(ft)
(ft)
(ft)
(ft)
(Au oz/st)
(Ag oz/st)
(oz/st)
 
(m)
(m)
(m)
(m)
(Au g/Tonne)
(Ag g/Tonne)
(g/Tonne)
G16-001
8
48
500
 
 
No Significant Intercept
 
 
 
 
152.4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-009
5
50
500
201.0
203.5
2.5
0.328
9.80
0.464
 
152.4
61.3
62.0
0.8
11.25
336.00
15.90
and
 
 
 
298.5
299.5
1.0
0.233
2.75
0.271
 
 
91.0
91.3
0.3
7.99
94.29
9.30
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-010
20
42
447
218.0
222.2
4.2
0.592
11.40
0.750
 
136.2
66.4
67.7
1.3
20.30
390.86
25.72
and
 
 
 
236.0
237.0
1.0
0.140
0.84
0.151
 
 
71.9
72.2
0.3
4.79
28.80
5.19
and
 
 
 
314.4
315.7
1.3
0.136
1.33
0.154
 
 
95.8
96.2
0.4
4.66
45.70
5.29
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-011
20
26
429
186.7
187.5
0.8
0.319
3.10
0.362
 
130.8
56.9
57.2
0.2
10.94
106.29
12.41
and
 
 
 
187.5
189.0
1.5
0.642
2.00
0.670
 
 
57.2
57.6
0.5
22.01
68.60
22.96
and
 
 
 
274.0
275.0
1.0
0.319
4.20
0.377
 
 
83.5
83.8
0.3
10.94
144.00
12.93
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-013
12
38
402
332.5
333.5
1.0
0.185
2.30
0.217
 
122.5
101.3
101.7
0.3
6.34
78.89
7.44
and
 
 
 
95.5
97.0
1.5
0.264
0.70
0.274
 
 
29.1
29.6
0.5
9.05
24.10
9.39
and
 
 
 
222.7
227.6
4.9
1.521
1.62
1.543
 
 
67.9
69.4
1.5
52.15
55.40
52.92
and
 
 
 
343.2
344.7
1.5
1.896
9.00
2.021
 
 
104.6
105.1
0.5
65.01
308.57
69.28
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-014
16
16
330
93.0
95.6
2.6
0.924
0.67
0.933
 
100.6
28.3
29.1
0.8
31.68
23.00
32.00
and
 
 
 
199.0
199.5
0.5
0.428
0.62
0.437
 
 
60.7
60.8
0.2
14.67
21.20
14.97
and
 
 
 
276.0
277.0
1.0
0.856
2.06
0.885
 
 
84.1
84.4
0.3
29.35
70.64
30.33
and
 
 
 
277.0
279.0
2.0
0.128
0.95
0.141
 
 
84.4
85.0
0.6
4.39
32.50
4.84
and
 
 
 
279.0
281.0
2.0
0.478
3.20
0.522
 
 
85.0
85.6
0.6
16.39
109.71
17.91
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-015
16
(8)
290
101.0
105.0
4.0
0.183
0.29
0.187
 
88.4
30.8
32.0
1.2
6.27
9.99
6.41
and
 
 
 
254.5
257.5
3.0
0.830
1.90
0.856
 
 
77.6
78.5
0.9
28.46
65.20
29.36
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-016
5
(36)
334
 
 
No Significant Intercept
 
 
 
 
101.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-017
355
53
437
 
 
No Significant Intercept
 
 
 
 
133.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-018
11
30
310
25.0
26.4
1.4
0.132
0.38
0.137
 
94.5
7.6
8.0
0.4
4.53
13.03
4.71
and
 
 
 
260.3
263.0
2.7
0.146
0.67
0.155
 
 
79.3
80.2
0.8
5.01
22.97
5.32
and
 
 
 
269.0
273.3
4.3
1.173
12.70
1.349
 
 
82.0
83.3
1.3
40.22
435.43
46.25
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-019
12
14
283
234.5
238.5
4.0
0.159
0.96
0.172
 
86.3
71.5
72.7
1.2
5.45
32.91
5.91

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G16-020
11
(13)
273
236.5
238.7
2.2
0.193
0.26
0.197
 
83.2
72.1
72.8
0.7
6.62
8.91
6.74
and
 
 
 
238.7
240.6
1.9
0.589
1.78
0.614
 
 
72.8
73.3
0.6
20.19
61.03
21.04
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-021
13
33
304
158.8
160.0
1.2
0.196
1.47
0.216
 
92.7
48.4
48.8
0.4
6.72
50.40
7.42
and
 
 
 
253.6
255.2
1.6
2.174
28.40
2.568
 
 
77.3
77.8
0.5
74.54
973.71
88.04
and
 
 
 
262.5
262.8
0.3
1.349
1.65
1.372
 
 
80.0
80.1
0.1
46.25
56.57
47.04
and
 
 
 
265.3
265.7
0.4
8.377
33.90
8.847
 
 
80.9
81.0
0.1
287.21
1,162.29
303.33
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-022
11
23
350
 
 
No Significant Intercept
 
 
 
 
106.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-023
11
12
262
217.0
219.0
2.0
0.564
11.40
0.722
 
79.9
66.1
66.8
0.6
19.34
390.86
24.76
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-024
342
54
352
100.0
102.5
2.5
0.293
0.11
0.295
 
107.3
30.5
31.2
0.8
10.05
3.77
10.10
and
 
 
 
201.4
202.3
0.9
0.233
0.76
0.244
 
 
61.4
61.7
0.3
7.99
26.06
8.35
and
 
 
 
252.3
253.5
1.2
0.298
24.50
0.638
 
 
76.9
77.3
0.4
10.22
840.00
21.86
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-025
9
35
312
201.7
202.5
0.8
1.062
20.50
1.346
 
95.1
61.5
61.7
0.2
36.41
702.86
46.16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-026
9
5
420
157.0
158.5
1.5
0.110
0.24
0.113
 
128.0
47.9
48.3
0.5
3.77
8.23
3.89
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
—
G16-027
9
(13)
229
183.0
185.3
2.3
0.698
2.07
0.727
 
69.8
55.8
56.5
0.7
23.93
70.97
24.92
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-028
9
(13)
252
 
 
No Significant Intercept
 
 
 
 
76.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-029
19
(14)
478
 
 
No Significant Intercept
 
 
 
 
145.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-030
344
52
270
146.8
148.0
1.2
1.692
1.44
1.712
 
82.3
44.7
45.1
0.4
58.01
49.37
58.70
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-031
13
40
232
178.5
181.0
2.5
1.659
15.20
1.870
 
70.7
54.4
55.2
0.8
56.88
521.14
64.11
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-032
18
21
272
124.0
125.0
1.0
0.194
0.30
0.198
 
82.9
37.8
38.1
0.3
6.65
10.29
6.79
and
 
 
 
155.0
157.0
2.0
2.049
3.50
2.098
 
 
47.2
47.9
0.6
70.25
120.00
71.92
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-033
18
(23)
240
183.5
185.8
2.3
0.231
0.76
0.242
 
73.2
55.9
56.6
0.7
7.92
26.06
8.28
and
 
 
 
185.8
189.0
3.2
0.548
1.82
0.573
 
 
56.6
57.6
1.0
18.79
62.40
19.65
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-034
14
(47)
450
 
 
No Significant Intercept
 
 
 
 
137.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-035
344
46
202
118.7
120.2
1.5
0.354
0.42
0.360
 
61.6
36.2
36.6
0.5
12.14
14.40
12.34

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141.7
142.5
0.8
0.447
52.70
1.178
 
 
43.2
43.4
0.2
15.33
1,806.86
40.38
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-036
344
(31)
200
194.0
200.0
6.0
0.239
0.38
0.244
 
61.0
59.1
61.0
1.8
8.19
13.03
8.37
 
 
 
 
 
 
 
 
 
 
 
 
 
—
 
 
 
 
G16-037
320
46
251
161.5
164.3
2.8
2.368
53.50
3.110
 
76.5
49.2
50.1
0.9
81.19
1,834.28
106.62
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-038
320
(31)
400
 
 
No Significant Intercept
 
 
 
 
121.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-039
320
(55)
450
 
 
No Significant Intercept
 
 
 
 
137.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G16-040
300
5
1,700
 
 
No Significant Intercept
 
 
 
 
518.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
G17-041
330
15
250
113.0
116.7
3.7
0.144
0.34
0.149
 
76.2
34.4
35.6
1.1
4.94
11.66
5.10
and
 
 
 
116.7
118.0
1.3
12.557
22.10
12.863
 
 
35.6
36.0
0.4
430.53
757.71
441.03
 
 
 
 
 
 
 
 
 
 
 
 
 
—
 
 
 
 
G17-042
309
21
351
135.5
138.5
3.0
0.250
0.58
0.258
 
107.0
41.3
42.2
0.9
8.57
19.89
8.85
 
 
 
 
138.5
140.2
1.7
3.301
8.70
3.422
 
 
42.2
42.7
0.5
113.18
298.29
117.31
 
 
 
 
 
 
 
 
 
 
 
 
 
—
 
 
 
 
G17-043
354
33
277
101.7
106.0
4.3
0.100
0.32
0.104
 
84.4
31.0
32.3
1.3
3.43
10.97
3.58
and
 
 
 
119.0
125.0
6.0
0.246
7.00
0.343
 
 
36.3
38.1
1.8
8.43
240.00
11.76
and
 
 
 
125.0
126.0
1.0
2.973
20.10
3.252
 
 
38.1
38.4
0.3
101.93
689.14
111.49
 
 
 
 
 
 
 
 
 
 
 
 
 
—
 
 
 
 
G17-044
320
35
320
119.5
120.0
0.5
0.440
0.55
0.448
 
97.5
36.4
36.6
0.2
15.09
18.86
15.35
and
 
 
 
131.5
135.5
4.0
3.704
34.30
4.180
 
 
40.1
41.3
1.2
126.99
1,176.00
143.30
and
 
 
 
169.6
170.2
0.6
0.274
0.39
0.279
 
 
51.7
51.9
0.2
9.39
13.37
9.58
 
 
 
 
 
 
 
 
 
 
 
 
 
—
 
 
 
 
G17-045
309
36
351
152.5
156.5
4.0
2.016
110.60
3.550
 
107.0
46.5
47.7
1.2
69.12
3,792.00
121.70
 
 
 
 
 
 
 
 
 
 
 
 
 
—
 
 
 
 
G17-046
39
27
448
188.9
190.5
1.6
0.132
0.15
0.134
 
136.6
57.6
58.1
0.5
4.53
5.14
4.60
 
 
 
 
290.0
291.0
1.0
0.354
4.70
0.419
 
 
88.4
88.7
0.3
12.14
161.14
14.37
G17-047
42
42
498
 
 
No Significant Intercept
 
 
 
 
151.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Calculated gold equivalent ratio 72.12:1
*Intercepts are not true widths
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 known as the Rice Lake Mine) and mill in Manitoba,

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Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora mine and ore milling facility (formerly known as Esmeralda), also located in Nevada, USA.

For More Information
John Seaberg
Senior Vice President, Investor Relations and Corporate Development
O: 775-284-5757
M: 303-668-7991
jseaberg@klondexmines.com
 
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; and the preparation of an initial resource estimate and the timing thereof. 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 mineral reserve estimates are reflective of actual mineral reserves; 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.

Cautionary Note to U.S. Investors Regarding the Use of Mining Terms
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. All resource and reserve estimates included or referred to in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the mineral reserve disclosure requirements of the U.S. Securities and Exchange Commission (the SEC”) set out in Industry Guide 7. Consequently, reserve and resource information contained in this news release is not comparable to similar information that would generally be disclosed by U.S. companies in accordance with the rules of the SEC.


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KLONDEX MINES LTD Reports