Klondex outlines low capex Fire Creek mine

VANCOUVER – For a capital investment of US$50 million, Klondex Mines (TSX: KDX) could turn its Fire Creek project into an underground mine churning out 56,000 oz. gold annually at an all-in cost of US$636 per oz., according to a preliminary economic assessment (PEA) of the Nevada project.

With capital and production costs so reasonable, Klondex would recoup its investment in just six months.

Two key traits power the strong economics at Fire Creek. First, the deposit is rich: the material being mined would carry, on average, 23.3 g/t Au and 11.7 g.t Ag.

Second, Klondex would not be building a mill at Fire Creek. Instead the ore would be trucked to Midas, the mine and mill 110 km to the south that Klondex bought from Newmont Mining (TSX: NMC; NYSE: NEM) in late 2013.

Read the entire story at NorthernMiner.com/news/klondex