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Klondex Mines Ltd.

TICKER: KDX:TSX; KLNDF:OTCBB

Klondex Mines Ltd. is focused on the transformation of Klondex within the Nevada mining space. It is focused on the exploration, development and production of its high-grade Fire Creek gold deposit in north-central Nevada and at the recently acquired operating Midas silver and gold mine and related milling facilities. During 2014, Klondex is targeting to produce between 70 Koz and 100Koz Au eq from the Midas and Fire Creek projects, with all processing to be completed at its Midas Mill.


The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Comments:

Philip Ker, PI Financial (7/16/14) "Klondex Mines Ltd. announced its Q2/14 production results, which included recoveries of 22,239 oz Au eq, beating our estimate of ~21 Koz Au eq. Additionally, the company had strong metal sales of 25,724 oz Au eq, which sets it on pace to meet our annual production target of ~78 Koz Au eq. . .we are confident that exploration success will lead to new high-grade parallel discoveries and further success will be demonstrated from the Karen vein at Fire Creek."

Philip Ker, PI Financial (7/15/14) "Klondex Mines Ltd. recently announced a bought deal CA$14M financing, which will be used to more aggressively accelerate development at its Fire Creek and Midas operations. . .although production levels and cash flows are anticipated to steadily increase over the remainder of 2014, this cash injection provides a security blanket to support management's operational initiatives."

Sam Crittenden, RBC Capital Markets (7/7/14) "We had a positive impression from the site tour at Klondex Mines Ltd.'s Fire Creek and Midas mines in Nevada.: Fire Creek continues to ramp up tonnage and with grades averaging 28 g/t, cash costs should be low, allowing for positive free cash flow. . .the Karen vein could increase production to the 80–100 Koz range. . .significant exploration remains with underground drilling done on only a small portion of the known structures at Fire Creek."

Philip Ker, PI Financial (7/4/14) "Klondex Mines Ltd.'s Fire Creek has expanded significantly since our last visit in September 2013, and management continues to gain better knowledge of the high-grade vein systems. . .the Karen vein is presently not incorporated into the Fire Creek PEA or resources, and supports our theory of significant exploration potential and operational flexibility as the mine expands from additional development. . .we continue to favor accumulating shares."

Derek Macpherson, M Partners (6/30/14) "We recently visited Klondex Mining Corp.'s Fire Creek and Midas mines, along with the Midas mill. Our tour of both mines suggests that our estimates could prove to be conservative; however, additional work is needed. We were impressed with the Midas mill, as it appeared to be in pristine condition and has a strong operating team."

more comments

Barry Allan, Mackie Research Capital (6/27/14) "Klondex Mines Ltd. hosted a site visit the week of June 23, highlighting the recently acquired Midas mine and mill, as well as the growth at Fire Creek. Although we did not come back with much new information, we did get an increased sense of confidence in both assets. . .Midas is working well, and there is further exploration potential at Fire Creek."

The Gold Report Interview with Lawrence Roulston (6/25/14) "In the United States the junior gold company I like is Klondex Mines Ltd. in Nevada. The company just bought the high-grade producing Midas mine from Newmont Mining. Many of the majors are going through asset rationalizations, and this presents company-making opportunities to juniors like Klondex. It's an excellent complement to Klondex's Fire Creek gold project 100 miles to the south, which is effectively in production. Fire Creek still needs a full-scale development permit, but Klondex is operating under a bulk-sampling permit with the ore being trucked to Midas. The Fire Creek ore is exceptionally high-grade: 284 Koz at 41.5 g/t M&I and 424 Koz at 23.3 g/t Inferred. This means that the trucking cost is essentially inconsequential. The Midas acquisition is a perfect fit. The Midas operating team is quite accomplished at high-grade underground mining situations, such as Fire Creek. According to Klondex's April preliminary economic assessment, the all-in cost of Fire Creek gold is $636/oz. That is a very attractive number based on the fact that no mill will be needed on site." More >

The Gold Report Interview with Frank Holmes (6/18/14) "A low-risk, high-grade gold producing company that we see as having significant upside is Klondex Mines Ltd. At the beginning of the year, Klondex Mines completed what we think is a transformational transaction with the purchase of Midas mine and mill from Newmont Mining Corp. Management is highly respected. At one time, Franco-Nevada owned the Midas mine. Klondex Mines delivered 6% returns in 2013 when the Market Vectors Gold Miners Exchange-Traded Fund was down 60%. That is impressive. . .we see the value in the Midas project facilities. That's the catalyst. Once you unleash that and the quality of management and its ability to communicate its future growth, it could have an impact." More >

The Gold Report Interview with Joe Foster (6/11/14) "Klondex Mines Ltd. is developing some high-grade, underground properties in Nevada that we're excited about. It has a great management team. [When we visited the site] it came down to the geology—very high-grade, near vertical veins—and it looked as if the mining isn't that complicated for an underground mine. The continuity of the veins and the overall geology of the deposit are such that it could become a very profitable underground operation." More >

Derek Macpherson, M Partners (6/10/14) "Klondex Mines Ltd. announced that it received the final permit for the rapid infiltration basin, the long-term water management solution at its Fire Creek project. The rapid infiltration basin represents the final construction project at Fire Creek and is expected to come on line in Q3/14. In our view, although the permitting had been expected, we believe it should be characterized as positive, as it incrementally moves Fire Creek toward full production."

Derek Macpherson interview with Resource Investing News (5/27/14) "Klondex Mines Ltd. has exceptional grades, with Fire Creek being one of the highest grade underground gold mines in the world. It’s in a great location in mining-friendly Nevada. Management has strong operational experience, particularly with regard to these assets."

Derek Macpherson, M Partners (5/22/14) "Klondex Mines Ltd.'s Fire Creek drill results continue to imply likely resource growth. The company's drill results released yesterday morning yielded a weighted average grade of 22.6 g/t over an average width of 1.03m. The reported grades and widths are essentially in line with historic drill results, which further supports our view that the resource at Fire Creek is very likely to expand."

Philip Ker, PI Financial (5/15/14) "Klondex Mines Ltd. announced its Q1/14 operating and financial results, highlighting a smooth transition into production upon acquiring the Midas mine and mill in February, 2014. During the quarter, the company achieved good initial production from Midas under a short time frame of only ~5 weeks. . .recoveries for both gold and silver from Fire Creek beat our expectations at 94.5% and 94.3%."

Derek Macpherson, M Partners (5/15/14) "Klondex Mines Ltd. released Q1/14 production results, which were ahead of our estimates; the company produced 13.5 Koz gold, beating our estimate of 9.9 Koz. The beat was mostly driven by higher gold grades at Fire Creek, which came in at 44.3 g/t, 71.6% higher than our estimate."

Barry Allan, Mackie Research Capital (5/15/14) "Klondex Mines Ltd. has released Q1/14 results with production of 16.1 Koz Au eq, beating our 14 Koz estimate due to better grades at Fire Creek (~34 g/t Au mined versus our 31 g/t). . .our $3.25 target and Buy recommendation remain unchanged."

Derek Macpherson, M Partners (5/5/14) "Based on the average widths and grades from the recently reported drifting and drilling, we estimate that the Karen vein at Klondex Mines Ltd.'s Fire Creek mine could add ~60–110 Koz gold to the existing resource, representing an 8–15% increase. . .we maintain our Buy recommendation."

Philip Ker, PI Financial (5/5/14) "Highlights of Klondex Mines Ltd.'s channel samples taken from working faces in the Karen vein returned excellent assays with a weighted average grade of 2.18 oz/t (74.9 g/t) gold over an average vein width of 1.5 ft. . .given the continued derisking of Fire Creek and potential for increased mine life through expanded discoveries such as the Karen vein outlined today, we believe a considerable increase to the project's NPV and probability of a rerating are likely."

Jay Taylor, Gold, Energy & Tech Stocks (5/2/14) "The Midas mine as well as the Fire Creek mine are high-grade epithermal vein systems that offer very significant growth for Klondex Mines Ltd. . .this company now is set to grow dramatically and I think its share price will do the same as the gold bull market resumes later this year."

Philip Ker, PI Financial (5/1/14) "Yesterday, Klondex Mines Ltd. announced positive initial results from its PEA study completed on its Fire Creek project. . .we are confident that despite the short mine life outlined in the study, the robust initial economics position the company nicely for resource expansion, improved economics and increased value as the project progresses."

Barry Allan, Mackie Research Capital (5/1/14) "Klondex Mines Ltd. has released the results of a PEA for the Fire Creek project, which details an initial mine plan based on resources within veins that can be readily accessed from existing development work. Highlights from the PEA include total production of 280 Koz Au over a 5-year mine life. . .the release of the Fire Creek PEA gives us an increased amount of confidence in our forecast and further proves Fire Creek to be a high-grade asset that will continue to produce ounces at low cash costs."

Vivien Diniz, Gold Investing News (4/30/14) "Klondex Mines Ltd.'s Fire Creek PEA highlights low cash costs. . .the PEA is an important step in the derisking of the project, and an encouraging milestone for the company. . .the PEA looks at a life of mine of five years, over which the company expects to produce about 280 Koz gold and 139 Koz silver. Capital costs for Fire Creek sit at $49.6M and the payback period is expected to be half a year. Meanwhile, the company is looking at an all-in sustaining costs (including silver by-product) of $636/ounce."

Derek Macpherson, M Partners (4/30/14) "Klondex Mines Ltd. reported a PEA for the Fire Creek project, which highlighted higher than expected head grades, resulting in lower costs. . .we remain positive on these results, particularly as we view this PEA as an important derisking step. . .as the company executes on the integration of the Midas mine, along with continued exploration success and operational execution at Fire Creek, it should rerate towards its peers."

Derek Macpherson, M Partners (4/23/14) "Klondex Mines Ltd. is expected to release the Fire Creek PEA shortly. With significant underground infrastructure in place and a milling solution secured, we expect the economics to be very robust. . .we expect positive results to begin to close the valuation gap with other producing peers."

Kevin McLean, Sentry Investments (4/22/14) "Klondex Mines Ltd. is focused on the near-term development of Fire Creek, a high-grade gold project in Nevada. A bulk sampling program at the deposit is now well underway, and shipments of the ore to the newly acquired Midas mill began in February. In addition, the company is evaluating opportunities to provide third-party toll-milling services at the Midas mill. As a result, we continue to believe Klondex has great potential."

Jordan Roy-Byrne, The Daily Gold (4/13/14) "Klondex Mines Ltd.'s shares continue to show excellent relative strength; we expect the company to continue its leadership after the next low in gold. The chart shows the next support at $1.70 with very strong support near $1.50; this looks headed to $1.70 in the near term."

Philip Ker, PI Financial (4/3/14) "During Q1/14, Klondex Mines Ltd. completed its acquisition of the Midas mine and mill for $83M and has been one of the sector's top performers. . .we continue to remain bullish on the company and are making it our Top Pick for Q2/14 as it presents several exciting catalysts over the coming months and quarters."

The Mining Report Interview with Stephan Bogner (4/1/14) "I like Klondex Mines Ltd., because it was able to acquire the Midas mine and mill from Newmont Mining. This gives Klondex a competitive edge in Nevada that the market has not yet fully understood. The company's management team is among the best in the entire industry and I expect a steady increase in output from now on." More >

Erik Bermel, M Partners (3/31/14) "Klondex Mines Ltd. reported Q4/13 results this morning, which were highlighted by cash flow of $6.1M generated from the bulk sample at Fire Creek. The company's cash balance at year-end was $13.5M, in line with our $12.9M estimate. . .we maintain our Buy rating and 12-month target of $3.15/share."

Lawrence Roulston, Resource Opportunities (3/28/14) "At the current production level, Klondex Mines Ltd. is on track to produce about 100 Koz this year. A ramp-up in the production level at Midas and the transition into commercial production at Fire Creek would see that production double. . .the recent dip in the share price offers an attractive buying opportunity for a company with a clear growth plan into the midtier producer ranks, which would support a substantially higher share price."

Global Mining Observer (3/13/14) "In December, Klondex Mines Ltd. paid $83M for Newmont Mining Corp.'s Midas mine and mill. . .on top of production from Midas, the deal offers Klondex a vital processing hub in a prolific gold mining district. . .the company expects output of 70–100 Koz gold equivalent this year, its first year of production, rising to over 120 Koz in 2015."

The Gold Report Interview with Derek Macpherson (3/12/14) "We like Klondex Mines Ltd. for its exceptionally high-grade resource, the strong management team and excellent jurisdiction. Klondex is based in Nevada and Paul Huet leads the management team. With its recent acquisition of the Midas mine and mill from Newmont Mining Corp., Klondex is well positioned to deliver on a promise of the high grade at Fire Creek. . .Midas fits in very easily. Klondex has been toll milling its ore at the Midas mill prior to the acquisition. The Midas mill wasn't running at full capacity, so there's opportunity to increase throughput with ore from Fire Creek. There is also exploration upside at the Midas mine; Klondex may be able to extend the mine life there as well. . .I think the PEA is going to have strong economics not only because of the high grades at Fire Creek but also because a lot of the capital has already been spent. It's a straightforward mine and Klondex has the expertise and experience to develop it. Klondex has already acquired the milling infrastructure, reducing the initial capital commitment. " More >

Philip Ker, PI Financial (3/3/14) "Based on the update provided by Klondex Mines Ltd., we are confident management is on track at Midas and Fire Creek in order to meet our expectations for Q1/14 and beyond. With greater-than-expected grades and processing rates achieved thus far at Midas, we are confident in the company's ability to meet our estimate of ~5,300 oz gold and 133 Koz silver production for Q1/14. . .we continue to favor accumulating shares of Klondex and maintain our Buy rating."

Erik Bermel, M Partners (3/3/14) "Drilling and blasting at Klondex Mines Ltd.'s Midas began Feb. 11 and milling began on Feb. 19, as expected. After a successful transition, milling operations are now at 600 tpd, and the first doré pour is expected March 4, 2014. . .we maintain our Buy rating."

Erik Bermel, M Partners (2/28/14) "After a successful transition at Klondex Mines Ltd.'s Midas mine, milling operations are now at 600 tpd and the first dore pour is expected March 4, 2014. . .not only does in-house milling reduce costs, but recoveries at Midas of an estimated 95% are well above the 85% recoveries negotiated with Newmont Mining Corp. . .with significant underground infrastructure in place and a milling solution secured, we expect the Fire Creek project PEA in Q1/14 to demonstrate very robust economics."

Erik Bermel, M Partners (2/14/14) "Klondex Mines Ltd. released drill results from its Fire Creek project, which included 166 g/t gold over 1.5m and 47 g/t over 2.5m. . .the pending PEA for Fire Creek is likely to increase investor confidence. . .with significant underground infrastructure in place and a milling solution secured, we expect the economics to be very robust. . .we believe that as Klondex executes on the integration of Midas, along with continued exploration success and derisking of Fire Creek, the company should rerate toward its peers."

Jordan Roy-Byrne, The Daily Gold (2/9/14) "The grade of Klondex Mines Ltd.'s Fire Creek project is tremendous; the project is located in one of the world's premier jurisdictions and has strong commercial scale production potential. It's currently producing by way of a bulk sampling program; simply put, this is an asset that you can build a company with."

Jay Taylor, Gold, Energy & Tech Stocks (1/31/14) "Klondex Mines Ltd. has arranged some $60M of debt and equity funding, which will be used to acquire the Midas mine and mill from Newmont for $42.63M. This funding should enable the company to replenish its working capital accounts and the acquisition of the new mill and mine should benefit the company very substantially in the long term and in the near term also, as it means it can process its own high-grade bulk-tonnage material."

Jordan Roy-Byrne, The Daily Gold (1/26/14) "Klondex Mines Ltd. remains in a very strong position. . .its current market cap is only $182M and with the recently acquired Midas mill, the company won't have any large financings in its future. . .this has been a very strong stock and continues to have significant upside potential over the coming months and quarters."

Jay Taylor, Gold, Energy & Tech Stocks (1/24/14) "Klondex Mines Ltd. has the high-grade Fire Creek mine in Nevada, and now it has arranged to acquire the Midas mine and mill from Newmont. . .the acquisition of this mill, which has been in use until the present time, not only means that long delays of permitting and construction should be eliminated but also that capital costs should be less in acquiring this mill than building a new one. . .these shares should enjoy significant appreciation as the company continues developing its business plan."

Philip Ker, PI Financial (1/23/14) "Klondex Mines Ltd. has entered into a definitive agreement with Newmont Mining Corp. to acquire a 100% interest in the producing Midas mine and mill in Nevada for $83M. This acquisition immediately positions Klondex to become a bona fide gold and silver producer in 2014, with gold sales from its bulk sample program at Fire Creek further supporting its capital investments. . .we are increasing our target price and maintaining our Buy rating."

Erik Bermel, M Partners (1/20/14) "Klondex Mines Ltd. released drill results from its Fire Creek project, which included 96 g/t gold over 0.5m and 14.8 g/t over 2.2m. . . the results suggest three distinct structures to the west of the decline, all of which remain open along strike and up and down dip. The current drill program should increase confidence in the mineralization along these structures, which have the potential to add mineable ounces to the existing resource."

Joe Mazumdar, Canaccord Genuity (1/14/14) "Klondex Mines Ltd. is led by a veteran of Nevada narrow-vein underground mining, Paul Huet, who has over 25 years mining industry experience including 7 years of experience at the recently acquired Midas mine, leading to a role as the mine manager. The high-grade Free Creek project, which hosts a global resource of 718 Koz Au grading ~25.2 g/t, is in the midst of commissioning and testing the hoist in the recently excavated secondary egress at Fire Creek. Once completed, the company will begin its bulk tonnage sampling program at the project, which is already permitted."

Erik Bermel, M Partners (1/10/14) "The Midas acquisition transforms Klondex Mines Ltd. from a late-stage developer into a growing multi-asset producer. . .a reasonable financing package used to fund the acquisition. . .we believe that Klondex should be able to fund ongoing development capex at Fire Creek and service its current debt from the cash flow likely to be generated from both operations."

Jordan Roy-Byrne, The Daily Gold (12/29/13) "Klondex Mines Ltd. is one of the strongest stocks among its peers, with considerable and immediate upside potential. . .the company continues to have one of the more robust charts, as the stock is in a clear uptrend."

Jordan Roy-Byrne, The Daily Gold (12/19/13) "Klondex Mines Ltd. is an exciting turnaround story that is on track to be one of the early leaders of the coming revival in precious metals shares. . .the company has to be a core position at present. We expect the shares could really take off after gold puts in a final bottom."

The Gold Report Interview with Ralph Aldis (12/18/13) TGR: Klondex Mines Ltd. is a top 10 holding in the World Precious Metals Fund. It recently worked out a financing arrangement with royalty and streaming company Franco-Nevada. Klondex sold 38,250 oz of gold to Franco over five years for $35M. After that time, Franco will have a 2.5% royalty on Klondex's production. That amounts to $915/oz. What did you make of that deal?

Ralph Aldis: This was structured largely as a forward sale on the gold with a slight discount. That calculation that you just did—dividing the ounces by the money coming in by the ounces going out—is something many people in the industry don't do, but should. . .Klondex had been toll mining. This deal gives the company the Midas mine and mill. Other players in the area will want to send concentrate to Klondex's mill. This is a transformational step that will give Klondex a lot of credibility in the market. I visited Klondex in September. Paul Huet and the management team know what they're doing. The management team is buying stock, even in the market. It believe in what it is doing. Klondex is doing almost its entire market capitalization with this deal. The stock is still trading above the deal price. I think this really sets it up to have a stronger production profile and better margins. More >

The Gold Report Interview with Stephan Bogner (12/16/13) "Among the few producers that I like, Klondex Mines Ltd.'s stock has been rising since April. Paul Huet, its president and CEO, has high-grade mining experience, especially with narrow gold veins. Previously, he was with Premier Gold Mines, where he served as chief operating officer, was general manager at Great Basin Gold's Hollister mine and mine manager at Newmont Mining's Midas mine. Klondex's flagship is the high-grade epithermal Fire Creek gold project in north-central Nevada, which is stunningly similar to the Midas and Hollister mines. In September, Klondex updated its NI 43-101 resource, applying a 7 g/t gold cutoff, to host a Measured and Indicated resource totaling around 300 Koz gold at 45 g/t and an Inferred resource of 421 Koz gold, averaging 90 g/t. That may not sound like a lot of gold, but Klondex has the skills to drill very effectively. Klondex has one of the best upside potentials in the entire market." More >

Jordan Roy-Byrne, The Daily Gold (12/15/13) "Klondex Mines Ltd., as we know, has been one of the strongest stocks during the last half of this bear market; the stock closed at $1.52 and has strong support at $1.40. It has refused to correct. . .we definitely want to add the company to the model portfolio very soon."

Jay Taylor, Gold, Energy & Tech Stocks (12/13/13) "Klondex Mines Ltd. was one of our top 13 exploration stock picks. . .the company has raised $35M in a deal with Franco-Nevada Corp/ by providing a 2.5% net smelter royalty on the company's Midas mine and selling some 38,250 oz gold to Franco-Nevada from Fire Creek and Midas production. What is unclear to me is at what price Klondex will sell those 38,250 ounces to Franco-Nevada. . .I remain positive about this company's high-grade gold mining operation, and I am curious to know what the arrangements are with respect to the sales of those 38,250 oz to Franco-Nevada."

The Gold Report Interview with James West (12/11/13) "Klondex Mines Ltd. has very high-grade material in Nevada. It's very advanced. The share price has been appreciating steadily since April from sub-$1 to the $1.55/share range. It is bulk sampling and on track to go into production. It just released a technical report on the Fire Creek project. The news just keeps getting better and better. It's a safe investment for a gold mining company. And now with the definitive agreement with Newmont, investors' patience is being rewarded." More >

Jordan Roy-Byrne, The Daily Gold (12/8/13) "Klondex Mines Ltd.'s shares continue to hold up very well; the company announced the acquisition of Newmont Mining Corp.'s Midas mine and mill. It's certainly a big change and puts Klondex in position to be an immediate producer. . .the stock appears likely to remain strong."

Deborah Bacal, Proactive Investors (12/6/13) "Klondex Mines Ltd. updated investors on its transformative deal to acquire the Midas mine and milling facility in Nevada, which sits just 112 miles away from the company's own Fire Creek deposit that it is advancing to production. . .the deal, which secures a long-term milling solution for Klondex, is expected to provide substantial synergies via shared equipment, employees and improved efficiencies, while also alleviating future processing uncertainties that come from typical toll milling agreements, such as unexpected price increases and delays. . .the company is also benefiting from its own management team's experience, with several members having spent much of their careers managing the Midas mine and working on site."

Philip Ker, PI Financial (11/22/13) "Klondex Mines Ltd.'s Fire Creek deposit has a Measured and Indicated resource grading 1.3oz/t. This rare high grade and narrow vein structure can provide for positive returns under the right mining operation and managerial execution. . .the company presents a rapid growth opportunity at a discounted valuation. . .we are initiating coverage of Klondex. . .we view this compelling deposit and experienced management team as a must-have in any mining-focused portfolio."

Erik Bermel, M Partners (11/15/13) "To date, Klondex Mines Ltd. has mined 14.2 Koz gold at an average grade of 64.8 g/t while shipping a total of 10.8 Koz, which puts the company on track to exceed management guidance of 8 Koz. As a result, we have increased our annual gold sales estimate to 11.6 Koz gold from 10.3 Koz. . .Klondex's continued execution, strong management team, high grades and ability to self-fund not only support the current premium to other development-stage peers, but likely warrant an increase."

The Gold Report Interview with Sean Brodrick (11/12/13) "Small caps are where I think the real value is. Take Klondex Mines Ltd., which is an excellent project. I visited its Fire Creek mine; the company is doing all the right things there. Klondex had a rough patch when I was worried about its funding, but it knew what it was doing and was able to bridge the gap. Things seem to be working out quite well." More >

The Gold Report Interview with Rob Fuhrman (11/4/13) "One company we really like is Klondex Mines Ltd.; it has been a top pick for several months. Its Fire Creek property has some extremely high-grade gold. Given the soft gold price, that will help its IRR. Klondex's recent raise of over $19M will allow the company to pay off its short-term debts and give it a solid cushion moving forward. . .Management owns 18% of common shares, which is above average. Institutions and funds own another 25%. That's important in two ways. First, this demonstrates management’s experience, connections and ability to raise capital. Second, the due diligence conducted by the institutional team also should provide investors with further confidence and assurance that Klondex is a strong company. Another important thing to note about the company is that year-to-date purchases by insiders totaled almost $1M, telling us that the people with the most intimate knowledge of the company feel that the company is undervalued." More >

Erik Bermel, M Partners (10/28/13) "Klondex Mines Ltd. completed the excavation and has set the hoist for the escape raise at its Fire Creek gold project. . .completion of the escape raise should allow precommercial production rates to increase. . .the transition from metallurgical testing to the bulk sample should allow the company to move from small-scale, on-vein development to stoping, increasing throughput and providing operational flexibility as operations ramp up. . .we believe that Klondex's continued execution, strong management team, high grades and ability to self-fund not only support the current premium to other development stage peers, but likely warrant an increase."

The Gold Report Interview with Jordan Roy-Byrne (10/28/13) "As far as production stories go, Klondex Mines Ltd. is one I've started following recently. With regard to relative strength, it has been one of the strongest stocks over the last six to nine months. If you like the fundamentals, you want to try to buy it on weakness. Klondex's Fire Creek project looks to have outstanding potential. Grades have been spectacular; the company has a sizeable resource and it has been doing some bulk sampling, which I believe has gone pretty well. When Klondex goes into commercial production, it is going to be able to produce a sizeable amount of gold at a low cost with very low capital expenses. It's going to be highly economic, but it won't be easy, and there will have to be some financings along the way. This is an underground, narrow-vein mine, but the new CEO, Paul Huet, is experienced with these types of deposits and is the man for the job. It's a perfect fit." More >

Jordan Roy-Byrne, The Daily Gold (10/22/13) "Klondex Mines Ltd. recently reported an updated resource estimate for Fire Creek. . .the Measured and Indicated figure is 295 Koz Au at 1.3 oz/ton Au and 421 Koz Au at 19 g/t Au (or 0.56 oz/ton Au). . .the company will produce a preliminary economic assessment in the coming months. . .the shares have held up quite well and we are looking for an opportunity to add to the model portfolio."

The Gold Report Interview with Derek Macpherson (10/22/13) "A project needs to have very high grade, for example, Klondex Mines Ltd. . .Klondex [is an] example of low-cash costs and clean balance sheets, thanks to its recent equity raise and ability to self-fund development going forward. . .we went to Klondex Mines, where we were also impressed with the ramp up. Klondex has exceptionally high grade; Measured and Indicated grade is 44 g/t gold. . .the resource is 720,000 oz; however, the grade has gone up substantially. While the previous resource was larger, the earlier resource methodology wasn't suited for this type of deposit. The new management team reworked the resource with a more applicable methodology and consequently now has a higher quality resource. We believe there is opportunity to grow the resource [through] exploration. . .[or] the mineralized halo. Unlike most narrow-vein deposits, the host rock is also mineralized; however, it's not included in the existing resource. The halo could be included in future updates, as Klondex's understanding of it increases. The other benefit of a mineralized halo is an effective reduction in mining dilution, which should also benefit project economics.

"Klondex doesn't have its own mill. Klondex has toll milling agreements with both Newmont Mining and Veris Gold. In the current environment, saving capex is important. It allows Klondex to get cash flow very quickly. In fact, it has already started receiving payments from its toll milling agreements. This ability to generate cash in the near term should allow Klondex to continue exploring while doing the necessary development for steady-state operations. We model it reaching 500 tpd and producing over 80,000 oz gold in 2015; Klondex is able to fund the underground exploration drilling needed to meet these targets." More >

Derek Macpherson, M Partners (10/17/13) "Klondex Mines Ltd. recent $19.5M equity financing at $1.37/share provides balance sheet flexibility and should allow the acceleration of development and exploration work at Fire Creek. We believe this derisks Klondex's 2014 production profile, causing us to increase our estimates. Also, recent exploration success and the addition of a second drill rig have caused us to increase our modeled resource. . .Klondex's ability to raise a meaningful amount of money in a challenging equity market highlights the quality of the project and investor confidence. . .we believe Fire Creek is very prospective, and expect resources to grow over the near term."

Deborah Bacal, Proactive Investors (10/8/13) "Klondex Mines Ltd. has unveiled the results of 20 holes from its underground infill drilling program at its Fire Creek project in Nevada, with the company saying encouraging mineralization was seen in nearly every hole. . .highlights of the results include 61.9 g/t gold over 0.9m, and 211 g/t gold over 0.2m. . .for the rest of the year, Klondex is planning to continue its infill drilling to assess the continuity of the Joyce and Vonnie structures to the east of the ramp."

Erik Bermel, M Partners (9/30/13) "Klondex Mines Ltd. announced metallurgical tests results from Fire Creek. The two samples returned recoveries of 94.8% and 99%, ahead of our current 89% estimate. The company also provided an update on the toll milling of high-grade ore and ongoing underground development, which were essentially in line with our estimates. . .we maintain our Buy rating. . .the recent share weakness creates an attractive entry point for investing in the Klondex."

Henry Lazenby, Mining Weekly (9/19/13) "Klondex Mines Ltd.'s new technical report for its Fire Creek underground gold project has been completed and validates the project as a high-grade endeavor. The new NI-43-101-compliant resource estimate now consists of Measured and Indicated resources totaling 295,900 oz gold at a grading of 44.7 g/t gold and Inferred resources of 421,400 oz gold grading 19.2 g/t, when applying a 7 g/t gold cutoff. . .the report confirms the continuity of gold mineralization down dip and along strike from work completed predominantly in the main zone."

Matthew Zylstra, Euro Pacific Canada (9/17/13) "Klondex Mines Ltd. announced results of an updated resource estimate for its 100%-owned Fire Creek underground gold project. . .resource grades are significantly higher than the prior estimate. . .the company has higher confidence with the new resource and believes there is significant upside to the estimate since the deposit remains open along strike and at depth."

Erik Bermel, M Partners (9/17/13) "Klondex Mines Ltd. released an updated resource estimate for its Fire Creek project, which increased grade from 16.6 g/t to 25.5 g/t Au, while decreasing tonnage from 2.7 Mt to 0.9 Mt. The update is positive, as it not only improves economics of the project, but increases management's understanding and should derisk the company as an investment. . .we continue to believe that Klondex could be self-funded to commercial production."

Matthew Zylstra, Euro Pacific Canada (9/13/13) "Klondex Mines Ltd.'s underground development on the Joyce and Vonnie structures of the Fire Creek project yielded 1,329 tonnes in July at an average grade of 32.7 g/t Au (~1,397 ounces); underground development over the last three months has yielded 3,249 tonnes averaging 75.4 g/t Au ( ~7,876 ounces). . .we view the results as very positive. . .based on results it seems likely that the company will exceed our revenue estimates."

Derek Macpherson, M Partners (9/12/13) "Klondex Mines Ltd. recently completed a nearly 2,000m drill program, along with re-logging all historical core at Fire Creek with the intention of updating its current resource in August 2013. . .we are encouraged as management continues on track toward guidance. . .we are maintaining our Buy recommendation."

The Gold Report Interview with Barry Allan (9/4/13) "Among the smaller companies, Klondex Mines Ltd., an operation in Nevada that is not yet in production, is in a situation with spectacularly good-grade material. . .the first bulk sampling [at Fire Creek] targeted the better areas of the resource, where the material extracted exceeds 2 oz/ton. The grade seems to be there. The question now is what will it show on a higher-volume basis? . .the presence of surplus milling capacity near Fire Creek underscores that Klondex may never have to build a mill. While using someone else's mill increases operating costs, it diminishes capital costs. The sole capital cost is in the underground mining. The company really has options." More >

Erik Bermel, M Partners (8/12/13) "Klondex Mines Ltd. [has started] processing high-grade ore. . .the company shipped its initial load of 1,000 tons of mineralized material to Newmont Mining; this implies that first cash flow from Fire Creek should occur in Q3/13. . .Klondex also announced the conversion of Fire Creek to grid power from generator power, which should increase efficiencies and reduce per unit electricity costs. . .the company's management team continues to deliver on key milestones, progressively derisking the project and derisking near-term cash flows. . .we continue to believe that Klondex's ability to self-fund development supports its premium valuation."

Ubika Research (8/6/13) "Klondex Mines Ltd. is the top gainer for the week. It gained 23.62% due to a) the company's underground development program, targeting Joyce and Vonnie structures, yielded 1,435 tons of 119.8 g/t (3.49 opt) gold; b) Klondex's agreement with Newmont Mining Corp. under which Newmont will process the mineralized material from the Fire Creek gold and silver project in Nevada and c) the company securing bridge loans totaling $2.39M."

Jordan Roy-Byrne, The Daily Gold (8/2/13) "The grade of Klondex Mines Ltd.'s Fire Creek is tremendous, the project is located in one of the world's premier jurisdictions and it has very strong near-term production potential. Simply put, this is an asset that you can build a company with. . .Fire Creek as is could be enough for the stock to triple. . .the potential here is huge."

Henry Lazenby, Mining Weekly (7/30/13) "Klondex Mines Ltd. on Saturday announced exploration activities had found bonanza grades of up to 22 396 g/t at its flagship Fire Creek project. . .exploration drifting and metallurgical sampling on the Vonnie vein included assay results of 20 231 g/t gold over 0.15m, and 15 891 g/t gold and 22 396 g/t gold over 0.12m. . .the company also announced on Thursday that it had secured $2.39M in bridge loans as a means to support the development of Fire Creek."

Jessica Pendal, VSA Capital (7/29/13) "Klondex Mines Ltd. reported on Friday that it has signed a custom milling arrangement with Newmont Mining Corp. to treat ore from its Fire Creek underground development. . .Newmont will take up to 9 Kt of material during calendar 2013, with optional amounts to continue into 2014. . .this arrangement will bring Klondex into the realm of small-scale mine producers, as it operates under a small miner's permit, while fully developing the Fire Creek infrastructure in the coming months."

Barry Allan, Mackie Research Capital (7/29/13) "Klondex Mines Ltd.'s short-term loan of $2.4M is essentially an 'inventory' financing—a lifeline that allows the company to continue development while building an inventory of ore to be processed. . .a tolling agreement with Newmont will allow Klondex to convert the inventory of ore into cash. . .ongoing drilling and resampling of prior drilling has yielded spectacularly high-grade results, confirming once again that Fire Creek is a high-grade resource. . .we are encouraged that development is largely on track."

Oliver Turner, GMP Securities (7/29/13) "Klondex Mines Ltd.'s underground development yielded over 5 Koz in June; a total of 1435 tons grading 119.8 g/t was extracted during its underground development and sampling program at Fire Creek in Nevada. . .the 3.5 oz/t average grade of ounces extracted during June continues to demonstrate the high-grade nature of the veins at Fire Creek. The ±6 Koz from these two months are expected to be shipped to Newmont for processing, generating cash for Klondex to continue development underground as well as add a second underground drill to follow up on recent discoveries."

Marc Pais, MGI Securities (7/29/13) "Today, Klondex Mines Ltd. reported that underground development work at the Joyce and Vonnie vein structures yielded 1,435 tons of mineralized material at an average grade of 119.8 g/t (3.49 oz/t) gold. Last week the company announced that it had secured bridge loans totaling $2.4M, and had also secured an agreement with Newmont Mining Corp. to begin processing its higher grade mineralization. . .we believe that today's production results indicate that Klondex is now well on the way to becoming a self-sustainable, profitable mining company."

The Gold Report Interview with Ralph Aldis (7/24/13) "Klondex Mines Ltd.'s stock is up 25% over the last three months, and the average stock in the exploration and development space is down 25%. The company must be doing something right. . .Klondex recently put out a news release indicating that its resource, an underground drift at its Fire Creek project in Nevada, is basically 132.8 g/t over 144.2 meter strike. It already has 2 Moz at 9.95 g/t. It is high quality and high grade and in the politically safe jurisdiction of Nevada. We're the third-largest shareholder. None of the top three shareholders has to raise any cash to meet redemptions. That stock won't have any selling pressure, but you can still buy it for $70M. I don't know where you can buy 2 Moz at 9.95 g/t for $70M." More >

Barry Allan, Mackie Research Capital (7/22/13) "We thought it would be important to stress test our models and take a look at our coverage list in a much harsher environment, in this case using a long-term gold price of $1,000/oz and long-term silver price of $18/oz. . .although we have only included near-term producers in our stress testing, one that stands out continues to be Klondex Mines Ltd. due to its high-grade Fire Creek project. Fire Creek continues to generate good levels of cash flow, provided that the grade remains above 9.5g/t (or mining/milling costs are lowered)."

Derek Macpherson, M Partners (7/18/13) "We are initiating coverage of Klondex Mines Ltd. with a Buy rating. . .as Klondex demonstrates its ability to generate cash in the near term, thereby by funding the development needed to ramp-up operations, the company's share price should benefit. . .the company's planned metallurgical testing program and subsequent bulk sample should allow it to generate $25.5M cash flow net of mining costs over the next 15 months. . .recent financings used to clean-up the balance sheet combined with near-term cash flow has Klondex uniquely positioned to organically fund the next stage of growth. . .management's experience is suited to Fire Creek."

VSA Capital (7/11/13) "Drill results were released yesterday from Klondex Mine Ltd.'s ongoing 2013 exploration and development program on the Joyce (A1) structure at its Fire Creek project in Nevada; the results showed very high grades (more than 64 g/t gold) over quite narrow widths. . .in our view, the narrow widths will probably mean underhand cut and fill extraction, so grades will have to be high, i.e., better than 13 g/t gold over the life of this particular vein structure. Hence consistency is key."

Matthew Zylstra, Euro Pacific Canada (7/2/13) "Klondex Mines Ltd. is focused on the exploration and development of its 100%-owned, high-grade Fire Creek gold project. . .members of the new Klondex Mines team are experienced developers, who have put several mines into production, with most members having in excess of 20 years of related experience in Nevada. . .we expect economics for Fire Creek to be strong based on a very high resource grade and low capex. . .grades at Fire Creek are much higher than most operating underground mines. . .we are initiating coverage of Klondex Mines with a Speculative Buy rating and $2.70 price target."

Oliver Turner, GMP Securities (6/17/13) "We are initiating coverage of Klondex Mines Ltd. with a Buy rating and a CA$2.25/share target price; Fire Creek is a high (bonanza) grade gold deposit located in what is quite possibly the premier mining jurisdiction worldwide. The project is fully funded through to collection of a bulk sample later this year, which should generate pre-tax cash flow in the range of $8–10M, helping the company advance development toward our estimated production of ±30 Koz next year, and ultimately what we envision as a mine producing approximately 95 Koz/year by 2016 (at cash costs in the $700–800/oz range)."

Barry Allan, Mackie Research Capital (6/13/13) "Klondex Mines Ltd. is meeting milestones and beating on grade. . .ongoing drilling and resampling of prior drilling has yielded spectacular, high-grade results, confirming once again that Fire Creek is a high-grade resource. In addition, test mining so far has not only supported the exploration model as being valid, but has confirmed mineralized veins are indeed continuous and mineable."

Marc Pais, MGI Securities (5/30/13) "Klondex Mines Ltd. confirmed mineralization in the new West zone at its Fire Creek deposit in Nevada; five holes intersected mineralization extending south from the recent vent-raise access discovery. . .these results are from a new zone that is outside of the current resource estimate and demonstrate the potential for discovering new ounces within the vicinity of the underground workings. Although the widths are relatively narrow, the high grades are similar to those at the Midas and Hollister mines, which were profitably operated for many years by the current team at Klondex."

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