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Klondex Mines Ltd.

TICKER: KDX:TSX; KLNDF:OTCBB

Klondex Mines Ltd. is focusing on the exploration, development and production of its two high-quality gold and silver projects in the mining-friendly jurisdiction of north-central Nevada. The 1200 tpd milling facility is processing mineralized materials from the Midas mine and the Fire Creek project. Midas is fully permitted and has been in operation since 1998. Fire Creek is located ~100 miles south of Midas and is operating an ongoing bulk sampling program that began in 2013. All major infrastructure is in place at Fire Creek.


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 (10/28/14) "Klondex Mines Ltd. announced a strong beat for Q3/14 production from its Fire Creek and Midas operations that reported 33,339 oz Au eq, well above our estimate of 29,231 oz Au eq. . .furthermore, improving recoveries (likely due to higher grade ore) led to gold and silver recoveries of 94.7% and 95.8%, respectively, beating our 94% expectation for each during the quarter."

Ben Kramer-Miller, Seeking Alpha (10/24/14) "Klondex Mines Ltd. is profitably processing ore from the Midas Mine and exploring there aggressively and successfully. The company has been gradually building up its production and in Q3/14 reached an annualized rate of more than 150 Koz Au eq, or ~130 Koz gold, which is phenomenal for a company valued at just ~$225M, especially given that it is one of the lowest cost producing gold miners that I follow. . .Klondex is one of the better and lower risk opportunities in the junior gold mining space."

Derek Macpherson, M Partners (10/21/14) "Klondex Mines Ltd. released Q3/14 production results, which came in ahead of our estimates. . .the beat is likely mostly attributable to significantly higher-than-expected gold grades at 0.637 oz/t (21.8 g/t) versus our estimate for 0.388 oz/t (13.3 g/t), along with modestly better-than-expected throughput of 552 tpd during the quarter compared to our estimate of 510 tpd."

Frank Holmes, U.S. Global Investors (10/20/14) "One mining company that's managed to not only survive in this uncertain climate but actually thrive is Klondex Mines Ltd., our largest holding in both our Gold and Precious Metals Fund (USERX) and World Precious Minerals Fund (UNWPX), with additional exposure in our Global Resources Fund (PSPFX). . .in relation to its peers, Klondex has a significantly higher profit margin than companies with a market cap two to three times its size. . .its stock has managed to stay above the Market Vectors Junior Gold Miners exchange-traded fund for the 12-month period, delivering a positive return of 7% vs. the index's negative 7.5%."

Derek Macpherson, M Partners (10/20/14) "Klondex Mines Ltd. released Q3/14 production results that came in ahead of our estimates, including production of 38.6 Koz Au eq, 67.4% ahead of our estimate. The beat is likely mostly attributable to significantly higher than expected gold grades at 21.8 g/t versus our estimate for 13.3 g/t. . .we believe the pending resource update from Fire Creek, along with continued operational execution, should see the stock close the current valuation gap and ultimately trade at a premium to peers."

more comments

Derek Macpherson, M Partners (10/9/14) Klondex Mines Ltd. released infill and exploration results from its Fire Creek project. . .there were some excellent results, with the overall results being generally in line with historic results. These results yielded a weighted average grade of 27.2 g/t over an average width of 1.45m, which compares to the Measured and Indicated grade of 41.5 g/t and our modeled resource grade of 21.9 g/t."

Derek Macpherson, M Partners (10/7/14) "With a focus on margins and lower risk, our top pick in the gold space is Klondex Mines as its premium jurisdiction, strong management team and exceptional grades help to offset the ramp-up risk. . .the company's high grades provide it with the potential for very strong cash margins. . .we believe Q3/14's results should continue to highlight the progress made to date at Fire Creek and Midas."

The Mining Report Interview with Derek Macpherson (10/7/14) "The first name that stands out is Klondex Mines Ltd. The company has a very high-grade asset, which allows it to have high margins. Even though the risk is a little bit higher because the company is ramping up production, its grades should allow it to retain very reasonable cash costs over the long term and tolerate much lower gold prices. . .Klondex has exploration upside on both projects. At Fire Creek, the company has identified three veins that are outside the current resource, which bodes well for the pending resource update. Meanwhile, at Midas, the company recently announced an expanded resource based on some exploration results and by applying different mining methods than previous operators. Importantly, the Midas update highlights that the company has two mines with reasonable lives and exploration upside." More >

Derek Macpherson, M Partners (10/2/14) "Klondex Mines Ltd. announced an updated resource estimate from its Midas mine, which increased the overall grade by 7% and overall ounces by 77%. . . with grades improving and the mine life increased, we believe this update should help change the market's view and consequently support the company's share price."

Philip Ker, PI Financial (10/2/14) "Klondex Mines Ltd. announced an increase in grade and in situ ounces within a newly tabled resource on its acquired Midas asset. . .as a result of the updated resource, contained Measured and Indicated Au eq ounces increased 37% to 526 Koz while Au eq grades also increased 15% to 16.2 g/t."

Barry Allan, Mackie Research Capital (10/2/14) "Klondex Mines Ltd. has released an updated resource for the Midas mine. . .the company continues to exhibit significant growth with an updated resource now containing 813 Koz Au eq, up from 459 Koz previously. . .given the sharp increase in ounces at Midas, our NAV/share increases to $3.26 from $2.91 previously, causing our target to increase to $3.25 from $3."

Oliver Turner, GMP Securities (10/1/14) "Klondex Mines Ltd. announced an updated resource estimate at its Midas operation in northern Nevada. Measured and Indicated resources increased 37% to 526 Koz Au eq at 0.47 oz/t. . .while Inferred resources increased 280% to 287 Koz Au eq at 0.33 oz/t. . .largely driven by the company's ability to mine far narrower veins with lower dilution as it has transitioned away from the dilutive long hole stoping mining method. . .employed by previous owners Newmont Mining Corp. . .we expect the Midas deposit to continue to expand as the company proceeds with its aggressive $10M, 18-month drill and development program."

Sam Crittenden, RBC Capital Markets (9/30/14) "The resource for Klondex Mines Ltd.'s Midas mine in Nevada grew by 74% with a 5% lift in grades, and compares favorably against our modeled assumptions. . .demonstrating more value for Midas which should be realized in the company's share price if operating results continue to improve. Midas had seen limited exploration drilling from Newmont Mining Corp. prior to its divestiture to Klondex, and there remains considerable potential to grow the resource with several targets identified. The resource is located near existing infrastructure which should reduce capital costs required to mine these ounces."

The Gold Report Interview with Jay Taylor (9/29/14) "Klondex Mines Ltd., which is operating in Nevada, looks really good for its high grade resource. It recently reported its first profit. It has really turned the corner since it acquired the Midas mill and mine from Newmont Mining Corp. It is trucking high-grade ore (more than 1 oz/ton much of the time) 100 miles from its Fire Creek property to the Midas mill. But both the Fire Creek project and the Midas mine have substantial exploration potential. I believe this company will continue to grow its production organically as it takes advantage of excess mill capacity." More >

Derek Macpherson, M Partners (9/16/14) "Klondex Mines Ltd. announced the identification of the Honeyrunner structure. . .located approximately 34m west of, and parallel to, the Karen vein at its Fire Creek project. This represents the fifth mineralized zone at Fire Creek; drifting is expected to commence in Q4/14. Based on current drilling, the strike length of the Honeyrunner structure is approximately 472m with 160m of known vertical dip extent. . .22 drill holes have intercepted the structure, with results highlighted by the most recent intercept of 2,184 g/t gold and 27 g/t silver over 0.4m. . .an updated resource estimate is expected in late 2014."

Derek Macpherson, M Partners (9/10/14) "In excess of 100 holes equating to 18,288 m have been drilled at the Midas mine since Klondex Mines Ltd. acquired the property in February, 2014. . .the strong drill results continue to demonstrate Midas' potential; once an updated resource is complete, we would expect the resource to grow. . .we believe exploration success at Midas and Fire Creek should favorably impact the company's share price."

Philip Ker, PI Financial (9/5/14) "Klondex Mines Ltd. announced it is initiating its exploration efforts at its Midas operation. . .the drilling component will amass ~240,000 ft over the next 18 months at surface and underground targets. Additionally, ~4,000 ft of underground development will be completed on historic veins and known structures in preparation for future expansion and mining production."

Sam Crittenden, RBC Capital Markets (8/18/14) "Klondex Mines Ltd.'s shares have the potential to rerate as the Fire Creek mine ramps up over the next 12 months. . .the company generated $7.5M of free cash flow in Q2/14, and we forecast $30M for 2015 and $60M in 2016, implying a 20% yield, which would be among the highest in our coverage universe."

Jay Taylor, Gold, Energy & Tech Stocks (8/15/14) "Klondex Mines Ltd. may be the first A3 company on my list to ever report a profit before even being bumped up to an A1. . .this is the kind of story I like because it looks now as if the company can grow organically and, thus, not need to dilute shareholder interest. And now that Klondex is ringing up profits, these shares should be stellar performers once the next major leg of this secular bull market gets under way."

Ben Kramer-Miller, Seeking Alpha (8/14/14) "Klondex Mines Ltd. reported fantastic earnings for Q2/14. The company, which began producing toward the end of Q1/14. . .produced 22 Koz gold with production costs at just $730/oz, demonstrating what I have been saying for over a year now. Specifically, I have been pointing out Klondex Mines as one of the few companies in the space that had a high-grade deposit in a low-risk jurisdiction that was progressing toward production. . .the company wasted no time achieving profitability. . .Klondex remains a compelling speculation stock, and the company’s Q2/14 figures support this thesis."

Barry Allan, Mackie Research Capital (8/14/14) "Klondex Mines Ltd.'s combined operations in Q2/14 produced $14.2M of operating cash flow, of which ~$6.8M was spent on mine development/capital project, meaning the company has confirmed that it has truly become an operating company able to self-sustain operations, a clearly positive event. Q2/14 was still a transitional period even though results confirm operator status."

Derek Macpherson, M Partners (8/13/14) "Klondex Mines Ltd.'s strong Q2/14 operational results led to free cash flow (FCF) in its first full quarter of operations. . .the company reported FCF of $7.4M, which came in ahead of our estimate of -$1.9M due in large part to increased revenue and slightly lower-than-expected capex. We view this very positively as Klondex's ability to generate FCF sets it apart from peers, particularly given the stage of development at Fire Creek."

Sam Crittenden, RBC Capital Markets (8/13/14) "Klondex Mines Ltd.'s Q2/14 financials were broadly in line, cash costs of $730/oz were lower than our $760/oz estimate and production of 22.2 Koz Au eq was pre-released. Free cash flow of $7.5M was generated in Q2/14, and the ramp-up at Fire Creek and Midas is progressing well."

Philip Ker, PI Financial (8/5/14) "Klondex Mines Ltd. announced positive assay results from its initial drifting along the Hui Wu vein. Comparable average grades and widths of 3.7oz/t gold across 3.5 ft and is consistent with those reported last week's news release highlighting sampling results from the Karen vein located just 50 ft to the west. . .the addition of Hui Wu adds yet another high-grade mineralized structure into the already flexible and expanding operation at Fire Creek. . .given the significant upside contained at Fire Creek, and the likelihood of mine life longevity at Midas, we are maintaining our Buy rating."

Philip Ker, PI Financial (7/30/14) "Klondex Mines Ltd. announced positive bulk sample production numbers from its Karen vein at Fire Creek, highlighting 7,300 t sampling containing 6,700 oz gold during Q2/14, representing 39% of the quarterly gold production (17,093 oz). . .excellent average vein widths of 4.2 ft were realized on the 5,420 level with sample intervals exceeding 14 oz/t."

The Gold Report Interview with Ralph Aldis (7/30/14) "One of the largest positions in the fund is Klondex Mines Ltd. It's up almost 30% year-to-date. This is a great story. Most people haven't woken up to it yet. In 2013, Klondex was up about 28% when the Market Vectors Junior Gold Miners ETF (GDXJ) was down 61%. That's an example of stock performance signaling that something is going on. At the end of the year, Klondex, which originally had just the Fire Creek mine in Nevada, was toll milling ore at Newmont Mining's nearby Midas mill. Klondex then negotiated to buy the Midas mine and mill from Newmont for $83M. (Note: $55M to Newmont, $28M to replace the reclamation bond and 5M common share purchase warrants at an exercise price of $2.25.) At that time the company's market capitalization was just under $100M and it raised close to that to complete the transaction. The stock did not get knocked down—it's up 30%.

The people at Klondex are key. CEO Paul Huet was the mine manager at the Midas mine for about 10 years. He knows that asset extremely well. The other key player is Chairman Blair Schultz. He left hedge fund K2 Partners to be the full-time chairman. Klondex recently raised more cash to drill vein discoveries at Fire Creek and other targets at Midas. [About 66% of Klondex is held by institutional shareholders, and about 8% is held by management and insiders.] That's a pretty good mix. We find that when management doesn't own enough shares it seems to deliver mediocre to bad performance relative to companies with management that owns a significant percentage of stock. [Klondex is targeting free cash flow by the end of the year.] I don't see any hiccups on that side at all." More >

Lawrence Roulston, Resource Opportunities (7/21/14) "Klondex Mines Ltd. produced 17 Koz gold and 325 Koz silver in the second quarter ended June 30. Those results are a significant improvement over the first quarter figures, and show a continuing ramp-up in operations at the two Nevada mines, Midas and Fire Creek. . .the company announced a bought-deal financing, under a prospectus. . .the additional capital will allow it to further accelerate the pace of development and continue to enhance shareholder value."

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."

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 >

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