GOLD: Klondex cuts operations at True North mine

MANITOBA – Vancouver-based Klondex Mines is reducing its underground mining operation and workforce at the True North gold mine near Bissett. The reason given is that the mine did not achieve planned operating and cash flow targets in 2017. [caption id="attachment_1003721600" align="alignleft" width="300"] Underground miners at the True North gold mine in Manitoba. (Image: Klondex Mines)[/caption] Klondex says that underground mining will be limited to areas already developed. When those areas are depleted, mining will be suspended and the project placed on care and maintenance. A new resource estimate is due in Q1 2018. Milling of existing tailings will continue. Using a gold price of US$1,400/oz., the True North mine had measured and indicated resources of 1.8 million tonnes grading 7.4 g/t for 388,000 oz. There were also 3.7 million inferred tonnes at 6.24 g/t gold for 668,000 oz. The tails contain 51,000 oz. of gold in 2.1 million indicated tonnes at 0.82 g/t and 1.1 million oz. in 47,000 inferred tonnes at 0.75 g/t. Klondex acquired the former Rice Lake mine in January 2016. The decision to restart production was made in September that year. The company maintains its website at www.KlondexMines.com.