TORONTO (miningweekly.com) – TSX-listed Klondex Mines said on Wednesday it had completed the drill core re-logging programme for its flagship Fire Creek gold project, in Nevada, about five weeks ahead of schedule.

The results of the drill core re-logging programme would form part of an updated resource estimate expected in June, which would be used to develop a comprehensive mine plan and a preliminary economic assessment, expected to be completed in the fourth quarter.

The resource estimate would include 36 639 m of infill core drilling from both surface and underground, in addition to the re-logged core originally included in the May 2011 resource estimate.

Started in January, the in-depth re-logging programme involved the photographing and re-logging of about 73 000 m of archived drill core from Fire Creek's past exploration programmes.

Klondex said the programme set out to improve on previous logging by gaining a better understanding of the Fire Creek metallurgy, and by improving the geological understanding of the project, through the resolution of gold mineralisation true widths, and better characterisation of geology, alteration, geochemistry, gold distribution and rock mechanics.

Specific drill intervals were also selected for resampling to better refine the limits and tenor of gold mineralisation with regard to geology. 

“I can't emphasise enough how important a quality resource, that includes proper geotechnical work, is for us; becoming the foundation of everything we do at Fire Creek. The step was particularly important as we turn to building a mine plan based on economics, efficiencies and most importantly, profitability.

“The re-logging effort will give my team greater comfort in developing and growing the gold operation set to begin in the second half of the year,” president and CEO Paul Huet said.

Klondex chief geologist Steve McMillin added that the recent drilling, coupled with the new discoveries to the west of the deposit and to the south, was important to include in the updated resource, to complement the results of the re-logging programme.