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Strong Q3 output prompts Klondex to lift guidance again

23rd October 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian gold producer Klondex Mines has increased its full-year production guidance for the second consecutive quarter, after reporting strong third-quarter output.

"Our operations continue to perform as planned. We had another strong operating performance in the third quarter selling 33 846 gold equivalent ounces (GEO) and are now increasing our annual production guidance for the second straight quarter by another 5 000 oz to between 130 000 GEO and 135 000 GEO for the year, primarily owing to additional working faces, positive reconciliations and ongoing dilution management at both Midas and Fire Creek [in Nevada],” Klondex president and CEO Paul Huet stated.

For the three months ended September, Klondex produced 26 300 oz of gold, slightly below the June-quarter output of 26 552 oz, and silver output declined to 443 576 oz from the previous quarter’s 472 473 oz.

Gold-equivalent output fell 3% quarter-on-quarter to 32 068 oz. The gold-equivalent ratios were calculated by dividing the average realised gold price an ounce by the average realised silver prices an ounce received by the company, which resulted in a ratio of 76.9:1 for the third quarter.

Klondex’s Midas-based milling and processing facilities processed ores from both Midas and Fire Creek, about 160 km south of Midas.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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