Dec 4 2014
Klondex Mines Ltd. announces that its subsidiary, Klondex Midas Operations, has entered into a toll milling agreement with LKA Gold, Inc. to process high grade ore produced from the Golden Wonder Mine at Klondex's Midas mill.
The toll milling agreement with LKA has a one year term beginning December 1, 2014, and is subject to renewal annually. Under the terms of the agreement, high grade ore, greater than 51.4 g/t (1.5 opt) Au from the Golden Wonder Mine, located near Lake City, Colorado, will be delivered to the Midas Mill for processing. Pursuant to the toll milling agreement, all dore produced will become the property of Klondex, and Klondex will pay LKA the value of the recovered gold minus all toll mill charges.
Mike Doolin, Klondex VP Business Development and Technical Services stated, "This agreement marks the second toll milling agreement put in place since we bought Midas in February. Processing third party material makes good use of the mill, while still leaving us with ample capacity as we continue to develop the Midas and Fire Creek mines. We look forward to working with the LKA team on the Golden Wonder project."
Klondex is presently evaluating other toll milling opportunities to determine which materials are best suited to being processed at the Company's Midas Mill.
Source: http://www.klondexmines.com/