Klondex Mines Ltd. (TSX:KDX) (OTCQX:KLNDF) today reports the required permits for the tailings expansion at the Company’s Midas project have been issued and construction of the expansion has kicked off.

The Nevada Division of Environmental Protection, Division of Water Resources, has granted the final permit for expansion of the Midas tailings impoundment. This permit acquisition allows Klondex to construct the Phase VI raise to the tailings impoundment, to a maximum elevation of 5,680 feet above mean sea level, adding approximately 400,000 tons of tailings capacity.

Klondex has contracted NewFields Engineering and Remington Construction to complete the raise. The raise is an engineered reinforced concrete wall, that when coupled with the existing tailings, will provide Klondex with approximately 900,000 tons of tailings capacity at Midas. Construction is expected to be completed in the fourth quarter of this year.

Brent Kristof, Klondex COO commented, “The tailings expansion permit is an important milestone in our long-term planning for Midas and Fire Creek. The expansion will provide Klondex with a timeline to be able to build a second tails dam at the Midas property. Studies to design, permit and construct a new, long term tailings facility have been initiated. Also, I’d like to thank the environmental team, for delivering the second major permit to Klondex within a month. The Water Pollution Control Permit at Fire Creek, and Tailings Expansion permit at Midas are key to supporting our long-term growth plan.”

About Klondex Mines Ltd.

Klondex owns and operates the Fire Creek Project and Midas Mine and Mill in the mining-friendly jurisdiction of north central Nevada. The 1,200 tons per day capacity milling facility is processing mineralized materials from both Midas and Fire Creek. Midas is fully-permitted and has been in operations since 1998. Fire Creek is located ~100 miles south of Midas and is operating an ongoing bulk sampling program that began in 2013.