Klondex Mines has started construction work on the Midas tailings expansion after receiving permits for the project in north-central Nevada.

The final permit for expansion of the Midas tailings impoundment has been received from the Nevada Division of Environmental Protection, Division of Water Resources.

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Following receipt of the permit, Klondex began construction of phase VI of raising the tailings impoundment to a maximum height of 5,680ft above mean sea level.

The expansion is expected to add approximately 400,000t of tailings capacity.

"The expansion will provide Klondex with a timeline to be able to build a second tails dam at the Midas property."

NewFields Engineering and Remington Construction has been contracted to build the engineered, reinforced concrete wall.

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When coupled with the existing tailings, the wall will provide Klondex with approximately 900,000t of tailings capacity at the Midas mine.

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Construction of the expansion, according to the company, is slated for completion in the fourth quarter of 2015.

Klondex Mines COO Brent Kristof said: "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.

"The water pollution control permit at Fire Creek, and tailings expansion permit at Midas are key to supporting our long-term growth plan."