Month: March 2017

Kootenay Silver Inc. is pleased to announce plans are underway to proceed with the 2017 exploration program being conducted and operated by Pan American Silver Corp on its La Negra silver discovery in Sonora, Mexico. The program is part of an option agreement between Kootenay and Pan American that provides Kootenay with a series of work and cash commitments and a carried to production interest on La Negra.

N. Eric Fier, CPG, P.Eng, President & CEO remarked, “We expected the area drilled to be mostly mined out and are very pleased to discover that much of the mineralization in this area is intact. The initial drill hole results at the Babicanora Vein suggests high-grade mineralization and a continuous, well-defined mineralized vein and structure that averages over four metres in true thickness. We have been able to trace the Babicanora Vein, on surface and underground, for over one kilometre within an altered and mineralized trend that is over 2.5 kilometres long and 1 kilometre wide. Underground access to this vein is via a 230-metre long 4 by 4 metre horizontal adit (see attached Photo), which was driven by a French company during the 1860s. We are drilling the Babicanora Vein from the face of this adit, and are encountering high grade drill intercepts within 8 to 33 metres of the adit.”

Exploration results from the recently completed property wide soil sampling grid (approximately 1,000 samples) have confirmed the existence of the primary gold target, 600 metres X 800 metres. Historical data has been incorporated with the Company’s recent exploration work, resulting in field evidence that the north-south trending shear/vein structures coalesce in various zones along strike. This has reinforced the geological model that wider zones of gold mineralization, flanking the high-grade shear structures, some of which continue to be mined by local gambosinos (miners), where grades appear to be in the 15 g/t gold range, exist. The Company’s sampling of the one to two metre-wide structures has resulted in grades up to 46 g/t gold.

Darren Blasutti, President and Chief Executive Officer of Americas Silver, stated, “As we did when we acquired Scorpio Mining and the San Rafael project two years ago, we are taking a disciplined and highly accretive approach to our external growth strategy. The San Felipe acquisition provides our shareholders with an exciting development asset at an attractive valuation, which has the potential to add material high margin production scale that further enhances the tremendous value proposition of Americas Silver. While we remain highly focused on successfully executing the development of San Rafael on time and on budget, we are extremely excited to add this project to our pipeline. We believe it has the potential to drive the next leg of growth for our Company as we transition to a leading first quartile silver producer in 2018 and beyond.”