VANCOUVER, Feb. 25,
2014 /CNW/ – Kootenay Silver Inc. (TSX VENTURE: KTN.V) (“Kootenay”)
is pleased to provide an update of exploration on the contiguous land position
surrounding its flagship Promontorio Silver Project in Sonora, Mexico. Ongoing
exploration has resulted in the discovery of numerous zones of gold-silver,
silver and gold-copper mineralization that defines a 25 x 15 km northwest
trending corridor, the “Promontorio Mineral Belt”.
The results of this
exploration program documents the Promontorio Diatreme breccia’s belong to a
mineral event that is part of a regional mineral exploration belt. None of
these newly-discovered zones have been drilled.
States Kootenay
President and CEO James McDonald “We are extremely pleased with results
from our Promontorio Satellite exploration program. The extensive areas of
mineralization and alteration clearly underscore the potential for multiple new
discoveries to the northwest of Promontorio’s Diatreme system. The La Negra
Prospect is already permitted and drill ready and plans are underway to define
drill targets on a host of the other prospects. Concurrently, we continue to
remain focused on the strategic expansion of the high-grade areas of our
Promontorio resource, located in the Central corridor and the Northeast
Zone.”
The principle areas of
mineralization within the “Promontorio Mineral Belt” are named
Nopalera, Metallica Pesada, Tordillo, Alamito, La Negra and Leona. Their
location relative to the Promontorio Diatreme hosted resource is shown by
visiting the following link: Promontorio Satellite Map
Descriptions of the
primary areas of interest are as follows:
The La Negra Zone
The La Negra prospect
is a hydrothermal-diatreme breccia exposed over a 100 to 150 x 400 to 500
meters area, 7 km north of the Promontorio diatreme breccias.
Seventy-seven samples
have been collected over the La Negra prospect. Of the 77 samples collected, 56
returned values greater than 10 gpt silver and 35 greater than 20 gpt
silver. Eighteen chip samples (random
chips taken within a 2m x 2m area) averaged 107 gpt silver with a single high
of 512 gpt and 15 greater than 20 gpt.
Gold values are low within the breccias but highly anomalous in small
veins peripheral to the breccias with values from background to 8.2, 4.3, 3.2
and 2.0 gpt gold obtained from grab samples. To view a map of the La Negra
sampling visit: La Negra Sampling
The Tordillo Zone
The Tordillo zone is
located 20 km northwest of Promontorio.
Gold and silver mineralization occurs over a 3 x 5 km area as veins,
stockworks and breccia’s intimately associated with strong potassic and
argillic/sericite/hematite alteration. This is suggestive of a gold porphyry
setting. Three hundred and ten samples have been collected over the Tordillo
zone. 175 samples are greater than 50 ppb gold, 148 greater than 100 ppb (0.1
gpt Au), and 54 greater than 1 gpt (with high values of 71.0, 20.2, 18.0, 14.2,
11.3, 9.8, 8.0, 6.7, 6.1 and 5.5 gpt noted).
Anomalous silver showed in 94 samples with values greater than 10 gpt
and 20 greater than 50 gpt, with highs of 547, 227, 252, 192, 166 and 147 gpt.
Two main areas of precious metal have been identified in the Tordillo area.
They are Mucho Oro and Tordillo Sur zones.
In the ‘Tordillo Sur’
zone, gold values from background to 18, 2.7, 1.8, 3.5, 1.6, 2.3, 2.7 gpt and
silver values from background to 252, 107 and 66 gpt occur with secondary
biotite, potash feldspar, magnetite, hematite and sericite hosted in altered
sandstones. Significant copper values occur with the gold. In conjunction with
potassic alteration this is indicative of a porphyry system.
The ‘Mucho Oro’ is a
zone with strongly sericitic/hematite altered sediments hosting values from
background to 71.0, 14.2, 11.3, 8.0 and 6.1 gpt gold with low silver from grab
samples. Visible gold is noted. Chips of 1.5 m across a 21 m trench averaged
0.80 gpt gold (including 10.5 m of 1.44 gpt gold). One hundred meters to the north, the Mucho
Oro Norte zone contained values from background to 6.3, 5.5 and 4.5 gpt gold
and 192, 166 and 119 gpt silver also hosted in sericite/hematite altered
brecciated sandstones from grab samples.
To view a map of the
Tordillo Zone sampling visit: Tordillo Zone Sampling
The Metallica Pesada
Zone
Metallica Pesada zone
adjoins Tordillo to the immediate north. Prospecting, geologic mapping and soil
geochemistry has outlined a 3 x 3 km area with gold and silver mineralization.
Mineralization occurs as veins, stockworks and breccia’s hosted in regionally
sericite-hematite altered sediments and argillic altered volcanics. Two hundred and eighty-two rock samples have
been collected over Metallica Pesada.
One hundred eighty-two samples returned gold greater than 50 ppb, 147
greater than 100 ppb (0.1 gpt gold) and 45 greater than 1000 ppb (1 gpt
gold). High values for gold include:
33.3, 16.3, 13.9, 11.8, 8.2, 6.2 and 5.2 gpt.
For silver, 84 samples were greater than 10 gpt, with 20 greater than 50
gpt with isolated high values of 3,390 and 1,495 gpt silver noted.
A soil survey
collected 185 samples that outlined a 1.5 km by 200 to 500 meter wide
northerly-trending gold/silver/arsenic soil anomaly (with 45 soils> 50 ppb
ranging to 1.2 gpt gold) coincident with both the regional sericite-hematite
altered sediments and the distribution of the rock samples. To view a map of the Metallica Pesada Zone
sampling visit: Metallica Pesada Zone Sampling
The Alamito Zone
Newly recognized, the
Alamito zone lies southeast of both the Tordillo and Metallic Pesada zones
within the axial part of the Promontorio Mineral Corridor. Follow up work during 2013 of previously
known isolated gold and silver anomalies defined three anomalous zones.
One hundred and
forty-two samples have been collected in the Alamito area. Gold from rock samples
gave 63 greater than 50 ppb, 47 greater than 100 ppb and 13 greater than 1,000
ppb with high values of 44.5 10.7, 7.5 and 4.6 gpt. Visible gold was noted. Silver values samples resulted in 48 greater
than 10 gpt, 10 greater than 50 gpt with high values of 2,780, 498, 331, 277
and 174 gpt. Mineralization is hosted in veins, stockworks, disseminations and
hydrothermal breccias with quartz, sericite, hematite and tourmaline
alteration.
The La Leona Zone
One hundred and
forty-two samples have been collected in the La Leona area. Gold from rock
samples gave 63 greater than 50 ppb, 47 greater than 100 ppb and 13 greater
than 1,000 ppb with high values of 44.5 10.7, 7.5 and 4.6 gpt. Visible gold was noted. Silver values gave 48 greater than 10 gpt, 10
greater than 50 gpt with high values of 2,780, 498, 331, 277 and 174 gpt.
Mineralization is hosted in veins, stockworks, disseminations and hydrothermal
breccias associated with quartz, sericite, hematite and tourmaline alterations.
ABOUT KOOTENAY
Kootenay Silver Inc.
is actively developing mineral projects in the Sierra Madre Region of Mexico
and in British Columbia, Canada. Its flagship property is the former producing
Promontorio Silver mine in Sonora State, Mexico. Kootenay’s objective is to
develop near term discoveries and long-term sustainable growth. Its management
and technical team are proven professionals with extensive international
experience in all aspects of mineral exploration, operations and venture
capital markets. Securing J/V partnerships in Mexico and Canada on non core
assets maximize potential for additional, new discoveries while maintaining
minimal share dilution.
Current NI 43-101 Compliant Silver Resource
The current mineral
estimate on Promontorio effective date March 31, 2013 (See May 14, 2013 news
release) contains a combined Measured and Indicated silver resource of
92,428,000 silver equivalent ounces (39.9M oz’s Ag, 508K oz’s Au, 394.8M lb’s
Pb, 462.2M lb’s Zn). In addition to the measured and indicated silver
resources, there are an additional 26,814,000 silver equivalent ounces in the
Inferred category (12.8M oz’s Ag, 147 oz’s Au, 99.5M lb’s Pb, 109.1M lb’s Zn).
Measured and Indicated resources are contained in open pit resources of
44,504,000 tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt
Ag, 0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open pit of
215,000 tonnes grading an average of 56.96 gpt silver equivalent (22.89 gpt Ag,
0.28 gpt Au and 0.95% Pb+Zn). Inferred resources are within open pit resources
of 14,564,000 tonnes grading an average of 51.95 gpt silver equivalent (24.95
gpt Ag, 0.28 gpt Au and 0.59% Pb+Zn) and resources outside of the open pit of
1,265,000 tonnes grading an average of 61.17 gpt silver equivalent (26.57 gpt
Ag, 0.37 gpt Au and 0.74% Pb+Zn).
The current NI 43-101
Resource Estimation conducted on Promontorio by SRK Consulting Inc. (U.S.) of
Lakewood, Colorado (See May 14, 2013 news release), included gold assay results
in the updated resource estimation. As a result of the addition of gold, the
mineral resource is now contained in a single larger optimized Whittle Pit, as
opposed to two individual smaller pits as reported in the August 21, 2012
resource estimate. The decision to
include gold in the resource estimation follows extensive metallurgical testing
and technical analysis conducted by ALS Minerals of Kamloops, British Columbia
that confirmed up to 94.5% recovery of gold from pyrite concentrates from the
Promontorio resource can be achieved using a post pressure oxidation treatment
process.
QA/QC
All sampling reported
are grab rock samples unless otherwise indicated. Further Quality Assurance and Control
procedures and details on assays procedures and laboratories used are disclosed
on the Kootenay Silver Inc. website.
The foregoing
geological disclosure has been reviewed and verified by Kootenay’s CEO, James
McDonald, P.Geo (a qualified person for the purpose of National Instrument
43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a
director of Kootenay.
Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Forward-Looking
Statements: The information in this news release has been prepared as at
February 24, 2014. Certain statements in
this news release, referred to herein as “forward-looking
statements”, constitute “forward-looking statements” under the
provisions of Canadian provincial securities laws. These statements can be identified by the use
of words such as “expected”, “may”, “will” or
similar terms.
Forward-looking
statements are necessarily based upon a number of factors and assumptions that,
while considered reasonable by Kootenay as of the date of such statements, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. Many
factors, known and unknown, could cause actual results to be materially different
from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
made. Except as otherwise required by
law, Kootenay expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statements to reflect any change
in Kootenay’s expectations or any change in events, conditions or circumstances
on which any such statement is based.
Cautionary Note to US
Investors: This news release may contain information about adjacent properties
on which we have no right to explore or mine. We advise U.S. investors that the
SEC’s mining guidelines strictly prohibit information of this type in documents
filed with the SEC. U.S. investors are cautioned that mineral deposits on
adjacent properties are not indicative of mineral deposits on our properties.
This news release may contain forward-looking statements including but not
limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral
recovery processes, etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such
statements.
This press release
uses the terms “Measured”, “Indicated”, and
“Inferred” resources. United States investors are advised that while
such terms are recognized and required by Canadian regulations, the United
States Securities and Exchange Commission does not recognize them.
“Inferred Mineral Resources” have a great amount of uncertainty as to
their existence, and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an Inferred Mineral Resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or other economic
studies. United States investors are cautioned not to assume that all or any
part of Measured or Indicated Mineral Resources will ever be converted into
Mineral Reserves. United States investors are also cautioned not to assume that
all or any part of a Mineral Resource is economically or legally mineable.
SOURCE Kootenay Silver Inc.
For further information:
James McDonald, CEO
and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaysilver.com
