VANCOUVER, July 22, 2014 /PRNewswire/ --
Shares Outstanding: 68,307,350
Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is
pleased to announce drill contracts are in place, drill targets
have been identified and road construction is underway in
preparation for an upcoming phase I drill program on its La Negra
Diatreme Breccia prospect, located approx. 7 kms north of
Kootenay's flagship Promontorio Silver Resource in Sonora, Mexico. Drilling is slated to commence
in late August 2014 and is expected
to include a minimum 2,500 meters of core drilling.
States Kootenay President and CEO James McDonald "We are very
pleased to proceed to the drilling stage on La Negra. La Negra has
emerged as one of the Promontorio mineral belt's premier diatreme
breccia prospects. La Negra's distinct geological characteristics
gives it potential to evolve into a near-surface, open-pittable
resource and represents a strong complement to our existing NI
43-101 resource located 7 kms to the south. Based on reported
silver grades and the extensive silver mineralization identified on
La Negra on surface from trenching and sampling to date, we remain
highly optimistic the upcoming program can mirror this success as
we begin drilling to depth."
The program follows a recently conducted strategic hand
trenching and chip sampling program that indicated widespread
silver mineralization is present on surface within the entire 100
by 400 meter core of the La Negra Diatreme Breccia (See news
release May 6, 2014). The current
drilling campaign is designed to determine the extent and grades of
silver mineralization extending from surface to depth.
2014 Hand Trenching and Sampling Program
The hand trenching and chip sampling program was designed to
gain a better understanding of the grade potential and continuity
of silver mineralization within the breccia, in preparation for the
upcoming drill program. Composited intervals from 3 meter chips in
the trenches averaged over 45 gpt silver across a cumulative 150
meters in 6 trenches along a 100 by 400 meter extent of breccia
(See news release June 5th,
2014). This supported earlier results that first
returned anomalous silver across the total exposed breccia.
Included were 19 panel chip samples taken from 2 by 2 meter panels
returning an average of 107 gpt Ag within a larger sample set of 50
samples (19 panel chips in 2 by 2 meter panels plus 31 grab
samples) that averaged 77 gpt silver (See news release
May 6, 2014).
The breccia was mapped over an area approximately 100 to 200 by
500 meters and revealed extensive bedrock exposure in an area
measuring 100 by 400 meters. The breccia is believed to be a
diatreme pipe that forms a prominent hill with approximately 120 to
130 meters of relief. Airborne geophysics was effective in mapping
the southern contact of the breccia and indicates the breccia could
be twice the aerial extent of the visible bedrock exposure.
To View Full Results of Sampling Program Visit:
http://www.kootenaysilver.com
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
Samples were assayed using a high-grade multi-acid digestion ICP
analysis conducted by ALS Chemex of North
Vancouver, B.C., Canada and
prepped in ALS Chemex's Lab in Hermissilo, Sonora, Mexico. Further Quality Assurance and
Control procedures and details on assays procedures and
laboratories used are disclosed on the Kootenay Silver Inc.
website. 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.
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. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new
discoveries while maintaining minimal share dilution.
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 July
21, 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.
For further information:
James McDonald, CEO and
President at +1-403-238-6986
Ken Berry, Chairman at
+1-604-601-5652; +1-888-601-5650
or visit: http://www.kootenaysilver.com
