Kootenay Announces New Drill Discovery Proximal to La Cigarra Silver Deposit
VANCOUVER, November 23, 2016 /PRNewswire/ --
Multiple Intercepts of Silver Mineralization Confirmed Across 400-Meter StrikeLength
Highlights Include 89.83 gpt Silver over 18.0 Meters; Including 190 gpt Silver over 3.0 Meters
Kootenay Silver Inc. (TSXV: KTN) (the "Company" or "Kootenay") is pleased to announce results from the first 11 holes of its maiden drill program on its RAM structure, situated approximately 700 meters to the west and south of the Company's La Cigarra silver deposit in Chihuahua State, Mexico.
The program drill tested a 400-meter strike length of the 3,800-meter long RAM structure and dip extents between 65 and 200 meters. Assay results from drilling confirm RAM is a strongly mineralized silver system, hosting multiple zones of quartz veining as sheeted, stockworked or brecciated veins within an altered structure that measures 50 to 150 meters wide. The Company reports the system remains open along strike to the north and south for up to 3,400 meters and down dip to the west.
Kootenay President and CEO James McDonald states, "Results from the first 11 holes of the program confirm RAM is an entirely new silver discovery and development of this mineralized structure will remain a top priority for the Company. The strength and consistency of veining within the structure bodes well for the discovery of further silver resources at depth and along both strike directions. Drilling returned good continuity of silver grades across a 400-meter strike length and widespread silver mineralization was encountered in all but two of the eleven holes, confirming the structure's large-scale potential. Moving forward, the close proximity of the RAM structure to our established La Cigarra silver resource offers excellent potential for future shared infrastructure and economies of scale, as we continue to develop RAM and advance our main La Cigarra deposit towards the economic stage."
Drill Highlights from RAM Zone:
- CC-16-04 returning 89.83 gpt silver over 18.0 meters; including 190.5 gpt silver over 3.0 meters
- CC-16-09 returning 166.5 gpt silver over 6.0 meters; including 761.0 gpt silver over 1.0 meter
- CC-16-03 returning 58.86 gpt silver over 16.5 meters; including 141.25 gpt silver over 4.5 meters
- CC-16-01 returning 27.60 gpt silver over 31.1 meters; including 83.0 gpt silver over 4.45 meters
- CC-16-06 returning 56.45 gpt silver over 14.7 meters; including 80.14 gpt silver over 9.35 meters
The RAM structure is one of 8 prospective targets that have been identified proximal to the La Cigarra deposit with the potential to add near surface silver resources to the project. Click to view: the RAM drill plan and cross sections of holes 6, 7, 8 and 9.
Drilling Notes:
The 11 drill holes are the first phase of a planned, ongoing multi-phase drilling program that will be conducted on the La Cigarra project over the next 12 to 18 months. Follow up drilling of the 3,800 meter long RAM structure is expected to commence in the early part of the New Year and will form part of a larger strategy to test additional undrilled targets and the extensions of the La Cigarra deposit itself.
The Company reports that drilling continues at the Project with the core drill rig collared at hole 14 within the La Soledad Zone, located approximately 1,000 meters south of the La Cigarra silver resource. Once the current 3,000 meter drill program is complete and results of re logging and detailed mapping of the deposit are interpreted, the details and dates of the anticipated follow up programs will be finalized and announced in a future news release.
A summary of the drilling within the mineralized zone are given in the table below:
From Interval
Hole ID (meters) To (meters) (meters) Silver gpt Gold gpt Pb+Zn %
CC-16-01 39.00 70.10 31.10 27.60 0.044 0.072
Including 48.00 52.45 4.45 83.00 0.170 0.204
CC-16-02 32.20 41.20 9.00 22.87 0.013 0.017
and 63.00 67.20 4.20 57.33 0.018 0.021
CC-16-03 31.50 48.00 16.50 58.86 0.016 0.029
Including 33.00 37.50 4.50 141.25 0.023 0.061
CC-16-04 36.00 54.00 18.00 89.83 0.009 0.049
Including 36.00 39.00 3.00 190.50 0.013 0.065
and 60.00 61.50 1.50 95.00 0.118 0.113
CC-16-05 15.00 18.00 3.00 32.00 0.006 0.007
and 27.00 39.00 12.00 38.37 0.026 0.018
and 57.00 72.00 15.00 29.70 0.025 0.01
CC-16-06 7.55 20.55 13.00 22.66 0.028 0.008
and 26.30 41.00 14.70 56.45 0.043 0.042
Including 31.65 41.00 9.35 80.14 0.033 0.062
and 67.25 72.15 4.90 70.16 0.083 0.146
CC-16-07 7.20 12.95 5.75 70.00 0.018 0.01
and 24.00 42.15 18.15 21.26 0.046 0.06
and 63.50 68.10 4.60 110.80 0.109 0.47
Including 64.45 66.60 2.15 211.00 0.142 0.911
CC-16-08 47.20 52.40 5.20 79.50 0.030 0.2
and 70.45 72.55 2.10 128.50 0.045 0.77
and 76.35 76.85 0.50 42.00 0.356 0.577
CC-16-09 39.00 45.00 6.00 166.50 0.038 0.6
Including 39.50 40.50 1.00 761.00 0.157 3.2
and 79.66 82.00 2.34 103.00 0.042 1.11
and 162.00 165.73 3.73 48.80 0.084 0.06
and 176.03 185.60 9.57 38.69 0.026 0.19
Including 182.32 185.60 3.28 87.50 0.041 0.29
and 210.60 211.25 0.65 189.00 0.069 1.285
CC-16-10 No Significate Results
CC-16-11 No Significate Results
Sampling and QA/QC
All technical information for the La Cigarra exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken under the direction of qualified geologists and stored in sealed bags. Samples are delivered by the Company via courier to ALS Minerals ("ALS") in Chihuahua. The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver B.C. Systematic assaying of standards is performed for precision and accuracy. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30 gram fire assay with an AA finish.
Qualified Persons
The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed on behalf Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.
Neither the 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.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company's top priorities are the advancement of the La Cigarra silver project and the Promontorio Mineral Belt, in Chihuahua, Mexico and Sonora, Mexico, respectively. The La Cigarra property is 26 kilometers from the historic mining city of Parral and boasts nearby power, good road access, gentle topography, and established infrastructure. La Cigarra currently hosts a resource estimate of 18.54 million tonnes containing 51.47 million ounces of silver in the Measured & Indicated categories grading 86.3 g/t silver and 4.45 million tonnes containing 11.46 million ounces of silver in the Inferred category grading 80 g/t silver. The mineralized system at La Cigarra has been traced over 6.5 kilometers and is defined at surface as a silver soil anomaly and by numerous historic mine workings. The La Cigarra silver deposit is open along strike and at depth and is approximately 25 kilometers north, and along strike, of Grupo Mexico's Santa Barbara mine and Minera Frisco's San Francisco del Oro mine. The Promontorio Mineral Belt includes the Company's La Negra high-grade silver discovery and its Promontorio Silver Resource. The Promontorio Mineral Belt is under option to Pan American Silver whereby they can earn a 75% interest in the project with US$16 million of expenditures and payments with Kootenay retaining a 25% carried to production interest (see news release February 16 and March 4, 2016). The Promontorio Silver Resource currently hosts a resource estimate of 44.5 million tonnes containing 92 million ounces of silver equivalent in the Measured & Indicated categories grading 64.3 g/t silver equivalent and 14.6 million tonnes containing 24.3 million ounces of silver equivalent in the Inferred category grading 52 g/t silver equivalent. The Company's core objective is to create value by acquiring silver resources through discovery and acquisition and testing those resources with the ultimate goal of developing them into silver production if they are proven to be economically viable.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at November 22, 2016. 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.
James McDonald, CEO and President at +1-403-880-6016; Ken Berry, Chairman at +1-604-601-5652; 1-888-601-5650 or visit: http://www.kootenaysilver.com
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