VANCOUVER, British Columbia, May 20, 2015 /PRNewswire/ --
Shares Outstanding: 74,778,897
Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to announce results from the final three holes of its Phase II drill program on the La Negra Diatreme Silver discovery on its Promontorio property in Sonora, Mexico. The final three holes of the program were designed to test variously La Negra's northeastern extension, the western end, and another deep test of the diatreme breccia. High-grade intercepts were encountered in two of the three final holes expanding the extent of the mineralized breccia to the northeast and to depth. Importantly LN 40 intercepts 798 gpt Ag over 5 meters within successively wider intervals of 353 gpt Ag over 13 meters, 252 gpt Ag over 24 meters and 124 gpt over 56 meters at a vertical depth of about 300 meters from the mineralized hill top.
Details of the intercepts are in the following table:
From To Interval Silver Gold Lead Rock Drill Hole (m) (m) (m) (gpt) (gpt) % Type LN-39-15 -50degree(s)/ 150degree(s) Az 77 94 17 169.82 0.071 0.24 Breccia Including 80 94 14 199.07 0.075 0.19 Breccia Including 80 91 11 221.09 0.086 0.17 Breccia Including 80 83 3 446.66 0.065 0.18 Breccia 137m EOH LN-40-15 -60degree(s)/ 360degree(s) Az 157 227 70 42.06 0.037 0.22 Breccia/ Phyllic Andesite Including 189 209 20 88.75 0.037 0.34 Breccia Including 189 192 3 174.66 0.090 1.20 Breccia 254 310 56 124.27 0.175 0.10 Breccia Including 275 307 32 198.70 0.298 0.03 Breccia Including 283 307 24 252.60 0.387 0.03 Breccia Including 294 307 13 353.00 0.242 0.02 Breccia Including 302 307 5 798.40 0.451 0.03 Breccia 360m EOH LN-41-15 -50degree(s)/ 150degree(s) Az 85 101 16 12.37 0.008 0.33 Breccia/ Phyllic Andesite Including 85 94 9 13.55 0.009 0.30 Breccia/ Phyllic Andesite Including 85 87 2 36.50 0.025 0.71 Breccia/ Phyllic Andesite 194.2m EOH
States Kootenay President and CEO James McDonald: "We are very pleased with results of the Phase II program and are excited to advance the discovery to its next stage of development. Clearly, the program has been a major step forward for the La Negra Silver discovery. The continuity of silver grades and consistency of silver mineralization to depth set the stage for the advancement of La Negra. Moreover, results reinforce La Negra's potential for a low-cost, open pittable silver resource."
Previous highlights from Phase II include:
- 96 gpt Ag over 52 meters including:
- 183 gpt Ag over 25 meters
- 357 gpt Ag over 8 meters with
- 963 gpt Ag over 2 meters
- 322 gpt Ag over 5 meters
- 110 gpt Ag over 84 meters including:
- 300 gpt Ag over 8 meters and
- 179 gpt Ag over 18 meters
- 120 gpt Ag over 60 meters from surface including:
- 185 gpt Ag over 26 meters and
- 539 gpt Ag over 7 meters
- 76 gpt Ag over 138 meters starting from surface includes three separate higher grade intervals;
- 160 gpt Ag over 12 meters
- 146 gpt Ag over 37 meters with 1 meter of 3040 gpt Ag and
- 115 gpt Ag over 23 meters
- 68.39 gpt Ag over 146 meters from surface including:
- 139.60 gpt Ag over 56 meters with
- 217.32 gpt Ag over 28 meters and
- 462.11 gpt Ag over 9 meters
- 63.12 gpt Ag over 138 meters from surface including:
- 152.62 gpt Ag over 27 meters with
- 453.00 gpt Ag over 5 meters
- 149.27 gpt Ag over 11 meters including:
- 205.50 gpt Ag over 7 meters
- 113.15 gpt Ag over 67 meters including:
- 306.73 gpt Ag over 15 meters with
- 850.60 gpt Ag over 5 meters and
- 1772.50 gpt Ag over 2 meters
The final three drill holes mark the conclusion of the Phase II drill program on La Negra. Results from Phase II drilling show excellent continuity of silver mineralization reaffirming potential for a low cost open pit silver deposit. The depth potential is also demonstrated during the Phase II program with silver intercepts 250 to 300 meters vertically from surface, extending silver mineralization 100 to 150 meters deeper than previous drill holes expanding the size potential. This indicates added potential for an open pit scenario that could evolve into an underground operation.
A total of 16 holes for 3,040 meters of drilling were completed in the program. To view a drill plan outlining the location of the La Negra drilling visit: La Negra Drill Plan Map. To view complete results from Phase I and II drilling visit: La Negra Drilling Results.
Upcoming Development on La Negra
Drill results from the Phase II program are being interpreted and compiled and collated in a 3D geologic model. This compilation will be used to design the next drill phase with the objective of moving the project as quickly as possible to a maiden NI 43-101 resource calculation including metallurgical work. Further details and time schedules will be announced in an upcoming future news release once the compilation is complete.
La Negra Ground Expansion Program
Kootenay reported in its April 30, 2015 news release that ground exploration has identified two high priority mineralized trends called Vania and the La Negra Silver Trend. Follow up ground work has included mapping and sampling with over 350 rock samples now taken (primarily from the Vania trend and Gringo area). Further details of results from the expanded La Negra ground exploration program are expected to be announced in the next two weeks once assays are received and evaluated.
La Negra Silver Discovery
The La Negra Breccia prospect is situated approx. 6.5kms north of Kootenay's flagship Promontorio Silver Resource in Sonora, Mexico and is contained within a 25 x 15 km mineralized corridor, the 'Promontorio Mineral Belt.' The Phase II drill program on La Negra follows a successful Phase I drill program, which returned significant and consistent intervals of high grade, widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery. Highlights included 200 meters of 156 gpt Ag bottoming in 492 gpt Ag over 17 meters above which there is 6 meters of 1337 gpt Ag, 141 gpt Ag over 50 meters, including 212 gpt Ag over 28 meters and 323 gpt Ag over 15 meters. (See news releases, 'Drill Results' October 15th, November 26th, December 3rd, 2014, March 31stand April 30th, 2015 for more details). The Phase I drill program was led by a successful trenching and surface sampling program that confirmed extensive silver mineralization over a large 100 to 200 meters by 500 meters area on surface. (See news releases from May 28th and June 5th, 2014 for more details).
To View Full Results of Sampling and drill Program Visit: http://www.kootenaysilver.com
Core is being detailed logged and sampled with half the core being bagged, tagged, catalogued, sealed and sent to an accredited assay lab for analysis. A quality control program including blanks, standards and replicates is being used similar to that used on the Promontorio drill program. Geotechnical data such as recovery, RQD and density are being recorded also. All drilling has been with HQ core and is being done by BD Drilling from Guadalajara, Mexico. 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.
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 May 29, 2015. 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 +1-403-238-6986; Ken Berry, Chairman at +1-604-601-5652; 1-888-601-5650; or visit: http://www.kootenaysilver.com
SOURCE Kootenay Silver Inc.