VANCOUVER, British Columbia, October 22, 2015 /PRNewswire/ --
Shares Outstanding: 79,421,397
Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to report that it has received positive results from preliminary metallurgy tests conducted on samples from the Company's 100% owned La Negra silver discovery in Sonora, Mexico. The purpose of the metallurgy program was to determine whether silver at La Negra is recoverable by commonly used extraction methods after crushing and grinding the material and to get an indication of what recovery rates might be expected.
Test results showed high silver recoveries by both leach extraction and flotation methods. Silver extraction in seven bottle roll tests (leach tests) ranged from 71 to 90%. Silver extraction in three rougher flotation tests ranged from 85 to 98%. Importantly, silver extraction by leaching was not influenced by sulphide sulphur content, and a sample of material from 100 to 200m below surface had 89% extraction in a bottle roll test. High silver recoveries by leaching, including in sulphide material, indicate potential for silver to be recovered on site in a dore, substantially reducing costs and discounts associated with a sulphide concentrate produced by flotation. Individual results are given in the tables at the end of the release.
States Kootenay President and CEO James McDonald, "We are very pleased to be able to report such excellent results from our initial metallurgical test work on La Negra. These preliminary results indicate that high silver recoveries should be achievable by simple, cost effective milling and extraction methods and they clearly reinforce La Negra's potential to evolve into a low-cost, open pittable silver resource. This potential is further underscored by drill results to date on La Negra that have consistently returned multiple wide intersections of mineralization, starting at surface and remaining open along strike and to depth, at the kind of silver grades that are currently being mined by open pit methods in Mexico."
Based on demonstrating favourable metallurgy on La Negra and because mineralization is open in three directions, Kootenay has revised its schedule and now plans to conduct a phase III drill program on La Negra to further delineate the extent of mineralization prior to completing a maiden NI 43-101 resource estimate. The Company will look to improve its balance sheet prior to drilling and is exploring different strategies to achieve its priorities, including equity, strategic partnerships or M&A.
Metallurgical test work was completed by Kappes Cassiday and Associates of Reno, Nevada, under the direction of Hans Smit, P.Geo, a Qualified Person as defined by NI 43-101. Seven samples were created for testing comprised of material from 9 or 10 sub-samples of drill core rejects from across the area drilled and grouped by specific vertical depth and grade ranges. Bottle roll leach tests were conducted on a 1,000 gram portion of each sample that was ring and puck pulverized to a target size of 80% passing 0.075 millimetres. Tests were run for a total of 96 hours, but in most tests the majority of the silver was recovered in the first 2 to 4 hours. Cyanide and lime inputs were not optimized.
La Negra - Bottle Roll Test Results
Sample Depth Calculated Ag Consumption Addition Sulphide Oxide/ Range Head Extracted NaCn Ca(OH)2 Sulphur % Sulphide M g/t Ag % kg/t kg/t LN-01 0 - 50 61.71 71% 0.81 2.00 0.12 Oxide LN-02 0 - 50 132.46 90% 0.92 1.50 0.29 Oxide LN-03 0 - 50 242.60 70% 1.03 1.75 0.24 Oxide LN-04 50 - 100 61.87 85% 3.53 1.50 3.21 Sulphide LN-05 50 - 100 129.76 75% 3.47 1.50 2.19 Sulphide LN-06 50 - 100 242.64 90% 1.93 1.50 2.10 Sulphide LN-07 100 - 200 127.27 89% 1.31 1.00 3.14 Sulphide
Note: All measurements in metric
Portions of material from three samples were milled and utilized for flotation testing. Flotation tests were conducted using a laboratory-scale Denver flotation apparatus. The reagents utilized in the program were:
Copper Sulfate (CuSO4)
Potassium Amil Xanthate (PAX) (C3505)
MIBC (F 500)
Test results are only indicative of potential recovery values and reagent use and concentrate grades are not optimized.
La Negra - Rougher Flotation Test Results
Cumulative Estimated Con. p80 Size Weight Cumulative Silver Sample Depth mm Reagent, gm/t % (AA) Results) Calc. Ag in Ag Head Con. Wt. CuSO4 C 3505 F500 g/t g/t % LN-04 50 - 100 0.075 100 70 23 21.8% 65.95 257.59 85% LN-05 50 - 100 0.075 100 70 28 20.0% 142.92 610.65 85% LN-07 100 - 200 0.075 100 70 28 21.9% 141.57 631.52 98%
Note: All measurements in metric
La Negra Silver Discovery
The La Negra Beccia prospect is situated approx. 7.0 kms 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.' La Negra was discovered in the fall of 2014 during the inaugural drill program, which followed surface trenching and sampling conducted early in 2014. Drilling in 2015 confirmed continuity of silver grades and widths setting the stage for advanced exploration of La Negra and reinforces its potential as a low cost, open pit silver resource (See news releases, 'Drill Results' Oct. 15, 2014, Nov. 26, 2014, Dec 3, 2014, March 31, 2015, April 30, 2015 and May 20, 2015 for more details).
To View Full Results of Sampling and mapping and Drilling Programs Visit: http://www.kootenaysilver.com
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 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 priority is the advancement of precious metals projects contained within its Promontorio Mineral Belt in Sonora, Mexico. This includes its La Negra high-grade silver discovery and its Promontorio Silver Resource. Kootenay's core objective is to develop near term discoveries and long-term sustainable growth. Management comprises 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 October 21, 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.
Contact: 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.