VANCOUVER, British Columbia, February 5, 2014 /PRNewswire/ --
Shares Outstanding: 62,808,850
Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to report it has completed mapping, core logging and compilation of results from its recently completed 5,500 meter phase of the 2013 drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico. The current analysis of drill results marks the conclusion of the 2013 drill season.
Multiple High-Grade Intercepts Support Expansion of System's Central Corridor and NE Zone
The 2013 multi-phase, drill and resource expansion program successfully established mineralization along, throughout and to at least 400 meters of the recently identified Central Breccia Zone situated between the Pit and Northeast Zones. Results indicate excellent potential exists for the establishment of continuity of mineralization between the two zones.
Numerous holes drilled within both the Central Breccia and Northeast Zones demonstrated high grades of mineralization and indicate potential to add significant tonnage to the established mineral resource.
Mineralization in the Central Breccia and Northeast Zones area appears to be stratabound within Maar type diatreme facies as opposed to the vent diatreme facies of the Pit Zone. Potential exists to host a significant tonnage of higher grades within the Central Breccia and Northeast Zone area as higher-grade intercepts are scattered along its length. Management believes the potential for discovery of a high-grade core within this region of the property is good. The next phase of drilling at Promontorio will focus on testing this thesis.
The following table has select highlights of high-grade drill results along this Central Breccia and Northeast Zone trend. They have all been previously announced and readers are encouraged to see previous news releases for full details. This table is intended to show the potential for developing high-grade tonnages within the trend and is not an indication of the average tenor of grade within it, which is much lower. Grades in silver equivalent ("AgEq") will change as ratios of silver, gold, lead and zinc prices change.
Highlight table of high-grade drill intercepts previously reported
From To Interval *AgEq Ag Au Pb Zn Pb+Zn Date of (Ag,Au,Pb,Zn) News Release Hole ID (m) (m) (m) (gpt) (gpt) (gpt) % % % PC-028-11 132.0 183.0 51.0 228.9 91.3 1.28 0.93 2.51 3.44 April 4, 2011 including 133.5 151.5 18.0 396.4 188.0 0.89 2.26 5.73 7.98 April 4, 2011 DH-066-11 131.0 170.0 39.0 279.5 128.2 1.23 1.27 2.98 4.25 October 3, 2011 including 132.0 138.0 6.0 667.4 357.2 3.05 2.98 4.27 7.25 October 3, 2011 including 143.0 149.0 6.0 337.6 76.3 1.76 0.99 7.45 8.44 October 3, 2011 including 157.0 163.0 6.0 545.9 276.5 1.67 2.99 5.91 8.90 October 3, 2011 DH-070-11 125.0 179.0 54.0 193.0 92.0 0.96 0.89 1.58 2.47 October 3, 2011 including 145.0 161.0 16.0 392.0 202.7 0.96 2.23 4.58 6.81 October 3, 2011 DH-070-11 191.0 238.0 47.0 192.5 84.5 0.87 1.10 1.95 3.05 October 3, 2011 including 223.0 234.0 11.0 391.2 179.4 1.28 2.74 4.33 7.06 October 3, 2011 DH-088-11 85.0 101.0 16.0 620.3 369.9 1.68 4.24 3.55 7.79 January 17, 2012 DH-110-11 96.0 167.0 71.0 260.4 149.1 0.76 1.41 2.05 3.46 February 1, 2012 including 102.0 120.0 18.0 758.1 471.3 1.78 3.74 5.68 9.42 February 1, 2012 DH-116-12 284.0 373.0 89.0 87.0 40.5 0.48 0.61 0.41 1.01 April 25, 2012 including 294.0 312.0 18.0 238.6 119.5 1.03 1.96 1.14 3.10 April 25, 2012 DH-186-13 178.3 210.0 31.7 301.0 199.6 1.21 0.88 0.91 1.79 June 4, 2013 including 183.0 188.0 5.0 1046.2 808.2 1.83 3.02 3.87 6.88 June 4, 2013 including 192.0 199.0 7.0 299.8 233.4 0.62 1.00 0.60 1.60 June 4, 2013 DH-193-13 297.0 342.0 45.0 217.7 107.2 0.99 1.32 1.51 2.83 November 13, 2013 Including 303.0 325.0 22.0 415.3 209.3 1.78 2.46 2.96 5.42 November 13, 2013 DH-207-13 290.0 324.0 34.0 108.3 40.6 0.72 0.61 0.82 1.43 December 12, 2013 Including 315.0 323.0 8.0 221.6 71.3 1.88 0.98 1.49 2.47 December 12, 2013
Assuming 100% Metallurgical Recovery *Prices used in Silver Equivalent (AgEq) Calculations: Ag dollars/oz $31.00 Au dollars/oz $1650.00 Pb dollars/lb. $0.97 Zn dollars/lb. $0.89
States Kootenay Silver President and CEO James McDonald "We are very pleased with the analysis of our 2013 drill campaign and remain highly focused and confident as we approach the next phase of development on Promontorio. Supported by consistent results and numerous high-grade assays, the Central Breccia and Northeast Zones of Promontorio's diatreme hosted system will continue to remain a top priority. Concurrently, satellite mineralized systems to the north and northwest of the Promontorio diatreme resource continue to advance. Three major trends have emerged, including the Nopalera-Metallic Pesada, Tordillo and La Negra, where the size of alteration and tenure of surface sampling indicates excellent potential for multiple new discoveries of gold and silver. These three key zones, in conjunction with the Promontorio diatreme, form the basis of what is a large mineralized belt trending northwest".
Proposed Program to include 3-D IP, 3-D Geophysical, and 8,000 Meters of Drilling
The program testing for significant tonnages of high-grade mineralization will be aided using 3 D interpretation of mineralized breccia and stockwork domains. The first step will involve the interpretation of the 3-D IP geophysics together with the drill results and geologic interpretation to determine if 3-D IP can discretely map the high grade areas to aid in drilling.
It is anticipated that a minimum of 5,000 meters is required to test for extensions and continuity to the high-grade intercepts. Additionally targets to the south and east of the Northeast Zone remain undrilled and require approximately 3,000 additional meters to test.
The Pit Zone has been closed off to the east and remains open down plunge to the northwest while the Northeast Zone is open to the east and down plunge. The intervening area of the Central Breccia Zone contains mineralization along its length and requires additional drilling to determine grade and continuity.
Once the preliminary geophysical work integrating the geologic model and domains is complete a final budget and drill program will be set.
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 include 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 measured and indicated 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 include 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 inferred 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.
All drill holes reported were drilled using HQ sized diamond drill core and drilled by B.D Drilling Mexico, S.A. de C.V of Guadalajara, Mexico. All drill intercepts are hole lengths. 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 February 4, 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 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: http://www.kootenaysilver.com
SOURCE Kootenay Silver Inc.