Kootenay Silver Inc. (TSX: V.KTN, Stock Forum) shares were active Thursday after the company said it is mobilizing plans for a phase two drilling program at its highly promising Promontorio La Negra silver discovery in Sonora, Mexico.
The company said drill targets are being finalized and work crews are being mobilized.
“An announcement of the official start date of drilling will be forthcoming in the near future,’’ the company said in a press release.
The La Negra Breccia discovery is situated approximately 6.5 kilometres north of Kootenay’s flagship Promontorio silver project in Sonora, and is situated within a 25 x 15 kilometre mineralized corridor.
The pending Phase 11 drill program at La Negra follows up on an earlier Phase 1 program which returned significant and consistent intervals of high grade, widespread silver mineralization, extending from surface to depth, confirming a substantial new silver find.
In a recent interview with Stockhouse, Kootenay CEO Jim McDonald said he could see the company having big success with La Negra because of all the geological characteristics that the company is starting to see in the drill core.
“We are going to take La Negra as fast as we can down the road to feasibility, and potentially mine construction,’’ he said.
McDonald said the potential exists to develop a high grade core at Promontorio. However, he said the company is not planning to spend a lot of money on that project right now.
The Phase 1 program at La Negra was led by successful trenching and surface sampling that confirmed extensive silver mineralization over a large 100 to 200 metres by 500 metres area on surface.
McDonald said the overall objective of the Phase 11 drill program will be to begin determining the overall size and extent of La Negra’s contained silver with the goal of producing an inaugural NI 43-101 compliant resource estimate on the project by mid year.
Kootenay shares eased 4.2% to 34 cents on Thursday, leaving a market cap of $23.8 million, based on 70.1 million shares outstanding. The 52-week range is 66 cents and 25 cents.
FULL DISCLOSURE: Kootenay Silver is a client of Stockhouse Publishing.