Kootenay Silver Inc. (
TSX: V.KTN,
Stock Forum) said Monday a phase two drilling program has begun at its key La Negra Silver discovery in Sonora, Mexico.
The stock rallied on the news, rising 3% to 33 cents, leaving a market cap of $24.6 million, based on 74.6 million shares outstanding. The 52-week range is 63 cents and 25 cents.
The La Negra Breccia discovery is situated about 6.5 kilometres north of Kootenay’s flagship Promontio Silver resource, which is located in a geological corridor known as the Promontorio Mineral Belt.
The Phase 2 program at La Negra will follow a successful 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 discovery.
Highlights include 200 metres of 156 grams per ton silver, bottoming in 492 grams silver over 17 metres, above which there is six metres of 1,337 grams silver, 141.28 grams silver over 50 metres, including 212.64 grams silver over 28 metres and 323.13 grams silver over 15 metres.
Phase 1 was led by successful trenching and surface sampling that confirmed extensive mineralization over a large 100 to 200 metres by 500 metres area on surface.
The company said in a press release the upcoming Phase 2 drill program will focus on systemically building on the multiple high-grade silver intercepts returned from Phase 1 drilling and will play an integral role in determining the overall size and extent of La Negra’s contained silver.
Kootenay CEO Jim McDonald has said the company is excited because of the geological characteristics that exploration crews are seeing 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 told Stockhouse recently.
FULL DISCLOSURE: Kootenay Silver is a client of Stockhouse Publishing.