Analysis of New Data From Results Underscore Project's Expansion
Potential
Shares Outstanding: 62,738,850
VANCOUVER, Aug. 7, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) In August 2012, Kootenay Silver ("Kootenay") announced a Measured and
Indicated ("M&I") resource estimate which was subsequently updated with
the inclusion of the gold resource potential at Promontorio in May
2013. The current resource estimate contains M&I resources of 44.5
million tonnes reporting 92 million ounces silver equivalent ("AgEq")
(39.7M oz. Ag, 853M lbs Pb+Zn and 506,000 oz Au) for a total M&I
mineral resource estimate of 92,428,000 AgEq ounces (see below for more
details on resource estimate and news release of May 13, 2013).
Subsequent to the August, 2012 resource estimate, Kootenay has
undertaken extensive exploration which included: a drill program
(16,400 metres) testing numerous peripheral anomalies and extensions of
the known mineralization; re-interpretation of the geophysics; geologic
mapping; re-interpretation of previous mapping and a soil survey
program. Interpretation of this new data with the earlier database has
outlined:
A. Areas of potential expansion of the known M&I resource.
B. Target zones where drilling shows potential for up-grading category from
inferred resource.
C. New zones of resource potential outside drilled areas.
D. Discovery and outline of numerous newly recognized breccia pipes in the
diatreme system.
States Kootenay President and CEO James McDonald "The current work has
identified numerous additional priority areas with potential to sharply
expand resources. Especially noteworthy are the high silver grades in
drill holes DH 185 to 188 (see news release June 4, 2013). Sitting
between the NE and Pit zones, these holes show potential for the
existence of a high-grade core that may connect to high grades
previously identified in the NE Zone. As we approach our 100 million
ounce silver equivalent milestone on Promontorio, we are excited about
starting the next drill phase to test this new area of high grade
silver mineralization along with the many other targets identified."
A. Potential extensions of M&I resources of breccia and stockwork
mineralization have been outlined in both the Pit and NE zones by
analysis of the database including recent drilling results. This
analysis and interpretation of the data compiled into 39 cross-sections
with 188 drill holes across the Whittle Pit included: the 30Mv IP
anomaly; the gold, silver, lead, zinc, arsenic, antimony and manganese
geochemical distribution; the hydrothermal alteration of the
mineralized system marked by intense sodium-strontium depletion of the
rocks and the geologic setting of the diatreme complex. The results
show there are numerous zones within the Pit and NE zones where
mineralization remains open, both peripheral to and at depth of the
known estimated resource. In addition, mineralization and alteration
remain open to the northeast in the NE zone, and has been extended to
the southwest for some 100 metres at depth in the Pit Zone.
B. Upgrading of the resource potential within the zone of inferred mineral
resource has been documented by the new drill holes DH 185-188 (see
news release June 04, 2013). High-grade sections outlined in the
accompanying figure are enhanced by sections of bonanza-grade values
that include drill widths of: DH 183- 3m @ 1,106 gpt AgEq (1,023 gpt
Ag, 0.92 gpt Au and 1.66% Pb+Zn) within 18.4 meters of 278 gpt AgEq
(208 gpt Ag, 0.92 gpt Au, 0.79% Pb+Zn) and DH 186- 5m @ 1,046 AgEq
(with 808 gpt Ag, 1.83gpt Ag and 6.88% Pb+Zn) within 31.7 meters of 301
AgEq (200 gpt Ag, 1.21 gpt Au, 1.79% Pb+Zn). Mineralization in this
section is within and adjacent to inferred resources southwest of the
NE zone. The geophysics and chemistry of the DH 185-186 section is
similar to other sections in the inferred zone.
C. A new area of resource potential has been noted some 500 meters to the
southwest of the Pit zone. Drill hole DH 140 intersected 70 meters of
anomalous gold (103 ppb) associated with very highly anomalous
manganese (1.2% over 70m) associated with strongly negative sodium and
disseminated pyrite hosted within a hydrothermal, diatreme breccia
system. Surface grab samples from this area reported values of gold to
4 gpt and silver to 462 gpt and of note; highly anomalous manganese
values (Mn> 3000 ppm), with anomalous arsenic, sodium depletion and
pyrite is characteristic of the Promontorio M&I and inferred resource
area.
D. Geologic mapping has noted the presence of a number of newly recognized
diatreme breccia's related to the SW-NE trending Promontorio Breccia
Corridor and represent newly discovered breccia corridors (click to view map). Of note, some 500m north of the Pit zone, a newly recognized NW-SE
trending breccia corridor has been discovered. The SE trending strike
of this corridor intersects and crosses the Promontorio Breccia
corridor in the vicinity of the DH 185-188 mineralization. Along this
trend carbonate cemented hydrothermal breccia's are associated with
strongly anomalous silver, lead, zinc and gold mineralization in
surface grab samples. Interpretation of existing IP data to identify
electrically conductive zones shows 3 conductive targets within and
adjacent to this NW-SE trend. A fourth conductor sits immediately to
the west of the Dorotea trend. Known mineralization at Promontorio is
conductive. South of the Whittle Pit boundary two-zones of highly
anomalous gold mineralization are noted in stockworking. One kilometer
northwest of the Pit zone, a zone of highly anomalous IP has been
noted, correlative with a previously known breccia and alteration zone
where prospecting sampling has noted gold values of 6 gpt associated
with albite and tourmaline alterations. Readers are cautioned that the
Company must complete additional drilling to demonstrate additional
potential in the specified areas.
The management and the technical team of Kootenay Silver believe the
recognition of these diatreme breccias greatly enhances the potential
size and intensity of the Promontorio Diatreme Breccia Complex as it
enters its next phase of strategic drilling on the Promontorio Silver
Project. The next phase of drilling is scheduled to begin in early
September the details of which will be released once the various drill
targets are prioritized and number of holes and meters required to test
the various targets are final.
Current NI 43-101 Compliant Silver Resource
The current mineral resource estimate on Promontorio (See Kootenay News
Release---May 14, 2013) contains a combined measured and indicated
resource of 92,428,000 silver equivalent ounces (39.9M oz's Ag, 508K
oz's Au, 394.8M lb's Pb, and 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 are contained in 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 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 are within
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
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 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.
ABOUT 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.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
Forward-Looking Statements: The information in this news release has been prepared as at August 6,
2013. 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.
SOURCE: Kootenay Silver Inc.
