Shares Outstanding: 62,808,850
VANCOUVER, Feb. 25, 2014 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to provide an update of exploration on the
contiguous land position surrounding its flagship Promontorio Silver
Project in Sonora, Mexico. Ongoing exploration has resulted in the
discovery of numerous zones of gold-silver, silver and gold-copper
mineralization that defines a 25 x 15 km northwest trending corridor,
the "Promontorio Mineral Belt".
The results of this exploration program documents the Promontorio
Diatreme breccia's belong to a mineral event that is part of a regional
mineral exploration belt. None of these newly-discovered zones have
been drilled.
States Kootenay President and CEO James McDonald "We are extremely
pleased with results from our Promontorio Satellite exploration
program. The extensive areas of mineralization and alteration clearly
underscore the potential for multiple new discoveries to the northwest
of Promontorio's Diatreme system. The La Negra Prospect is already
permitted and drill ready and plans are underway to define drill
targets on a host of the other prospects. Concurrently, we continue to
remain focused on the strategic expansion of the high-grade areas of
our Promontorio resource, located in the Central corridor and the
Northeast Zone."
The principle areas of mineralization within the "Promontorio Mineral
Belt" are named Nopalera, Metallica Pesada, Tordillo, Alamito, La Negra
and Leona. Their location relative to the Promontorio Diatreme hosted
resource is shown by visiting the following link: Promontorio Satellite Map
Descriptions of the primary areas of interest are as follows:
The La Negra Zone
The La Negra prospect is a hydrothermal-diatreme breccia exposed over a
100 to 150 x 400 to 500 meters area, 7 km north of the Promontorio
diatreme breccias.
Seventy-seven samples have been collected over the La Negra prospect. Of
the 77 samples collected, 56 returned values greater than 10 gpt silver
and 35 greater than 20 gpt silver. Eighteen chip samples (random chips
taken within a 2m x 2m area) averaged 107 gpt silver with a single high
of 512 gpt and 15 greater than 20 gpt. Gold values are low within the
breccias but highly anomalous in small veins peripheral to the breccias
with values from background to 8.2, 4.3, 3.2 and 2.0 gpt gold obtained
from grab samples. To view a map of the La Negra sampling visit: La Negra Sampling
The Tordillo Zone
The Tordillo zone is located 20 km northwest of Promontorio. Gold and
silver mineralization occurs over a 3 x 5 km area as veins, stockworks
and breccia's intimately associated with strong potassic and
argillic/sericite/hematite alteration. This is suggestive of a gold
porphyry setting. Three hundred and ten samples have been collected
over the Tordillo zone. 175 samples are greater than 50 ppb gold, 148
greater than 100 ppb (0.1 gpt Au), and 54 greater than 1 gpt (with high
values of 71.0, 20.2, 18.0, 14.2, 11.3, 9.8, 8.0, 6.7, 6.1 and 5.5 gpt
noted). Anomalous silver showed in 94 samples with values greater than
10 gpt and 20 greater than 50 gpt, with highs of 547, 227, 252, 192,
166 and 147 gpt. Two main areas of precious metal have been identified
in the Tordillo area. They are Mucho Oro and Tordillo Sur zones.
In the 'Tordillo Sur' zone, gold values from background to 18, 2.7, 1.8,
3.5, 1.6, 2.3, 2.7 gpt and silver values from background to 252, 107
and 66 gpt occur with secondary biotite, potash feldspar, magnetite,
hematite and sericite hosted in altered sandstones. Significant copper
values occur with the gold. In conjunction with potassic alteration
this is indicative of a porphyry system.
The 'Mucho Oro' is a zone with strongly sericitic/hematite altered
sediments hosting values from background to 71.0, 14.2, 11.3, 8.0 and
6.1 gpt gold with low silver from grab samples. Visible gold is
noted. Chips of 1.5 m across a 21 m trench averaged 0.80 gpt gold
(including 10.5 m of 1.44 gpt gold). One hundred meters to the north,
the Mucho Oro Norte zone contained values from background to 6.3, 5.5
and 4.5 gpt gold and 192, 166 and 119 gpt silver also hosted in
sericite/hematite altered brecciated sandstones from grab samples.
To view a map of the Tordillo Zone sampling visit: Tordillo Zone Sampling
The Metallica Pesada Zone
Metallica Pesada zone adjoins Tordillo to the immediate north.
Prospecting, geologic mapping and soil geochemistry has outlined a 3 x
3 km area with gold and silver mineralization. Mineralization occurs as
veins, stockworks and breccia's hosted in regionally sericite-hematite
altered sediments and argillic altered volcanics. Two hundred and
eighty-two rock samples have been collected over Metallica Pesada. One
hundred eighty-two samples returned gold greater than 50 ppb, 147
greater than 100 ppb (0.1 gpt gold) and 45 greater than 1000 ppb (1 gpt
gold). High values for gold include: 33.3, 16.3, 13.9, 11.8, 8.2, 6.2
and 5.2 gpt. For silver, 84 samples were greater than 10 gpt, with 20
greater than 50 gpt with isolated high values of 3,390 and 1,495 gpt
silver noted.
A soil survey collected 185 samples that outlined a 1.5 km by 200 to 500
meter wide northerly-trending gold/silver/arsenic soil anomaly (with 45
soils> 50 ppb ranging to 1.2 gpt gold) coincident with both the
regional sericite-hematite altered sediments and the distribution of
the rock samples. To view a map of the Metallica Pesada Zone sampling
visit: Metallica Pesada Zone Sampling
The Alamito Zone
Newly recognized, the Alamito zone lies southeast of both the Tordillo
and Metallic Pesada zones within the axial part of the Promontorio
Mineral Corridor. Follow up work during 2013 of previously known
isolated gold and silver anomalies defined three anomalous zones.
One hundred and forty-two samples have been collected in the Alamito
area. Gold from rock samples gave 63 greater than 50 ppb, 47 greater
than 100 ppb and 13 greater than 1,000 ppb with high values of 44.5
10.7, 7.5 and 4.6 gpt. Visible gold was noted. Silver values samples
resulted in 48 greater than 10 gpt, 10 greater than 50 gpt with high
values of 2,780, 498, 331, 277 and 174 gpt. Mineralization is hosted in
veins, stockworks, disseminations and hydrothermal breccias with
quartz, sericite, hematite and tourmaline alteration.
The La Leona Zone
One hundred and forty-two samples have been collected in the La Leona
area. Gold from rock samples gave 63 greater than 50 ppb, 47 greater
than 100 ppb and 13 greater than 1,000 ppb with high values of 44.5
10.7, 7.5 and 4.6 gpt. Visible gold was noted. Silver values gave 48
greater than 10 gpt, 10 greater than 50 gpt with high values of 2,780,
498, 331, 277 and 174 gpt. Mineralization is hosted in veins,
stockworks, disseminations and hydrothermal breccias associated with
quartz, sericite, hematite and tourmaline alterations.
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. Securing J/V partnerships in Mexico and Canada
on non core assets maximize potential for additional, new discoveries
while maintaining minimal share dilution.
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 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 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.
QA/QC
All sampling reported are grab rock samples unless otherwise indicated.
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.
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
24, 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.
SOURCE Kootenay Silver Inc.