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VANCOUVER, May 28, 2014 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to announce it has completed a strategic hand
trenching and chip sampling program on its emerging La Negra, Breccia
diatreme silver prospect, located approximately 7 kilometers north of
its flagship Promontorio Silver Resource in Sonora, Mexico.
States Kootenay President and CEO James McDonald "We continue to be
highly encouraged with results from our ongoing exploration and
sampling program on La Negra. Not only has La Negra emerged as one of
our most exciting new breccia prospects contained within the
Promontorio Mineral Belt, it exhibits many key elements that gives it
intrinsic potential to evolve into a significant, large-scale, near
surface discovery. We are very excited to proceed to the next phase of
work on La Negra. Through further exploration, trenching and drilling,
the goal of the upcoming program will be to establish the grade
continuity and extent of silver at surface and at depth, to begin
ascertaining the size and average grade of the contained
mineralization."
The hand trenches were designed to gain a better understanding of the
grade potential and continuity of mineralization within the breccia, in
preparation for a proposed upcoming drilling program. Results further
augment previous sampling that returned anomalous silver across the
entire breccia. Included were 19 chip samples taken from 2 by 2 meter
panels returning an average of 107 gpt Ag within a larger sample set of
50 samples (19 chips in 2 by 2 meter panels plus 31 grab samples) that
averaged 77 gpt silver (see news release May 6, 2014).
The current program sampled along the entire length of breccia at
intervals varying from 25 to 100 meter spacings. Advantage was made of
bedrock exposure to aid in the hand trenching and provide for
contiguous sample intervals. A total of six hand trenches were
completed, varying from 21 meters to 30 meters in length, with chip
samples taken in contiguous three meter lengths. A total of 50 chip
samples were taken over a length of 150 meters.
The breccia was mapped over an area of approximately 100 to 200 by 500
meters with extensive bedrock exposure over 100 by 400 meters. It
forms a prominent hill with approximately 120 to 130 meters of relief.
Airborne geophysics was effective in mapping the southern contact of
the breccia and indicates the breccia could be twice the aerial extent
of the visible bedrock exposure.
The breccia is altered throughout by sericite/clay, silica and very fine
grained tourmaline. Very low concentrations of oxide minerals after
sulfides occur and petrographic work shows the silver is in a silver
chlorargyrite, which is the major ore mineral at Pan American's Alamo
Dorado deposit to the south.
Upcoming drilling dates on La Negra will be reported in a future news
release.
To View Full Results of Sampling Program Visit: www.kootenaysilver.com
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
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.
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 May 27,
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.