VANCOUVER, July 7, 2016 /CNW/ -
Kootenay Silver Inc. (TSXV: KTN) (the "Company" or "Kootenay") is pleased to announce its partner Pan American Silver
has updated the Company on exploration activities on the Promontorio-La Negra silver prospect, contained within the Promontorio
Mineral Belt in Sonora, Mexico. A 3,400 meter diamond drilling program is underway and will
consist of approximately 18 drill holes. The program will further test the La Negra Breccia as well as two additional targets
identified to date.
States Kootenay President and CEO James McDonald "We are very pleased with the
results to date from Pan American's exploration activities on Promontorio-La Negra. The La Negra silver discovery is a premier
exploration target that demonstrates excellent potential to evolve into a low-cost, open-pittable silver resource. We are excited
the drill campaign on La Negra is underway and look forward to reporting results as they are received from the program."
Promontorio - La Negra Silver Discovery
The La Negra Breccia prospect is situated approx. 6.5 kms north of Kootenay's Promontorio Silver Resource in
Sonora, Mexico and is contained within a 25 x 15 km mineralized corridor, the 'Promontorio Mineral
Belt.' Initial exploration on La Negra included a successful trenching and surface sampling program that confirmed extensive silver
mineralization over a large 100 to 200 meters by 500 meters area on surface. (See news releases from May
28th and June 5th, 2014 for more details). A follow up Phase I drill program on La Negra
returned significant and consistent intervals of high grade, widespread silver mineralization extending from surface to depth,
confirming a substantial new silver discovery. (See news releases, 'Drill Results' Oct. 15, 2014,
Nov. 26, 2014 and Dec 3, 2014 for more details.)
Results from a Phase II drilling program on La Negra further confirmed the continuity of silver grades and the
consistency of silver mineralization to depth within the core of the diatreme breccia. (See news releases from March 31st, April 30th and May 20th, 2015 for more
details). The program also further reinforced La Negra's future potential as a low-cost, open pittable silver resource. Development
of La Negra is currently under an option agreement with Pan American Silver Corp. (See News Release dated February 16, 2016 for more details.)
Warrant Extension
The Company also announces that it has, subject to regulatory approval, amended the expiry date of an aggregate
total of 7,246,833 unexercised share purchase warrants by a further 6 months.
Pursuant to the non-brokered unit private placement that closed in two tranches with an initial tranche closing
on July 18, 2014, for a total of 5,443,500 warrants being issued expiring July
18, 2016 and the final tranche closing on August 18, 2014, for a total of 1,803,333 warrants
being issued expiring on August 18, 2016, all of which currently remain outstanding. The expiry
date will be extended by 6 months to January 18 and February 17, 2017
for the respective tranches. The terms of the warrants will remain unchanged, including exercise price per warrant remaining
at $0.55.
Qualified Persons
The Kootenay technical information in this news release has been prepared in accordance with the Canadian
regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed on behalf
Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified
Person.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral
projects in the Sierra Madre Region of Mexico and in British Columbia,
Canada. The Company's top priorities are the advancement of the La Cigarra silver project and the Promontorio Mineral Belt,
in Chihuahua, Mexico and Sonora, Mexico, respectively. The
La Cigarra property is 26 kilometers from the historic mining city of Parral and boasts nearby power, good road access, gentle
topography, and established infrastructure. La Cigarra currently hosts a resource estimate of 18.54 million tonnes containing
51.47 million ounces of silver in the Measured & Indicated categories grading 86.3 g/t silver and 4.45 million tonnes
containing 11.46 million ounces of silver in the Inferred category grading 80 g/t silver. The mineralized system at La Cigarra has
been traced over 6.5 kilometers and is defined at surface as a silver soil anomaly and by numerous historic mine workings. The La
Cigarra silver deposit is open along strike and at depth and is approximately 25 kilometers north, and along strike, of Grupo
Mexico's Santa Barbara mine and Minera Frisco's San Francisco del Oro mine. The Promontorio Mineral Belt includes the
Company's La Negra high-grade silver discovery and its Promontorio Silver Resource. The Promontorio Mineral Belt is under option to
Pan American Silver whereby they can earn a 75% interest in the project with US$16 million of
expenditures and payments with Kootenay retaining a 25% carried to production interest (see news release February 16 and March 4, 2016). The Promontorio Silver Resource currently
hosts a resource estimate of 44.5 million tonnes containing 92 million ounces of silver equivalent in the Measured & Indicated
categories grading 64.3 g/t silver equivalent and 14.6 million tonnes containing 24.3 million ounces of silver equivalent in the
Inferred category grading 52 g/t silver equivalent. The Company's core objective is to create value by acquiring silver resources
through discovery and acquisition and testing those resources with the ultimate goal of developing them into silver production if
they are proven to be economically viable.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at July 6, 2016.
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.