VANCOUVER, March 2, 2017 /CNW/ - Kootenay Silver Inc. (TSXV:
KTN) (the "Company" or "Kootenay") is pleased to announce plans are underway to proceed with the 2017 exploration program
being conducted and operated by Pan American Silver Corp on its La Negra silver discovery in Sonora,
Mexico. The program is part of an option agreement between Kootenay and Pan American that provides Kootenay with a series
of work and cash commitments and a carried to production interest on La Negra.
The 2017 program will focus on defining the potential size of the La Negra magmatic hydrothermal silver-lead breccia. The
current program budget is US$2.0 million and will entail approximately 6500 meters of diamond
drilling, geologic mapping and reconnaissance work to define additional prospective targets proximal to La Negra within the
Promontorio project. Drilling is scheduled to start late in the second quarter.
States Kootenay President and CEO James McDonald "We are very pleased to launch with the
2017 drill and exploration program on the La Negra silver discovery. We look forward to this next phase of work in particular to
the drill results from the La Negra breccia that in 2016 returned multiple intercepts of high-grade silver mineralization within
a 600-meter strike length of the breccia, remaining open at depth."
Further details will be reported by Kootenay once Pan American confirm the upcoming exploration and drill program has been
finalized and a drilling contractor has been engaged.
There are currently 4 additional holes to report from the 2016 Phase I program with Pan American Silver that will be reported
once assay results are received and compiled by the Company.
Results from Phase I Exploration and Drilling Program on La Negra:
Pan American began managing the exploration program in April 2016 and commenced re-logging drill
core, geological mapping and re-interpretation, and completed 62 km of magnetic ground surveys. Pan American initiated a 3,500 m
drilling program in July 2016 with the objective of infilling the La Negra drill coverage to
50-meter center's and testing the along-strike and down dip extents as well as following up on geophysical and geological
anomalies elsewhere within the exploration concessions.
Based on Pan American's work Kootenay reported that a series of deeper infill drill holes from the first 11 holes of the
current program confirmed high-grade results from previous drilling (See Kootenay News release October 25,
2016) Based on the initial success of the Phase I program, in October 2016 Pan American
extended the drill program by an additional 3,300 meters.
Results from the most recent 13 holes of the Phase I drill program on La Negra support previous results and look to have
defined the strike extent of mineralization with the breccia, remaining open at depth.
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.
Supported by one of the largest portfolios of silver assets in Mexico, Kootenay continues to
provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current
silver resources, new discoveries and the near-term economic development of two of its priority silver projects located in
prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at March 1, 2017. 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.
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