A 43-101 Resource Estimate released in August of 2010 shows the property contained indicated and inferred resources of over 10 million ounces of silver along with substantial amounts of lead and zinc. The overall contained metal values at Promontorio [in Sonora Mexico] were estimated at $320 million.
Since August 21st 2012 Kootenay Silver Inc. (TSX: V.KTN, Stock Forum) has put out two significant news releases, the first was in regards to an updated resource estimate – resources have gone from an in ground value of $320 million to over two billion dollars using today’s silver price. In two short years KTH has increased shareholder value by a factor of over six times while keeping the share count at a very respectable 59.5 million fully diluted.
In addition to the outstanding results, the resource areas remain open in multiple directions and have the potential to materially increase in size yet again. The next steps will be to aggressively pursue the expansion of these resources through drilling and to advance geotechnical, engineering, groundwater and environmental studies to be incorporated into assessing the economic viability of the project." Kootenay President and CEO James McDonald.
The second news release, dated September 26th 2012, was a silver price sensitivity analysis on the silver equivalent resource on Promontorio.
Moreover, using the lowest metal prices observed over the three-year period, Promontorio still maintains a benchmark measured and indicated silver equivalent resource totaling over 60 million ounces." Kootenay President and CEO James McDonald.
Resource Statement
The open pit mineral resources for the Promontorio Project are 36,018,000 tonnes grading an average of 51.35 g/t silver equivalent classified as Measured and Indicated Mineral Resources, with an additional 9,136,000 tonnes grading an average of 42.86 g/t silver equivalent classified as Inferred Mineral Resources. This resource is stated above a 15.00 g/t cut-off grade and contained within potentially economically mineable pit shells.
Underground mineral resources are 2,216,000 tonnes grading an average of 48.75 g/t silver equivalent classified as Indicated Mineral Resources, with an additional 3,077,000 tonnes grading an average of 53.90 g/t silver equivalent classified as Inferred Mineral Resources. The resource is stated above a 35.00 g/t cut-off grade to reflect the higher mining costs associated with underground production.
The mineral resources are summarized in Table 1. The updated Measured and Indicated resource contains an estimated 61,679,000 oz Ag Eq with another 14,469,000 oz Ag Eq categorized as Inferred.
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