MAIDEN DRILL PROGRAM COMMENCES IN SEARCH OF HIGH GRADE GOLD AT 2X's FRED
Vancouver, B.C. --Kootenay Silver (TSX.V:KTN) ("Theia") and Theia Resources Ltd. (TSX.V:THH) are pleased to announce that Thiea Resources has initiated the first drill program to be conducted on the 2X's Fred property located in the mineral rich Nechako Plateau of central British Columbia, Canada.
The program will consist of approximately six to eight drill holes (600 metres of NQ core). The objective is to drill test the veins down dip in search of high grades typical of many epithermal vein systems.
- Newly discovered epithermal quartz vein system over a 2.5 by 1.75 km area.
- 563 rock samples taken from grab and channel samples in 2014 averaged 0.4 gram per tonne ("g/t") Au and 7.1 g/t Ag.
- The highest assay value from sampling reported 5.5 g/t Au and 100 g/t Ag.
Excellent potential for high grade gold/silver deeper in the system.
Petrographic work and macroscopic textures indicate the 2X's Fred veins are exposed in the upper levels of a low sulphidation epithermal vein system likely at temperatures less than 200 C and therefore above the interval where high-grade bonanza mineralization in a low sulphidation vein system would be expected. Consistently anomalous gold ("Au") and silver ("Ag") of all veins exposed at such a high level in the system indicates excellent potential for high grade mineralization deeper in the system.
Rock sampling including trenching in 2014, consists of 563 rock samples taken from grab and channel samples that averaged 0.4 gram per tonne ("g/t") Au and 7.1 g/t Ag. This includes 244 channel and composite rock samples taken from 16 trenches that averaged 0.49 g/t Au and 8.7 g/t Ag. The highest assay value from sampling reported 5.5 g/t Au and 100 g/t Ag. The longest continuous exposure of vein material totaling 24 meters (near true width) averaged 0.53 g/t Au and 6.9 g/t Ag and the highest grade was 1.52 g/t Au and 24.2 g/t Ag over 3.65 metres. See news release January 27, 2015
Two X's Fred is a newly discovered epithermal Gold/Silver quartz vein system over a minimum 2.5 by 1.75 km area. Individual veins traced along strike in excess of 500 meters with true widths ranging from less than one meter to over 40 meters. More than 12 veins have been found to date. Located in the mineral rich Nechako Plateau of British Columbia ~32 km SW of the city of Vanderhoof and consists of 10 land tenures covering 4,618.19 hectares.
Samples will be sent for analysis by Bureau Veritas (Acme) Laboratories in Vancouver, British Columbia. A QA/QC program was initiated which involved insertion of standards, blanks and duplicates into the sample stream. Drilling will be NQ sized diamond drill core and has been contracted to Ridgeline Diamond Drilling of Smithers, British Columbia.
The foregoing geological disclosure has also been reviewed and verified by Kootenay Silver's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, standards of disclosure for mineral projects).
Terms of agreement
To fulfill the terms of the letter agreement, Theia must spend an aggregate total of $2.5 million on exploration over five years and issue up to 750,000 shares with 200,000 shares due on regulatory approval of the letter agreement and 200,000 common shares of Theia on or before the first year and second anniversaries and 150,000 common shares on or before the third anniversary, of the execution date. Subsequent to exercise of the earn-in, Theia and Kootenay will form a 60/40 joint venture. Financing of further work on the Properties will be on a proportional basis under the direction of a management committee with voting rights proportional to ownership percentage. Either party may be diluted on the basis of a standard formula if they do not contribute to the planned programs. If either party is diluted below 10 percent, their interest will convert to a 1.5-percent NSR (net smelter return) royalty.
For additional information, please contact: Investor Relations, 604-601-5654; 1-888-601-5650 www.kootenaysilver.ca
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Forward-Looking Statements: The information in this news release has been prepared as at August 31, 2015. 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 Theia 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, Theia expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Theia'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.
2015 number 3