- TSX.V: KTN
- OTC: KOOYF
KOOTENAY PROVIDES EXPLORATION UPDATE OF PROMONTORIO SATELLITE TARGETS DEFINING A 25 X 15 KILOMETER MINERALIZED CORRIDOR
Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to provide an update of exploration on the contiguous land position surrounding its flagship Promontorio Silver Project in Sonora, Mexico. Ongoing exploration has resulted in the discovery of numerous zones of gold-silver, silver and gold-copper mineralization that defines a 25 x 15 km northwest trending corridor, the "Promontorio Mineral Belt".
The results of this exploration program documents the Promontorio Diatreme breccia's belong to a mineral event that is part of a regional mineral exploration belt. None of these newly-discovered zones have been drilled.
States Kootenay President and CEO James McDonald "We are extremely pleased with results from our Promontorio Satellite exploration program. The extensive areas of mineralization and alteration clearly underscore the potential for multiple new discoveries to the northwest of Promontorio's Diatreme system. The La Negra Prospect is already permitted and drill ready and plans are underway to define drill targets on a host of the other prospects. Concurrently, we continue to remain focused on the strategic expansion of the high-grade areas of our Promontorio resource, located in the Central corridor and the Northeast Zone."
The principle areas of mineralization within the "Promontorio Mineral Belt" are named Nopalera, Metallica Pesada, Tordillo, Alamito, La Negra and Leona. Their location relative to the Promontorio Diatreme hosted resource is shown by visiting the following link: Promontorio Satellite Map
Descriptions of the primary areas of interest are as follows:
The La Negra Zone
The La Negra prospect is a hydrothermal-diatreme breccia exposed over a 100 to 150 x 400 to 500 meters area, 7 km north of the Promontorio diatreme breccias.
Seventy-seven samples have been collected over the La Negra prospect. Of the 77 samples collected, 56 returned values greater than 10 gpt silver and 35 greater than 20 gpt silver. Eighteen chip samples (random chips taken within a 2m x 2m area) averaged 107 gpt silver with a single high of 512 gpt and 15 greater than 20 gpt. Gold values are low within the breccias but highly anomalous in small veins peripheral to the breccias with values from background to 8.2, 4.3, 3.2 and 2.0 gpt gold obtained from grab samples. To view a map of the La Negra sampling visit: La Negra Sampling
The Tordillo Zone
The Tordillo zone is located 20 km northwest of Promontorio. Gold and silver mineralization occurs over a 3 x 5 km area as veins, stockworks and breccia's intimately associated with strong potassic and argillic/sericite/hematite alteration. This is suggestive of a gold porphyry setting. Three hundred and ten samples have been collected over the Tordillo zone. 175 samples are greater than 50 ppb gold, 148 greater than 100 ppb (0.1 gpt Au), and 54 greater than 1 gpt (with high values of 71.0, 20.2, 18.0, 14.2, 11.3, 9.8, 8.0, 6.7, 6.1 and 5.5 gpt noted). Anomalous silver showed in 94 samples with values greater than 10 gpt and 20 greater than 50 gpt, with highs of 547, 227, 252, 192, 166 and 147 gpt. Two main areas of precious metal have been identified in the Tordillo area. They are Mucho Oro and Tordillo Sur zones.
In the 'Tordillo Sur' zone, gold values from background to 18, 2.7, 1.8, 3.5, 1.6, 2.3, 2.7 gpt and silver values from background to 252, 107 and 66 gpt occur with secondary biotite, potash feldspar, magnetite, hematite and sericite hosted in altered sandstones. Significant copper values occur with the gold. In conjunction with potassic alteration this is indicative of a porphyry system.
The 'Mucho Oro' is a zone with strongly sericitic/hematite altered sediments hosting values from background to 71.0, 14.2, 11.3, 8.0 and 6.1 gpt gold with low silver from grab samples. Visible gold is noted. Chips of 1.5 m across a 21 m trench averaged 0.80 gpt gold (including 10.5 m of 1.44 gpt gold). One hundred meters to the north, the Mucho Oro Norte zone contained values from background to 6.3, 5.5 and 4.5 gpt gold and 192, 166 and 119 gpt silver also hosted in sericite/hematite altered brecciated sandstones from grab samples.
To view a map of the Tordillo Zone sampling visit: Tordillo Zone Sampling
The Metallica Pesada Zone
Metallica Pesada zone adjoins Tordillo to the immediate north. Prospecting, geologic mapping and soil geochemistry has outlined a 3 x 3 km area with gold and silver mineralization. Mineralization occurs as veins, stockworks and breccia's hosted in regionally sericite-hematite altered sediments and argillic altered volcanics. Two hundred and eighty-two rock samples have been collected over Metallica Pesada. One hundred eighty-two samples returned gold greater than 50 ppb, 147 greater than 100 ppb (0.1 gpt gold) and 45 greater than 1000 ppb (1 gpt gold). High values for gold include: 33.3, 16.3, 13.9, 11.8, 8.2, 6.2 and 5.2 gpt. For silver, 84 samples were greater than 10 gpt, with 20 greater than 50 gpt with isolated high values of 3,390 and 1,495 gpt silver noted.
A soil survey collected 185 samples that outlined a 1.5 km by 200 to 500 meter wide northerly-trending gold/silver/arsenic soil anomaly (with 45 soils> 50 ppb ranging to 1.2 gpt gold) coincident with both the regional sericite-hematite altered sediments and the distribution of the rock samples. To view a map of the Metallica Pesada Zone sampling visit: Metallica Pesada Zone Sampling
The Alamito Zone
Newly recognized, the Alamito zone lies southeast of both the Tordillo and Metallic Pesada zones within the axial part of the Promontorio Mineral Corridor. Follow up work during 2013 of previously known isolated gold and silver anomalies defined three anomalous zones.
One hundred and forty-two samples have been collected in the Alamito area. Gold from rock samples gave 63 greater than 50 ppb, 47 greater than 100 ppb and 13 greater than 1,000 ppb with high values of 44.5 10.7, 7.5 and 4.6 gpt. Visible gold was noted. Silver values samples resulted in 48 greater than 10 gpt, 10 greater than 50 gpt with high values of 2,780, 498, 331, 277 and 174 gpt. Mineralization is hosted in veins, stockworks, disseminations and hydrothermal breccias with quartz, sericite, hematite and tourmaline alteration.
The La Leona Zone
One hundred and forty-two samples have been collected in the La Leona area. Gold from rock samples gave 63 greater than 50 ppb, 47 greater than 100 ppb and 13 greater than 1,000 ppb with high values of 44.5 10.7, 7.5 and 4.6 gpt. Visible gold was noted. Silver values gave 48 greater than 10 gpt, 10 greater than 50 gpt with high values of 2,780, 498, 331, 277 and 174 gpt. Mineralization is hosted in veins, stockworks, disseminations and hydrothermal breccias associated with quartz, sericite, hematite and tourmaline alterations.
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. Securing J/V partnerships in Mexico and Canada on non core assets maximize potential for additional, new discoveries while maintaining minimal share dilution.
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 additional26,814,000 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.
All sampling reported are grab rock samples unless otherwise indicated. Further Quality Assurance and Control procedures and details on assays procedures and laboratories used are disclosed on the Kootenay Silver Inc. website.
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.
For additional information, please contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaysilver.com
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 February 24, 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
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