Copalito Silver-gold Project

​PROJECT HIGHLIGHTS:

  • Classic low sulphidation epithermal vein system which has numerous small old workings located in Sinaloa State
  • No evidence or reports of historic exploration drilling
  • Six principal veins with individual veins currently traced over strike lengths of up to two (2)   kilometers. Veins vary in width from 0.5 to 15 meters at surface
  • Kootenay surface sampling highlights completed in 2018 and 2019:
    • 7.2 gpt gold and 3,770 gpt silver in grab samples from 5 Senores and Agua Veins, respectively;
    • 8.2 gpt gold including 583 gpt silver over a 1.1-meter chip sample across the 5 Senores Vein;
    • 401 gpt silver including 0.24 gpt gold in a chip sample across 5.3 meters on 5 Senores Vein;
    • 532 gpt silver over 3.0 meters and 306 gpt silver over 4.9 meters chip sampled across Agua Vein;
    • 17.45% zinc, 9.89% lead, 76 gpt silver and 0.52 gpt gold in a grab sample taken at Pillar Vein; and
    • Copper values of 5.1%, 1.6 % and 1.5% taken from the northern area of the Property along the Cobriza Vein.
  • 2020 Drill highlights : 22 meters averaging 106 gpt silver including the following:
    • 244 gpt silver and 1.09 gpt gold over 3.0 meters including 286 gpt silver over 1.0 meters;
    • 360 gpt silver and 0.1 gpt gold over 1.0 meters within 250 gpt silver and 0.247 gpt gold over 5.0 meters.

Overview

The Copalito Project is a classic low sulphidation epithermal vein system which has numerous small old workings and no evidence or reports of historic exploration drilling. The Property consists of seven concessions totaling approximately 3,700 hectares and is located 35 kilometres east of McEwen Mining’s “El Gallo Mine” complex in Sinaloa State, along the western fringes of the Sierra Madre Occidental in northwestern Mexico. Copalito has good access, topography and infrastructure. Kootenay can acquire a 100% ownership in the concessions by making staged payments over a 4-year period totaling US$985,000. The Company at its option may accelerate the payments due under the Agreement. Upon earn-in the vendors will retain a 0.5% net smelter return.

EXPLORATION WORK COMPLETED AT COPALITO

The vein system comprised of numerous veins, with individual veins currently traced over strike lengths of up to two (2) kilometers. Veins vary in width from 0.5 to 15 meters at surface. Extensive mapping and sampling work has been carried out by the Company in 2018 and 2019 have on the six (6) known principal veins. Sampling of these veins in preparation for the initial drill program returned up to 7.2 gpt gold and 3,770 gpt silver in grab samples and up to 8.2 gpt gold including 583 gpt silver over a 1.1-meter chip sample.

2020 DRILL PROGRAM

The first hole tested the eastern edge of the 5 Senores Vein located in the southern portion of the Property, where drilling returned a cumulative 8 meters grading 248 gpt silver and 0.562 gpt gold. These assay results correlate very well with previously reported chip sampling taken at surface, which returned 282 gpt silver and 1.4 gpt gold over 10.2 meters.

Detailed Drill Results - Hole BDH-20-001

Hole ID From
(meters)
To
(meters)
Interval
(meters)
Silver
(gpt)
Gold
(gpt)
Silver Eq.
(gpt)
BDH-20-001 8 64 56.0 58 - 58
including 29 51 22.0 106 - 106
including 29 32 3.0 244 1.09 342
including 46 51 5.0 250 0.247 272

* Silver Equivalent based on 90 (silver) to 1 (gold)
Note: Estimated true widths range from 85 to 90% of drilled widths depending on dip of the vein and inclination of the hole. All silver composites rounded to the nearest whole number.

Copalito Plan Map BDH-20-001 Cross Section (Looking Northwest)

WORKED PLANNED

Kootenay is currently conducting a 3,000 meter drill program designed to test several vein targets located on the Property. Upcoming drilling will target the 5 Senores Vein before stepping out to test the other 5 principle veins of the classic epithermal system. Further results will be released as assays are received and interpreted by the Company.

GEOLOGY

Mineralization is hosted within classic low sulfidation epithermal quartz and rare calcite veins. Multiple mineral events are evidenced by banded mineralized textures, multiple cross cutting veins/veinlets, laminated banding of chalcedonic and crystalline quartz, sulfide replacement and infillings of breccia matrix. Sulfide content is generally low but does range to 20% or more in hand samples. Sulfides and their oxide equivalents include fine grained pyrite, black and yellow sphalerite, galena, chalcopyrite and silver sulphosalts. Some zonation is becoming apparent with veins in the northeast being higher in gold and base metals and those in the south being high in silver and low in base metals.