VANCOUVER, British Columbia,
October 15, 2014 /PRNewswire/ --
Shares Outstanding: 70,110,683
Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is
pleased to announce all seven holes of its Phase I drill program on
its La Negra Diatreme Breccia prospect have returned significant
grades of widespread silver mineralization extending from surface
to depth, confirming a substantial new silver discovery.
Kootenay's La Negra Diatreme Breccia prospect is situated
approximately 6.5 kms north of Kootenay's flagship Promontorio
Silver Resource in Sonora, Mexico
and is one of several new Diatreme Breccia prospects recently
identified within a 25 x 15 km mineralized corridor, recently
christened the "Promontorio Mineral Belt".
States Kootenay President and CEO James
McDonald: "We are very pleased and excited to report a
significant and entirely new silver discovery on our La Negra
prospect in Sonora, Mexico. Our
continued success to date on La Negra is clearly a testimony to the
hard work and diligence of our entire exploration and technical
team in Sonora, Mexico, led by our
VP of Exploration Dr. Tom Richards.
Based on its ideal proximity and its distinct geological
characteristics, La Negra exhibits excellent potential to evolve
into a substantial, low-cost, near surface silver resource. As
drilling continues, our objective will be to further define the
continuity of silver mineralization on surface and at depth to
begin determining the overall scope and extent of the contained
silver."
Highlights include:
- LN 01-14 Containing from surface;
- 110.46 gpt Ag over 41 meters including
- 223.23 gpt Ag over 13 meters
- LN 02-14 Containing from surface;
- 141.28 gpt Ag over 50 meters including
- 212.64 gpt Ag over 28 meters and
- 323.13 gpt Ag over 15 meters
- LN 03-14 Bottomed in mineralized breccia in a vertical
hole from surface;
- 82.57 gpt Ag over 144 meters including
- 98 gpt Ag over 103 meters and
- 195.84 gpt Ag over 25 meters
- LN 04-14 Containing from surface;
- 92.98 gpt Ag over 92 meters including;
- 149.43 gpt Ag over 20 meters from surface and
- 146.38 gpt Ag over 31 meters from 43 meter
depth
- LN 05-14 Containing from surface;
- 91 gpt Ag over 119 meters including
- 182.27 gpt Ag over 40 meters
- 367.85 gpt Ag over 14 meters
- LN 06-14 Containing from surface and bottomed in
mineralized breccia;
- 92.79 gpt Ag over 98 meters including
- 168.33 gpt Ag over 21 meters including
- 214.3 gpt Ag over 14 meters
- LN 07-14 Containing from surface;
- 132.49 gpt Ag over 59 meters including
- 149.6 gpt Ag over 43 meters and
- 185.35 gpt Ag over 17 meters
States Kootenay VP of Exploration Dr. Tom Richards, BSc, PhD: "La Negra is a
classic Diatreme Breccia prospect and an entirely new grass roots
silver discovery. On trend to Kootenay's established and
evolving 92 million ounce silver equivalent Promontorio resource
located 6.5 kilometers to the south this new discovery underscores
and confirms the regional-scale potential for additional new
discoveries within the 'Promontorio Mineral Belt'."
Drill Results
The seven holes tested a cross section north to south about 100
meters wide with holes LN 01-14 to LN 05-14 and a long section east
to west over about 100 meters long with holes LN 06-14, LN 07-14
and LN 03-14 and to a vertical depth of 144 meters.
The breccia at this location dips about 80 degrees to the south
on the north contact and 70 degrees to the north on the south
contact. All intercepts are hole lengths into an elongate pipe like
breccia body the width, length and depth of which is not yet known.
Surface exposures are very good over a 100 by 400 meter area and
extend to 500 meters in length and up to 200 meters north to
south.
To view cross sections of the seven-drill holes visit: La Negra
Cross Sections LN 01 to LN 07-14. To view a drill plan
outlining the location of the La Negra drilling visit: La Negra
Drill Plan.
Details of the intercepts are in the following
table:
From To Interval Ag Au Pb Rock
Drill Hole (m) (m) (m) (gpt) (ppb) (%) Type
LN-01-14 -45/180 Az 3 44 41 110.46 67.71 0.126 Breccia
Including 18 37 19 177.1 112.78 0.056 Breccia
Including 18 31 13 223.23 129.38 0.07 Breccia
95m EOH
LN-02-14 -60/180Az 0 50 50 141.28 107.72 0.215 Breccia
Including 0 40 40 161.25 121.15 0.256 Breccia
Including 19 47 28 212.64 149.14 0.144 Breccia
Including 19 34 15 323.13 197.8 0.216 Breccia
100m EOH
LN-03-14 -90 0 144 144 82.57 57.93 0.309 Breccia
Including 0 27 27 108.32 77.3 0.618 Breccia
Including 0 106 106 98.03 62.19 0.373 Breccia
Including 0 78 78 114.63 66.04 0.383 Breccia
Including 53 78 25 195.84 107.4 0.144 Breccia
Including 54 67 13 229.38 103.61 0.166 Breccia
144m EOH
LN-04-14 -60/360Az 0 114 114 78.54 66.4 0.311 Breccia
Including 0 92 92 92.98 79.68 0.351 Breccia
Including 0 67 67 118.93 83.39 0.409 Breccia
Including 0 20 20 149.43 73.21 0.85 Breccia
Including 43 74 31 146.38 95.67 0.103 Breccia
152m EOH
LN-05-14 -45/360Az 0 119 119 91 46.44 0.576 Breccia
Including 0 88 88 108.85 39.95 0.625 Breccia
Including 51 91 40 182.87 70.97 1.171 Breccia
Including 51 65 14 367.85 111.42 1.84 Breccia
Including 89 119 30 40.4 64.55 0.427 Stockwork
147m EOH
LN-06-14 -60/090Az 3 101 98 92.79 104.37 0.153 Breccia
Including 3 55 52 124.36 88.59 0.224 Breccia
Including 3 24 21 168.33 125.8 0.416 Breccia
Including 3 16 13 214.3 131.3 0.618 Breccia
101m EOH
LN-07-14 -60/270Az 5 64 59 132.49 85.34 0.26 Breccia
Including 5 48 43 149.60 78.96 0.27 Breccia
Including 31 48 17 185.35 153.18 0.23 Breccia
Including 5 116 111 83.89 52.49 0.23 Breccia/Stockwork
Including 65 116 51 17.06 7.42 0.19 Stockwork
Including 106 116 10 41.90 12.80 0.47 Stockwork
130m EOH
Geologic observations and interpretations to date:
As seen at surface and in drilling, the breccia is multi-staged,
intensely altered, polymictic and matrix to clast supported. Clast
type is difficult to determine but appears to be varieties of
feldspar porphyry and includes mineralized fragments. Alteration of
clasts is intense and complete to argillic and phyllic assemblages.
The breccias matrix is visually composed of very fine silicas,
variable carbonate and fine, light-coloured tourmaline. Small
(to cm) gaseous bubble-like forms in the matrix have been noted.
The wall rocks are variably mineralized with stockwork and strong
argillic alteration and strong propylitic alteration of probable
andesites.
La Negra represents a set of highly explosive,
diatreme-hydrothermal mineralized breccias emplaced within an E-W
trending extensional structure. Main mineralization appears to be
hosted within the breccia matrix and as fractures and veins in
argillic-sericitic altered host rock with the breccia system. The
fluids, alterations and mineralization at La Negra have been
derived from a deeper source as fragments/mineralization are in
marked contrast to the propylite-altered country rock. This
infers a deeper source for the La Negra mineralization and that the
breccias are manifestations of a potentially larger hydrothermal
system.
Iron oxides occur in minor to moderate amounts in the matrix and
fracture boxworks. Sulfides appear at a 50 to 60 meter depth and
mixed oxides/sulfides occur up to 190 meters (the deepest drill
hole thus far). Very fine-grained galena has been observed as well
as probable silver sulfo salts or silver sulfide.
Preliminary petrology from surface samples indicates silver is
contained in the matrix gangue as Embolite/Chlorargyrite, a silver
halide. Geochemistry of drill cores indicates silver in association
with silver sulfides or sulfosalts. This pattern of silver hosted
in Chlorargyrite and silver sulfides/sulfo salts is observed at Pan
American's Alamo Dorado mine some 190 km to the south. Gold shows a
strong correlation with silver. Lead and Manganese show poor to
negative correlation coefficients with silver respectively.
Phase I Drilling Program on La Negra
Drilling is currently being conducted in widely spaced fences
along 400 to 500 meters of La Negra's length to provide information
on the sub-surface grade, continuity and geometry of the
mineralized diatreme pipe. The program is contracted to be a
minimum of 2500 meters of core drilling with HQ diameter core.
Fourteen holes have been completed to date. Drilling is being
conducted by BD Drilling of Guadalajara
Mexico.
Previous Surface Trenching & Sampling Program Confirms
Widespread Silver Mineralization
An extensive trenching and surface sampling program previously
conducted on La Negra from bedrock exposure shows silver
mineralization is remarkably consistent throughout the breccia's
exposed breadth and length (between 100 to 200 meters by 500
meters). The average of all samples taken on surface is 65 gpt
silver from 50 three-meter chip samples in trenches, 19 two-meter
square chip panels and 31 grab samples. (See news releases from
May 28th and June 5th, 2014 for more details).
Previous airborne geophysics was effective in mapping the southern
contact of the breccia and indicates the breccia could be twice the
aerial extent of the visible bedrock exposure.
To View Full Results of Sampling Program Visit:
http://www.kootenaysilver.com
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 additional 26,814,000 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.
QA/QC
Core is being detailed logged and sampled with half the core
being bagged, tagged, catalogued, sealed and sent to an accredited
assay lab for analysis. A quality control program including blanks,
standards and replicates is being used similar to that used on the
Promontorio drill program. Geotechnical data such as recovery,
RQD and density are being recorded also. All drilling has been with
HQ core and is being done by BD Drilling from Guadalajara, Mexico. 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.
ABOUT KOOTENAY
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. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new
discoveries while maintaining minimal share dilution.
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
October 14, 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.
Contacts:
James McDonald, CEO and President
at 403-238-6986; Ken Berry, Chairman
at +1-604-601-5652; +1-888-601-5650; or visit:
http://www.kootenaysilver.com