Shares Outstanding: 62,808,850
VANCOUVER, Dec. 11, 2013 /CNW/ - Kootenay Silver Inc. (the "Company") (TSX.V: KTN) As a result of a review by the British Columbia Securities Commission,
the Company is issuing the following news release to clarify its
disclosures regarding its Promontorio Silver Project and the La Negra
Project, located in Sonora, Mexico.
Retraction of exploration target at Promontorio
On certain presentations dated after June 13, 2011, including its
corporate presentation titled "Kootenay Silver - Focused on Discoveries" dated November 2013 (the corporate presentation), the Company disclosed
a "Target size of 100 million + Ounces Silver", also disclosed as "Silver Eq" for the Promontorio Silver Project. The
target disclosed in the corporate presentation did not comply with
requirements of NI 43-101 to disclose exploration targets using ranges
of both tonnage and grade and to discuss local data and information
that provides a reasonable basis for estimating tonnage and grade
ranges. In addition, the Company clarifies that the Promontorio target
is co-incident with and superseded by current resource estimates
disclosed in the Company's May 14, 2013 news release and a technical
report by SRK Consulting (US), Inc. dated May 24, 2013 (on SEDAR).
Continued disclosure of a fixed ounce quantity of silver as a target
was potentially misleading after the estimation of a current resource,
and restricted by NI 43-101. The Company retracts its disclosure of a
"target" at Promontorio in the corporate presentation.
Retraction of potential quantity range at La Negra
The corporate presentation also disclosed "potential for 50 to 100 million ounces AgEq" for the La Negra Project. This potential exploration target did not
comply with requirements of NI 43-101 to disclose ranges of tonnage and
grade, and discuss local data and information that provides a
reasonable basis for estimating the ranges. In addition, disclosure of
only silver equivalent ounces is potentially misleading without also
providing grade data for all constituent metals. The Company clarifies
that there is insufficient local data and information to provide a
basis for estimating grade and tonnage ranges of a La Negra exploration
target at this time, and retracts its disclosure of the potential
silver-ounce quantity range at La Negra in the corporate presentation.
There are geologic similarities between the La Negra Diatreme and the
Company's Promontorio Silver Project, being a brecciated hosted system,
and to similar mineral systems in Mexico and worldwide.
In those instances where the Company has retracted, revised, clarified
or updated previous disclosure, the Company advises readers not to rely
on such statements as they may continue to be found in the public
The foregoing geological disclosure has also been reviewed and approved
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.
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 December
11, 2013. 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.
SOURCE: Kootenay Silver Inc.
For further information:
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