Shares Outstanding: 44,923,100
VANCOUVER, May 31, 2011 /CNW/ - Kootenay Gold Inc. TSX.V: KTN ("Kootenay") is pleased to announce it has successfully concluded the
final holes of its 10,000 meter drill program on its Promontorio Silver
project in Sonora, Mexico, highlighted by a 234 meter intersection grading 146 gpt silver equivalent*. Based on the success of the 10,000 meter program Kootenay reports it
has entered into a contract with BDW Drilling to immediately commence a
minimum 25,000 meter multi-phase diamond drill program at Promontorio.
The in-fill drilling and resource definition program will be the
Company's single largest and most expansive drill campaign ever
conducted at Promontorio.
*See 10,000 meter drill highlights below - Visit www.kootenaygold.ca for complete Drill Results and Map
States James McDonald, President and CEO of Kootenay: "Hitting excellent
grades of silver mineralization over a broad 234 meter intersection is
further testimony to the success of our 10,000 meter drilling program
on Promontorio. Paramount to its success, we confirmed that high and
medium grade silver occurs along the entire 1.0 kilometer long
mineralized corridor that hosts the current resource. Equally important
broadly spaced holes indicate continuity of silver mineralization over
300 meters of strike in the North East Zone, which is double the strike
length of our current 43-101 silver resource."
25,000 Meter Multi-Phase Drilling Program to Commence
Kootenay reports final mobilization is underway in preparation for the
current multi-phase program. Drilling is scheduled to commence with two
drills June 2, 2011 and will continue into the fall 2011. With the
planned addition of a third rig, a total of three diamond core drills
will be working on site and a minimum of 25,000 meters of drilling is
budgeted. The program is designed to substantially expand the current
43-101 resource conducted on the project by AGP Mining Consultants in
2010. Included in the program will be extensive infill and step out
drilling to define continuity between silver intercepts and to test the
limits of silver mineralization.
Further adds McDonald "Clearly, the upcoming 25,000 meter drill program
is a major step forward and a much anticipated milestone in the
development of Promontorio. A primary focus for the program will be to
dramatically boost the size of our current silver resource with in-fill
and step out drilling within multiple zones of widespread silver
mineralization identified outside of the Pit Resource along
Promontorio's 1.0 kilometer long mineralized corridor. More than 55
holes will be dedicated to these areas."
Drilling will test new areas of mineralization and test the current
resource boundaries at depth where previous drilling bottomed out in
silver mineralization. Infill drilling will also focus on establishing
the continuity and size of the high and medium grade silver domains now
established within and outside of the silver resource.
Updated NI 43-101 Resource Calculation to Commence at Conclusion of
Kootenay reports an updated NI 43-101 resource calculation on
Promontorio is planned to commence at the conclusion of the program. In
anticipation of further advancing the development of Promontorio, the
Company reports preliminary work for baseline, further metallurgical
and scoping studies will be initiated concurrent with the drilling
Highlights of Mineralized intercepts include:
*Note: PC denotes RC holes and DH denotes core holes. All holes should be
taken in context of their locations which are given in table and map
form on the Company website. All silver equivalent values are
calculated using silver + lead + zinc at $15.00/ oz, $0.97/lb. Pb and
$0.91/lb. Zn respectively
Highlights of final holes of 10,000 meter drill program include:
234 meters of 146 gpt Ag equivalent including; 70 meters of 236.3 Ag
equivalent including 27 meters of 338.6 gpt Ag equivalent or 121.7 gpt
Ag and 5.50 % Pb +Zn.
10.5 meters of 174.2 gpt Ag equivalent or 64.1 gpt Ag and 2.57 % Pb +Zn.
92 gpt Ag equivalent over 90 meters including 39 meters of 153.2 gpt Ag
equivalent or 63.7 gpt Ag and 2.08 % Pb +Zn.
76.5 meters of 61 gpt Ag equivalent or 24 gpt Ag and 0.87 % Pb +Zn
36 meters of 82 gpt Ag equivalent including 12 meters of 183.9 gpt Ag
equivalent or 125.5 gpt Ag and 1.36 % Pb +Zn.
Details of the 10,000 meter drill program are as follows:
Pit Zone and Area
Hole DH 53
Grading 234 meters of 146 gpt Ag equivalent or 58 gpt silver 2.06% Pb
Includes 70 meters of 236.3 Ag equivalent or 91.4 gpt Ag and 3.37 % Pb
+Zn and 27 meters of 338.6 gpt Ag equivalent or 121.7 gpt Ag and 5.50 %
DH 53 is an infill hole within the resource drilled to better define the hangwall and footwall contacts and to test
the extension of high grade zones within the resource. It shows
significant extensions to the high grades. For example:
the internal intercept of 236gpt silver equivalent over 70 meters is a
25 meter step out from KP 25 that hit 100.4 gpt silver and 3.24% Pb+Zn
over 97.67 meters within a wider intercept of 62.4 gpt silver and 2.1%
Pb +Zn (see news release dated July 22, 2008) and a 80 meter step out
from KP 26 where 87.11 gpt silver and 2.93 % Pb+Zn over 29.90 meters
occurs within a wider lower grade intercept of 36.94 gpt silver and
1.31 % Pb+Zn over 187.8 meters (see news release dated July 22, 2008).
Further it indicates good potential for an un-quantified higher grade
domain. This holds potential for upgrading the resource size internally
and may of course have a positive impact on project economics.
Encountered 92 gpt Ag equivalent over 90 meters or 38 gpt Ag, 1.36 % Pb +Zn
including 39 meters of 153.2 gpt Ag equivalent or 63.7 gpt Ag and 2.08
% Pb +Zn. Mineralization started at 45 meters.
PC 48 tested the northeast Pit Resource extension with a 20 meter off
set to the northeast.
Encountered 36 meters of 82 gpt Ag equivalent or 54 gpt Ag and 0.65% Pb +Zn including 12 meters of 183.9 gpt Ag
equivalent or 125.5 gpt Ag and 1.36 % Pb +Zn. Mineralization started at 24 meters.
PC 47 tested the northeast Pit Resource extension with about a 70meter
PC 49 did not reach target depth and bottomed in weakly anomalous
mineralization at 156 meters.
Intersected 61 gpt Ag equivalent over 76.5 meters or 24 gpt Ag and 0.87 % Pb +Zn.
Drilled about 75 meters northeast of the Pit Resource.
PC 51 No significant results.
Intersected 10.5 meters of 174.2 gpt Ag equivalent or 64.1 gpt Ag and 2.57 % Pb +Zn.
Pit South West Area:
PC 12 was deepened with core extending the mineralized zone a further 44
meters of hole length for a composited interval of 36 gpt Ag, 0.62 % Pb
and 0.68 % Zn for 92 gpt Ag equivalent over 114.5 meters.
PC 11 was deepened with core extending the mineralized zone a further 89
meters of hole length for a composited interval of 12 gpt Ag, 0.18 % Pb
and 0.20 % Zn for 28 gpt Ag equivalent over 150 meters.
North East Zone and Trend
PC 30 through PC 38 were drilled along the northeast trend between the
Pit Resource and the North East Zone. These holes did not reach planned
depths with PC 35, 36, and 37 just beginning to enter the target zones.
These targets will be tested with core drilling which has a much higher
success rate at Promontorio.
PC 30 to PC34 did not reach target depth, no significant results.
PC 35 did not reach target depth bottoming in anomalous mineralization
at 294 meter depth with the best intercept being 6 meters of 92.4 gpt Ag equivalent or 42.3 gpt silver and 1.16% Pb+Zn.
PC 36 did not reach target depth but bottomed in anomalous
mineralization at 264 meters with the best intercept being 48 meters of 20.6 gpt Ag equivalent or 14 gpt Ag and .15% Pb +Zn
PC 37 bottomed in 12 meters of 93.4 gpt Ag or 38.3 gpt Ag 1.294 % Pb+Zn.
PC 38 and PC 29 no significant interval.
Ranch EM Anomaly
Holes PC 39 through to PC 46 were shallow RC holes drilled to test a
peripheral target called the Ranch EM zone. It is outside of the main
mineralized 1.0 kilometer long corridor and was tested to take
advantage of the RC rig before it was released from the project. These
PC 39 intersected 4.5 meters of 307.7 gpt Ag equivalent or 101.3 gpt silver and 6.3 %
Pb+Zn. This was drilled about 80 meters and in the opposite direction of
previously released KP 64 which hit 3.0 meters of 551 gpt Ag and 20.27%
Pb + Zn.
PC 40 to 46 hit no significant mineralization.
All holes marked PC were drilled using reverse circulation and marked DH
were drilled with HQ core. RC samples were split using riffle or rotary
splitters to make representative composites. All samples are over 1.5
meter intervals. Core samples were cut using a core saw at 1 to 2 meter
intervals. All mineralized intercepts are drill hole length drilled
across a vertically inclined breccias system at 60 degree angles.
Further Quality Assurance and Quality Control procedures are posted on
the Kootenay Gold website.
The foregoing geological disclosure has also 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.
Kootenay Gold is actively developing mineral projects in the Sierra
Madre Region of Mexico and in British Columbia, Canada. The Company's
flagship property is the former producing Promontorio Silver mine in
Sonora State, Mexico. The Company's objective is to develop near term
discoveries and long term sustainable growth. Kootenay's 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.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release. 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. 2011 number 09
SOURCE Kootenay Gold 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.kootenaygold.ca