Shares Outstanding: 44,373,100
VANCOUVER, Feb. 3 /CNW/ - Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from an additional 15 drill holes
as part of a 10,000 meter, ongoing, multi-phase drilling program on its
Promontorio Silver Project in Sonora, Mexico. To view map please visit:
The 15 Drill holes encountered consistent and multiple intercepts of
widespread silver mineralization highlighted by values up to 149 g/t
silver and 108 g/t silver over 10.5 and 16.5 meters respectively.
Silver mineralization has now been extended from the 43-101 Pit
Discovery Zone towards the North East Zone a further 200 meters,
remaining open in three directions. Drilling to the southwest has
extended silver mineralization up to 120 meters outside of existing
drill intercepts, which sit outside of the 43-101 Pit resource.
Based on highly encouraging results to date, Kootenay further announces
it has mobilized a second diamond drill rig that will run concurrent to
its RC drilling program, to test the deposit at depth.
States Kootenay CEO James McDonald "Our goal from the outset of the current 10,000 meter drill program has
been to expand silver mineralization outside of the existing 43-101 Pit
resource. We are very pleased and excited with results from the current
15 holes. Not only have we dramatically extended silver mineralization
to the NE and SW of the Discovery Zone, we are achieving consistent
grades and continuity within areas of widespread silver mineralization
not yet calculated into the current 43-101 resource".
Adds McDonald "Adding a second diamond drill rig will allow us to drill test a host of
existing holes at depth that bottomed out in mineralization, which is
expected to play a major factor in further boosting the size of our
growing silver resource at Promontorio".
Highlights from the current batch of results are:
Area southwest of Pit resource:
24 meters of 58.6 g/t Ag, 1.15 g/t Au, 1.85% Pb+Zn within a broader
interval of 70.5 meters of 38.8 g/t Ag, 0.55 g/t Au and 1.2% Pb+Zn.
16.5 meters of 32.6 g/t Ag, 0.27 g/t Au and 1.19 % Pb+Zn.
PC 12 bottomed in mineralization at the end of the 70.5 meter intercept.
Extends mineralization 50 meters to south from KP 35.
10.5 meters of 39.3 g/t Ag, 0.49 g/t Au, 0.84% Pb+Zn within a broader
interval of 58.5 meters of 14 g/t Ag, 0.25 g/t Au, 0.40% Pb+Zn.
Bottomed in mineralization about 120 meters southward of KP 35.
3 meters of 112 g/t silver, 0.14 g/t Au, 0.053% Pb+Zn.
May be offset continuation of higher grade in PC 4 (13.5 meters 262.4
g/t Ag, 0.49 g/t Au, 1.091% PbZn) some 60 meters to the northeast.
Area between Pit resource and North East Zone:
16.5 meters of 108.8 g/t Ag, 0.13 g/t Au, 1.39% Pb+Zn.
36.36 meters of 26.9 g/t Ag, 0.58 g/t Au, 0.87% Pb+Zn includes 3.0
meters of 58.5 g/t Ag, 2.7 g/t Au, 2.41% Pb+Zn.
Hole bottomed in mineralized rock.
1.5 meters of 3.06 g/t Au and 0.5 g/t Ag is of note because it indicates
a second gold event as it is gold dominant.
13.5 meters of 26.9 g/t Ag, 0.17 g/t Au, 0.56% Pb+Zn.
10.5 meters of 149 g/t Ag, 1.10 g/t Au, 1.48% Pb+Zn.
45 meters of 23.6 Ag, 0.18 g/t Au, 0.295% Pb+Zn with a broader interval
of 90 meters of 17.7 g/t Ag, 0.15 g/t Au, 0.23% Pb+Zn.
PC 18 bottomed in mineralization within the 90 meter interval.
Other mineralized intercepts include; Area southwest of Pit resource:
4.5 meters of 59.3 g/t Ag, 0.86 g/t Au, 0.58% Pb+Zn within a broader
interval of 30 meters of 17.8 g/t Ag, 0.31 g/t Au, 0.36% Pb+Zn
13.5 meters of 25.6 g/t Ag, 0.4 g/t Au, 0.44% Pb+Zn
Holes PC 8, 10, 14 and 19 encountered narrow anomalous values and PC 10
and 15 had no significant results. A table of complete results can be
found on Kootenay's website.
Note: Metallurgical testing previously released indicates recoveries of
82% for Ag, 85% for Pb and 91% for Zn. It was found that gold reported
to the pyrite concentrate and requires a secondary oxidation process to
extract and so was not included in the resource estimate. Metallurgical
testing outside the resource has not been conducted so it is not known
if gold outside the resource area could be economically recoverable.
Additional metallurgical testing will be required.
Highlights of the Promontorio Pit Resource (See Aug 18, 2010 Release):
Contained Silver 10,070,000 oz
Contained Lead 112,700,000 lbs
Contained Zinc 125,100,000 lbs
The AGP Resource Calculation was based on only 27 of 54 drill holes
conducted on the project to date. Several extensively mineralized holes
at the time of the report were absent from the resource calculation
based on the spacing of the drill holes.
All holes were drilled using reverse circulation. Samples were split
using riffle or rotary splitters to make representative composites. All
samples are over 1.5 meter intervals. All mineralized intercepts are
drill hole length drilled across a vertically inclined breccias system
at 60 degree angles. 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.
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