Shares Outstanding: 48,383,850
VANCOUVER, July 25, 2012 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to report that geologic modeling and a detailed drill hole
analysis of over 40,000 meters of drilling that was completed at
Promontorio's NE Zone, SW Zone and Pit Zone has been finalized and
forwarded to SRK Consulting (U.S.) Inc. of Lakewood, Colorado ("SRK")
for preparation of the current updated NI 43-101 resource estimate.
The comprehensive analysis was conducted by Kootenay VP of Exploration
Dr. Tom Richards in conjunction with Kootenay's technical team and
overseen by Kootenay President and CEO James McDonald. Included in the
analysis was the separation and re-logging of core from a total of 191
individual drill holes and an in-depth geological interpretation of
previous results and how the results pertain to a diatreme system.
Among the conclusions, the analysis determined that the gold component
from the results at Promontorio represents a significant component of
the diatreme system and therefore needs to be quantified and fully
States Kootenay CEO James McDonald "We are very pleased to conclude the
resource modeling and in-depth analysis of drill core from Promontorio.
The successful conclusions drawn from the analysis is a testimony to
the hard work and diligence of our entire technical team spearheaded by
Dr. Tom Richards. This is undoubtedly an exciting time for Promontorio.
Based on our findings, it is apparent the prospects for multiple,
additional precious metal discoveries within Promontorio's diatreme
system and lengthy mineralized trend are substantial."
Diatreme System - The recent definitive recognition of Promontorio as a Silver, Gold,
Lead and Zinc diatreme system led to Kootenay's re-evaluation and
logging of drill core and geologic interpretation of the mineralized
system. Several high priority existing and new drill targets have been
identified within the diatreme system. This includes the Dorotea Zone
which is situated approximately 1600 meters to the northwest of
Promontorio's Pit Resource.
Dorotea Zone - The Dorotea Zone has been traced for more than 2 kms, surface
sampling and trenching indicate mineralization along at least 1,000
meters of its length. Highlights from limited step-out drilling in 2009
included Hole KP-56-08 that returned 34.5 meters grading 1.73 gpt gold
and 74.83 gpt silver and 2.42% Pb+Zn, including 9 meters grading 3.28
gpt gold and 173.40 gpt silver and 5.24% Pb+Zn
Promontorio updated NI 43-101 resource estimate. SRK Consulting Inc. is currently conducting the updated resource
calculation for Promontorio. As a result of brief delays from
Kootenay's recent core analysis and geologic interpretation of
Promontorio's diatreme system, results from the SRK study are now
expected to be completed in mid to late August 2012.
Update of Regional Exploration on 80,000 ha Promontorio Concession Block
Results from a regional exploration program run concurrent with resource
expansion drilling resulted in the discovery of numerous anomalous to
very highly anomalous gold/silver/polymetallic (lead, zinc, copper)
mineralized systems that form a 25 x 15 km northwest trending belt
(Promontorio Belt) with the Promontorio diatreme breccias, including
the Pit Resource, SW and NE zones, marking its southeastern limit.
Mineralization within the Promontorio Belt comprises breccias, veins,
stock work and replacements associated with argillic, sericitic,
hematitic and tourmaline alterations. Several new high priority zones
and drill targets have been identified within this belt.
Priority targets include the Nopalera, Tordillo, La Negra and Leona
Nopalera Area - This prospect area comprises 10 showing areas located within a 5 x 6
km area, five of which are at or near drill-ready. The mineralized
showings are typified by anomalous to highly anomalous gold, silver and
copper in association with breccias, veins, stockworks and
replacements. Assay highlights include veins and breccias along a 380
meter strike and widths to 10 meters where 19 grab samples average 4.78
gpt gold with values to 56 gpt gold and 197 gpt silver and separate
veins and breccias in a 500 by 200 meter area with gold values to 9.5
gpt and silver to 2990 gpt.
Tordillo Area - The Tordillo area contains six areas of highly anomalous gold/silver
mineralization, two of which are at or close to drill ready. Alteration
is dominated by a regional hematite-sericite alteration in the
sedimentary rocks, hosting many of the gold/silver anomalous areas with
assay highs from grab samples of 71 gpt, 14.2, 11.3 8.0 and 6.1 gold in
areas with visible gold noted. A 15 meter hand trench gave 1.0 gpt Au
including 1.54 gpt Au over 9 meters. A 500meter diameter area of
alteration returned highs to 547 gpt silver and 3.7 gpt Au in areas of
tourmaline breccia from grab samples.
La Negra zone represents a diatreme breccia noted during a regional
reconnaissance program which gave values of 72, 29, 22, g/t silver with
anomalous lead, and zinc. The breccias are very similar to the
Promontorio diatreme breccias and airborne geophysics suggests it could
be similar in size.
Mineralization is hosted in veins, shears, veinlets, fractures and
stockworks associated with intense hematite-sericite alteration.
Mineralization zone trends northerly for 600+ metres and 30-80 metres
width. Prospector grab samples highlights of 15.3, 11.3, 10.2, 8.2,
7.7, 6.6, 4.5, 4.2, 2.9 , 2.2 g/t gold and 7650, 6450, 3290, 961, 346,
306, 283, 266 and 205 g/t silver. The system is very highly anomalous
in lead, copper, arsenic, antimony, tungsten and molybdenum.
All holes reported here were drilled with HQ sized diamond drill core
with some sections reduced down to NQ sized core. Core samples were cut
using a core saw with 1 to 2 meter long sample intervals. All
mineralized intercepts are drill core length drilled across a
vertically inclined breccia system at angles of 45 to 70 degrees.
Dimensions of the breccia system are being determined. The current
resource sits approximately along 140 meters of strike by 60 meters of
horizontal width in a range of 20 to 90 meters and to a 400 meter
depth. Further Quality Assurance and Control procedures are disclosed
on Kootenay's 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 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.
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 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