Step Out Drilling on Promontorio Intercepts 92 meters of 147 gpt Silver Equivalent (56 gpt Ag, 2.11% Pb+Zn) Extending the Southwest Zone 100 Meters Down Dip. Includes 5 Meters of 378 gpt Silver Equivalent (174 gpt Ag, 4.72% Pb+Zn)

          Shares Outstanding: 45,013,100 

VANCOUVER, Sept. 15, 2011 /CNW/ - Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from the an additional 6 holes of its ongoing 25,000 meter multi-phase drilling program on its Promontorio Silver project in Sonora, Mexico.

Three diamond drill rigs are currently operating on Promontorio with two stepping out in a systematic manner outside of the Pit Resource to the southwest and northeast. The third rig is working on stepping out from PC 28 in the Northeast Zone.

States Kootenay President and CEO James McDonald, "We continue to hit excellent intervals and grades of silver mineralization at depth in the Pit Resource, to the southwest and to the northeast. Moreover, assays show excellent continuity of silver mineralization between the Pit Resource and the Southwest Zone, further supporting the Company's resource expansion model that the SW Zone and Pit Resource form one large and continuous zone."

"Additionally, the first follow up holes to PC 28*, Northeast of the Pit Resource, intercepted multiple zones of silver mineralization including medium to high-grades in the Northeast Zone, where previously drilled, widely spaced holes defined a 300 meter strike length, which is double the strike length of Promontorio's established NI 43-101 Pit Resource, which bodes exceptionally well for additional resource expansion potential in the Northeast Zone." Adds McDonald (*See April 4, 2011 News Release)

Highlights from the latest results include:

Southwest and Pit Zone Area

DH 62

  • Step out on section
  • Returns 147 gpt Ag Equivalent over 92 meters including 5 meters of 378 gpt Ag Equivalent.
  • Mineralization extends 100 meters further down dip from previously released DH 61 which returned 96 gpt Ag Equivalent over 182 meters including 290 gpt Ag Equivalent over 24 meters.
  • Hole shows significant potential for new resources at depth.

DH 67

  • Two separate intervals over 40 meters in core length
  • 161 gpt Ag Equivalent over 41 meters including 14 meters of 342 gpt Ag Equivalent
  • 45 gpt Ag Equivalent over 45 meters including 165 gpt Ag Equivalent over 5 meters
  • Other zones in DH 67 include 8 meters of 132 gpt Ag Equivalent including 4 meters of 194 gpt Ag Equivalent; 7 meters of 58 gpt Ag Equivalent.
  • Helps extend continuity of Pit mineralization 75 to 100 meters further along strike into the Southwest Zone.

DH 57

  • Three mineralized intercepts
  • 118 gpt Ag Equivalent over 31 meters
  • 63 gpt Ag Equivalent over 26 meters and
  • 680 gpt Ag Equivalent over 5 meters
  • Extends mineralization on section with DH 56 upto another 100 meters down dip. DH 56 was previously released and contained 251 meters grading 116 gpt Ag Equivalent including 66 meters of 186 gpt Ag Equivalent.

DH 64

  • Hits shallow mineralization at 47 meter hole depth grading 119 gpt Ag Equivalent over 39 meters including 180 gpt Ag Equivalent over 19 meters.
  • Other intercepts include 4 meters grading 152 gpt Ag Equivalent and 21 meters of 115 gpt Ag Equivalent

Northeast Zone

DH 65

  • Up dip test of PC 28 which graded 237 gpt Ag Equivalent over 51 meters (see news release April 4, 2011)
  • Five mineralized zones
  • 167 gpt Ag Equivalent over 11 meters
  • 122 gpt Ag Equivalent over 10 meters
  • 96 gpt Ag Equivalent over 20 meters including 122 gpt Ag Equivalent over 10 meters
  • 240 gpt Ag Equivalent over 8 meters
  • 192 gpt Ag Equivalent over 3 meters
  • 100 gpt Ag Equivalent over 3meters

DH 69

  • Three mineralized zones
  • 25 meters southwest of PC 28
  • 128 gpt Ag Equivalent over 7 meters
  • 45 gpt Ag Equivalent over 23 meters
  • 35 gpt Ag Equivalent over 19 meters

TABLE OF RESULTS

Hole ID Target From To Interval *AgEq
(Ag,Pb,Zn)
Ag Pb Zn Pb+Zn
(m) (m) (m) (gpt) (gpt) (%) (%) (%)
DH-057-11 Pit In-fill 156 161 5 680 486 2.5 1.98 4.48
DH-057-11 Pit In-fill 379 405 26 63 20 0.4 0.62 1.02
DH-057-11 Pit In-fill 422 453 31 118 44 0.69 1.05 1.75
                   
DH-062-11 Pit SW Extension 311 403 92 147 56 1.03 1.08 2.11
including Pit SW Extension 344 349 5 378 174 3.03 1.69 4.72
                   
DH-064-11 Pit SW Extension 47 86 39 119 51 0.7 0.87 1.57
including Pit SW Extension 66 85 19 180 80 1.02 1.32 2.35
DH-064-11 Pit SW Extension 198 202 4 152 55 0.73 1.56 2.3
DH-064-11 Pit SW Extension 208 229 21 115 54 0.67 0.77 1.43
                   
DH-065-11 NE Zone 166 177 11 167 76 0.95 1.19 2.14
DH-065-11 NE Zone 201 221 20 96 47 0.34 0.83 1.16
including NE Zone 204 214 10 122 69 0.39 0.84 1.24
DH-065-11 NE Zone 225 228 3 192 74 1.83 0.89 2.73
DH-065-11 NE Zone 236 239 3 166 130 0.56 0.28 0.84
DH-065-11 NE Zone 246 254 8 240 109 1.25 1.82 3.07
                   
DH-067-11 Pit SW Extension 98 106 8 132 54 0.83 0.99 1.82
including Pit SW Extension 98 102 4 194 82 1.24 1.39 2.63
DH-067-11 Pit SW Extension 115 156 41 161 58 0.89 1.52 2.41
including Pit SW Extension 140 154 14 342 123 1.88 3.26 5.15
DH-067-11 Pit SW Extension 159 166 7 58 28 0.36 0.35 0.71
DH-067-11 Pit SW Extension 256 301 45 65 28 0.41 0.46 0.87
including Pit SW Extension 263 268 5 165 66 1.03 1.28 2.31
                   
DH-069-11 NE Zone 138 161 23 45 33 0.11 0.18 0.29
DH-069-11 NE Zone 176 195 19 35 26 0.08 0.12 0.2
DH-069-11 NE Zone 225 226 1 278 157 1.57 1.25 2.82
DH-069-11 NE Zone 288 295 7 128 49 0.99 0.85 1.84

*Assuming 100% Metallurgical Recovery

*Prices used in Silver Equivalent (AgEq) Calculations:

Ag  dollars/oz
Zn  dollars/lb
Pb  dollars/lb
       

$15.00
$0.91
$0.97

The current 25,000 meter step out drilling and resource definition program represents the single largest and most expansive drilling campaigns conducted by Kootenay on the Promontorio Silver project to date.

Upcoming drilling will continue to concentrate on step out and in-fill drilling off setting the numerous medium to high grade silver intercepts concentrated along a 1.0 kilometer long mineralized corridor that includes the Pit Resource, Pit NE zone, Northeast zone and Southwest zone.

QA/QC
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 posted on the Kootenay Gold Inc. website.

The foregoing geological disclosure has also been reviewed by James McDonald, P. Geo (a qualified person for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects). Mr. McDonald is the President and CEO and a director of Kootenay.

ABOUT 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
or visit: www.kootenaygold.ca

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Kootenay Gold Inc.

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