Shares Outstanding: 62,863,850
VANCOUVER, May 6, 2014 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay" or the "Company") is pleased to announce that plans are
underway for an anticipated 3,000 meter drill program on its emerging
La Negra Silver prospect, situated 7 kilometres ("km") north of the
Promontorio diatreme breccias, in Sonora, Mexico. The La Negra prospect
is one of five identified discoveries within a 25km x15 km northwest
trending corridor, termed the "Promontorio Mineral Belt."
The Company reports recent processing of airborne geophysical data,
compilation of all geochemical sample data and petrographic analysis
have highlighted the importance of the La Negra discovery and are the
impetus for advancing the prospect to a drilling phase. Silver
mineralization has been identified across the entire exposure of the
mineralized breccia along a general exposure of 100 by 500 meters.
Average of all 50 rock samples (grabs and chips) taken is 77 gpt Ag.
Nineteen of these were chip samples that averaged 107 gpt silver with a
single high of 512 gpt Ag (see the Company's February 25, 2014 news
release for more detail).
Processing of airborne geophysics has been successful in defining the
breccia limits where it is exposed and indicates the mineralized
breccia may be significantly larger than the existing outcrop exposure.
To view a map of the La Negra sampling and the corresponding geophysics
visit: La Negra Sampling.
States Kootenay Silver President and CEO James McDonald "The La Negra is
the most advanced prospect of the five discoveries contained within the
Promontorio Mineral Belt. We are very excited to drill test this
prospect. Not only has La Negra returned consistent silver grades from
sampling over a broad area, but it also has distinct characteristics to
potentially evolve into a very large, low-cost, open-pittable scenario.
This includes the Prospect's outcropping nature and the extensive areas
of silver mineralization indicated at surface. The La Negra will be the
first of several anticipated satellite mineral systems to be drilled.
In concert with this program, we will continue to prioritize the
strategic expansion of the high-grade areas of our Promontorio
resource, located in the Central corridor and the Northeast Zone."
Drilling dates and budgets will be reported in a future news release.
All sample results reported were analyzed by ALS Chemex using ME ICP 61
which is a four acid analysis using a 30 g fire assay with gravimetric
finish for silver and for gold. More QA/QC procedures are posted on the
The foregoing geological disclosure has 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.
Current NI 43-101 Compliant Silver Resource
The current mineral estimate on Promontorio effective date March 31,
2013 (See May 14, 2013 news release) contains a combined Measured and
Indicated silver resource of 92,428,000 silver equivalent ounces (39.9M oz's Ag, 508K oz's Au, 394.8M lb's Pb, 462.2M lb's Zn). In
addition to the measured and indicated silver resources, there are an
additional 26,814,000 silver equivalent ounces in the Inferred category (12.8M oz's Ag, 147 oz's Au, 99.5M lb's Pb,
109.1M lb's Zn). Measured and Indicated resources are contained in open
pit resources of 44,504,000 tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt Ag,
0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open pit of
215,000 tonnes grading an average of 56.96 gpt silver equivalent (22.89
gpt Ag, 0.28 gpt Au and 0.95% Pb+Zn). Inferred resources are within
open pit resources of 14,564,000 tonnes grading an average of 51.95 gpt
silver equivalent (24.95 gpt Ag, 0.28 gpt Au and 0.59% Pb+Zn) and
resources outside of the open pit of 1,265,000 tonnes grading an
average of 61.17 gpt silver equivalent (26.57 gpt Ag, 0.37 gpt Au and
The current NI 43-101 Resource Estimation conducted on Promontorio by
SRK Consulting Inc. (U.S.) of Lakewood, Colorado (See May 14, 2013 news
release), included gold assay results in the updated resource
estimation. As a result of the addition of gold, the mineral resource
is now contained in a single larger optimized Whittle Pit, as opposed
to two individual smaller pits as reported in the August 21, 2012
resource estimate. The decision to include gold in the resource
estimation follows extensive metallurgical testing and technical
analysis conducted by ALS Minerals of Kamloops, British Columbia that
confirmed up to 94.5% recovery of gold from pyrite concentrates from
the Promontorio resource can be achieved using a post pressure
oxidation treatment process.
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 May 5,
2014. 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