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VANCOUVER, Sept. 18, 2014 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to announce the first 5 HQ diameter core holes of its Phase I drill program on its La Negra Diatreme Breccia prospect have been completed and are being submitted for assaying. The La Negra Diatreme Breccia prospect is contained within the 'Promontorio Mineral Belt' approx. 6.5 kms north of Kootenay's flagship Promontorio Silver Resource in Sonora, Mexico.
Preliminary visual inspection of drill core by Kootenay's technical team shows all 5 holes have encountered wide intervals of altered breccia, which is the same host rock as is seen across the mineralized surface.
States Kootenay President and CEO James McDonald "We are very pleased to complete the first tranche of drill holes on La Negra and look forward to receiving initial assay results. Based on our inspection of the initial core, we remain highly optimistic results from current drilling will parlay the success of our recent trenching and surface sampling program that returned widespread silver mineralization over a 100 to 200 meters by 500 meter area. Clearly, La Negra is an emerging target that exhibits several key characteristics with the potential to evolve into a significant near surface silver discovery. It also serves as a strong compliment to the underlying value of Kootenay's flagship Promontorio resource located 6.5 kms to the north, and underscores the regional-scale potential of the other emerging targets contained within Promontorio's Mineral Belt."
Phase I Drilling Program on La Negra Diatreme Pipe
Drilling is currently being conducted in widely spaced fences along 400 to 500 meters of La Negra's length to provide information on the sub-surface grade, continuity and geometry of the mineralized diatreme pipe. The program is contracted to be a minimum of 2500 meters of core drilling with HQ diameter core. It is anticipated 15 to 20 holes will be drilled in the inaugural program.
To view a map of current completed drill holes visit: La Negra Property drilling progress - Sept 18 2014
Breccia intercepts are as follows:
LN 14-1 (-45 at 180 azimuth) 0 to 44 meters breccia, 44 to 95 meters (end of hole) altered andesite.
LN 14-2 (-60 at 180 azimuth) 0 to 54 meters breccia, 54 to 100 meter (end of hole) altered andestie.
LN 14-3 (-90 ) 0 to 144 meters (end of hole) breccia.
LN 14-4 (-60 at 360 azimuth) 0 to 115 meters breccia, 115 to 152 meters (end of hole) altered andesite.
LN 14-5 (-45 at 360 azimuth) 0 to 90 meters breccia, 90 to 147 (end of hole) meters altered andesite.
Holes LN 14-1 to LN 14-5 are drilled to form a fence of holes from the same drill pad.
Kootenay's technical team reports the breccia's appear to be dominated by clast supported type and are strongly altered by very fine silica and clay with abundant very fine grained tourmaline. It appears as if the contacts of the breccia are near vertical to steeply north dipping. The Company cautions the foregoing information is from quick logging and thus preliminary in nature. As such, some observations of contacts, alteration and lithology and interpretations thereof may change as detailed logging is complete and new information is gained from additional holes.
An announcement on assay results will be made when received and compiled. It is estimated the initial holes will be announced in the first half of October.
Surface Trenching & Sampling Program Confirms Widespread Silver Mineralization
An extensive trenching and surface sampling program previously conducted on La Negra from bedrock exposure shows silver mineralization is remarkably consistent throughout the breccia's exposed breadth and length (between 100 to 200 meters by 500 meters). The average of all samples taken on surface is 65 gpt silver from 50 three meter chip samples in trenches, 19 two meter square chip panels and 31 grab samples. (See news releases from May 28th and June 5th, 2014 for more details). Previous airborne geophysics was effective in mapping the southern contact of the breccia and indicates the breccia could be twice the aerial extent of the visible bedrock exposure.
To View Full Results of Sampling Program Visit: La Negra Sampling Program
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 of92,428,000 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 0.74% Pb+Zn).
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.
Core is being detailed logged and sampled with half the core being bagged, tagged, catalogued, sealed and sent to an accredited assay lab for analysis. A quality control program including blanks, standards and replicates is being used similar to that used on the Promontorio drill program. Geotechnical data such as recovery, RQD and density are being recorded also. All drilling has been with HQ core and is being done by BD Drilling from Guadalajara, Mexico. Further Quality Assurance and Control procedures and details on assays procedures and laboratories used are disclosed on the Kootenay Silver Inc. website.
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.
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 September 17, 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