Shares Outstanding: 62,808,850
VANCOUVER, Dec. 11, 2013 /CNW/ - Kootenay Silver Inc. (the "Company") (TSX.V: KTN) As a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its disclosures regarding its Promontorio Silver Project and the La Negra Project, located in Sonora, Mexico.
Retraction of exploration target at Promontorio
On certain presentations dated after June 13, 2011, including its corporate presentation titled "Kootenay Silver - Focused on Discoveries" dated November 2013 (the corporate presentation), the Company disclosed a "Target size of 100 million + Ounces Silver", also disclosed as "Silver Eq" for the Promontorio Silver Project. The target disclosed in the corporate presentation did not comply with requirements of NI 43-101 to disclose exploration targets using ranges of both tonnage and grade and to discuss local data and information that provides a reasonable basis for estimating tonnage and grade ranges. In addition, the Company clarifies that the Promontorio target is co-incident with and superseded by current resource estimates disclosed in the Company's May 14, 2013 news release and a technical report by SRK Consulting (US), Inc. dated May 24, 2013 (on SEDAR). Continued disclosure of a fixed ounce quantity of silver as a target was potentially misleading after the estimation of a current resource, and restricted by NI 43-101. The Company retracts its disclosure of a "target" at Promontorio in the corporate presentation.
Retraction of potential quantity range at La Negra
The corporate presentation also disclosed "potential for 50 to 100 million ounces AgEq" for the La Negra Project. This potential exploration target did not comply with requirements of NI 43-101 to disclose ranges of tonnage and grade, and discuss local data and information that provides a reasonable basis for estimating the ranges. In addition, disclosure of only silver equivalent ounces is potentially misleading without also providing grade data for all constituent metals. The Company clarifies that there is insufficient local data and information to provide a basis for estimating grade and tonnage ranges of a La Negra exploration target at this time, and retracts its disclosure of the potential silver-ounce quantity range at La Negra in the corporate presentation.
There are geologic similarities between the La Negra Diatreme and the Company's Promontorio Silver Project, being a brecciated hosted system, and to similar mineral systems in Mexico and worldwide.
In those instances where the Company has retracted, revised, clarified or updated previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.
The foregoing geological disclosure has also been reviewed and approved 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 December 11, 2013. 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