VANCOUVER, March 31, 2020 /CNW/ - Kootenay Silver Inc. (TSXV: KTN) (the "Company" or "Kootenay") reports that it has temporarily suspended the current drill programs at its Columba silver & Copalito silver-gold projects located in the states of Chihuahua and Sinaloa, Mexico. These actions were taken to minimize the potential exposure of the novel coronavirus ("COVID-19") to the Company's employees, contractors, families and communities and to comply with the Mexico Presidential Decree issued March 30, 2020.
Kootenay President and CEO, James McDonald stated: "Although these drill stoppages are unfortunate, it is the responsible course of action to take under the current circumstances. Kootenay will continue to monitor the evolving situation and follow protocols consistent with minimizing the spread of the COVID-19 virus to protect the health of its work force and their local communities. Kootenay is well financed with $6.8 million in cash, no debt and possesses quality silver assets that will continue to strongly position the Company once the markets emerge from this crisis."
Prior to the work stoppage at Columba, the Company completed a total of 1,679 metres over 10 drill-holes of the planned 7,000 metre phase II program. To date, phase II drilling has focused on the historically mined F Vein to define the mineralized strike length and depth extent of the vein. Once the program resumes at Columba, drilling will continue to test F Vein in addition to other priority areas and structures where 2019 drilling intercepted favorable widths and appreciable silver grades. Detailed results for all 2019 drill-holes can be viewed by clicking the following link: 2019 Columba Drill Results.
At the Copalito silver-gold project, located in Sinaloa State, the Company completed the first hole of a planned 3,000-meter drill program. The first drill-hole, totaling 105.2 meters in length, successfully intercepted the 5 Senores Vein over a drill width of nearly 40 meters. The program is designed to test 6 principal veins at the Property. Previous surface sampling by Kootenay along the veins returned significant silver and gold values over variable widths of 0.5 to 15 meters, (for previously reported samples see KTN news releases dated July 19, September 20, 2018, January 21 and April 10, 2019). To the knowledge of the Company, no previous significant modern exploration or drilling has been conducted at Copalito.
Kootenay intends to resume these programs once the health risk due to COVID-19 allows.
Results from the drilling completed to date, will be announced once the assays are received and interpreted by the Company.
Sampling and QA/QC
Surface samples reported herein are a combination of grab, chip and panel chip. All technical information for the Columba and Copalito exploration programs are obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken under the direction of qualified geologists. Samples are then labeled placed in plastic bags, sealed and with interval, location and sample numbers recorded. Samples are delivered by the Company via courier to ALS Minerals ("ALS") in Hermosillo. The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver, B.C. Systematic assaying of standards, blanks and duplicates is performed for precision and accuracy. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30-gram fire assay with an AA finish.
The Kootenay scientific and technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Supported by one of the largest portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of two of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.
On Behalf of the Board of Directors of
KOOTENAY SILVER INC.
President & CEO
Neither the 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.
The sampling results disclosed in this news release are not necessarily indicative and drilling is required to confirm a mineral deposit.
The information in this news release has been prepared as at March 30, 2020. This news release contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). All statements, other than statements of historical fact, that address activities, events or developments that Kootenay Silver Inc. ("Kootenay" or the "Company") believes, expects or anticipates will or may occur in the future including, without limitation, the anticipated exploration program results from exploration activities, the discovery and delineation of mineral deposits and sampling results from the Copalito Project and other properties, the anticipated content, commencement, and cost of exploration programs in respect of the Company's projects and mineral properties, the anticipated business plans and timing of future activities of the Company, future capital expenditures (including the amount and nature thereof), business strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of the business and operations, plans and references to the future success of the Company, and such other matters, are forward‐looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to Kootenay and often use words such as "expects", "plans", "anticipates", "estimates", "believes", "intends", "potential", "may" or variations thereof or the negative of any of these terms.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Kootenay. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the ability of the Company to obtain sufficient financing to fund its business activities and plans, operating and technical difficulties in connection with mineral exploration and development and mine development activities for Company's projects generally, actual results of exploration activities (including the estimation or realization of mineral reserves and mineral resources), the timing and amount of estimated future production, costs of production, capital expenditures, the costs and timing of the development of new deposits, the availability of a sufficient supply of water and other materials, requirements for additional capital, future prices of gold and silver, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental and regulatory approvals (including of the TSX Venture Exchange), permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed under "Risk Factors" in the Company's most recent annual management's discussion and analysis and other filings of the Company with the Canadian Securities Administrators, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.
Any forward-looking statement speaks only as of the date on which it was made, and except as may be required by applicable securities laws, Kootenay disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Kootenay believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
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 403-880-6016; Ken Berry, Chairman at 604-601-5652; 1-888-601-5650 or visit: kootenaysilver.com