(*Includes 120 gpt Silver and 3.1% Pb+Zn and 41 gpt Silver and 1.01%Pb+Zn)
Shares Outstanding: 48,378,850
VANCOUVER, April 25, 2012 /PRNewswire/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce results from an additional 10 holes from its current 25,000 meter drill program on its Promontorio Silver Project in Sonora, Mexico. The Company reports the two-phase 35,000 meter in-fill drill and resource definition program, comprised of 25,000 meters of core drilling and 10,000 meters of RC drilling is now complete. Work on an independent NI 43-101 resource update to incorporate results from drilling is underway.
States Kootenay CEO James McDonald "The high-grade results achieved from step-out drilling in the Northeast Zone is further testimony to the success of our multi-phase drill program. Since confirming our initial NI 43-101 silver resource in 2010, we established one continuous zone of silver mineralization from the Pit (Discovery) Zone through the Southwest Zone. This zone remains open to the east, west and to depth. We continue to encounter high-grade silver intercepts over widespread areas of silver mineralization in the Northeast Zone, some 700 meters outside of the current NI 43-101 resource. We expect these developments will play a critical factor in sharply boosting the size of our existing silver resource as we prepare for our updated independent NI 43-101 resource study."
Silver Hosted in Large Diatreme Complex
The recent definitive recognition that Promontorio silver mineralization is hosted in a large diatreme complex has significant geologic implication, as these types of systems can typically be very large in size and result in discovery of numerous deposits. Examples in Mexico include the Pitarrilla Silver-Lead-Zinc deposits in Durango and the Peñasquito Silver-Gold-Lead-Zinc mine located in the northeast of the State of Zacatecas in north-central Mexico.
Mineralization Remains Open on Strike and Down Dip
At present, silver mineralization remains open in both strike directions and down dip within Promontorio's Diatreme complex, between the Pit, Southwest Extension and Northeast Zones. The Company reports it has identified a host of new prospective targets within the Diatreme complex, that require further drill testing. Accordingly, the Company reports plans are underway to conduct a large follow up drill program after the release of the NI 43-101 resource update.
Table of the full results follows:
|Hole ID||Target|| From
|DH-112-12||Pit SW Extension||33.00||36.00||3||283||218||0.67||0.84||1.51|
|DH-112-12||Pit SW Extension||263.00||269.00||6||26||10||0.15||0.23||0.38|
|DH-114-12||Pit SW Extension||88.00||91.00||3||64||53||0.06||0.19||0.24|
|DH-115-12||NE of Pit||123.00||135.00||12||43||31||0.13||0.15||0.28|
|including||NE of Pit||123.00||126.00||3||112||77||0.44||0.37||0.81|
|DH-115-12||NE of Pit||263.00||264.00||1||151||73||0.77||1.07||1.84|
|DH-115-12||NE of Pit||273.00||275.00||2||95||35||0.59||0.81||1.40|
|DH-115-12||NE of Pit||374.00||379.00||5||37||30||0.05||0.11||0.16|
|DH-117-12||NE of Pit||29.00||33.00||4||102||32||0.79||0.85||1.63|
|DH-117-12||NE of Pit||151.00||165.00||14||113||34||0.74||1.10||1.84|
|including||NE of Pit||163.00||165.00||2||357||87||2.07||4.29||6.36|
|DH-117-12||NE of Pit||201.00||209.00||8||31||14||0.16||0.24||0.41|
|DH-118-12||NE of Pit||101.00||103.00||2||135||94||0.32||0.65||0.96|
|DH-118-12||NE of Pit||259.00||269.00||10||158||99||0.70||0.67||1.38|
|including||NE of Pit||267.00||269.00||2||345||218||1.33||1.65||2.97|
|DH-120-12||NE of Pit||162.00||171.00||9||100||35||0.66||0.86||1.52|
|including||NE of Pit||162.00||166.00||4||188||65||1.23||1.66||2.89|
|*Assuming 100% Metallurgical Recovery|
|*Prices used in Silver Equivalent|
| Ag dollars/oz
North East Zone
- Eastern most intercept to date
- May be up dip extension of mineralization 110 and 232 meters deeper in KP 39
- Up dip of DH 74 and 75, 35 to 108 meters respectively
- Up dip of DH 85, 86 and 66
- 50 meters down dip of DH 69
- Shows zone is open to depth
NE Pit Extension
- 35 meters down dip of PC 16
- shows potential opening of mineralization to the north
- On section with DH 77, PC 48 and KP 32
- 83 meters up dip of PC 18 intercept.
- 123 meters up dip of DH 109
- Up dip of DH 106
- Testing south edge of diatreme breccia
- Testing south edge of diatreme breccia
The recently completed 25,000 meter in-fill drilling and resource definition program represents the single largest and most expansive drilling campaigns conducted by Kootenay on the Promontorio Silver project to date.
The foregoing technical disclosure in this release 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 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.