VANCOUVER, British Columbia,
October 25, 2016 /PRNewswire/ --
Highlights Include 363 gpt
Silver over 44.5 Meters including 720 gpt Silver over 19
Meters
Kootenay Silver Inc. (TSXV: KTN) (the "Company"
or "Kootenay") is pleased to announce results from the
first 11 holes of the ongoing 3,400 meter drill program on its La
Negra silver discovery in Sonora,
Mexico currently being conducted and operated by Pan
American Silver Corp. (TSX: PAA, NASDAQ: PAAS) ("Pan
American"). The current definition drill program on La Negra is
part of an option agreement completed in February 2016 between Kootenay and Pan American
that provides Kootenay with a series of work and cash commitments
and a carried to production interest on La Negra.
A series of deeper infill drill holes from the current program
have confirmed the results from previous drilling conducted by
Kootenay on La Negra (See Kootenay "High-Grade Results" news
release issued on April 30, 2015), as
well as the presence of a second breccia zone further to the south,
which currently remains open at depth and to the east.
Kootenay President and CEO James
McDonald states: "We are very pleased with Pan American's
work and the results to date from the first 11 holes of the
program. The confirmation of multiple high-grade intercepts of
silver mineralization at depth is a significant development and
further indicates potential for the silver resources to be amenable
to both open pit and underground exploitation. We are also very
pleased that based on the encouraging results achieved to date, Pan
American is extending the program by a full 2,000 meters until the
end of the year."
Drill highlights include:
LN 42-16
- returning three high grade intervals within 122.5 meters of 124
gpt silver and 0.15 gpt gold including:
- 693 gpt silver and 0.39 gpt gold over 6.25 meters;
- 672 gpt silver and 0.13 gpt gold over 4.65 meters; and
- 631 gpt silver and 0.18 gpt gold over 3.45 meters.
LN 43-16
- returning from a new more southerly breccia 720 gpt silver and
0.13 gpt Au over 19 meters within 44.5 meters of 363 gpt silver and
0.12 gpt gold.
- Higher in the hole the previously known breccia graded 1,226
gpt silver and 0.28 gpt gold over 6.15 meters within 235 gpt silver
and 0.09 gpt gold over 38 meters.
These two holes are from infill drilling and identified a second
more southerly breccia. The zone remains open at depth and along
strike to the east. Click to view: geologic maps, drill
plan and cross sections.
A summary of the infill drilling within the mineralized zone
is provided in the table below:
Drill hole From (m) To (m) Interval (m) Ag gpt Au gpt Cu ppm Pb ppm Zn ppm
LN-42-16 16.7 138.85 122.15 124 0.15 189 4,730 146
Incl. 35.65 41.90 6.25 693 0.39 123 29,902 68
Incl. 46.45 51.10 4.65 672 0.13 65 1,042 51
Incl. 69.75 73.20 3.45 631 0.18 998 1,524 185
LN-43-16 88.20 89.10 0.90 373 0.22 860 3,606 178
and 92.60 93.20 0.60 161 0.09 1,005 1,649 212
and 95.35 95.85 0.50 146 0.04 408 22,900 148
and 102.40 140.40 38.00 235 0.09 374 2,260 164
Incl. 133.70 139.85 6.15 1,246 0.28 1770 1,099 439
and 171.30 215.80 44.50 363 0.12 670 1,009 208
Incl. 177.45 196.45 19.00 720 0.13 1,176 594 300
LN-44-16 103.90 109.00 5.10 109 0.08 175 2,813 600
and 135.10 136.20 1.10 138 0.04 306 37,000 4,709
and 140.35 144.45 4.10 105 0.07 193 16,768 943
and 210.25 264.70 54.45 137 0.14 210 10,789 174
Incl. 212.25 219.95 7.70 543 0.19 692 66,890 372
LN-45-16 82.20 102.40 20.20 73 0.01 361 7,283 1347
and 120.30 147.80 27.50 59 0.07 96 247 151
Incl. 120.30 121.40 1.10 951 0.19 1,531 1,005 803
LN-46-16 151.80 212.55 60.75 76 0.05 180 3,246 92
Incl. 178.40 192.00 13.60 137 0.05 200 7,435 90
LN-47-16 165.20 182.25 17.05 65 0.01 71 5,221 378
Incl. 165.20 170.80 5.60 116 0.02 128 11,804 174
and 205.50 206.50 1.00 158 0.07 244 7,163 131
LN-48-16 108.55 116.05 7.50 81 0.02 174 10,916 1156
Incl. 109.30 114.10 4.80 109 0.02 244 15,128 1654
and 142.9 147.70 4.80 113 0.14 472 30 111
Incl. 146.40 147.70 1.30 305 0.32 1,281 32 219
and 165.70 193.75 28.05 97 0.05 168 1,229 100
Incl. 179.85 193.75 13.90 141 0.06 234 2,310 122
Incl. 180.75 182.60 1.85 648 0.10 1,105 192 210
LN-50-16 39.05 73.00 33.95 66 0.03 154 6,782 257
Incl. 43.70 56.05 12.35 81 0.03 101 9,086 136
Incl. 66.65 73.00 6.35 103 0.05 204 4,199 311
Incl. 68.00 69.00 1.00 263 0.02 216 8,676 218
LN-52-16 116.70 117.70 1.00 163 0.01 44 61 191
LN-53-16 0.00 27.15 27.15 74 0.04 241 6,303 75
Incl. 10.70 15.35 4.65 131 0.07 334 17,308 89
Note: all intervals are downhole. Holes are oriented approximately perpendicular to
the mineralized trends, and downhole lengths may be slightly shorter than the stated
interval.
Pan American began managing the exploration program in
April 2016 and commenced re-logging
drill core, geological mapping and re-interpretation, and completed
62 km of magnetic ground surveys. Pan American initiated a 3,400
meter drilling program in July 2016
with the objective of infilling the La Negra drill coverage to 50
meter centres and testing the along-strike and down dip extents as
well as following up on geophysical and geological anomalies
elsewhere within the exploration concessions.
Pan American Silver geologists have increased the understanding
of the La Negra breccia. There are three phases of hydrothermal
magmatic development (La Negra, Gravilla and Rica breccias)
emplaced within the host volcanic agglomerate (andesitic
composition) Tarahumara Formation. The breccia has been controlled
on a regional east-west structure. Epithermal Ag-Zn-Pb
mineralisation has over printed the different phases of brecciation
associated with illite and silicification; the mineralogy has
currently been described as Ag sulphides (acanthite -
tetrahedrite), galena and sphalerite; pyrite occurs as veinlets,
matrix fill in breccia and dissemination.
QA/QC
Samples were assayed by Inspectorate of Hermosillo, Mexico, using four acid digestion
35 element ICP analytical methods with fire assay for Au and Ag
with atomic absorption finish and gravimetric finish, respectively.
Pan American has followed a Quality Assurance/Quality Control
program comprised of the insertion of blank material and certified
standard samples at a frequency of one each for every 20 samples.
There are no known drilling, sampling, recovery, or other factors
that could materially affect the accuracy or reliability of the
data referred to in the table.
Qualified Persons
The Kootenay 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 on behalf of 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. The
Company's top priorities are the advancement of the La Cigarra
silver project and the Promontorio Mineral Belt, in Chihuahua, Mexico and Sonora, Mexico, respectively. The La
Cigarra property is 26 kilometers from the historic mining city of
Parral and boasts nearby power, good road access, gentle
topography, and established infrastructure. La Cigarra
currently hosts a resource estimate of 18.54 million tonnes
containing 51.47 million ounces of silver in the Measured and
Indicated categories grading 86.3 g/t silver and 4.45 million
tonnes containing 11.46 million ounces of silver in the Inferred
category grading 80 g/t silver. The mineralized system at La
Cigarra has been traced over 6.5 kilometers and is defined at
surface as a silver soil anomaly and by numerous historic mine
workings. The La Cigarra silver deposit is open along strike and at
depth and is approximately 25 kilometers north, and along strike,
of Grupo Mexico's Santa Barbara
mine and Minera Frisco's
San Francisco del Oro mine. The Promontorio Mineral Belt
includes the Company's La Negra high-grade silver discovery and its
Promontorio Silver Resource. The Promontorio Mineral Belt is under
option to Pan American Silver whereby they can earn a 75% interest
in the project with US$16 million of
expenditures and payments with Kootenay retaining a 25% carried to
production interest (see news release dated February 16 and March 4,
2016). The Promontorio Silver Resource currently hosts
a resource estimate of 44.5 million tonnes containing 92 million
ounces of silver equivalent in the Measured and Indicated
categories grading 64.3 g/t silver equivalent and 14.6 million
tonnes containing 24.3 million ounces of silver equivalent in the
Inferred category grading 52 g/t silver equivalent. The Company's
core objective is to create value by acquiring silver resources
through discovery and acquisition and testing those resources with
the ultimate goal of developing them into silver production if they
are proven to be economically viable.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS:
The information in this news release has been prepared as at
October 24, 2016. 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.
James McDonald, CEO and President
at 403-880-6016; Ken Berry, Chairman
at 604-601-5652; 1-888-601-5650; or visit:
http://www.kootenaysilver.com