VANCOUVER, Oct. 5, 2016 /CNW/ - Kootenay Silver Inc.
(TSXV:KTN) ("Kootenay" or the "Company") and Theia Resources
Ltd. (TSXV: THH) ("Theia") are pleased to announce new surface
sampling which indicates potential for the discovery of high grade
gold and silver on the Two Times Fred project located in
British Columbia.
A limited follow up sampling of exposures of new epithermal
veins along strike of the Saki and Gold Hill veins has returned
some very encouraging numbers from grab samples. Sample results
grade up to 11.4 gpt gold with 39 gpt silver and 12.7 gpt gold with
139 gpt silver. There were 54 samples collected in total, 40
samples were collected from the veins excluding the high-grade
values the average value was 202 ppb gold and 4.2 ppm silver. The
highest grades encountered to date indicate that the 3 by 1.4
kilometre epithermal vein system has potential for the discovery of
high grade gold and silver. High grade results from 2016 grab
samples were returned from sub-cropping quartz veins within a 100
by 50 metre area of argillic and pyritic host rocks located
approximately 750 metres north of the area drill tested in
2015. These new samples may represent the edge of a higher
grade shoot within the larger vein system. To view a map follow the
link: Two Times Fred sampling and vein system.
Assay results from surface sampling across the entire vein
system have returned consistently anomalous values for gold and
silver indicating a strong mineralizing system. Vein
textures, petrographic work, and newly discovered exposures
interpreted as sinter, indicate that the system is exposed at very
high levels. Based on this interpretation deeper drilling
will be required to find high-grade zones within the system.
Further exploration this fall will include additional mapping and
sampling to further define the vein systems at surface and evaluate
underexplored portions of the property. A drill program is
currently being designed to test the system along its 3 kilometre
strike.
The Two Times Fred property covers showings discovered by
Kootenay in 2011. Trenching and drilling by Theia and
Kootenay in 2014 and 2015 respectively (see January 25, 2016 news release) confirmed that
surface gold and silver bearing outcrops of low-sulphidation
epithermal quartz were related to a series of steeply dipping vein
systems which occur along a 3 kilometre long north-northeast
trending inferred graben or half-graben structure that is
approximately 1.4 kilometre wide. Individual veins within the
system can be traced for 300 to 500 meters in outcrop and vary in
true width from 1 meter to over 30 meters. Drilling conducted
in 2015, focused on the Saki and Gold Hill Veins which were shown
to vary from about 7 to 30 metres true width. Highlights from
the drill program included 3.2 gpt gold and 46.48 gpt silver over
1.9 meters and 1.69 gpt gold and 29 gpt silver over 7.6 meters. The
longest intercept was 0.37 gpt gold and 7.2 gpt silver over 67
meters.
Corporate Matters
Kootenay also announces that
in connection with its acquisition (the "Acquisition") of Northair
Silver Corp. ("Northair"), which completed on April 21, 2016, as a condition to the completion
of the Acquisition, certain employees and consultants of Northair
entered into agreements with Kootenay and agreed to waive the
severance payments due to them on completion of the Acquisition in
consideration for new arrangements with Kootenay, which included
reduced cash severance payments and the issuance to them of common
shares of Kootenay. Accordingly, pursuant to the terms of the
aforementioned agreements, Kootenay has agreed to issue an
aggregate of 337,228 common shares at a deemed price of
$0.40 per common share to such former
Northair employees and consultants. An aggregate of 88,543 of these
shares are being issued to a former officer of Northair, who upon
completion of the Acquisition was appointed as a director of
Kootenay and is accordingly an insider of Kootenay.
Additionally, Kootenay has agreed to issue 100,000 common shares
at a deemed price of $0.40 per share
in settlement of amounts owing to an arm's length third party under
the terms of a grubstake agreement related to the Jumping Josephine
property, which was subsequently sold to Orex Minerals Inc.
All share issuances outlined above are subject to approval by
the TSX Venture Exchange, and on issuance such shares are subject
to a four month hold period commencing from the date of
issuance. This news release does not constitute an
offer to sell or a solicitation of an offer to buy the securities
described herein in the United
States. The securities described herein have not been and
will not be registered under the United States Securities Act of
1933, as amended, or any State Securities Laws and may not be
offered or sold in the United
States or to the account or benefit of a U.S. person absent
an exemption from the registration requirements of such Act.
Qualified Persons
The 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 Kootenay and Theia 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 kilometres 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 &
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 kilometres 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 kilometres 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 releases 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 & 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.
About Theia Resources Ltd.
Theia Resources Ltd.
is an exploration company focused on precious metals deposits
located in politically stable jurisdictions. The company intends to
leverage management's network and experience within the exploration
and finance sector to maximize shareholder value.
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.
Forward Looking Information
The information in this news release has been prepared as at
October 4, 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.
SOURCE Kootenay Silver Inc.