KOOTENAY ANNOUNCES HIGHLY ENCOURAGING
ASSAY RESULTS FROM THE FIRST TWO HOLES on MULTI-PHASE PROMONTORIO
DRILLING PROGRAM
View CEO Video Commentary at:
http://www.kootenaygold.ca/i/video/CEO/ceovideo.html
Vancouver, Canada-Kootenay Gold Inc. (TSX VENTURE: KTN.V) is
pleased to announce assay results from the first two holes as part of a
10,000 meter, multi-phase drilling program on its Promontorio Silver
Project in Sonora, Mexico.
As part of a strategic program to substantially expand the known mineral
resource at Promontorio, the first four holes have been drilled along a
single fence across the western side of the Pit Zone. This fence of holes
is testing from 200 meters outside of the resource drilling into it on
its western most edge to further delineate the mineralized contacts and
expand the known mineralized area to the south. Initial results include:
- Hole PC 001: Returned grades of 33.57 g/t
silver and 1.046% lead plus zinc over a mineralized zone measuring
93 meters, highlighted by 67.50 meters grading 40.30 g/t silver and
1.45% lead plus zinc and 3 meters grading 170 g/t silver and 4.13%
lead plus zinc.
- Hole PC 002: Returned grades of 38.9 g/t
silver and 1.22% lead plus zinc over a mineralized zone measuring
151.5 meters, highlighted by 120 meters grading 42.13 g/t silver and
1.34% lead plus zinc and 30 meters grading 63.30 g/t silver and
2.39% lead plus zinc.
States Kootenay President and CEO James McDonald, "Results from the
first 2 holes of the program have returned excellent grades and have
surpassed our expectations with respect to the overall length and
continuity of the mineralized intervals".
Adds McDonald, "Most importantly, the holes should play a vital role
expanding the known resource by tying in and establishing continuity
between previous mineralized holes drilled outside the current interpreted
modeled zones used by AGP Mining Consultants (AGP) to derive its recent
43-101 Resource Calculation on Promontorio".
View CEO Video Commentary at:
http://www.kootenaygold.ca/i/video/CEO/ceovideo.html
The mineralization in PC 001 was intersected precisely where expected,
while that in PC 002 indicates extensive mineralization is occurring
between 50 and 100 meters south of the resource block remaining open at
depth and along strike.
Highlights of
the Promontorio Pit Resource (See Aug 18, 2010 Release):*
- Contained
Silver > 10,070,000 oz
- Contained
Lead > 112,700,000 lbs
- Contained
Zinc > 125,100,000 lbs
*Metal recoveries used for the
above calculations: Ag-82%; Pb- 85%; Zn-91%
The AGP Resource Calculation was based on only 27 of 54 drill holes
conducted on the project to date. Several extensively mineralized holes
at the time of the report were absent from the resource calculation based
on the spacing of the drill holes.
Kootenay further reports the significant gold component reported to date
has yet to be included in published resource calculations. Additional
metallurgy testing will be conducted on these holes in the near future to
determine the gold's' leachabilty and recovery and extraction methods
required.
Kootenay additionally reports, a second shift has been added to further
accelerate drilling production and development on Promontorio. Full
assays from PC 003 and PC 004 are expected before month end with
subsequent holes expected in December 2010.
QA/QC
All holes were drilled using reverse circulation. Samples were split
using riffle or rotory splitters to make representative composites. All
samples are over 1.5 meter intervals. All mineralized intercepts are
drill hole length drilled across a vertically inclined breccias system at
60 degree angles. Quality Assurance and Quality Control procedures are
posted on the Kootenay Gold website.
The foregoing geological disclosure has also 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.
ABOUT KOOTENAY
Kootenay is actively developing mineral projects in the Sierra Madre
Region of Mexico and in British Columbia, Canada. The Company flagship
property is the former producing Promontorio Silver Mine in Sonora State,
Mexico (see enclosed Map).
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For additional information, please contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
www.kootenaygold.ca
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. 2010 number 25
Promontorio 10,000 metre drill program targets
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