Kootenay Drills 237 gpt Silver eqv
over 51m, Including 526.2 gpt Silver eqv over 18 m; Step Out Holes Return
Multiple High Grade Silver Intercepts Across a 1 Kilometer Corridor
Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from an additional 10 drill
holes as part of a 10,000 meter, ongoing, multi-phase drilling program on
its Promontorio Silver Project in Sonora,
Mexico.
Drilling Highlights Extend the Mineralized Zone to Over 1 Km in
Length:
Drill Hole
|
From (m)
|
To (m)
|
Interval (m)
|
Silver (g/t)
|
Lead (%)
|
Zinc (%)
|
Silver (eqv*)
|
PC-020-11
|
3.0
|
10.5
|
7.5
|
145.4
|
0.211
|
0.305
|
167.4
|
PC-020-11
|
39.0
|
48.0
|
9.0
|
264.7
|
0.398
|
0.594
|
307.1
|
PC-023-11
|
28.5
|
31.5
|
3.0
|
205.5
|
0.759
|
0.817
|
273.1
|
PC-024-11
|
183.0
|
189.0
|
6.0
|
63.8
|
0.232
|
0.409
|
91.0
|
including
|
174.0
|
177.0
|
3.0
|
157.0
|
0.509
|
0.585
|
203.9
|
including
|
193.5
|
195.0
|
1.5
|
190.0
|
0.625
|
0.406
|
234.6
|
PC-028-11
|
132.0
|
183.0
|
51.0
|
91.3
|
0.928
|
2.514
|
237.0
|
including
|
133.5
|
151.5
|
18.0
|
188.0
|
2.256
|
5.726
|
526.2
|
*Prices used to calculate silver eqv.:
Ag $15/oz; Zn $.91/lb; Pb $.97 lb
Drill holes encountered consistent, widespread silver mineralization and
multiple high-grade silver intercepts in Promontorio's
newly extended Northeast and Southwest Zones, which sit outside of the
current 43-101 Pit Resource. (To view map please visit:
http://www.kootenaygold.ca/i/projects/Promontorio/drillingupdate20110304.pdf
States Kootenay CEO James McDonald "We are very pleased and
enthused with current results from the 10,000 meter drilling program and
believe our objective of building Promontorio
into a significant mining entity is coming into focus".
"We are consistently hitting high and medium grade silver
mineralization to the North East of our Pit Resource expanding the North
East Zone to over 300 meters, which is double the strike length of our
current 43-101 silver resource. Moreover, widely spaced step out holes
have encountered multiple, high grade silver intercepts confirming the
exciting upside potential of the entire 1.0 kilometer long mineralized
corridor at Promontorio". Adds McDonald
New Discovery Zone
Step out drilling on broad 100 meter spaced holes returned significant
intercepts of silver mineralization along Promontorio's entire 1.0
kilometer trend. A new high priority zone of high-grade silver
mineralization was discovered in the Pit NE zone between the Pit Resource
and the Northeast Zone, remaining open on strike and to depth.
Kootenay reports RC drilling is closing in on the final holes of the
current 10,000 meter program. In keeping with the Company's aggressive
strategy to begin further expanding its growing silver resource, Kootenay
recently added a diamond drill rig on Promontorio to test the deposit at
depth where previous drilling bottomed out in silver mineralization and
to further establish the general geometry of the mineralization.
Based on highly encouraging results achieved from the program thus far,
Kootenay further announces the Company is planning a greatly expanded
program of aggressive, closely spaced, in-fill drilling to tie in
multiple zones of widespread silver mineralization present Northeast and
Southwest of the 43-101 Pit Discovery Zone in preparation for a new Independent
Resource Calculation. Details of the new expansive program on Promontorio
will be forthcoming in a future release.
Table of the full results follows:
The
North East Zone consistently returned medium and high-grade intercepts in
broadly spaced holes and extend the strike length to over 300 meters.
Silver values are consistently in the range of 70 to 200 gpt Ag within
the North East Zone. Highlights include:
- PC
28:
- 18 meters of 188 gpt Ag, 0.89 gpt Au,
7.98% Pb-Zn within:
- 51 meters 98 gpt Ag,1.28
pgt Au, 3.44% Pb-Zn bottoming in mineralization.
- PC
25
- 3 meters of 157 gpt Ag, 0.99 gpt Au, 1.09%
Pb-Zn with
- 25.5 meters of 38 gpt Ag, o.46 gpt Au,
0.31% Pb-Zn
- PC
24
- 6 meters of 63 gpt Ag, 0.43ngpt Au, 0.641%
Pb-Zn
Highlights of previously
announced holes in the same zone:
- KP
81
- 16.5 meters of 144 gpt Au, 0.88 gpt Au,
1.97% Pb-Zn including:
- 4.5 meters of 364 gpt Ag, 1.26 gpt Au,
2.91% Pb-Zn
- KP
80
- 29 meters of 78 gpt Ag, 1.17 gpt Au, 1.43%
Pb-Zn
- KP
83
- 9 meters of 100 gpt Ag, 1.21 gpt Au, 0.72%
Pb-Zn
- KP
40
- 33.5 meters of 70.9 gpt Ag, 0.83 gpt Au,
0.766% Pb-Zn
Holes PC 28and 26 bottomed
in mineralization
and will be continued with core drilling. Holes PC 24, 25 and 27 did not
reach target depth and will also be continued with core drilling.
A
new zone of high-grade mineralization has been discovered in the Pit NE
zone between the Pit Resource and the Northeast Zone (NE Zone). Here holes PC
18, 20 and 23 encountered shallow
mineralization grading:
- PC 18
(previously released)
- 10.5 meters of 149 gpt Ag, 1.1 gpt Au,
1.48% Pb-Zn from 115 meters
- PC
20
- 7.5 meters of 145 gpt Ag, 0.39 gpt Au,
0.59% Pb-Zn from 3 meters
- 9 meters of 265 gpt Ag, 0.13 gpt Au, 0.99%
Pb-Zn from 39 meters
- PC
23
- 3 meters of 206 gpt Ag, 0.28 gpt Au, 1.58%
Pb-Zn from 28 meters
Note:
Metallurgical testing previously released indicates recoveries of 82% for
Ag, 85% for Pb and 91% for Zn. It was found
that gold reported to the pyrite concentrate and requires a secondary
oxidation process to extract and so was not included in the resource
estimate. Metallurgical testing outside the resource has not been
conducted so it is not known if gold outside the resource area could be
economically recoverable. Additional metallurgical testing will be required.
Remaining holes:
- PC
21
- Anomalous silver mineralization
- PC
22
- 22.5 meters of 14.3 gpt Ag, 0.40 gpt Au,
0.50 % Pb-Zn
- PC
26
- 15 meters 17 gpt Ag,
0.32 gpt Au, 0.79% Pb-Zn
- PC
27
- Anomalous silver mineralization
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
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.
QA/QC
All holes were drilled using reverse circulation. Samples were split
using riffle or rotary 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 Gold 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.
-30-
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
or visit: 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. 2011 number 8
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