Step-Out Drilling on Promontorio Hits 104 gpt Silver Eqv (81 gpt Ag and 0.97% Pb+Zn) over 10 meters
Including 3 meters grading 246 gpt Silver Eqv (176 gpt Ag and 3.04% Pb+Zn) and 9 meters Grading 47 gpt Silver Eqv (33 gpt Ag and 0.60% Pb+Zn) in New Discovery Zone
VANCOUVER, March 13, 2013 - Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce results from an additional 11 holes from its ongoing 30,000 meter, multi-phase drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico. The holes are step out and exploratory holes testing 3 different target areas. Included is the extension of the Pit resource to the southwest and west, the Farm EM zone to the north and the Farm EM zone to the south.
Highlights Include:
Farm EM Zone
- Discovery of a new oxide zone of mineralization 350 to 400 meters to the southwest of the Pit Resource. Drilling intercepted 3 separate intervals in the new zone, including DH 135, which returned 104 gpt Silver Eqv (81 gpt Ag and 0.97% Pb+Zn) over 10 meters, including 3 meters grading 246 gpt Silver Eqv (176 gpt Ag and 3.04% Pb+Zn)
- DH 140 returned 9 meters of 47 gpt Silver Eqv (33 gpt Ag and 0.60% Pb+Zn)
North of Pit Resource
- DH 129 intercepted 2 intervals including 60 meters returning 58 gpt Silver Eqv (31 gpt Ag and 1.18% Pb+Zn) including 22 meters of 96 gpt Silver Eqv (50 gpt Ag and 1.96% Pb+Zn) and 4 meters of 57 gpt Silver Eqv (33 gpt Ag an 1.03% Pb+Zn)
- DH 137 returned 3 different intercepts approximately 50 to 75 meters up dip of DH 129 including 21 meters of 39 gpt Silver Eqv (22 gpt Ag and 0.72% Pb+Zn, 15 meters of 52 gpt Silver Eqv (31 gpt Ag and 0.91% Pb+Zn)
States Kootenay CEO James McDonald "We are very pleased with results from step-out drilling. Assays returned a series of encouraging intercepts from a newly discovered mineralized zone in the Farm EM target area, which sits over 350 meters to the southwest of the Pit resource and remains open in several directions. Additionally, mineralization in the Pit resource continues to open up to the north and west. Ongoing drilling and technical analysis will continue to focus on delineating the extent of mineralization in the Pit area and on determining the geometry of the new zone and its relation to the Pit Resource mineralization."
Table of the full results follows:
| *Assuming 100% Metallurgical Recovery |
| *Prices used in Silver Equivalent (AgEq) Calculations: |
| Ag dollars/oz |
|
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$28.90 |
| Pb dollars/lb |
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$1.00 |
| Zn dollars/lb |
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$0.95 |
To view map of drill results visit: http://www.kootenaysilver.com/s/DrillResults.asp
In addition to the Ag, Pb, Zn results returned from drilling, the following gold grades detailed in the chart below were also encountered. Recent metallurgical and oxidation testing has shown that there is potential to recover gold in the Promontorio system through an oxidation process. As a result, the gold is now being reported in a separate table. While additional technical work is required to further assess the logistics and economic viability of this process and how it pertains to the Promontorio resource, the Company feels at this time that it is prudent to begin recognizing the gold component of the resource as a potential future benefit. Additional technical and metallurgical testing on the gold is underway and will be reported once received.
Table 2 Showing Results with Gold Assays Included:
At present, three core drills are operating on Promontorio. One rig is currently operating in the Dorotea Zone, a second rig is drilling the Pit Resource northern extension area and a third rig is drilling the new discovery area in the Farm EM zone.
The current 30,000 meter, multi-phase drill and resource expansion program is the largest single drill campaign conducted on Promontorio to date.
Current NI 43-101 Compliant Silver Resource
The most recent updated NI 43-101 mineral estimate on Promontorio (See KOOTENAY News Release - August 21, 2012) contains a combined Measured and Indicated silver resource of 61,679,000 silver equivalent ounces (37.5M oz's Silver, 372M lb's Lead, 436.9M lb's Zinc). In addition to the measured and indicated silver resources, there are an additional 14,469,000 silver equivalent ounces in the Inferred category (9.6M oz's Silver, 77.6M lb's Lead, 85.3M lb's Zinc). (Measured and Indicated resources are contained in open pit resources of 36,018,000 tonnes grading an average of 51.35 gpt silver equivalent (31.18 gpt Ag and 0.98% Pb+Zn) and underground resources of 2,216,000 tonnes grading an average of 48.75 gpt silver equivalent (30.15 gpt Ag and 0.98% Pb+Zn). Inferred resources are within open pit resources of 9,136,000 tonnes grading an average of 42.86 gpt silver equivalent (28.32 gpt Ag and 0.17% Pb+Zn) and underground resources of 3,077,000 tonnes grading an average of 53.90 gpt silver equivalent (35.94 gpt Ag and 0.88% Pb+Zn))..
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 Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay's objective is to develop near term discoveries and long-term sustainable growth. Its 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..
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. |
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| Kootenay Silver Inc.
Suite 920 - 1055 W. Hastings St.
Vancouver, British Columbia
Canada V6E 2E9
1-888-601-5650
Visit Kootenay Silver
as of 11:00am EST March 13, 2013
Recent Press Releases
From Kootenay Silver:
Kootenay Silver Inc. is pleased to announce results from preliminary metallurgical testing conducted by ALS Minerals of Kamloops, British Columbia on the gold component contained within the diatreme hosted Promontorio Silver resource. Results from the ALS gold extraction tests show that recovery of gold from the Promontorio resource is possible using post pressure oxidation. After pressure oxidation 94.5% of the gold was extracted from pyrite concentrate.
The economics and capital costs of recovering the gold using pressure oxidation/cyanidation will require further evaluation. The Company reports an additional test is now underway to assess the gold recovery with partial oxidation of the pyrite concentrate of approximately 50%. [...]
Kootenay Silver Inc. is pleased to announce Mr. Kristian Whitehead, B.Sc., P.Geo. has been appointed to the position of Project Manager of the Promontorio Silver Project in Sonora, Mexico. Mr.. Whitehead brings Kootenay over 10 years experience as a project geologist, specializing in the implementation and management of drilling and advance staged programs. In his capacity as Project Manager, he will report directly to Kootenay VP of Exploration Dr. Tom Richards, B.Sc., PhD. and will be responsible for directing and overseeing the Company's current 30,000 meter, multi-phase drill and resource expansion program currently in progress on the Promontorio Silver Project.
Mr. Whitehead boasts a wealth of technical, management and geological experience in all aspects of underground and surface exploration program management, crew duty delegation, mine budgeting and design. States Kootenay President and CEO James McDonald, "We are very pleased to welcome Kristian Whitehead to the Kootenay team and look forward to his valued contributions going forward. His geological and technical experience will undoubtedly play a vital role in the continued success of our ongoing resource expansion program at the Promontorio Silver Project." [...]
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