KOOTENAY PROVIDES UPDATE ON SANTA LUCIA GOLD PROPERTY
Vancouver, Canada- Kootenay Gold Inc. (TSX VENTURE: KTN.V) ("Kootenay") and Copper Creek Gold Corp. ("Copper Creek"; TSX VENTURE: CPV.V) are pleased to provide an update on the current exploration plans for the Santa Lucia Gold Project in the State of Sonora, Mexico. Recently, representatives from Kootenay Gold, and its option partner Copper Creek met in Ciudad Obregon, Mexico. The team travelled to the Santa Lucia site, inspected old workings, and conducted reconnaissance prospecting on the Santa Lucia North project. A number of grab samples were taken and submitted to ALS Chemex Labs in North Vancouver, British Columbia, for analysis. Various exploration strategies were discussed and plans for the 2011 exploration program were finalized. The comprehensive exploration program of the Santa Lucia Gold Project will begin in late January, 2011. Detailed mapping and mechanical trenching will begin at the La Fortuna zone where high grade gold values have been uncovered on surface from highly silicified quartz veins and stockwork to the west of old artisanal mining pits. This trenching will help to establish specific drill targets in the La Fortuna area. Subsequently, plans to mobilize a drill to the property is anticipated to begin March 2010 to target the high grade La Fortuna area, as well as to test CSAMT (Controlled-Source Audio-Frequency Magneto-Telluric) and IP resistivity anomalies that were discovered by Cominco Ltd. in the 1990's. These anomalies remain untested, and underlie surface gold mineralization for approximately 4km. An independent consulting geologist has been retained by Copper Creek to produce an NI 43-101 compliant report on the Santa Lucia Gold Property as required by the TSX Venture Exchange. Copper Creek may earn an undivided 60% interest in the Santa Lucia Gold Property from Kootenay Gold by spending $2,000,000.00 on exploration and making various cash and share payments over a four year period. 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. -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 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 29
Kootenay Silver is a gold and silver development stage company based in Canada.
Kootenay Silver holds various exploration projects in Canada and in Mexico.
Its main exploration properties are CONNOR CREEK, ROSETTA STONE, JUMPING JOSEPHINE, SILVER FOX CANADA and BC PROPERTIES in Canada and ESPIRITU, SANTA LUCIA NORTE, PROMONTORIO and SONORA PROPERTIES in Mexico.