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Kootenay Silver Inc.

Publié le 31 mars 2008

OPTIONS SIX MEXICAN MINERAL CONCESSIONS TO KLONDIKE SILVER

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Mots clés associés :   Canada | Copper | G Mexico | Kootenay Gold | Zinc |

Re:        News Releases - Monday, March 31, 2008
Title:     KOOTENAY OPTIONS SIX MEXICAN MINERAL CONCESSIONS TO KLONDIKE SILVER

Kootenay Gold Inc. ("Kootenay") (TSX Venture: KTN) is pleased to announce the completion of six option agreements with Klondike Silver Corp. ("Klondike") (TSXV: KS) on six of Kootenay's 100% owned mineral concessions in the Sierra Madre Region of Northwest Mexico. Kootenay acquired the six properties through mineral concession staking and a payment of 150,000 shares as a finder's fee.

Under the terms of each option agreement, Klondike can earn a 50% undivided interest in the mineral concession by incurring or funding a minimum of US$1,000,000 in exploration expenditures in stages over three years and issuing 500,000 shares to Kootenay in stages over two years. In order for Klondike to earn an undivided interest in all six mineral concessions, Klondike must incur or fund minimum exploration expenditures totaling in the aggregate $6,000,000 (US$1,000,000 on each mineral concession) and issue to Kootenay an aggregate of 3,000,000 shares (500,000 shares per mineral concession). The options are subject to Klondike obtaining regulatory approval.

The six concessions selected by Klondike include two epithermal precious metal settings (Suzanne and Ofelia), three porphyry settings (Los Alamos, Cerro Colorado and Espiritu) and one skarn (Los Chinos). All the prospects have received little or no modern exploration and evidence of old exploration is noted on four of these, by small adits and pits; none have evidence of past drilling. From north to south, these concessions include:

1. Ofelia Epithermal Gold/Silver Prospect
The Ofelia concession is located some 40-50 km northeast of the village of Huasaba some 250 km east of the city of Hermosillo. Its most eastern part is transected by the main paved Sierra Madre highway. The property is comprised of two concessions totaling about 9,667 hectares.

The area is underlain by northerly trending, steeply dipping rhyolite, dacites and andesites locally with intense argillic alteration. In the area east of the highway, within a massive to flow banded rhyolite, grabs from veins and stockworks (10 to 200 cm width) of quartz, gave values of gold to 5,760 ppb (ppb=parts per billion and 1000 ppb = 1 gram per tonne) and silver to 469 ppm (ppm = parts per million and 1 ppm = 1 gram per tonne) within an approximately 500 x 500 metre area. In total 19 grab samples have been taken with 6 of 19 containing > 100 ppb Au and 7 of 19 containing > 10 ppm silver.

A block of "acid-leach" silica containing 1,180 ppb gold and 180 ppm silver was found as proximal float near the road in the south part of the property

2. Suzanne Epithermal gold/silver/lead/zinc Prospect
The Suzanne concession is located at the southern end of a major Late Tertiary graben within the Huasaba valley, about 200 km east of Hermosillo. This prospect consists of about 12,960 hectares in one concession.

Very strong argillic alteration marking a number of northerly trending shear zones lead to the discovery of an epithermal, low sulphidation gold/silver/lead/zinc vein system. This vein system hosts quartz vein and breccia up to 5 metres width and traceable for up to 1000 metres along strike. Grab samples from along this vein gave results of gold (to 600 ppb), silver (to 580 ppm) and highly anomalous lead (to 5%) and zinc (to 10%). Gold and silver values from grab samples ranged from background to the highs noted above.

3. Los Chinos zinc/gold/copper skarn prospect
The Los Chinos area is some 250 km from Hermosillo and 30 km north of the village of Sahuaripa on the east side of the Yaqui River. The Los Chinos project is 10,000 hectares in areal extent.

The skarn area traceable for some 2,000 metres has formed along the lower contact of a thick limestone unit with a granodiorite. The skarn is represented by lenses, pods and masses of magnetite, siderite, ankerite with local zones marked by garnet (grossular) with the presence of epidote and actinolite noted. Locally, sections of 4 to 10 meter thick lenses of magnetite are exposed. Limited sampling has indicated the presence of anomalous zinc mineralization (to 2,000+ ppm) and anomalous gold (116 ppb) and arsenic. The remainder of values are in background levels.

4. Espiritu Porphyry-polymetallic gold/silver/copper/lead/zinc/molybdenum/ tungsten Prospect
The Espiritu alteration zone is located some 20 km east of the pueblo of Sahuaripa at the head of arroyo Espiritu. The project covers approximately 10,000 hectares

The pervasive alteration covering some 1-2 km x 5 km area define the Espiritu area. The alteration includes variations of propylite, iron carbonate, argillic (kaolinitic), phyllic (sericite), tourmaline and biotite. The presence of "leach-cap" weathering features have been noted from a number of locations. Secondary copper mineralization has been noted. The northeastern portion of the alteration zone is marked by a distinctive "kill" zone.

Grab samples from across the area showed gold to 4,000 ppb (9 of 30 samples> 100 ppb), silver to 1,200 ppm (10 of 30 samples>30 ppm) and strongly anomalous copper (to 3,700 ppm), lead (to 2.5%), zinc (to 1%), molybdenum (to 800 ppm) and tungsten (to 1,000 ppm). The Espiritu prospect appears to host a complex system of mineralization that includes precious metal veins, lead/zinc/silver stockworks and porphyry potential.

Espiritu bears similarities to Kootenay Gold's Promontorios Ag project.

5. Cerro Colorado Porphyry copper/gold/silver/molybdenum/tungsten Prospect
The Cerro Colorado prospect is located about 25 km northwest of the city of Obregón.

Mineralization comprises east-trending, subvertical veins and veinlets (2 cm to 50 cm) of quartz with boxworks of goethite and jarosite hosted in granitic intrusions. Selvages of sericitic alteration encase the veins. The veins and veinlets are anomalous in gold (to 495 ppb), silver (to 100 ppm), molybdenum (to 450 ppb) and tungsten (to 250 ppm). Much of the area is covered by overburden. Seventeen grab samples have been taken and values range from background to the highs noted above.

6. El Alamos Porphyry prospect.
The El Alamo prospect is located some 20 km southeast of the city of Obregón.

The area is one of very low relief and very poor outcroppings. Local zones of subcrop comprise altered porphyritic andesite and fine-grained intrusive, locally as breccias.
Intermittent sub-croppings over an area of some 1 x 3 km show mineralization comprised of small veinlets of quartz, goethite and jarosite, and locally "live-hematite", suggestive of the former presence of secondary enrichment. Magnetite has been noted as proximal float within the sub-crops and locally quartz fragments with minor copper staining.

Final title has been received for the concessions covering the Ofelia, Suzanne, Los Chinos Skarn and Espiritu prospects while the solicitudes for Cerro Colorado and El Alamos are still awaiting final titling.

All samples were individually bagged, numbered, tied and then delivered to the preparation laboratory of IPL (International Plasma Labs of Richmond, B.C. Canada) Laboratories in Hermosillo, Sonora Mexico where a pulp of each sample was prepared and sent to Richmond, B.C. for analysis. Each sample was then analyzed using a multi acid digestion ICP (Inductively Coupled Plasma) measuring 30 elements with gold and silver being measured with a fire assay and an AAS finish.

The foregoing geological disclosure has 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 the Company.

Kootenay has also issued a total of 970,000 incentive stock options exercisable for a period of five years at $1.95 per share to various consultants and employees of the company.

ABOUT KOOTENAY
Kootenay is an emerging exploration Company actively developing mineral projects in British Columbia, Canada and the Sierra Madre Region of Mexico. The Company's top priority remains the ongoing development of its Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico.

-30-

For additional information, please contact:

James McDonald, CEO at 403-238-6986
or
Ken Berry, President at 604-601-5652; 1-888-601-5650

View a live interview with Jim McDonald on Kootenay's vision and strategy 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.

Copyright © 2008 KOOTENAY GOLD INC. (KTN) All rights reserved. For more information visit our website at http://www.kootenaygold.ca/ or send email to info@kootenaygold.ca ..
Message sent on Mon Mar 31, 2008 at 6:44:09 AM Pacific Time
Données et statistiques pour les pays mentionnés : Canada | Tous
Cours de l'or et de l'argent pour les pays mentionnés : Canada | Tous

Kootenay Silver Inc.

EXPLORATEUR
CODE : KTN.V
ISIN : CA5005831097
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Kootenay Silver est une société développant des projet miniers d'or et d'argent basée au Canada.

Kootenay Silver détient divers projets d'exploration au Canada et au Mexique.

Ses principaux projets en exploration sont CONNOR CREEK, ROSETTA STONE, JUMPING JOSEPHINE, SILVER FOX CANADA et BC PROPERTIES au Canada et ESPIRITU, SANTA LUCIA NORTE, PROMONTORIO et SONORA PROPERTIES au Mexique.

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