Kootenay Reports Assay Results From 15
Holes on Promontorio; Drilling Returns Consistent Silver Grades &
Widespread Silver Mineralization Extending From 43-101 Pit Discovery Zone
(Silver Resource)
Kootenay Gold
Inc. (TSX VENTURE: KTN.V) is pleased to announce assay
results from an additional 15 drill holes as part of a 10,000 meter,
ongoing, multi-phase drilling program on its Promontorio
Silver Project in Sonora, Mexico. To view map please visit: http://www.kootenaygold.ca/i/projects/Promontorio/drillingupdate20110203.pdf
The 15 Drill holes encountered consistent and multiple intercepts of
widespread silver mineralization highlighted by values up to 149 g/t
silver and 108 g/t silver over 10.5 and 16.5 meters respectively. Silver
mineralization has now been extended from the 43-101 Pit Discovery Zone
towards the North East Zone a further 200 meters, remaining open in three
directions. Drilling to the southwest has extended silver mineralization
up to 120 meters outside of existing drill intercepts, which sit outside
of the 43-101 Pit resource.
Based on highly encouraging results to date, Kootenay further announces
it has mobilized a second diamond drill rig that will run concurrent to
its RC drilling program, to test the deposit at depth.
States Kootenay CEO James McDonald "Our goal from the outset of the
current 10,000 meter drill program has been to expand silver
mineralization outside of the existing 43-101 Pit resource. We are very
pleased and excited with results from the current 15 holes. Not only have
we dramatically extended silver mineralization to the NE and SW of the
Discovery Zone, we are achieving consistent grades and continuity within
areas of widespread silver mineralization not yet calculated into the
current 43-101 resource".
Adds McDonald "Adding a second diamond drill rig will allow us to
drill test a host of existing holes at depth that bottomed out in
mineralization, which is expected to play a major factor in further
boosting the size of our growing silver resource at Promontorio".
Highlights from the current batch of results are:
Area southwest of Pit resource:
PC 12:
- 24 meters of 58.6 g/t Ag, 1.15 g/t Au,
1.85% Pb+Zn within a broader interval of
70.5 meters of 38.8 g/t Ag, 0.55 g/t Au and 1.2% Pb+Zn.
- 16.5 meters of 32.6 g/t Ag, 0.27 g/t Au and
1.19 % Pb+Zn.
- PC 12 bottomed in mineralization at the end
of the 70.5 meter intercept.
- Extends mineralization 50 meters to south
from KP 35.
PC 11
- 10.5 meters of 39.3 g/t Ag, 0.49 g/t Au,
0.84% Pb+Zn within a broader interval of
58.5 meters of 14 g/t Ag, 0.25 g/t Au, 0.40% Pb+Zn.
- Bottomed in mineralization about 120 meters
southward of KP 35.
PC 5:
- 3 meters of 112 g/t silver,
0.14 g/t Au, 0.053% Pb+Zn.
- May be offset continuation of higher grade
in PC 4 (13.5 meters 262.4 g/t Ag, 0.49 g/t Au, 1.091% PbZn) some 60 meters to the northeast.
Area between Pit
resource and North East Zone: PC 13:
- 16.5
meters of 108.8 g/t Ag, 0.13 g/t Au, 1.39%
Pb+Zn.
- 36.36
meters of 26.9 g/t Ag, 0.58 g/t Au, 0.87% Pb+Zn includes 3.0 meters of 58.5 g/t Ag, 2.7 g/t Au, 2.41% Pb+Zn.
- Hole bottomed in mineralized rock.
PC 14
- 1.5 meters of 3.06 g/t Au and 0.5 g/t Ag is
of note because it indicates a second gold event as it is gold
dominant.
PC 16
- 13.5
meters of 26.9 g/t Ag, 0.17 g/t Au, 0.56% Pb+Zn.
PC 18
- 10.5
meters of 149 g/t Ag, 1.10 g/t Au, 1.48% Pb+Zn.
- 45 meters of 23.6 Ag, 0.18 g/t Au, 0.295% Pb+Zn with a broader interval of 90 meters of
17.7 g/t Ag, 0.15 g/t Au, 0.23% Pb+Zn.
- PC 18 bottomed in mineralization within the
90 meter interval.
Other
mineralized intercepts include; Area southwest of Pit resource:
PC 6
- 4.5 meters of 59.3 g/t Ag, 0.86 g/t Au,
0.58% Pb+Zn within a broader interval of
30 meters of 17.8 g/t Ag, 0.31 g/t Au, 0.36% Pb+Zn
PC 7
- 13. 5 meters of 25.6 g/t Ag, 0.4 g/t Au,
0.44% Pb+Zn Holes PC 8, 10, 14 and 19 encountered
narrow anomalous values and PC 10 and 15 had no significant results.
A table of complete results can be found on Kootenay's website.
http://www.kootenaygold.ca/i/projects/Promontorio/drillingupdate20110203.pdf
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.
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.
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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
or visit: http://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 3
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