VANCOUVER, Jan. 22, 2017 /CNW/ - Kootenay Silver
Inc. (TSXV: KTN) (the "Company" or "Kootenay") is pleased
to report results from preliminary metallurgical testing on its La
Cigarra Silver Project in Chihuahua State, Mexico, applying the proprietary Silvox
Technologies Inc. ("SILVOX") process which indicates a marked
improvement in cyanide leaching for silver recoveries versus
industry standard leaching processes previously applied to the
deposit.
James McDonald, P.Geo, President
and CEO stated, "Although additional metallurgical testing using
standard and SILVOX processes will be required to further assess
silver recoveries, results from preliminary testing utilizing the
SILVOX process are highly encouraging. The ability to achieve
enhanced silver recoveries could have a profound impact on the
economic viability of La Cigarra and its potential near-term
development as a low-cost, open-pit heap leach operation. Further
detailed metallurgical testing using standard and SILVOX processes
is expected to be completed in the near future".
Initial bottle roll ("BR") testing using industry standards
("standard") and SILVOX processes were recently completed using a
typical 48 hour period at minus ¼ inch crush size from a bulk
sample collected from La Cigarra. Standard cyanide leaching
returned an estimated 38% silver recovery compared to a range of
44% to 52% from the SILVOX process, a 6% to 14% increase in silver
recovery.
Additionally, two column tests using the SILVOX process were
completed indicating potential for higher silver recovery than the
BR test results. These tests were completed over a 120 day period
at minus ¼ inch crush size with results suggesting at silver
recovery of 52% to 58%. Column tests were not conducted to
sufficient QA/QC but may suggest potentially higher recoveries than
BR testing.
The results of 5 bottle rolls on a bulk sample composite are
shown in the chart below. Four are labeled SILVOX 1 through 4
employing the SILVOX process while the one labeled Standard used
industry standard cyanide leach methods. Reagent cost per tonne
shows potential economic viability of the SILVOX process with both
lower and higher costs compared to standard cyanide
leaching.
Test Type
|
Standard
|
SILVOX 1
|
SILVOX 2
|
SILVOX 3
|
SILVOX 4
|
Head Grade g/t
Silver
|
90.0
|
81.0
|
87.0
|
77.0
|
72.0
|
Silver
Recovery
|
38%
|
44%
|
45%
|
51%
|
52%
|
Incremental Recovery
Improvement
|
Base
|
6%
|
7%
|
13%
|
14%
|
Total Reagent Cost
per Tonne
|
$2.88
|
$1.78
|
$2.33
|
$3.86
|
$5.82
|
Note: La Cigarra bulk
sample crushed to minus ¼ inch with 48 hour standard BR testing.
Reagent cost assumes; $2.50/kg for CN, $0.12/kg for lime and $0.1
to $4.0/kg for SILVOX
|
Metallurgical laboratory testing was conducted on composited
samples from 10 representative core holes and 4 surface samples
taken from outcrop, trenches and open cuts in the Las Carolinas and San Gregorio zones of the La Cigarra deposit.
All BR testing was conducted by ALS Metallurgy in Kamloops, B.C. Column testing was completed by
Laboratorio Metalurgico S.A. de C.V., a division of Sonora Naturals
S.A. de C.V. in Hermosillo,
Mexico.
A comprehensive metallurgical study will be undertaken using
standard and SILVOX processes to assess variability across the La
Cigarra deposit. Initially, additional BR tests will include two
crush sizes of minus ¼ inch and minus 3/8 inch for both oxide and
sulfide material. Further column testing to qualified
standards will also be conducted.
Upon confirmation of the detailed test work and ongoing resource
re-modelling, a Preliminary Economic Assessment ("PEA") will be
considered for La Cigarra. The PEA would focus on the development
of La Cigarra as an open pit heap leach operation transitioning
into a milling operation with higher grade sulfides. Heap leach
operations typically have much lower capital requirements and lower
operational costs over milling.
Silvox Technologies Inc. is a Canadian private company providing
a proprietary process ("SILVOX PROCESS") to the mining industry
that enhances silver recoveries by simply augmenting standard heap
leach and conventional milling recovery methods. SILVOX PROCESS
requires minimal capital investment and can be easily integrated
into operations. The proprietary process has been confirmed with
certified lab testing and associated fieldwork on several deposits
over the past two years. Test results show increased silver
recoveries of up to 30% implying potential attractive profit
margins with respect to increased recovery versus processing costs.
Successful introduction of SILVOX PROCESS could result in making an
economic project more robust or be the difference between a
sub-economic project and one that is economically viable. For more
information contact: info@silvoxtech.com
Sampling and QA/QC
All technical information for the La Cigarra exploration program
is obtained and reported under a formal quality assurance and
quality control ("QA/QC") program. Samples are taken under the
direction of qualified persons and stored in sealed bags. Samples
were delivered to ALS Minerals ("ALS") in Kamloops, B.C. and Sonora Naturals S.A. de
C.V. in Hermosillo, Sonora.
Analysis for silver, zinc, lead and copper and related trace
elements was done by ICP four acid digestion, with gold analysis by
30 gram fire assay with an AA finish.
Qualified Persons
The Kootenay technical information in this news release has been
prepared in accordance with the Canadian regulatory requirements
set out in National Instrument 43-101 (Standards of Disclosure for
Mineral Projects) and reviewed on behalf Kootenay by James McDonald, P.Geo, President, CEO &
Director for Kootenay, a Qualified Person.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged
in the discovery and development of mineral projects in the Sierra
Madre Region of Mexico and in
British Columbia, Canada. The
Company's top priorities are the advancement of the La Cigarra
silver project and the Promontorio Mineral Belt, in Chihuahua, Mexico and Sonora, Mexico, respectively. The La
Cigarra property is 26 kilometers from the historic mining city of
Parral and boasts nearby power, good road access, gentle
topography, and established infrastructure. La Cigarra
currently hosts a resource estimate of 18.54 million tonnes
containing 51.47 million ounces of silver in the Measured &
Indicated categories grading 86.3 gpt silver and 4.45 million
tonnes containing 11.46 million ounces of silver in the Inferred
category grading 80 gpt silver. The mineralized system at La
Cigarra has been traced over 6.5 kilometers and is defined at
surface as a silver soil anomaly and by numerous historic mine
workings. The La Cigarra silver deposit is open along strike and at
depth and is approximately 25 kilometers north, and along strike,
of Grupo Mexico's Santa Barbara
mine and Minera Frisco's
San Francisco del Oro mine. The Promontorio Mineral Belt
includes the Company's La Negra high-grade silver discovery and its
Promontorio Silver Resource. The Promontorio Mineral Belt is under
option to Pan American Silver whereby they can earn a 75% interest
in the project with US$16 million of
expenditures and payments with Kootenay retaining a 25% carried to
production interest (see news release February 16 and March 4,
2016). The Promontorio Silver Resource currently hosts
a resource estimate of 44.5 million tonnes containing 92 million
ounces of silver equivalent in the Measured & Indicated
categories grading 64.3 gpt silver equivalent and 14.6 million
tonnes containing 24.3 million ounces of silver equivalent in the
Inferred category grading 52 gpt silver equivalent. The Company's
core objective is to create value by acquiring silver resources
through discovery and acquisition and testing those resources with
the ultimate goal of developing them into silver production if they
are proven to be economically viable.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS:
The information in this news release has been prepared as at
January 20, 2017. Certain statements
in this news release, referred to herein as "forward-looking
statements", constitute "forward-looking statements" under the
provisions of Canadian provincial securities laws. These statements
can be identified by the use of words such as "expected", "may",
"will" or similar terms.
Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable
by Kootenay as of the date of such statements, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Many factors, known and
unknown, could cause actual results to be materially different from
those expressed or implied by such forward-looking
statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date made. Except as otherwise required by law, Kootenay
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statements to reflect
any change in Kootenay's expectations or any change in events,
conditions or circumstances on which any such statement is
based.
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.
SOURCE Kootenay Silver Inc.