VANCOUVER, May 15, 2017 /CNW/ - Kootenay Silver Inc.
(TSXV: KTN) (the "Company" or "Kootenay") is pleased to
announce that a core drill program (the "Program") is underway at
its 100% owned La Cigarra silver project, located in the Parral
Mining District of Chihuahua State, Mexico.
The Program will total approximately 7,500 meters and will focus
on the expansion of the La Cigarra NI 43-101 mineral resource by
first targeting an 800-meter region between the Las Venadas and
Las Carolinas zones. This includes
the southern boundary of Las
Carolinas, where previous drilling conducted by Northair
Silver Corp. in 2014 encountered widespread mineralization and a
series of high-grade silver intercepts. (See Northair News Release
dated Dec 15, 2014). The focal region
is characterized by significant soil and rock geochemical anomalies
as well as historic mine workings that can be traced northward from
Las Venadas on trend towards the southern boundary of the La
Cigarra silver deposit (Click to view: Las Venadas drilling area
map).
States Kootenay President and CEO James
McDonald "We are very pleased to initiate our next drill and
resource expansion program at La Cigarra. We believe that results
from past drilling in this priority region of the property,
combined with supporting data from recent exploration, clearly
underscores La Cigarra's immense potential for further resource
expansion in 2017 and we look forward to exploiting that
opportunity."
Drilling will operate concurrently with ongoing geological
mapping and sampling programs to prioritize peripheral target
areas, for drill testing later in the year. Results from the
Program will be ongoing and announced as assays are received and
interpreted by the Company.
La Cigarra NI 43-101 Resource:
- Measured and Indicated mineral resources of 51,470,000
ounces of silver within 18,540,000 tonnes at an average grade of
86.3 gpt silver;
- Inferred mineral resource of 11,460,000 ounces silver within
4,450,000 tonnes at an average grade of 80 gpt silver;
- Higher than average grade zones outcrop, which could improve
the assumed project economics in the early years;
- Significant by-products include 41,000 ounces of gold in the
measured and indicated categories as well as appreciable lead and
zinc values, as provided in mineral resource estimate tables noted
below.
A summary of the mineral resource estimate contained in the
resource shell is listed below, as calculated by GeoVector
Management Inc., Effective Date January 14,
2015 and filed on SEDAR, at a 35 gpt silver cut-off grade
and metallurgical recoveries of 84% silver:
Resource
Category*
|
Tonnes
|
In-Situ
Grade
|
Contained
Metal
|
Ag
(gpt)
|
Au
(gpt)
|
Pb
(%)
|
Zn
(%)
|
Ag
(oz)
|
Au
(oz)
|
Pb
(lbs)
|
Zn
(lbs)
|
Measured
|
3,620,000
|
88.9
|
0.074
|
0.14
|
0.19
|
10,340,000
|
9,000
|
10,920,000
|
15,510,000
|
Indicated
|
14,930,000
|
85.7
|
0.068
|
0.13
|
0.18
|
41,130,000
|
33,000
|
42,950,000
|
59,260,000
|
Meas +
Ind
|
18,540,000
|
86.3
|
0.069
|
0.13
|
0.18
|
51,470,000
|
41,000
|
53,870,000
|
74,770,000
|
Inferred
|
4,450,000
|
80.0
|
0.058
|
0.13
|
0.16
|
11,460,000
|
8,000
|
12,680,000
|
15,610,000
|
Note:* Mineral resources are reported in relation to a
conceptual pit shell at a 35 gpt silver cut-off grade and a
$22/oz silver price. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. All figures are rounded to reflect the relative
accuracy of the estimate and numbers may not add up due to
rounding.
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 geologists and stored in sealed bags. Samples are
delivered by the Company via courier to ALS Minerals ("ALS") in
Chihuahua. The samples are dried, crushed and pulverized with the
pulps being sent airfreight for analysis by ALS in Vancouver B.C. Systematic assaying of
standards is performed for precision and accuracy. 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. All drilling will be with HQ core and has
been contracted to BD Drilling from Guadalajara, Mexico.
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.
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.
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. Supported by one of
the largest portfolios of silver assets in Mexico, Kootenay continues to provide its
shareholders with significant leverage to silver prices. The
Company remains focused on the expansion of its current silver
resources, new discoveries and the near-term economic development
of two of its priority silver projects located in prolific mining
districts in Sonora, State and
Chihuahua, State, Mexico,
respectively.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS:
The information in this news release has
been prepared as at May12, 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.