VANCOUVER, June 20, 2017 /CNW/ - Kootenay
Silver Inc. (TSXV: KTN) (the "Company" or "Kootenay") is
pleased to announce that the Company is exercising its right under
a Grub Stake Agreement (the "Grub Stake Agreement") with the
Kennedy Group to acquire a 100% interest in the Mark Project
located in southeast B.C. (the "Acquisition"). The Mark Project is
comprised of 17 mineral tenures totaling approximately 14,093
hectares. Pursuant to the terms of the Grub Stake Agreement,
in order to complete the Acquisition, the Company must issue
100,000 common shares to the Kennedy Group upon receipt of TSX
Venture Exchange ("TSXV") approval. Following completion of
the Acquisition, the Kennedy Group will retain an underlying 1% net
smelter returns royalty, which can be purchased by the Company, in
whole or in part, for $1,000,000 per
each one-half percent (0.5%).
In conjunction with exercising the option to acquire the
Mark Project, the Company is pleased to announce that it has
entered into an earn-in agreement (the "Earn-in Agreement") with a
wholly-owned subsidiary of Antofagasta plc. ("Antofagasta") whereby
Antofagasta can, over a 4 year
term, earn a 65% interest in the Mark Project by expending or
incurring US$3 million (the "Earn-in
Expenditures") in respect of the Mark Project (the "Earn-in
Option"). Upon exercise of the Earn-in Option, a joint
venture will form between the Company and Antofagasta, with industry-standard future
funding and dilution terms. The exploration budget for year one
under the Earn-in Agreement is anticipated to be US$150,000. Antofagasta has the right to accelerate
payment of the Earn-in Expenditures.
Kootenay President and CEO James McDonald states,
"This is an exciting new prospecting discovery in a belt of
rocks that host some of the largest silver-copper deposits in
North America. The similarity to
the mineralization and geology at Mark to the deposits in
Montana indicates excellent
potential for the discovery of the first silver-copper deposit in
the Canadian part of the basin. We are very much looking forward to
advancing this project to drill stage and are pleased to have such
a strong industry partner in Antofagasta providing financial and technical
support."
The Mark Project is hosted in the same geologic formation
that contains the large sediment hosted silver-copper deposits in
Montana, where deposits such as
Rock Creek and Montanore each
contain in excess of 200 million ounces of silver and 1.5 billion
pounds of copper with grades of 1.6 to 2.0 ounces per ton ("opt")
silver and 0.72% to 0.74% copper within tonnages of 136 and 116
million tons, respectively. This geologic formation is called the
Creston in Canada and the Revett in Montana, USA.
Thus far, silver and copper mineralization at the Mark
Project has been found variably along an approximate 9 km strike
length within quartzite's of the upper portion of the Revett
equivalent Middle Creston Formation. Copper mineralization is
visible as clots, disseminations, fractures fills, and also within
quartz-carbonate-chlorite veins that cut the favourable quartzite
package. Silver, which is not readily visible, occurs along with
the copper. Mineral zoning, an important feature of the
Revett hosted deposits in Montana,
is evident at the Mark Project where core areas of bornite and
chalcocite mineralization are flanked outboard by chalcopyrite,
galena, and pyrite.
Limited rock sampling (28 samples) from 2016 returned
elevated copper values up to 0.2% copper and up to 40 grams per
tonne (about 1.3 opt) silver, with eight of the samples returning
values greater than 500 ppm copper and 18 samples returning values
above 100 ppm copper. Silver assays range from
background to 40 grams per tonne (about 1.3 opt). Assays from 2017
work are not yet available but prospecting confirms the system is
extensive and holds good discovery potential leading to the
decision to acquire the project through the Grubstake
agreement.
This is a greenfields, early stage, surface prospecting
discovery and project and as such there is no assurance a drill
target or targets will be generated or a drill discovery will be
made.
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.
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 June 19, 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.