VANCOUVER, Jan. 10, 2018 /CNW/ - Kootenay Silver
Inc. (TSXV: KTN) (the "Company" or "Kootenay") is pleased
to provide its exploration strategy for 2018 and a review of its
exploration programs and corporate activities during the prior
year.
Kootenay President and CEO James
McDonald states, "As we prepare for an exciting year ahead
of drilling in 2018, we are pleased to provide a review of
activities detailing many of Kootenay's significant achievements in
2017. Supported by an established NI 43-101 silver asset base of
over 140 million ounces of silver equivalent*, we will focus our
resources on accelerating the growth of this asset base in 2018.
Our top priority remains the advancement of our flagship La Cigarra
silver project, located in the Parral mining district in
Chihuahua, Mexico. Ongoing
exploration in 2018 will include drill testing of high-grade
structures extending from La Cigarra's existing silver resource,
drill testing several new priority targets and the advancement of
two recent discoveries on the project. We look forward to providing
further updates on activities as they develop."
2018 Upcoming work programs and news flow:
- In 2018, Kootenay will place a major emphasis on advancing the
La Cigarra project. The first three weeks of the program will focus
on selection and prioritization of drill targets and include some
additional mapping in preparation of drill site selection.
- Focus will be on:
-
- Commencement of drilling at La Cigarra
- Drilling on strike to expand resource both north and
south
- High grade structures and zones
- Drilling of new targets with priority on grade
- Drilling of new gold bearing structures in first quarter
- Follow up of the strong mineralization and veining at
LasVenadas
- Priority will be given to:
-
- Higher grade structures and mineral domains
- Expansion of the resource with focus on the best grading
domains
- New discoveries with priority on best grading targets
- Shallower targets over deeper ones
- Anticipated news flow items:
-
- Final results from 2017 La Cigarra drilling
- Final results from 2017 Promontorio/La Negra drilling from
partner Pan American Silver
- Commencement of drilling at La Cigarra
- Ongoing results of 2018 drilling program on La Cigarra
- Initial results from Cervantes
drilling from partner Aztec Minerals
- Updates on work programs on projects optioned out to third
parties.
The Company anticipates drilling will commence at the beginning
of February 2018. Drill meters with
sequencing and prioritization of the various targets will be
segmented into resource expansion (La Borracha), follow up drilling
of recent discoveries (La Venadas and RAM) and testing new
undrilled targets (southern extension). A map of the Cigarra
Resource and potential growth areas can be viewed here. Details on
meters and areas to be drilled will be released in late
January.
Project and Corporate Highlights:
La Cigarra Silver Project, Chihuahua State, Mexico (100% owned by Kootenay)
- Completed 37 core drill holes at La Cigarra resulting in two
significant silver discoveries in the RAM and La Venadas
zones.
- Re-logged entire La Cigarra silver deposit to define geologic
controls on high grades.
- Mapping and sampling of Las Venadas, La Borracha, Navidad East and Navidad
West, Soledad and Las Chinas zones as well as extension of
Nogalera Zone southward into valley gravels.
- Extensive surface sampling along the numerous mineralized
trends.
- Recognized various mineral zones north and south of the La
Cigarra resource form a continuous and contiguous zone of
alteration and anomalous silver mineralization for upwards of 9
kilometers.
- Discovered new mineralized structures that may be the southern
extension of the RAM to Nogalera trend.
- New drill discoveries include Las Venadas located 800 meters
south of the resource boundary and RAM approximately 1,000 meters
west of the resource. Both zones are open along both strike
directions and dip.
-
- Las Venadas drilling intersected more than 250 meters in core
length of quartz-calcite and quartz vein breccia and veining within
altered sediments. Hole CC-17-26 in particular bottomed in
veining with samples grading as high as 799 gpt silver over 1.1
meters and 692 gpt silver over 1 meter in two different zones
indicating excellent grade potential. The widest weighted average
intervals is 91.32 gpt silver over 29.5 meters. A second hole
intercepted the interval 140 meters along strike and about 60
meters deeper with similar results.
- RAM drilling included multiple intercepts of silver
mineralization confirmed over 400 meters of strike length including
89.83 gpt silver over 18.0 meters; including 190 gpt silver over
3.0 meters. This system remains open along strike to the
north and south for up to 3,400 meters and down dip to the
west.
La Negra Silver Discovery, Sonora State, Mexico (100% Kootenay owned and optioned to
Pan American Silver)
- Announced the results of 26 holes from an infill drill program
on La Negra silver discovery being operated by Pan American
Silver. Drill results at La Negra include 529 gpt silver over
7.5 meters within 194 gpt silver over 40.8 meters. Further
drill results from this program will be announced once received
from Pan American and is expected during January 2018.
Silver Fox Project, British Columbia,
Canada (100% owned by Kootenay & optioned to Antofagasta
PLC)
- Commenced a 3,000 meter diamond drill program at its 100% owned
Silver Fox Project, located in south eastern British Columbia. The target is a large
sediment hosted copper-silver deposit such as those hosted in the
same rock formations to the south in Montana, U.S.A., where deposits can reach into
the 200 million ounces of silver size. This program is fully funded
by a wholly-owned subsidiary of Antofagasta PLC under its earn-in
agreement for the Silver Fox project. Results will be announced
following meetings with Antofagasta in late January 2018.
Mark Project, British Columbia,
Canada (100% owned by Kootenay & optioned to Antofagasta
PLC)
- Extensive mapping and sampling of the property in search of a
sediment hosted copper-silver deposit such as those hosted in the
same rock formations in Montana,
U.S.A. The program was designed to define the size and
intensity of mineralization previously discovered and to establish
drill targets. Results will be announced following meetings with
Antofagasta in late January 2018.
Cervantes Project, Sonora State, Mexico (100% owned by Kootenay and optioned to
Aztec Minerals)
- Announced that exploration partner Aztec Minerals identified
encouraging gold and copper mineralization on the Company's 100%
owned Cervantes project. Aztec
commenced a 14 to 17 hole core drill program on the Cervantes gold-copper porphyry property late
2017, with results expected in Q1 2018.
Closed financing in Q4 2017
- Raised $4,000,000 by closing a
non-brokered private placement. Net proceeds will be used to
fund the exploration and development of the Company's La Cigarra
project in Chihuahua State, Mexico, possible new acquisitions and for
general working capital purposes.
*Resource Estimates for La Cigarra and Promontorio
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. Resource Statement for the La
Cigarra silver project located in Chihuahua State, Mexico: GeoVector Management Inc., Effective
Date January 14, 2015.
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. Resource Statement for
the Promontorio Deposit, Sonora State, Mexico: SRK Consulting (U.S.) Inc., Effective
Date March 31, 2013.
The Promontorio and La Cigarra NI 43-101 technical reports,
including the assumptions therein, are filed on SEDAR at:
www.sedar.com, and are also available on the Company's website
www.kootenaysilver.com.
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.
Sampling and QA/QC at La Cigarra
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 from core cut
in half with a diamond saw under the direction of qualified
geologists. Samples are then labeled placed in plastic bags, sealed
and with interval and sample numbers recorded. 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, blanks and duplicates 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.
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
January 9, 2018. 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.