Advancement of La Cigarra towards an Economic
Assessment
- Remodeling Resource with objective of improving grade and
defining drill targets;
- Advanced Leach Testing using standard and SILVOX process to
Assess Potential to Lower Capex and Opex costs;
- Updated Resource Estimate;
- Set timeline for Preliminary Economic Assessment at conclusion
of drilling and Resource Estimate.
Kootenay President and CEO, James
McDonald states, "The ongoing success of our drill and
resource expansion program on La Cigarra and its surrounding
mineralized structures at La Cigarra in Chihuahua State, combined
with the high-grade results returned from La Negra under our
agreement with Pan American Silver Corp. in Sonora, have laid a strong foundation for our
growth and development strategy in 2017, and for what we believe
will be a transformational year for the Company."
*Refer to the
Resource Estimates for La Cigarra and Promontorio Projects section
of this release.
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Drill Planning for Resource Expansion
Current remodeling work will set the foundation for drilling the
extensions of the La Cigarra deposit as detailed mapping, sampling
and geophysical interpretation will aid in prioritizing and setting
the drill program for the 11 peripheral targets. The top priority
targets of that group will be slated for drilling in 2017. More
detail on meters and targets will be released once prerequisite
work is complete and drilling commences.
It is expected that the Company will be in a position to
announce and begin the next round of drilling by the end of the
first quarter and a new resource estimate late 2017.
Metallurgical Testing
Results from preliminary testing utilizing the proprietary
SILVOX process have been highly encouraging. Additional comparative
metallurgical testing using standard and SILVOX processes is now
being conducted to further assess silver recoveries. Management
believes the ability to achieve enhanced silver recoveries could
have a significant impact on the economic viability of La Cigarra
and its potential development as a low-cost, open-pit heap leach
operation.
The numerous work activities will run in parallel and will focus
on the dual objectives of increasing resources by drill testing
multiple targets and advancing remodeling and metallurgical work to
aid in economic assessment of the La Cigarra resource.
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.
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 Technical
Reports for both projects can be found on SEDAR.
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 a progressive exploration company
actively engaged in the discovery, consolidation and development of
precious metals projects situated in established mining regions of
Mexico and 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
February 22, 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.