VANCOUVER, BC, Jan. 12, 2021 /CNW/ - Kootenay Silver Inc. (TSXV:
KTN) (the "Company" or "Kootenay") recaps a busy 2020 and
provides a general look ahead for an exciting 2021 exploration
season. Details related to the Company's plans for 2021, will be
announced in the coming weeks in addition to assay results received
from the remaining 17 holes drilled at the Columba high grade
silver project. During the past year, the Company completed two
large drill programs totaling over 13,000 meters, collectively on
the Columba and Copalito properties. Based on the results
seen to date, both projects hold great promise for the discovery
and development of a classic high-grade silver or silver and gold
vein deposits, respectively.
Milestones Achieved in 2020
Columba Project, Chihuahua
- Initiated and completed the second drill program comprised of
43 holes, totaling over 9,114 meters designed as a follow up the
initial 41 holes completed in 2019.
- Targeted infill and step out drilling within the high-grade F
vein at the site of historical mining
- Further drill tested higher grade intercepts encountered in
2019 on other veins (such as the J & Z Veins) and tested
previously undrilled veins mapped by the Kootenay geologic
- Discovered the J-Z vein - an area that hosts a different
geological structure composed of veins and breccia as opposed to
the classic epithermal veins present in the F vein.
- Intercepted additional high-grade silver mineralization within
the F vein, which included an impressive hanging wall structure
parallel to the F vein that was not apparent from surface.
- Drill highlights included:
- CDH-20-045: 0.5 meters of 974 gpt silver; F Vein
- CDH-20-046: 0.6 meters of 1,585 gpt silver and 1.4
meters of 911 gpt silver; F Vein
- CDH-20-049: 2.8 meters of 762 gpt silver including 1.0
meter of 2,010 gpt silver; hanging wall structure
- CDH-20-051: 2.0 meters of 865 gpt silver; hanging wall
- CDH-20-060: 11.0 meters of 361 gpt silver including 5
meters of 608 and 1.0 meter of 1160; hydrothermal breccia and
- CDH-20-066: 1.5 meters of 773 gpt silver; hydrothermal
- Assays from the remaining 17 holes are being analyzed and
interpreted with results to be released once completed.
Copalito Project, Sinaloa
- Completed the first drill program to ever be conducted on the
property consisting of 40 holes totaling over 4,100 meters
- Intercepted high-grade mineralized intersections with the
following drill highlights:
- BDH-20-001: 369 gpt silver equivalent ("AgEq."); 250 gpt
silver and 0.247 gpt gold over 5.0 meters; 360 gpt silver and 0.1
gpt gold over 1.0 meter within 272 gpt AgEq.
- BDH-20-002: 179 gpt AgEq.; 1.69 gpt gold over 4.3 meters
and 274.8 gpt AgEq.; 3.02 gpt gold over 1.7 meters
- BDH-20-004: 1,323 AgEq.; 1,297 gpt silver and 0.285 gpt
gold over 3.2 meters
- BDH-20-009: 1,047 gpt AgEq.; 936 gpt silver, 0.29 gpt
gold and 3.31% lead+zinc ("Pb+Zn") over 1.0 meter
- BDH-20-015: 394 gpt AgEq.; 51 gpt silver, 2.28 gpt gold,
6.18 % Pb+Zn over 1.2 meters
- BDH-20-033: 1,210 gpt AgEq.; 59 gpt silver, 7.05 gpt
gold, 13.55 % Pb+Zn over 0.2 meters
- BDH-20-037: 1,261 gpt silver AgEq. over 1.0 meter
consisting of 846 gpt silver, 3.11 gpt gold and 6.15% lead plus
zinc; 5 senores vein
- BDH-20-040: 933 gpt AgEq. over 2.25 meters consisting of
6.65 gpt gold, 335 gpt silver 1,813 gpt AgEq. over 0.51 meters
consisting of 16.95 gpt gold, 369 gpt silver and 3.74% lead plus
- 1,813 gpt AgEq. over 0.51 meters consisting of 16.95 gpt gold,
369 gpt silver and 3.74% lead plus zinc 5 Senores vein (one of the
deepest holes drilled to date)
Complete drill results for both Columba and Copalito can be
found on our company website. AgEq. based $24/oz silver $1900/oz gold, $1/lb zinc, $0.8/lb
lead. Estimated true widths range from 65 to 90% of drilled widths
depending on dip of the vein and inclination of the hole. All AgEq.
And silver composites rounded to the nearest whole number.
Cervantes Project, Sonora
- Completed a joint venture ("JV") agreement with Aztec Minerals
Corp. in respect of the Cervantes
porphyry gold-copper project in Sonora,
- Aztec Minerals completed the earn-in to acquire 65% interest in
Cervantes with Kootenay retaining
the remaining 35%. Both companies will hold interests in the
Property indirectly through share ownership in the JV company,
Aztec Minerals (Mexico) JV
La Cigarra Project, Chihuahua
- Initiated the relogging of drill core from within the resource
to work conducted in 2015, to create a new geological model better
fitting the geology of the resource to potentially optimize grade
and increase economic favourability.
- Closed a major financing in August with leader broker Mackie
Research Capital Corporation for gross proceeds of $7 million. Each $0.40 unit was comprised of one share and
one-half of one common share purchase warrant exercisable at
$0.55 until August 25, 2022. Eric
Sprott, through 21764123 Ontario Ltd. maintained his
proportionate equity interest in Kootenay.
- Received cash proceeds of $2.5
million during Q4, 2020 from the exercise of 8,478,150
warrants exercised at $0.30.
Strategic Plans Developing for 2021
Columba and Copalito
Significant drilling is planned at both Columba and Copalito.
Planning meetings are being held in the next two weeks after which
details of these programs will be finalized. An announcement
outlining the programs will be issued thereafter.
Continued geologic modeling will be completed with modeling to
date tested to see if mineralization within the deposit may
possibly exist within a more constrained area resulting in a
higher-grade resource. Upon positive findings, a small drill
program will be conducted to confirm the model is predictive
(reliable and accurate) after which a decision will be made on if a
new resource update is supportable or required. The
over-arching objective is to optimize the resource and advance it
to a PEA study.
La Negra, Sonora
Examination of the extensive drill data is underway to determine
if a resource calculation is warranted. Following a positive
outcome, a NI43-101 maiden resource estimate will be prepared on
Once a budget has been approved by the JV committee, details of
an exploration program will be provided in a news release.
Cervantes is host to gold-copper
porphyry type mineralization and has promise for both open pit heap
leach gold and a larger gold-copper porphyry deposit.
Introducing the Top 25th Percentile
In addition to the extensive drilling in 2020 Kootenay continued
its grass roots exploration efforts with the initiation of two
programs aimed specifically at the discovery of large silver-base
metal deposits in the top 25 percentile of size. One such program
is focused in the famous Purcell Basin in southeastern B.C. that is
host to billions of ounces of silver in the Coeur D'Alene,
Montana Copper-Silver and Sullivan
mining districts. The second is focussed on the discovery of
Carbonate Replacement Deposits ("CRD") deposits in northern
Mexico which make up some of the
biggest and longest producing silver-base metal deposits in
Moyie Anticline Program – Southeast B.C.
- This program was stimulated by the alignment of several
fortuitous events. Firstly, for the first time in over 50 years a
large land package of prospective geology was open and available
for staking; secondly the advancement of deep penetrating
geophysical methods to see buried ore bodies and Kootenay's
long-term association with the Kennedy Exploration Group and their
deep knowledge and understanding in the area has resulted in
identifying targets based on geology/mineralization.
- The program was kicked off in 2020 with the acquisition of
nearly 35,000 hectares at an up -front cost of less than
$60,000. The Company's next steps
will involve detailed geologic mapping and prospecting combined
with deep seeing geophysics and then drilling.
CRD Program – Northern
- CRD's in Mexico are well known
for being some of the biggest and longest-lived silver and base
metal producers in the world's largest silver producing country. In
the last quarter of 2020 Kootenay designated a team dedicated to
the identification and acquisition of projects with CRD discovery
potential. An extensive database has been compiled and priorities
identified with numerous prospects visited. This will be an ongoing
concentrated effort that will take time but given the target size,
the Company believes it is worth the effort.
Kootenay's technical team will continue to advance our grass
roots projects, look for new acquisitions and seek partners to
advance the properties we currently own.
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 and approved on behalf of Kootenay
by James McDonald, P.Geo, President,
CEO & Director for Kootenay, a Qualified Person.
Sampling and QA/QC at Columba
All technical information for the Columba 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
and engineers. Samples are then labeled, placed in plastic bags,
sealed and with interval and sample numbers recorded. Samples are
delivered by the Company 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
reported is HQ core and has been contracted to Globexplore Drilling
from Hermosillo, Mexico.
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
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 junior 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 its priority silver projects located in prolific mining
districts in Sonora, State and
Chihuahua, State, Mexico,
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
The information in this news release has been prepared as at
January 11, 2021. 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
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.
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SOURCE Kootenay Silver Inc.