VANCOUVER, BC, March 30, 2021 /CNW/ - Kootenay Silver
Inc. (TSXV: KTN) (the "Company" or "Kootenay") is
pleased to announce the signing of an option agreement with a
wholly owned subsidiary of Centerra Gold Inc. ("Centerra"), whereby
Centerra is granted an option to earn a 70% interest in the Two
Times Fred property located in the Nechako Plateau of Central British Columbia.
A total of C$6 million in
exploration expenditures and C$500,000 in cash payments must be incurred and
made over a four-year period for Centerra to earn a 70% interest.
The first year requires a work expenditure of $1 million with a minimum commitment of
$650,000. Current plans for this
year's work include up to 1,000 meters of trenching and 20 drill
holes. Upon the fulfillment of these conditions, the two companies
will enter a standard joint venture agreement with Kootenay
retaining a 30% interest, and funding of further work will be done
on a pro rata basis amongst the joint venture partners.
James McDonald President and
CEO of Kootenay Silver states "We are very pleased
to have signed an agreement with major gold producer Centerra Gold
Inc. We look forward to benefiting from Centerra's expertise and
consider their participation via the option agreement a reflection
of our belief that Two Times Fred has the potential to host a gold
deposit of significant size."
Two Times Fred
The Two Times Fred property is host to a large classic
low-sulphidation epithermal gold vein system. It is a grass roots
discovery made by the Kootenay Silver team. Over the past several
years Kootenay has advanced the project with limited drilling,
mapping, sampling, and geophysical surveys. The project comprises
numerous northeast trending veins over a 1.5 by 3.0 kilometer
trend. Select rock chip sampling at surface has returned assays as
high as 12.8 gpt gold and 194 gpt silver. Limited drilling (2,628
meters over 13 drill holes) shows the main identified veins occur
as classic vein and vein breccia zones from a few meters to 40
meters wide. Best drill results to date include 7.6 meters of 1.69
gpt gold and 29 gpt silver.
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 and approved on behalf of Kootenay
by James McDonald, P.Geo, President,
CEO & Director for Kootenay, a Qualified Person.
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,
respectively.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS:
The information in this news release has been prepared as at
March 29, 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
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.
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SOURCE Kootenay Silver Inc.