Kootenay announces inaugural drill program completed on La Negra Silver Discovery and initiates plans for NI 43-101 resource calculation

Press Releases |

VANCOUVER, Dec. 3, 2014 - Kootenay Silver Inc. ($KTN:CA) (“Kootenay”) is pleased to announce results on the final 2 drill holes from its inaugural Phase I drill program on its new La Negra Breccia Silver Discovery, situated approximately 6.5 kilometers north of Kootenay’s flagship Promontorio Silver Resource in Sonora, Mexico.

A total of 25 holes for 3173 meters of drilling have been completed along an approximate 400 meter strike length of the breccia. Silver mineralization is exposed at surface and is shown to extend to a vertical depth of at least 190 meters (approximately 110 meters above sea level) and along the entire length of the breccia, where drill testing and surface sampling was conducted. The breccia silver mineralization is open to the east and at depth, with possible extensions to the west as indicated from surface exposures.

States Kootenay President and CEO James McDonald “We are very pleased to conclude our inaugural drill program on the La Negra Diatreme Breccia system that has resulted in a significant and exciting new silver discovery in Mexico. Drilling continues to return high grades and shows a remarkable consistency of silver mineralization on surface and at depth across the entire length of the breccia. Results from the inaugural program will be immediately compiled and collated in a 3D model showing the geologic controls and assay results.  This compilation will be used to design the next drill phase which is expected to begin early in the New Year. Based on the outstanding results to date, the objective is to move the project quickly to a maiden NI 43-101 resource calculation.”

The remaining two holes LN 24 and 25-14 are reported herein, along with complete results of the 25 hole drill program.  Drill hole LN 24-14 encountered high grades of silver starting at surface on the same section as LN 22 and 23-14. This is also the eastern most section drilled. LN 25-14 hit 60 meters of silver mineralized breccia from surface, which is interpreted to confirm a south dip in this area of the breccia.

Details of the final two drill hole intercepts are in the following table:

 

Drill Hole

 

From

To

Interval

Silver

Gold

Lead

Rock

   

(m)

(m)

(m)

(gpt)

(gpt)

%

Type

LN-24-14

-45/360 Az

0

76

76

92.88

0.063

0.69

Breccia/Stockwork

 

Including

29

41

12

397.83

0.246

1.76

Breccia

144m EOH

               
                 

LN-25-14

-45/015 Az 

0

61

61

44.86

0.017

0.17

Breccia

 

Including

0

19

19

50.11

0.020

0.34

Breccia

 

Including

3

30

27

74.18

0.026

0.24

Breccia

 

Including

21

30

9

128.55

0.037

0.13

Breccia

115m EOH

               
                   

To view cross sections of the drill holes visit: La Negra Cross Sections LN 01 to LN 25-14.  To view a drill plan outlining the location of the La Negra drilling visit: La Negra Drill Plan Map.

Phase I Highlights include:

  • LN 01-14 Containing from surface;
    • 110.46 gpt Ag over 41 meters including
    • 223.23 gpt Ag over 13 meters
  • LN 02-14 Containing from surface;
    • 141.28 gpt Ag over 50 meters including
    • 212.64 gpt Ag over 28 meters and
    • 323.13 gpt Ag over 15 meters
  • LN 03-14 Bottomed in mineralized breccia in a vertical hole from surface;
    • 82.57 gpt Ag over 144 meters including
    • 98 gpt Ag over 106 meters and
    • 195.84 gpt Ag over 25 meters
  • LN 04-14 Containing from surface;
    • 92.98 gpt Ag over 92 meters including;
    • 149.43 gpt Ag over 20 meters from surface and
    • 146.38 gpt Ag over 31 meters from 43 meter depth
  • LN 05-14 Containing from surface;
    • 91 gpt Ag over 119 meters including
    • 182.87 gpt Ag over 40 meters
    • 367.85 gpt Ag over 14 meters
  • LN 06-14 Containing from surface and bottomed in mineralized breccia;
    • 92.79 gpt Ag over 98 meters including
    • 168.33 gpt Ag over 21 meters including
    • 214.3 gpt Ag over 13 meters
  • LN 07-14 Containing from surface;
    • 132.49 gpt Ag over 59 meters including
    • 149.6 gpt Ag over 43 meters and
    • 185.35 gpt Ag over 17 meters
  • LN 08-14 Containing from 13 meter depth;
    • 91.89 gpt Ag over 49 meters including
    • 251 gpt Ag over 11 meters
  • LN 10-14 Containing from 5 meters;
    • 87.08 gpt Ag over 35 meters including
    • 135.52 gpt Ag over 21 meters
  • LN 13-14 Containing from surface;
    • 61.43 gpt Ag over 140 meters including
    • 79 gpt Ag over 47 meters and
    • 355.16 gpt Ag over 8 meters
  • LN 21-14 Containing from surface and bottomed in mineralization;
    • 156.47 gpt Ag over 200 meters including
    • 420.34 gpt Ag over 50 meters from 150 to 200 meters including
    • 1337.66 gpt Ag over 6 meters and
    • 492.30 gpt Ag over 17 meters at the bottom of the hole excl. the 6 meters of 1337 gpt Ag interval
  • LN 22-14 Containing from surface
    • 265.31 gpt Ag including over 34 meters including
    • 467.77 gpt Ag over 18 meters
  • LN 23-14 Containing from surface;
    • 239.92 gpt Ag over 30 meters including
    • 459.76 gpt Ag over 13 meters
  • LN 24-14 from surface on section with LN 22 and 23-14;
    • 92.88 gpt Ag over 76 meters including
    • 397.83 gpt Ag over 12 meters

Management believes that La Negra is a diatreme breccia which implies good depth potential as diatreme breccias can extend to depths of 100’s of meters. The depth potential in the La Negra Breccia is underscored by hole LN 21-14 as it bottoms in high silver grades at a vertical depth of around 150 meters showing the potential for resources to depth. The depth of the high silver grade shows the grades are primary so not a result of supergene enrichment.

Due to faulting and possibly the nature of the breccia contact itself the width of the breccia body is not well defined at this time. Thus far the apparent widths of the breccia interpreted from drilling are varying from about 60 to over 100 meters within a broader 200 by 500 meter area of breccia outcrop exposures.

The La Negra Breccia is cut by two northwest trending faults across which the dip of the breccia changes from near vertical to moderate southerly dips. This is evidenced by holes LN 11, 12, 14, 18, 19 and 20, which were drilled through the breccia into the footwall or directly within the footwall thus missing the bulk of the breccia body.  Hole LN 25-14 drilled to the north confirms a southerly dip encountering 60 meters of breccia from surface followed by about 50 meters of stockwork and argillic alteration.

Drill hole intercepts LN 01 to 23-14 (Previously Announced):

 

Drill Hole

 

From

To

Interval

Silver

Gold

Lead

Rock

   

(m)

(m)

(m)

(gpt)

(gpt)

%

Type

LN-01-14

 -45/180 Az

3

44

41

110.46

0.068

0.126

Breccia

 

Including

18

37

19

177.1

0.113

0.056

Breccia

 

Including

18

31

13

223.23

0.129

0.07

Breccia

95m EOH

               
                 

LN-02-14

-60/180 Az 

0

50

50

141.28

0.108

0.215

Breccia

 

Including

0

40

40

161.25

0.121

0.256

Breccia

 

Including

19

47

28

212.64

0.149

0.144

Breccia

 

Including

19

34

15

323.13

0.198

0.216

Breccia

100m EOH

               
                 

LN-03-14

-90/360 Az 

0

144

144

82.57

0.058

0.309

Breccia

 

Including

0

27

27

108.32

0.077

0.618

Breccia

 

Including

0

106

106

98.03

0.062

0.373

Breccia

 

Including

0

78

78

114.63

0.066

0.383

Breccia

 

Including

53

78

25

195.84

0.107

0.144

Breccia

 

Including

54

67

13

229.38

0.104

0.166

Breccia

144m EOH

               
                 

LN-04-14

-60/360 Az 

0

114

114

78.54

0.066

0.311

Breccia

 

Including

0

92

92

92.98

0.080

0.351

Breccia

 

Including

0

67

67

118.93

0.083

0.409

Breccia

 

Including

0

20

20

149.43

0.073

0.85

Breccia

 

Including

43

74

31

146.38

0.096

0.103

Breccia

152m EOH

               
                 

LN-05-14

-45/360 Az 

0

119

119

91

0.046

0.576

Breccia

 

Including

0

88

88

108.85

0.040

0.625

Breccia

 

Including

89

119

30

40.4

0.065

0.427

Breccia

 

Including

51

91

40

182.87

0.071

1.171

Breccia

 

Including

51

65

14

367.85

0.111

1.84

Stockwork

147m EOH

               
                 

LN-06-14

-60/090 Az 

3

101

98

92.79

0.104

0.153

Breccia

 

Including

3

55

52

124.36

0.089

0.224

Breccia

 

Including

3

24

21

168.33

0.126

0.416

Breccia

 

Including

3

16

13

214.3

0.131

0.618

Breccia

101m EOH

               
                 

LN-07-14

 -60/270 Az

5

64

59

132.49

0.085

0.26

Breccia

 

Including

5

48

43

149.60

0.079

0.27

Breccia

 

Including

31

48

17

185.35

0.153

0.23

Breccia

 

Including

5

116

111

83.89

0.052

0.23

Breccia/Stockwork

 

Including

65

116

51

17.06

0.007

0.19

Stockwork

 

Including

106

116

10

41.90

0.013

0.47

Stockwork

130m EOH

               
                 

LN-08-14

-45/180 Az

13

62

49

91.89

0.015

0.26

Breccia/+Andesite

 

Including

30

41

11

251.00

0.035

0.15

Breccia

 

Including

53

62

9

59.70

0.009

0.53

Breccia

137m EOH

               
                 

LN-09-14

-60/180 Az

9

37

28

60.00

0.038

0.32

Breccia

 

Including

9

23

14

64.57

0.044

0.39

Breccia

105m EOH

               
                 

LN-10-14

-90/360 Az

5

40

35

87.08

0.037

0.51

Breccia/+Andesite

 

Including

10

35

25

116.56

0.045

0.60

Breccia

 

Including

14

35

21

135.52

0.053

0.65

Breccia

   

70

78

8

37.25

0.005

0.24

Breccia

   

157

163

6

38.83

0.063

0.27

Breccia

191m EOH

               
                 

LN-11-14

-60/360 Az

6

11

5

56.33

0.010

0.33

Breccia

   

27

29

2

32.50

0.003

0.01

Stockwork

131m EOH

               
                 

LN-12-14

-45/360 Az

13

28

15

29.76

0.009

0.44

Stockwork/Breccia

 

Including

17

28

11

37.33

0.010

0.47

Breccia

117m EOH

               
                 

LN-13-14

-60/090 Az

0

140

140

61.43

0.048

0.38

Breccia/Stockwork

 

Including

24

71

47

79.00

0.052

0.31

Breccia

 

Including

12

19

7

95.57

0.050

0.22

Stockwork

 

Including

24

34

10

83.33

0.050

0.10

Breccia

 

Including

54

64

10

136.50

0.057

0.73

Breccia

 

Including

66

71

5

120.20

0.013

0.74

Breccia

 

Including

112

120

8

355.16

0.118

2.97

Breccia

 

Including

132

140

8

52.75

0.089

0.19

Breccia

183.5m EOH

               
                 

LN-14-14

-60/270 Az

0

33

33

179.65

0.033

0.33

Breccia

 

Including

13

24

11

412.11

0.062

0.24

Breccia

 

Including

26

30

4

181.00

0.055

0.72

Breccia

   

48

60

12

31.50

0.008

0.13

Stockwork

92m EOH

               
                 

LN-15-14

77m EOH

No Significative Results

Argillic Andesite

LN-16-14

60m EOH

No Significative Results

Argillic/Propylitic

LN-17-14

51m EOH

No Significative Results

Argillic/Propylitic

LN-18-14

156m EOH

No Significative Results

Argillic/Propylitic

                 

LN-19-14

-45/180 Az

70

82

12

289.58

0.040

1.42

Breccia

 

Including

74

82

8

421.37

0.051

1.93

Breccia

193m EOH

               
                 

LN-20-14

-45/180 Az

51

61

10

33.70

0.030

0.40

Stockwork

   

97

133

36

79.05

0.065

0.24

Breccia/Stockwork

 

Including

105

133

28

99.35

0.089

0.24

Breccia/Stockwork

 

Including

111

133

22

107.66

0.100

0.16

Breccia

192m EOH

               
                 

LN-21-14

-45/290 Az

0

200

200

156.47

0.103

0.18

Breccia/Stockwork

 

Including

41

57

16

114.31

0.009

0.21

Breccia

 

Including

119

128

9

392.11

0.218

0.15

Breccia

 

Including

150

158

8

258.37

0.155

0.07

Breccia

 

Including

164

169

5

476.20

0.294

0.14

Breccia

 

Including

150

200

50

420.34

0.183

0.23

Breccia

 

Including

174

180

6

1337.66

0.475

0.28

Breccia

 

Including

183

200

17

492.30

0.128

0.50

Breccia

200m EOH

               
                 

LN-22-14

-90/360 Az

0

34

34

265.31

0.114

0.75

Breccia/Stockwork

 

Including

16

34

18

467.77

0.201

1.11

Breccia

82m EOH

               
                 

LN-23-14

-45/180 Az

0

30

30

239.92

0.053

0.41

Breccia/Stockwork

 

Including

17

30

13

459.76

0.090

0.59

Breccia

 

Including

17

23

6

899.50

0.161

1.15

Breccia

 

Including

18

19

1

3040.00

0.426

4.53

Breccia

78m EOH

               
                   

Current Phase I Drill Program

Drilling in the Phase I program was conducted in widely spaced fences along 400 of 500 meters of La Negra’s length to provide information on the sub-surface grade, continuity and geometry of the mineralized Breccia system. Current holes were broadly spaced as single holes or fences of holes from the same platforms in 115 to 50 meter spacing’s along strike. Extensive zones of breccia and stockwork were encountered along the strike length and dips seem to vary from steep northerly dips to moderate southerly dips. The Phase I drill program totaled 25 HQ diameter core holes with 3173.5 meters of drilling.

La Negra Silver Discovery

The La Negra Breccia prospect is situated approx. 6.5 kms north of Kootenay’s flagship Promontorio Silver Resource in Sonora, Mexico and is contained within a 25 x 15 km mineralized corridor, the ‘Promontorio Mineral Belt.’ The current Phase I drill program on La Negra follows a highly successful trenching and surface sampling program that confirmed widespread silver mineralization exists over a large 100 to 200 meters by 500 meters area on surface. (See news releases from May 28th and June 5th, 2014 for more details).  To View Full Results of Sampling and drill Program Visit: www.kootenaysilver.com.

QA/QC

Core is being detailed logged and sampled with half the core being bagged, tagged, catalogued, sealed and sent to an accredited assay lab for analysis.  A quality control program including blanks, standards and replicates is being used similar to that used on the Promontorio drill program.  Geotechnical data such as recovery, RQD and density are being recorded also. All drilling has been with HQ core and is being done by BD Drilling from Guadalajara, Mexico. Further Quality Assurance and Control procedures and details on assays procedures and laboratories used are disclosed on the Kootenay Silver Inc. website.

The foregoing geological disclosure has been reviewed and verified by Kootenay’s CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.

ABOUT KOOTENAY

Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay’s objective is to develop near term discoveries and long-term sustainable growth. Its management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.

Neither 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.

Forward-Looking Statements: The information in this news release has been prepared as at December 2, 2014.  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.

 For further information: James McDonald, CEO and President at 403-238-6986; Ken Berry, Chairman at 604-601-5652; 1-888-601-5650; or visit:www.kootenaysilver.com

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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