Kootenay Silver Inc. (TSX-V: KTN), a mineral discovery and development company, released results from the 2015 drill program conducted under an option with partner Theia Resources Ltd (TSX-V: THH) on the 2 X Fred property, located 62 kilometres north of Vanderhoof in the Nechacko plateau in British Columbia.
Theia Resources received final approval on January 12th from the TSX Venture Exchange regarding the previously announced letter agreement dated July 28, 2014 with Kootenay Silver. According to the agreement, Theia has the right to earn an undivided 60% interest in the Fox and 2 X Fred properties located in the Nechako Plateau of Central British Columbia in exchange for issuing an aggregate total of 750,000 common shares of Theia to Kootenay; and financing $2.5 million of exploration expenditures on the property within a five-year period.
The 2015 drill program follows up trenching conducted in 2014 which successfully identified a series of high-level, low-sulphidation epithermal gold and silver bearing quartz veins over a 1.3 x 1 km area (Saki, Gold Hill, Borrow Pit, Scud vein systems). The drilling program on 2x's Fred focused on providing information on the dip and width of the Saki and Gold Hill veins. Eight holes were drilled for a total of approximately 717 meters with four holes drilled on the Saki vein and four on the Gold Hill vein. The best interval was 3.2 gpt Au and 46.48 gpt Ag over 1.9 meters within 7.6 meters of 1.69 gpt Au and 29.36 gpt Ag. The longest interval was 0.370 gpt Au and 7.2 gpt Ag. Holes 6 and 8 bottomed in vein material with hole six just entering the vein when it had to be abandoned due to hole conditions.
"The results from recent drilling in the Nechacko Plateau underscore the significant potential of the gold and silver bearing quartz vein systems, contained within the parameters of the 2x's Fred property,” said James McDonald, President and CEO of Kootenay. “The 2x's Fred property, a new discovery made by Kootenay's generative program, is an example of the generator model dimension of Kootenay and the option to Theia is a part of the business plan to monetize generative stage properties."
By generating exploration targets that demonstrate potential to evolve into large scale discoveries and exploring joint venture partnerships, Kootenay aims to create shareholder value through discovery and acquisition of mineral resources. Potential of the 2 X Fred properties is considered high for the following reasons:
- The 2 X Fred property is an Epithermal Gold/Silver prospect.
- The 2 X Fred property is located in the mineral rich central plateau of British Columbia approximately 32 km southwest of the city of Vanderhoof and consists of 10 land tenures covering 4,618.19 hectares.
- The property covers a prominent east-west trending magnetic anomaly that coincides with a geological boundary. All the mineralized showings found to date are spatially associated with a magnetic high located in the center of the property.
- Gold and silver mineralization on the property is hosted by chalcedonic to banded quartz veins, stockworks, and breccia fills that are hosted predominantly in basalt flows and conglomerates.
- At least four vein systems are exposed in outcrop at surface.
- In total the mineralized veins occur over an area measuring approximately 2.5 X 1.75 km.
- Work conducted by Kootenay Silver to date has included rock sampling, biogeochemistry, geological mapping, and ground geophysical surveys (magnetic and VLF-EM) as well as permitting for trenching and drilling.
- The large aerial extent of the system and anomalous gold content indicates potential for large sized gold deposits to have formed either as an open pit low grade deposit or as high grade bonanza style deposits focused within feeder structures.
In 2015, the company has reported a number of operational milestones. Their most recent milestones include:
- Entering an option agreement through its wholly owned Mexican subsidiary, Minera J.M. with Oro de Altar, a wholly owned Mexican subsidiary of AuRico Gold Inc.
- Encountering more high-grade silver in Phase II of the La Negra Drill Program.
- Closing its non-brokered private placement and issued an aggregate of 800,000 units at a purchase price.
Furthermore, positive results from preliminary metallurgy tests conducted in October on samples from the company's La Negra silver discovery, estimated the potential resource at over 65 million ounces of silver.
Through strategic partnerships and promising drill programs, Kootenay Silver continues to build value through advanced resource development. The company begins 2016 with a lot of promise, positioning itself be a major player in the silver mining industry.
For more information, visit www.kootenaysilver.com.
Disclosure: In the purview of Section 17(B) of the Securities Act of
1933 and in the interest of full disclosure, we call the reader's
attention to the fact that Equities.com, Inc. may be compensated by the
companies profiled in the Spotlight Companies section. The purpose of
these profiles is to provide awareness of these companies to investors
in the micro, small-cap and growth equity community and should not in
any way come across as a recommendation to buy, sell or hold these
securities. Equities.com is not a registered broker, broker dealer,
investment advisor, analyst, investment banker or underwriter. All
profiles are based on information that is available to the public. The
information contained herein should not be considered to be
all-inclusive and is not guaranteed by Equities.com to be free from
misstatement or errors. Readers are reminded to do their own due
diligence when researching any companies mentioned on this website.
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