Shares Outstanding: 68,307,350
VANCOUVER,
July 22, 2014 /CNW/ - Kootenay
Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to
announce drill contracts are in place, drill targets have been
identified and road construction is underway in preparation for an
upcoming phase I drill program on its La Negra Diatreme Breccia
prospect, located approx. 7 kms north of Kootenay's flagship
Promontorio Silver Resource in Sonora,
Mexico. Drilling is slated to commence in late August 2014 and is expected to include a minimum
2,500 meters of core drilling.
States Kootenay President and CEO James McDonald "We are very pleased to proceed
to the drilling stage on La Negra. La Negra has emerged as one of
the Promontorio mineral belt's premier diatreme breccia prospects.
La Negra's distinct geological characteristics gives it potential
to evolve into a near-surface, open-pittable resource and
represents a strong complement to our existing NI 43-101 resource
located 7 kms to the south. Based on reported silver grades and the
extensive silver mineralization identified on La Negra on surface
from trenching and sampling to date, we remain highly optimistic
the upcoming program can mirror this success as we begin drilling
to depth."
The program follows a recently conducted
strategic hand trenching and chip sampling program that indicated
widespread silver mineralization is present on surface within the
entire 100 by 400 meter core of the La Negra Diatreme Breccia
(See news release May 6,
2014). The current drilling campaign is designed to
determine the extent and grades of silver mineralization extending
from surface to depth.
2014 Hand Trenching and Sampling
Program
The hand trenching and chip sampling program was
designed to gain a better understanding of the grade potential and
continuity of silver mineralization within the breccia, in
preparation for the upcoming drill program. Composited intervals
from 3 meter chips in the trenches averaged over 45 gpt silver
across a cumulative 150 meters in 6 trenches along a 100 by 400
meter extent of breccia (See news release June 5th, 2014). This supported earlier
results that first returned anomalous silver across the total
exposed breccia. Included were 19 panel chip samples taken from 2
by 2 meter panels returning an average of 107 gpt Ag within a
larger sample set of 50 samples (19 panel chips in 2 by 2 meter
panels plus 31 grab samples) that averaged 77 gpt silver (See
news release May 6, 2014).
The breccia was mapped over an area
approximately 100 to 200 by 500 meters and revealed extensive
bedrock exposure in an area measuring 100 by 400 meters. The
breccia is believed to be a diatreme pipe that forms a prominent
hill with approximately 120 to 130 meters of relief. Airborne
geophysics was effective in mapping the southern contact of the
breccia and indicates the breccia could be twice the aerial extent
of the visible bedrock exposure.
To View Full Results of Sampling Program Visit:
www.kootenaysilver.com
Current NI 43-101 Compliant Silver
Resource
The current mineral estimate on Promontorio
effective date March 31, 2013 (See
May 14, 2013 news release) contains a
combined Measured and Indicated silver resource of 92,428,000
silver equivalent ounces (39.9M oz's Ag, 508K oz's Au, 394.8M
lb's Pb, 462.2M lb's Zn). In addition to the measured and indicated
silver resources, there are an additional 26,814,000 silver
equivalent ounces in the Inferred category (12.8M oz's Ag, 147
oz's Au, 99.5M lb's Pb, 109.1M lb's Zn). Measured and Indicated
resources are contained in open pit resources of 44,504,000
tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt
Ag, 0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open
pit of 215,000 tonnes grading an average of 56.96 gpt silver
equivalent (22.89 gpt Ag, 0.28 gpt Au and 0.95% Pb+Zn). Inferred
resources are within open pit resources of 14,564,000 tonnes
grading an average of 51.95 gpt silver equivalent (24.95 gpt Ag,
0.28 gpt Au and 0.59% Pb+Zn) and resources outside of the open pit
of 1,265,000 tonnes grading an average of 61.17 gpt silver
equivalent (26.57 gpt Ag, 0.37 gpt Au and 0.74% Pb+Zn).
The current NI 43-101 Resource Estimation
conducted on Promontorio by SRK Consulting Inc. (U.S.) of
Lakewood, Colorado (See
May 14, 2013 news release), included
gold assay results in the updated resource estimation. As a result
of the addition of gold, the mineral resource is now contained in a
single larger optimized Whittle Pit, as opposed to two individual
smaller pits as reported in the August 21,
2012 resource estimate. The decision to include gold
in the resource estimation follows extensive metallurgical testing
and technical analysis conducted by ALS Minerals of Kamloops, British Columbia that confirmed up
to 94.5% recovery of gold from pyrite concentrates from the
Promontorio resource can be achieved using a post pressure
oxidation treatment process.
QA/QC
Samples were assayed using a high-grade
multi-acid digestion ICP analysis conducted by ALS Chemex of
North Vancouver, B.C.,
Canada and prepped in ALS Chemex's
Lab in Hermissilo, Sonora, Mexico.
Further Quality Assurance and Control procedures and details on
assays procedures and laboratories used are disclosed on the
Kootenay Silver Inc. website. 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
July 21, 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.