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Kootenay Silver: Drilling Encounters High-Grade Silver Zone on Promontorio Between Pit and NE Zones

VANCOUVER, June 4, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V; OTC: KOOYF) ("Kootenay" or the "Company") is pleased to announce assay results from drill holes DH 141 to 188 as part of its Phase V drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico.

Drilling Highlights:

DH 186
* 301 gpt Silver Eqv. Over 31.7 Meters (200 gpt Ag, 1.21 gpt Au and 1.79% Pb+Zn);
-Including 1,046 gpt Silver Eqv. Over 5.0 Meters
(808 gpt Ag, 1.83 gpt Au and 6.88% Pb+Zn)
-Including 300 gpt Silver Eqv. Over 7 Meters
(233 gpt Ag, 0.62 gpt Au and 1.6% Pb+Zn)

DH 185
* 274 gpt Silver Eqv. Over 18.4 Meters (208 gpt Ag, 0.92 gpt Au and 0.79% Pb+Zn);
-Including 1,106 gpt Silver Eqv. Over 3.0 Meters
(1,023 gpt Ag, 0.92 gpt Au and 1.66% Pb+Zn)

DH 188
* 124 gpt Silver Eqv. Over 20.3 meters (59 gpt Ag, 0.84 gpt Au and 1.0% Pb+Zn)

DH 183
* 188 gpt Silver Eqv. Over 6 meters (111 gpt Ag, 0.49 gpt Au and 2.48% Pb+Zn)
* 161 gpt Silver Eqv. Over 7.1 meters (98 gpt Ag, 0.61 gpt Au and 1.5% Pb+Zn)

States Kootenay President and CEO James McDonald "We are very pleased with current assays returned from drilling. Not only do results from Holes such as 186 and 185 represent some of the highest grades drilled to date, they occur in an area between the North East and Pit zones where these grades were not expected. This underscores the potential to delineate additional high-grade silver zones within the diatreme system. This new area of high-grade silver mineralization is open along strike and dip directions and appears to be on strike with other high-grade intercepts previously returned from drilling in the North East Zone."

A CEO interview video is available for view on the following site: http://www.kootenaysilver.com/s/Video.asp

Table of the full results follows:

   Hole ID       Target     From     To    Interval   Zn)    Ag     Au     Pb    Zn   Pb+Zn  
                             (m)     (m)      (m)     (gpt)  (gpt)  (gpt)  (%)   (%)    (%)  
 DH-183-13        NE Zone   120.5    122      1.5      162    69    0.01   0.63  4.02  4.65  
 DH-183-13        NE Zone   187.25  194.35    7.1      161    98    0.61   0.62  0.88   1.5  
 DH-183-13        NE Zone    213     219       6       188    111   0.49   1.23  1.24  2.48  
 DH-183-13        NE Zone    228     229       1       107    73    0.08   0.94  0.5   1.44  
 DH-184-13        NE Zone   218.4   223.9     5.5      93     42    0.73   0.25  0.36  0.61  
 DH-184-13        NE Zone   234.15  236.42    2.3      72     11    1.01   0.26  0.09  0.35  
 DH-184-13        NE Zone    283     297       14      65     29    0.27   0.5   0.55  1.06  
      including   NE Zone    286     289       3       169    89     0.4   1.42  1.43  2.85  
 DH-184-13        NE Zone    306     320       14      54     22    0.25   0.43  0.52  0.94  
 DH-185-13        NE Zone   185.5   191.5      6       136    92    0.69   0.12  0.24  0.36  
 DH-185-13        NE Zone   197.5   215.9     18.4     274    208   0.92   0.35  0.44  0.79  
      including   NE Zone   201.55  204.55     3      1106   1023   0.92   1.07  0.59  1.66  
      including   NE Zone   207.55  210.55     3       330    142   2.54   0.78  1.81  2.58  
 DH-186-13        NE Zone   164.8   166.3     1.5      98     81    0.15   0.28  0.15  0.42  
 DH-186-13        NE Zone   178.3    210      31.7     301    200   1.21   0.88  0.91  1.79  
      including   NE Zone    183     188       5      1046    808   1.83   3.02  3.87  6.88  
      including   NE Zone    192     199       7       300    233   0.62    1    0.6    1.6  
      including   NE Zone    202     209       7       222    62    2.58   0.54  0.52  1.06  
 DH-186-13        NE Zone    256     258       2       62      4    1.06   0.07  0.05  0.12  
 DH-188-13        NE Zone   149.7   151.6     1.9      53     35    0.22   0.11  0.21  0.32  
 DH-188-13        NE Zone   158.5   178.8     20.3     124    59    0.84   0.46  0.54    1  
 DH-188-13        NE Zone   234.65  239.15    4.5      107    23    1.29   0.29  0.45  0.75  
 DH-188-13        NE Zone    288     299       11      79     22    0.29   0.8   1.28  2.08  
 DH-165-13        B Zone     16.3    17.8     1.5      85     49    0.59   0.1   0.14  0.24  
                  Dorotea  
 DH-143-13          SE        89      93       4       70     29     0.6   0.26  0.19  0.45  
                  Dorotea  
 DH-143-13          SE       101     110       9       54     15    0.38   0.42  0.48   0.9  
                  Dorotea  
 DH-145-13          SE        6       12       6       105    46    0.83   0.49  0.24  0.73  
                  Dorotea  
 DH-149-13          SE      96.15   111.15     15      48     10    0.59   0.12  0.21  0.34  
                  Dorotea  
      including     SE      106.15  111.15     5       72      7    1.15   0.07  0.15  0.22  
                  Dorotea  
 DH-153-13          SE      18.25   19.25      1       104     1    1.94    0    0.01  0.01  
                  Dorotea  
 DH-153-13          SE      73.97   77.75     3.8      65      3    1.15    0    0.01  0.02  
                  Office  
 DH-166-13         Zone      397     419       22      30     10    0.19   0.19  0.25  0.45  
 DH-175-13        Phantom    76.8   79.05     2.3      46      3     0.8   0.04  0.01  0.05  
 DH-180-13        Phantom    35.2    36.4     1.2      94      4    1.67   0.03  0.02  0.05  
                  Pit SW  
 DH-141-13       Extension   254     258       4       87     20    0.67   0.58  0.94  1.52  
                  Pit SW  
 DH-141-13       Extension   335     336       1       72     16    0.95   0.22  0.04  0.26  
                  Pit SW  
 DH-144-13       Extension   327     328       1       80     41    0.26   0.76  0.42  1.19  
                  Pit SW  
 DH-148-13       Extension   312     321       9       47     17    0.37   0.25  0.27  0.51  
                  Pit SW  
 DH-148-13       Extension   328     331       3       51     24    0.18   0.38  0.47  0.84  
                  Pit SW  
 DH-156-13       Extension   316     339       23      32     14    0.17   0.22  0.24  0.45  
                  Pit SW  
 DH-160-13       Extension  348.2    364      15.8     48     25    0.14   0.34  0.43  0.77  
                  Pit SW  
 DH-168-13       Extension  67.75    71.2     3.5      92     47    0.07   0.87  1.14  2.02  
                  Pit SW  
 DH-168-13       Extension   274     277       3       43     13    0.24   0.23  0.62  0.86  
                 SW of Pit  
 DH-176-13        Farm EM     21      24       3       53     39    0.06   0.11  0.42  0.53  
                 SW of Pit  
 DH-151-13        Farm EM     54      69       15      42     32    0.05   0.24  0.13  0.37

*Assuming 100% Metallurgical Recovery
*Prices used in Silver Equivalent (AgEq) Calculations:
Ag dollars/oz $31.00
Au dollars/oz $1,650.00
Pb dollars/lb $0.97
Zn dollars/lb $0.89

To view map of drill results visit: http://www.kootenaysilver.com/i/projects/Promontorio/drillresultsmap.pdf

All holes are reported as drill lengths. Because of the meandering nature of mineralization within breccias and surrounding stockworks determining dimensions of mineralization is only possible after numerous holes define the boundaries of mineralized bodies.

Holes DH 183 to 188 were drilled to follow up mineralization in an area of wide spaced drilling. The grades occur both within and outside some of the inferred resource blocks between the Pit and North East Zones with the grades significantly higher than the average resource. The holes tested about 115 meters of strike extent. This area is considered by management to be very prospective for additional ounces.

Holes have now been drilled testing the western and eastern extensions of the Pit and North East resource bodies and limited area between them, the Dorotea area, the Farm EM and B zones to the southwest of the Pit and the Phantom area.

Drilling indicates the resource is open to expansion to the northeast, southwest, down dip and in the area between the Pit and North East zones. Potential also lies in the new Farm EM zone where oxide silver mineralization has been discovered. Also 4 new targets have been identified through recent interpretation of resistivity from the IP survey. These 4 conductors have similar or greater conductance than the Pit and North East zones (http://www.kootenaysilver.com/i/projects/Promontorio/Targetareas.pdf) within areas of known mineralization along the main Promontorio to Dorotea trend. There is only a single drill hole testing one of these targets and it indicates the conductor is mapping mineralization. The new geophysical interpretation indicates that the best areas within this trend may not have been drilled.

The Phantom and B Zone areas are interpreted to be the upper levels of the system above or lateral to the best mineralization.

These numerous target areas will be tested with further drilling. A break in the drilling is now being taken while all results are compiled into sections and surface mapping and geophysical targets are being incorporated into prioritizing the next set of drill holes. On completion the next stage of the current Phase V drill program will recommence. A total of 16,300 meters of the Phase V program have now been completed in 68 holes. All assays for samples taken to date in Phase V have now been reported. These are for holes DH 121 to DH 188. Various targets were tested with a total of 32 holes reporting composited mineralized intervals and 36 holes returning either insignificant results or weakly anomalous results.

Current NI 43-101 Compliant Silver Resource

The most recent mineral estimate on Promontorio (See Kootenay News Release---May 14, 2013) 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 foregoing geological disclosure has also 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.

QA/QC

The majority of holes were drilled with HQ sized diamond drill core with some sections reduced down to NQ sized core. Core samples were cut using a core saw with 1 to 2 meter long sample intervals. A select few holes drilled using reverse circulation methods were included in the resource estimation, but generally in the areas of more widely-spaced drilling between the two primary zones. 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 also 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.

SOURCE: Kootenay Silver Inc.

James McDonald,
CEO and President at 403-238-6986

Investor Relations
at 604-601-5652; 1-888-601-5650

or visit: http://www.kootenaysilver.com

http://finance.yahoo.com/news/drilling-encounters-high-grade-silver-130000079.html
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Update from KOOYF's President/CEO James McDonald .