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Kootenay Silver Updates Work Program on the Promontorio Diatreme Breccia. Drill Program Set to Resume Early September
Analysis of New Data From Results Underscore Project's Expansion Potential
Shares Outstanding: 62,738,850
VANCOUVER , Aug. 7, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V; OTC:KOOYF) In August 2012 , Kootenay Silver ("Kootenay") announced a Measured and Indicated ("M&I") resource estimate which was subsequently updated with the inclusion of the gold resource potential at Promontorio in May 2013 . The current resource estimate contains M&I resources of 44.5 million tonnes reporting 92 million ounces silver equivalent ("AgEq") (39.7M oz. Ag, 853M lbs Pb+Zn and 506,000 oz Au) for a total M&I mineral resource estimate of 92,428,000 AgEq ounces (see below for more details on resource estimate and news release of May 13 , 2013).
Subsequent to the August, 2012 resource estimate, Kootenay has undertaken extensive exploration which included: a drill program (16,400 metres) testing numerous peripheral anomalies and extensions of the known mineralization; re-interpretation of the geophysics; geologic mapping; re-interpretation of previous mapping and a soil survey program. Interpretation of this new data with the earlier database has outlined:
A. Areas of potential expansion of the known M&I resource.
B. Target zones where drilling shows potential for up-grading category from inferred resource.
C. New zones of resource potential outside drilled areas.
D. Discovery and outline of numerous newly recognized breccia pipes in the diatreme system.
States Kootenay President and CEO James McDonald "The current work has identified numerous additional priority areas with potential to sharply expand resources. Especially noteworthy are the high silver grades in drill holes DH 185 to 188 (see news release June 4 , 2013). Sitting between the NE and Pit zones, these holes show potential for the existence of a high-grade core that may connect to high grades previously identified in the NE Zone. As we approach our 100 million ounce silver equivalent milestone on Promontorio, we are excited about starting the next drill phase to test this new area of high grade silver mineralization along with the many other targets identified."
A. Potential extensions of M&I resources of breccia and stockwork mineralization have been outlined in both the Pit and NE zones by analysis of the database including recent drilling results. This analysis and interpretation of the data compiled into 39 cross-sections with 188 drill holes across the Whittle Pit included: the 30Mv IP anomaly; the gold, silver, lead, zinc, arsenic, antimony and manganese geochemical distribution; the hydrothermal alteration of the mineralized system marked by intense sodium-strontium depletion of the rocks and the geologic setting of the diatreme complex. The results show there are numerous zones within the Pit and NE zones where mineralization remains open, both peripheral to and at depth of the known estimated resource. In addition, mineralization and alteration remain open to the northeast in the NE zone, and has been extended to the southwest for some 100 metres at depth in the Pit Zone.
B. Upgrading of the resource potential within the zone of inferred mineral resource has been documented by the new drill holes DH 185-188 (see news release June 04 , 2013). High-grade sections outlined in the accompanying figure are enhanced by sections of bonanza-grade values that include drill widths of: DH 183- 3m @ 1,106 gpt AgEq (1,023 gpt Ag, 0.92 gpt Au and 1.66% Pb+Zn) within 18.4 meters of 278 gpt AgEq (208 gpt Ag, 0.92 gpt Au, 0.79% Pb+Zn) and DH 186- 5m @ 1,046 AgEq (with 808 gpt Ag, 1.83gpt Ag and 6.88% Pb+Zn) within 31.7 meters of 301 AgEq (200 gpt Ag, 1.21 gpt Au, 1.79% Pb+Zn). Mineralization in this section is within and adjacent to inferred resources southwest of the NE zone. The geophysics and chemistry of the DH 185-186 section is similar to other sections in the inferred zone.
C. A new area of resource potential has been noted some 500 meters to the southwest of the Pit zone. Drill hole DH 140 intersected 70 meters of anomalous gold (103 ppb) associated with very highly anomalous manganese (1.2% over 70m) associated with strongly negative sodium and disseminated pyrite hosted within a hydrothermal, diatreme breccia system. Surface grab samples from this area reported values of gold to 4 gpt and silver to 462 gpt and of note; highly anomalous manganese values (Mn> 3000 ppm), with anomalous arsenic, sodium depletion and pyrite is characteristic of the Promontorio M&I and inferred resource area.
D. Geologic mapping has noted the presence of a number of newly recognized diatreme breccia's related to the SW-NE trending Promontorio Breccia Corridor and represent newly discovered breccia corridors ( map: http://tinyurl.com/mvtmm55 ). Of note, some 500m north of the Pit zone, a newly recognized NW-SE trending breccia corridor has been discovered. The SE trending strike of this corridor intersects and crosses the Promontorio Breccia corridor in the vicinity of the DH 185-188 mineralization. Along this trend carbonate cemented hydrothermal breccia's are associated with strongly anomalous silver, lead, zinc and gold mineralization in surface grab samples. Interpretation of existing IP data to identify electrically conductive zones shows 3 conductive targets within and adjacent to this NW-SE trend. A fourth conductor sits immediately to the west of the Dorotea trend. Known mineralization at Promontorio is conductive. South of the Whittle Pit boundary two-zones of highly anomalous gold mineralization are noted in stockworking. One kilometer northwest of the Pit zone, a zone of highly anomalous IP has been noted, correlative with a previously known breccia and alteration zone where prospecting sampling has noted gold values of 6 gpt associated with albite and tourmaline alterations. Readers are cautioned that the Company must complete additional drilling to demonstrate additional potential in the specified areas.
The management and the technical team of Kootenay Silver believe the recognition of these diatreme breccias greatly enhances the potential size and intensity of the Promontorio Diatreme Breccia Complex as it enters its next phase of strategic drilling on the Promontorio Silver Project. The next phase of drilling is scheduled to begin in early September the details of which will be released once the various drill targets are prioritized and number of holes and meters required to test the various targets are final.
Current NI 43-101 Compliant Silver Resource
The current mineral resource estimate on Promontorio (See Kootenay News Release---May 14, 2013) contains a combined measured and indicated resource of 92,428,000 silver equivalent ounces (39.9M oz's Ag, 508K oz's Au, 394.8M lb's Pb, and 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 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: http://www.kootenaysilver.com
http://finance.yahoo.com/news/kootenay-updates-program-promontorio-diatreme-130000915.html
Kootenay Silver Updates Hydrologic and Environmental Baseline Studies Required for Advancing Promontorio Silver Project in Sonora, Mexico.
Shares Outstanding: 62,738,850
VANCOUVER , July 30, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE:KTN.V; OTC:KOOYF) is pleased to report on ongoing hydrologic work and environmental baseline studies required for the advancement of the Promontorio resource.
Three monitoring wells have been installed along the main corridor of mineralization stretching from the Northeast Zone through the Pit on to the SW zone. The wells were installed to characterize the ground water levels to be used to develop a conceptual hydrogeological model and to determine additional information that is valuable at this stage of the Promontorio Project. Information gathered includes, but is not limited to:
• Understanding groundwater on the property in terms of an initial evaluation of pit dewatering requirements.
• Initial evaluation of the potential for groundwater to supply a source of water to the project.
• Collection of initial baseline groundwater data that can be used to support acquisition of regulatory permits and assess potential environmental impacts.
This work is in preparation to evaluate groundwater conditions for Promontorio, including potential water sources and dewatering that may be required to sustain potential open pit or underground mining operations and augment water supply.
In addition, environmental baseline work over a 12 month period is complete and was done to analyze the characteristics of the surrounding environment. Surveying and data collection, of flora and fauna observations, sampling of soil, water and sediments and compilation of information on climate and socio-economic data of the area of interest were included. An analysis of geological and hydrological information available for the area was also compiled. This study provides baseline data needed to assess environmental impact of a future potential mining operation. The work was conducted by Delia Patricia Aguayo Hurtado, independent environmental consultant in Hermosillo, Sonora.
Geotechnical work completed to date includes the collection of extensive rock quality data (RQD) and specific gravity measurements along with point load testing measuring the shear strength of bedrock within and outside the resource boundaries.
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, and 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 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.
Contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: http://www.kootenaysilver.com
http://finance.yahoo.com/news/kootenay-silver-updates-hydrologic-environmental-150000788.html
<<<fyi the link that was given is to the same May summary>>>
Thank you for clarifying that for me.
fyi the link that was given is to the same May summary but the title that was given is for the early June MR announcing that the full report has been filed (and so available instead of just the May summary)
We are still at a point where the drilling from August 2012 to date is not included in an estimate of resources.
Basserman, not that I recall, but that is possible.
Hi wshaw...
Please excuse me for not doing a line by line comparison, but isn't that what was posted here 2 months go?
#msg-87932399
That's a very good question. If you look at the metals' prices used to determine the cut off grade for the pit optimization you might end up with the same question about the pit, short of a return to sane precious metal prices. As I understand the present mine (potential) strategy the underground is basically a portal low in the pit to access the part of the resource too deep for the pit methods, so it is not exactly like there is a lot of ramping to depth through barren material to get to minable resource.
They are using for underground cut-off 125% of the cut-off for pit, which is a sizable estimate for the increased cost.
Personally I would like to see the numbers if everything was redone to use say a 3 month trailing average metals prices instead of what I assume is the more usual 3 year trailing average.
IMO with KTN the real story is the blue-sky potential, the hints of gold now, the diatreme extent in the land package, etc.. Is the sliver/lead/zinc representative of halo mineralization cover associated with primarily gold mineralization closer to source ? It is imo all pretty early stage on that front.
Promontorio (Sonora, Mexico)
UPDATED NI-43-101 RELEASED ON THE PROMONTORIO SILVER PROJECT
http://www.kootenaysilver.com/s/Promontorio.asp
The pit constrained looks good, but is the underground feasible with those grades?
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
Good write-up. Thanks for posting. It was nice to see mention for a change of the other parts of the whole Kootenay story beyond Promontorio as well as an understanding of the implications in the longer term of the diatreme interpretation given to the geology last year.
Singing the Song of Sonora: Kootenay Silver's Promontorio Receives Agnico-Eagle Stamp of Approval and Adds Gold to the Mix
The Bottom Line Report
May 29, 2013
As the company rapidly approaches the 100 million ounce silver equivalent target on its flagship Promontorio project, Kootenay Silver [TSX:KTN.V; OTC:KOOYF] recently received a $4.75 million vote of confidence from a well-known mining heavyweight, and boosted its resource through an injection of an additional 506,000 ounces of gold.
Liking what it had seen during its aggressive vetting and acquisitions within the silver-rich state of Sonora, Mexico, major Agnico-Eagle [AEM - TSX, AEM - NYSE] invested $4.75 million into Kootenay Silver to close out April. Coming on the heels of acquiring the La India project through a takeover of Grayd Resources, Agnico-Eagle turned its attention to Kootenay's Promontorio Project. Following the investment by Agnico, Kootenay updated its resource estimate at Promontorio (see May 14, 2013 news release), bringing the flagship's Measured and Indicated Resource to 92,035,000 oz silver equivalent AgEq with another 24,326,000 oz AgEq categorized as Inferred.
The investment by Agnico-Eagle represented a near 10% stake in Kootenay, but also opened Kootenay up to access Agnico's Sonora-based technical team. For Kootenay, the investment and resource growth represents an important milestone, achieved within what's been a very successful 2013.
Agnico-Eagle joins celebrity investor Eric Sprott in taking a major stake in the Kootenay story, while maintaining a bullish stance on silver going forward. Coupled with the addition of a newly included gold resource, it appears Kootenay is getting much closer to its stated goal of 100 million ounces in silver equivalent, thanks to recent favorable metallurgy studies done on the property.
DRILLING RESULTS PENDING
The target within the Promontorio is a diatreme hosted system, that Kootenay's Dr. Tom Richards accurately likened to GoldCorp's [G - TSX, GG - NYSE] Penasquito project. The Penasquito is one of the largest deposits in North America, hence Richards' likening of Promontorio to the prolific Goldcorp asset is a very serious claim, and one that those following the Kootenay story cannot ignore.
Additional results from this campaign are expected in the next few weeks to a month.
ALLURE OF SONORA AND OTHER OPPORTUNITIES
Agnico's interest in Kootenay followed the company's claim that beneficial metallurgy would allow Kootenay to add some significant gold numbers to the ever-growing resource calculation.
While Promontorio is indeed the company's flagship, Kootenay also has other generative properties throughout the Sonora region, some of which are near to La India, as well as Alamos Gold's [AGI - TSX, AGI - NYSE] Mulatos Mine. These additional properties have been a part of the Kootenay portfolio over the last 7 years, it's not a far reach to expect further work to be done on these as well.
THE LATEST PROMONTORIO RESOURCE UPDATE
Within the latest updated resource statement on Kootenay's flagship, the company was able to include new metallurgical data and information to support the recovery of gold. At this stage, the open pit mineral resources for the Promontorio contain an estimated 44,504,000 tonnes that grade at an average of 64.32 g/t AgEq in the Measured and Indicated category, and an additional 14,564,000 tonnes Inferred at an average of 51.95 g/t AgEq.
The update, prepared and provided by SRK Consulting, incorporated the new evidence supporting gold recovery, however, did not include any of the drilling that's been completed since August of 2012. In that time since, the project has delivered very good results, with two separate drilling results announcements over that span.
These favourable announcements during that time included:
- January 30, 2013: Drilling results for 47 meters of 62 g/t AgEq, including 17 meteres of 94 g/t AgEq (with 47 meters grading 31 g/t Ag, and 1.32% lead and zinc or ?Pb+Zn') and (17 meters grading 48 g/t Ag and 2.0% Pb+Zn);
- March 13, 2013: Step-out drilling results for over 10 metres of 104 g/t AgEq (with 81 g/t Ag, and 0.97% Pb+Zn), which included 3 metres of 246 g/t AgEq (with 176 g/t Ag, and 3.04% Pb+Zn), and 9 metres of 47 g/t AgEq (with 33 g/t Ag, and 0.60% Pb+Zn) in a New Discovery Zone.
In addition to the open-pit resources, SRK also included an addition of underground mineral resources, to the tune of approximately 215,000 tonnes grading at an average of 56.96 g/t AgEq (M+I) and another 1.265 million tonnes grading at an average of 61.17 g/t AgEq Inferred.
THE BOTTOM LINE
Within a challenging market setting that's not been an easy environment to raise capital, Kootenay was able to attract a strategic investment with Agnico-Eagle's new involvement. Agnico was already quite active in the Sonora region, having vetted many of the projects already underway there, and acquiring Grayd Resources in 2012 for $275 million, to take over La India which is scheduled to start pouring gold in 2014. With the amount of time that both companies have been involved in Sonora, the $4.75 million investment by Agnico-Eagle appears to be that of a sign of mutual respect.
Going forward, Kootenay now has more than enough cash in hand to meet its development goals for 2013 and beyond. However what may be the key to this that makes for more excitement at the table in Kootenay's boardroom is the access to the technical expertise and regional knowledge sitting at the table with Agnico-Eagle.
Going forward, the group eagerly awaiting the results now includes Agnico-Eagle, Sprott, and many others that believe in Promontorio's promise.
G. Joel Chury
for the Bottom Line Report
http://www.vantagewire.com/articles/singing-song-sonora-kootenay-silvers-promontorio-receives-agnico-eagle-stamp-approval-and-a
long way to go, but more near-term catalysts likely, price has been at rarely seen recent lows on the very bearish days for the PMs lately.
I doubt anyone believes the new major will leave this hanging out to dry and shrivel up . . .
Kootenay is plugging along. It will take some time but IMHO, they will get there.
Kootenay Silver Approaches Milestone With Latest Updated Resource Estimate on Promontorio Silver Project, Sonora, Mexico
VANCOUVER, May 14, 2013
Shares Outstanding: 62,738,850
Kootenay Silver Inc. (TSX VENTURE: KTN.V; OTC: KOOYF) ("Kootenay" or the "Company") is pleased to announce that an updated resource estimate prepared by SRK Consulting (U.S.) Inc. of Lakewood, Colorado ("SRK") incorporating the gold content contained into the mineral resources of its flagship Promontorio Silver Project, due to new metallurgical data and information which supports recovery of gold. This updated resource estimate does not incorporate any drilling completed since the resource estimate announced August 21, 2012.
Resource Statement
The open pit mineral resources for the Promontorio Project are comprised of an estimated 44,504,000 tonnes grading an average of 64.32 gpt silver equivalent ("AgEq") classified as Measured and Indicated Mineral Resources, with an additional 14,564,000 tonnes grading an average of 51.95 gpt AgEq classified as Inferred Mineral Resources. This resource is stated above a 20.00 gpt AgEq cut-off grade and is contained within a potentially economically mineable pit shell.
Underground mineral resources are approximately 215,000 tonnes grading an average of 56.96 gpt AgEq classified as Measured and Indicated Mineral Resources, with an additional 1,265,000 tonnes grading an average of 61.17 gpt AgEq classified as Inferred Mineral Resources. This resource is stated above a 45.00 gpt AgEq cut-off grade to reflect the higher mining costs expected to be associated with underground production.
The updated Measured and Indicated Resource contains an estimated 92,035,000 oz AgEq with another 24,326,000 oz AgEq categorized as Inferred, summarized in Table 1:
Table 1: Resource Statement for the Promontorio Deposit, Sonora State, Mexico: SRK Consulting (U.S.) Inc., Effective Date March 31, 2013*
Pit-Constrained
20 gpt Avg Avg Avg Avg Avg AgEq
AgEQ Tonnes AgEq Ag Au Pb Zn Oz Ag Oz Au Oz Pb lbs Zn lbs
Cut-Off (000's) (gpt) (gpt) (gpt) (%) (%)(000's) (000's)(000's) (000's) (000's)
Measured 10,289 74.79 32.69 0.40 0.46 0.55 24,741 10,814 134 105,328 123,715
Indicated 34,215 61.18 26.30 0.34 0.38 0.45 67,294 28,926 373 287,579 335,904
M+I 44,504 64.32 27.77 0.35 0.40 0.47 92,035 39,740 506 392,907 459,619
Inferred 14,564 51.95 24.95 0.28 0.28 0.31 24,326 11,683 132 89,430 98,462
Underground Potential
45 gpt Avg Avg Avg Avg Avg AgEq
AgEQ Tonnes AgEq Ag Au Pb Zn Oz Ag Oz Au Oz Pb lbs Zn lbs
Cut-Off (000's) (gpt) (gpt) (gpt) (%) (%) (000's) (000's) (000's) (000's) (000's)
Measured 3 62.27 25.12 0.32 0.37 0.63 6 2 0 23 40
Indicated 212 56.88 22.86 0.28 0.40 0.55 387 156 2 1,889 2,551
M+I 215 56.96 22.89 0.28 0.40 0.55 393 158 2 1,913 2,591
Inferred 1,265 61.17 26.57 0.37 0.36 0.38 2,488 1,081 15 10,049 10,667
Notes:
* Mineral Resources are not Mineral Reserves and do not have demonstrated economic
viability. There is no certainty that all or any part of the Mineral Resources
estimated will be converted into Mineral Reserves.
[1] Open pit resources stated as contained within a potentially economically
minable pit shell;
[2] Pit optimization is based on assumed silver, gold, lead, and zinc prices of
CDN$31/oz, CDN$1650/oz, CDN$0.96/lb, and CDN$0.89/lb respectively, mill recoveries
of 74%, 70%, 81% and 88% respectively, a 1.5% NSR, Estimated mining costs of
CDN$1.20/t, and estimated processing and G&A cost of CDN$12.00/t; and an estimated
POX cost of CDN$2/tonne (CDN$30/tonne of pyrite concentrate)
[3] Break-even cut-off grades used were 20 gpt AgEq for open pit mill material and 45
gpt AgEq for underground material;
[4] Silver equivalency is based on unit values calculated from the above metal prices,
and assumes 100% recovery of all metals; and
[5] Mineral resource tonnage and contained metal have been rounded to reflect the
accuracy of the estimate, and numbers may not add due to rounding.
Table 2: Metallurgical Recovery Assumptions
Metal Product Recovery (%)
Silver Lead Concentrate 74
Lead Lead Concentrate 81
Zinc Zinc Concentrate 88
Gold Pyrite Concentrate 65
Gold Lead Concentrate 9
Gold Overall * 70
* Includes 94% cyanidation extraction from pyrite concentrate + gold contained in
lead concentrate
AFAIK the annual is not available yet, but I expect it in about a week (last day of April last year, May 2 in 2011)
Seeing the interest from Agnico-Eagle is a major step for KTN, however I regret that it took place at shortly after the 52-week low, at price reflecting avg of that low (no premium for the warrants?). I also would have preferred some structuring with Promontorio structured as a private subsidiary and the investment being in that. Instead approx 11% increase in issued shares and 53% increase in warrants (which at least were priced more toward the recent share prices and above the 200 day avg and for only 2 years) for the whole company. Contrary to some views KTN does have more going on than Promontorio after all.
All in all it is great to see a strong hand buying in.
Outstanding news, thanks. Have you a link to their year end financials? I cant seem to find them.
Kootenay Silver Announces Strategic Investment by Agnico-Eagle Mines Limited
Shares Outstanding: 56,488,850
VANCOUVER , April 23, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V; OTC:KOOYF) ("Kootenay" or the "Company") announces that Agnico-Eagle Mines Limited ("Agnico-Eagle") has entered into a subscription agreement to make an investment of $4,750,000 in Kootenay through a non-brokered private placement of units. As a result of the transaction, Agnico-Eagle will own 9.96% of Kootenay's issued and outstanding shares on a non-diluted basis.
Under the terms of the subscription agreement, Agnico-Eagle will purchase a total of 6,250,000 units at a price of $0.76 per unit. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each whole share purchase warrant will entitle Agnico-Eagle to acquire one common share of the Company at a price of $1.08 for a period of two years from the date of issuance. In the event that all warrants are exercised, an additional $3,375,000 will be raised.
James McDonald, President and CEO of Kootenay commented, "We are very pleased that Agnico-Eagle has committed to become a strategic investor in Kootenay Silver. Agnico's investment provides us with a substantial alternative source of capital to the open market from a recognized world leader in precious metals mining, development and exploration. Agnico's commitment to exploration and mining in Mexico directly coincides with our own commitment to the exploration and development of Promontorio. This investment recognizes the quality and near-term potential of our flagship Promontorio Silver project and our other principal exploration targets in Sonora, Mexico ."
Sean Boyd , President and CEO of Agnico-Eagle commented, "We are pleased to be involved with the advancement of Promontorio, a project that will continue to benefit from Kootenay's capable exploration team. This investment is also consistent with our desire to increase our presence in Sonora State."
The Company intends to use the net proceeds of the Offering for the advancement of the Promontorio Silver project and general working capital.
The closing of the private placement is expected to occur on or about April 26, 2013 and is subject to all necessary regulatory approvals. The common shares issuable pursuant to the offering (including the common shares issuable upon the exercise of the warrants) are subject to a four-month hold period. Upon closing of the private placement, subject to certain conditions, Agnico-Eagle will have the right to participate in any future equity offerings by the Company in order to maintain its pro rata investment in the Company.
The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States .
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
Contact:
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/kootenay-announces-strategic-investment-agnico-120000800.html
Kootenay Announces Updated NI 43-101 Resource Calculation Commissioned on Promontorio to Incorporate and Quantify Gold Content in the Current Silver-Lead-Zinc Resources
Shares Outstanding: 56,488,850
VANCOUVER, April 4, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN; OTC:KOOYF) ("Kootenay" or the "Company") is pleased to announce SRK Consulting Inc. (U.S.) of Lakewood, Colorado has been commissioned to provide an updated, independent resource calculation on the Company's flagship Promontorio Silver Project in Sonora, Mexico.
The Company reports the decision to include gold assay results in the updated resource estimation follows extensive metallurgical testing and technical analysis 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.
States Kootenay CEO James McDonald "We are very pleased to proceed with an updated resource calculation on Promontorio and to include the extensive gold assays found to be contained within the Promontorio diatreme system as part of our updated resource estimation. The gold in Promontorio is found to be evenly distributed throughout the silver resources and as such holds potential to further boost and enhance the value of the contained mineral resource going forward."
Metallurgy Testing Conducted by ALS Minerals of Kamloops, B.C.
Kootenay recently concluded through metallurgical testing and technical analysis that the gold contained within the Promontorio diatreme system can be effectively recovered following a pressure oxidation process. After pressure oxidation, 94.5% of the gold was extracted from a pyrite concentrate.
The testing was conducted on a pyrite concentrate derived from flotation testing completed by ALS Minerals in Kamloops British Columbia. The pyrite concentrate had a head assay of approximately 3.0 gpt Au and approx. 98% of the pyrite was oxidized. The pyrite concentrate was treated through a batch pressure oxidation testing unit at approx. 200 degrees Celsius and a pressure of 2000 kPa for 2 hours. Post oxidation, the residue was further treated through a standard bottle roll cyanidation test.
After 48 hours of direct cyanidation leaching, 94.5% of the gold contained in the pressure oxidation residue was leached into the solution phase. Results from the testing indicate that the gold in the pyrite concentrate can be effectively recovered through post pressure oxidation treatment.
The Company reiterates that it is important to note that the economics and capital costs of recovering the gold resources in this stream using pressure oxidation (or oxidation of any type)/cyanidation will require further evaluation and assessment, which is currently underway on Promontorio. There is no assurance to what the extent of the net benefit will be resulting from this work.
Current 30,000 Meter Drill and Resource Expansion Program
At present, three core drills are operating on Promontorio. The current 30,000 meter, multi-phase drill and resource expansion program is the largest and most expansive drilling campaign conducted on the Promontorio Silver Project to date.
Current NI 43-101 Compliant Silver Resource
The most recent updated NI 43-101 mineral estimate on Promontorio (See KOOTENAY News Release—August 21, 2012) contains a combined Measured and Indicated silver resource of 61,679,000 silver equivalent ounces (37.5M oz's Silver, 372M lb's Lead, 436.9M lb's Zinc). In addition to the Measured and Indicated silver resources, there are an additional 14,469,000 silver equivalent ounces in the Inferred category (9.6M oz's Silver, 77.6M lb's Lead, 85.3M lb's Zinc). (Measured and Indicated resources are contained in open pit resources of 36,018,000 tonnes grading an average of 51.35 gpt silver equivalent (31.18 gpt Ag and 0.98% Pb+Zn) and underground resources of 2,216,000 tonnes grading an average of 48.75 gpt silver equivalent (30.15 gpt Ag and 0.98% Pb+Zn). Inferred resources within open pit resources of 9,136,000 tonnes grading an average of 42.86 gpt silver equivalent (28.32 gpt Ag and 0.17% Pb+Zn) and underground resources of 3,077,000 tonnes grading an average of 53.90 gpt silver equivalent (35.94 gpt Ag and 0.88% Pb+Zn).
The following are selected intervals from previously released holes showing the gold content.
(please click on the link at the bottom of this page to view these drilling intervals(
For further drill results please visit: www.kootenaysilver.com/s/DrillResults.asp
QA/QC
All holes reported here 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. All mineralized intercepts are drill core length drilled across a vertically inclined breccia system at angles of 45 to 70 degrees. Further Quality Assurance and Control procedures and details 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.
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/kootenay-announces-updated-ni-43-161800494.html
Kootenay Silver quietly moving this company forward.
Nice coverage, thx for posting. It is always enjoyable to see an article that is grounded in fact and lacking in hype. KTN may be a long story, but since recognizing the diatreme structure last year it seems they have been capitalizing on exploration with the new model guiding.
Century Mark: Kootenay Silver’s Aggressive Drill Program Towards 100 Million Silver Ounces in Northern Mexico
G. Joel Chury
Wed, 27 Mar, 2013 12:36 PM EDT
SOURCE: VantageWire.com - Currently on the books, Kootenay Silver’s [KTN.V; KOOYF] silver equivalent resource on its flagship Promontorio silver project contains a combined Measured and Indicated silver resource of 61,679,000 silver equivalent ounces (37.5M oz’s Silver, 372M lb’s Lead, 436.9M lb’s Zinc). In addition to the measured and indicated silver resources, there are an additional 14,469,000 silver equivalent ounces in the Inferred category (9.6M oz’s Silver, 77.6M lb’s Lead, 85.3M lb’s Zinc).
Having kicked off an aggressive 30,000m drill and resource expansion program late last November (now roughly one-third complete), the company aims to reach the 100 million ounce silver equivalent milestone. With three drills operating seven days a week, the company should have a steady flow of drill results coming in over the next few months, as they work towards this impressive century mark. As well, while the drills are turning, the company looks to add to Promontorio’s resource value with a new prospect of gold within its pyrite samples, and the newest discovery called the Phantom Zone, located under a previous geological blindspot. All of these events together are culminating for what could be a very intriguing 2013 for followers of the Kootenay story.
Work to-date on the property identified the system to be open ended, with at least 5 new additional mineralized areas that so far are either undrilled or under drilled. That said, the data that is available was encouraging, and led to higher expectations on increasing the size of the deposit even further. A roadmap to a nine-digit resource was scribed.
The objective is now clearly to increase the size of Promontorio, and move it into the scoping prelimary economic assessment stage, while continuing to advance the project towards commercial production. Along the way, added value from gold in the pyrite, and the new Phantom Zone that could possibly contain mineralization over 6km will very likely push Kootenay through the next important milestones.
(Note to the Geos: The Promontorio is a large diatreme hosted system. It has both open pit and underground mining potential, with cut-off grades of 15 g/t and 35 g/t respectively. Average grades in the resource were 51.35 g/t for the open pit, and 48.75 g/t for the underground. The open pit option has an upside of being contained within mineable pit shells with potential economic upside.)
PROMISING PROMONTORIO
Located in the foothills of Sonora State, Mexico, 2.5 hours by car to the nearest airport, the Promontorio project is very accessible in a prime location. It is situated in close proximity to power and water and nearby towns, providing access to supplies and a local labor force.
The property is large in size, spanning over 80,000 contiguous hectares, with a 61 million ounce measured and indicated silver equivalent resource on the books. The Promontorio’s diatreme resource has been acknowledged, underlining the project’s large-scale potential, and numerous other mineral systems are also in place outside of the diatreme that offer a pipeline of new discovery potential.
So far, the market has recognized the 61 million ounce resource’s value, but has neglected any further underlying value from the numerous other mineralization areas that offer substantial potential for new discoveries and further resource expansion.
It’s taken approximately six years of quality exploration to prove up the current silver resource. What further work required on the property should do is allay a pipeline of new projects and new deposits coming on stream. Instead of just one ongoing project, the company appears to be defining an actual mining camp. According to their outlook, this has potential of more than just one deposit to be mined.
THE UNFORESEEN POSSIBLE GOLDEN BLUESKY
While the company’s moniker denotes silver development as the primary focus, Kootenay Silver may have some gold tucked up its sleeve within its pyrite. The company identified refractory gold, which so far has provided very positive metallurgy to date.
Through oxidizing 100% of the pyrite available, Kootenay’s initial tests have shown that they’re capable of recovering approximately 94.5% of the gold. Before going full scale into the oxidation process, it appears that the company will conduct secondary tests to see what the recovery is when oxidizing only 50% of the contained pyrite, and then leeching the rest. If it’s possible to unlock the gold at a lower oxidation amount (50% vs 100%), then it would also provide a significant impact on lowering the processing cost.
At this stage, they know they can recover the gold in place, but will want to see the economic impact would be if the oxidation + leech process is effective.
NEW DISCOVERY – THE PHANTOM ZONE
Located on the main structure that hosts the two main resource bodies (the Pit Zone and the NE Zone) in the diatreme and breccias, the Phantom Zone is the newest discovery in the Kootenay portfolio. If one were to follow the structure for about 700m to the SW of the Pit resource, they’d encounter a flatline veneer of post-mineral rock that sits atop of the hosting formation. This rock essentially created a massive blindspot on the structure. However, Kootenay followed this structure along strike for over 2km further, and discovered a window into that important host of the rock formation.
The window has since been named, the Phantom Zone, which is a series of high-level quartz veins with both significant gold and silver mineralization. So far in a number of locations, the company has found visible gold embedded into the surface of the quartz, and quite reasonably have been excited about the findings. Now the company is working on mapping the new zone, and conducting preparatory work before a drill test on location will be scheduled in the near future.
Geologically speaking, already there are indications that this structure is mineralized over the entire length of where the overlying post-mineral blinspot-inducing rock sits. If this is indeed the case, then essentially the structure could be mineralized over almost the entire length, which is nearly 6km. The act of proving this hypothesis presents a tremendous increase in blue sky potential for the entire trend.
THE BOTTOM LINE
Kootenay Silver had already solidified its flagship status with its Promontorio Mexico property, and is adding more fuel to the fire with the addition of the boost of gold in the pyrite, and the potential at the Phantom Zone. The company also has a generative project in BC that brings added value, however, it will be left to mention in a future article. The real meat and potatoes are set squarely on the plate of Promontorio, where the company seems to be making important strides in expanding the already in-place resource, and in moving on to the first preliminary economic assessment.
What should also be pointed out is that the company is still quite tight in its share structure. Kootenay comes on the lower-end of the micro-cap scale with only approximately 56.5 million shares outstanding. This still gives plenty of room under the cap for future financings without too much dilution. While many of their peers have felt the downward push on juniors over the last year and a half, Kootenay has only really been pushed sideways, and has retained much of the value despite the harsh market conditions.
Going forward the focus is going to have to justifiably stay on Promontorio, and the added blue sky it contains. So much of the investment dollars have been focused on the property that the other portions of the portfolio are a distant second. There is plenty of mining activity in Sonora, especially within a 150 kilometer radius of Promontorio. Quite a few well-known mines have sprung up in the region’s latest rush that surrounds Promontorio. With nine operating mines, this is a very busy area—whereas only ten years ago there were none.
For Kootenay to get to the next stages of development will require steady leadership, and continued perseverance towards expanding the resource beyond 100 million ounce target and into PEA territory.
At its foundation, the company appears led by a team that’s built to go that distance. Covered by a well-rounded board, Kootenay Silver has all roles filled from exploration through mine building. The timing that the company’s storyline should coincide with is favorable if looked at with a bullish eye on silver.
Silver is indeed a precious metal, or poor man’s gold so to speak; But it’s also gaining ever-more importance as an industrial metal. Thanks to advanced usage within the healthcare sector, the gap left behind by the near disappearance of film development has more than been filled in terms of demands on silver. Bilateral demands upon silver give the metal a chance to outpace the leverage of gold in the coming two years.
Kootenay’s timing has a chance to match the silver wave’s crescent. Since 2010 the company has tripled its resource on Promontorio, and is looking to be on a path to quadrupling that mark. Getting to 61 million ounces has been rewarding for the company, but crossing 100 million ounces is a big milestone that with the current 30,000m drilling campaign seems attainable.
G. Joel Chury
for the Bottom Line Report
http://ca.finance.yahoo.com/news/century-mark-kootenay-silver-aggressive-drill-program-towards-163628759.html
Agreed. I think this one will take some time, but will be worthwhile. I have been in no hurry on any of them.
although it seemed to have no problem with the last raise of funds it is likely categorized in the same boat with all non-producing juniors as a dilution risk . . . but looks more like an expanding discovery
I believe that eventually this company will get some recognition.
Kootenay Silver Share Structure
Current as of March 01, 2013
Shares Issued: 56,488,850
Warrants: 5,826,600
Options: 5,179,750
Fully Diluted: 67,495,200
New Metallurgical Results Suggest Gold Could Play An Important Role At Kootenay’s Promontorio Silver Project
By Ryan Jackson in Vancouver
March 13, 2013
Last year Kootenay changed its name from Kootenay Gold to Kootenay Silver (KTN.V ~ KOOYF). The thinking was that the new name would better reflect the company’s focus on its flagship Promontorio silver project in Sonora Mexico.
After wrapping up a 37,000 metre drill program at Promontorio last year, the company was able to triple the resource to just over 36 million tonnes grading an average of 51.35 grams per tonne silver equivalent, for nearly 62 million measured and indicated ounces.
But while silver is in the spotlight at Promontorio, recent metallurgical testing has been evaluating the possibility of extracting a significant amount of gold from the ore, even though this was not factored into previous estimates.
If it proves viable, it could provide a noteworthy boost to project economics.
Preliminary metallurgical testing conducted by ALS Minerals out of Kamloops, British Columbia, on the gold component contained within the resource has already returned promising results.
Gold extraction tests using the post pressure oxidation technique achieved 94.5% recovery from the pyrite concentrate. An additional testwork is now underway.
The good preliminary results for gold recovery at Promontorio are especially encouraging given that one of the most promising, up and coming, exploration areas on the property has so far delivered great gold values.
The Dorotea zone, located to the north of the historic pit at Promontorio, has shown gold content higher than in the resource area and is a priority for the current exploration campaign.
Previous exploration at Dorotea indicated that the structure is mineralized along at least 1,000 meters of its length.
Highlights from drilling include 34.5 meters grading 1.73 grams per tonne gold, 74.83 grams per tonne silver and 2.4% lead and zinc as well as six meters grading 5.92 grams per tonne gold, 167.2 grams per tonne silver and 1.625% lead and zinc.
This year, the Kootenay team have put together another 30,000 metre drill program at Promontorio after raising C$8 million by private placement in November of 2012.
The focus of the program is on continuing to expand the known silver resource to the northeast and southwest of the main deposit, and on five adjacent, high-priority, mineralized stockwork breccia targets that offer significant potential for further resource expansion.
“The Dorotea zone, that yielded high gold numbers, will be a focus”, says Ken Berry, chairman of KootenaySilver.
“We did some limited drilling on Dorotea and it was very high in gold, silver, lead, and zinc. That was a major turning point to the recognition of Promontorio as a diatreme hosted system.”
In fact, that realization, that Promontorio is a diatreme hosted system, has significantly increased the blue sky potential.
This re-classification has identified Promontorio’s geology as consistent with many large and highly profitable deposits in a mineralised belt which runs right through Mexico and into the United States.
And some of the people who have been invited down to Mexico to examine Promontorio have begun to make comparisons to another very well known Mexican silver mine, Goldcorp’s Peñasquito mine.
Also a diatreme-hosted deposit, Peñasquito is the largest open pit mine in Mexico and in 2013 is likely to produce between 360,000 ounces and 400,000 ounces of gold, around 20 million ounces of silver, between 285 million and 305 million pounds of zinc, and between 45 million and 160 million pounds of lead.
At Promontorio, as is characteristic of diatreme deposits, it’s beginning to look like further high grade areas could be proven up in areas adjacent to the known resource, and additional metals such as gold could begin to play a more important role.
The Kootenay team has already reported results from the first eight holes drilled at Promontorio.
These holes were drilled in the Northeast Zone to search for extensions to the known mineralization, and the assays were certainly encouraging.
Highlights included 62 grams per tonne silver equivalent over 47 meters, 152 grams per tonne silver equivalent over five meters, and 119 grams per tonne silver equivalent over six meters.
If the initial results are an indication of things to come, the Kootenay team now have their long-held 100 million ounce target firmly in their sights.
http://minesite.com/news/new-metallurgical-results-suggest-gold-could-play-an-important-role-at-kootenays-promontorio-silver-project
Kootenay Silver: Step-Out Drilling on Promontorio Hits 104 gpt Silver Eqv (81 gpt Ag and 0.97% Pb+Zn) Over 10 meters, Including 3 Meters Grading 246 gpt Silver Eqv (176 gpt Ag and 3.04% Pb+Zn) and 9 Meters Grading 47 gpt Silver Eqv (33 gpt Ag and 0.60% Pb+Zn) in New Discovery Zone
Shares Outstanding: 56,488,850
VANCOUVER, British Columbia, March 13, 2013 /PRNewswire/ -- Kootenay Silver Inc. (TSX VENTURE:KTN.V; OTC:KOOYF) is pleased to announce results from an additional 11 holes from its ongoing 30,000 meter, multi-phase drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico. The holes are step-out and exploratory holes testing 3 different target areas. Included is the extension of the Pit resource to the southwest and west, the Farm EM zone to the north and the Farm EM zone to the south.
Highlights Include:
Farm EM Zone
• Discovery of a new oxide zone of mineralization 350 to 400 meters to the southwest of the Pit Resource. Drilling intercepted 3 separate intervals in the new zone, including DH 135, which returned 104 gpt Silver Eqv (81 gpt Ag and 0.97% Pb+Zn) over 10 meters, including 3 meters grading 246 gpt Silver Eqv (176 gpt Ag and 3.04% Pb+Zn)
• DH 140 returned 9 meters of 47 gpt Silver Eqv (33 gpt Ag and 0.60% Pb+Zn)
North of Pit Resource
• DH 129 intercepted 2 intervals including 60 meters returning 58 gpt Silver Eqv (31 gpt Ag and 1.18% Pb+Zn) including 22 meters of 96 gpt Silver Eqv (50 gpt Ag and 1.96% Pb+Zn) and 4 meters of 57 gpt Silver Eqv (33 gpt Ag an 1.03% Pb+Zn)
• DH 137 returned 3 different intercepts approximately 50 to 75 meters up dip of DH 129 including 21 meters of 39 gpt Silver Eqv (22 gpt Ag and 0.72% Pb+Zn, 15 meters of 52 gpt Silver Eqv (31 gpt Ag and 0.91% Pb+Zn)
States Kootenay CEO James McDonald: "We are very pleased with results from step-out drilling. Assays returned a series of encouraging intercepts from a newly discovered mineralized zone in the Farm EM target area, which sits over 350 meters to the southwest of the Pit resource and remains open in several directions. Additionally, mineralization in the Pit resource continues to open up to the north and west. Ongoing drilling and technical analysis will continue to focus on delineating the extent of mineralization in the Pit area and on determining the geometry of the new zone and its relation to the Pit Resource mineralization."
Table of the full results follows:
13-March-13 News Release
*AgEq
Hole ID Target From To Interval (Ag,Pb,Zn) Ag Pb Zn Pb+Zn
(m) (m) (m) (gpt) (gpt) (%) (%) (%)
North of
DH-129-13 Pit 283 287 4 57 33 0.39 0.63 1.02
North of
DH-129-13 Pit 319 379 60 58 31 0.58 0.6 1.18
North of
including Pit 354 376 22 96 50 1.01 0.96 1.96
Farmhouse
DH-135-13 EM 40 54 14 39 37 0.06 0.03 0.08
Farmhouse
DH-135-13 EM 63 72 9 50 45 0.06 0.13 0.19
Farmhouse
DH-135-13 EM 83 93 10 104 81 0.59 0.38 0.97
Farmhouse
including EM 86 89 3 246 176 1.87 1.17 3.04
Farmhouse
DH-136-13 EM 266 268 2 132 66 1.04 1.85 2.89
North of
DH-137-13 Pit 234 255 21 39 22 0.31 0.4 0.72
North of
DH-137-13 Pit 283 298 15 52 31 0.45 0.46 0.91
North of
DH-137-13 Pit 337 344 7 33 17 0.32 0.41 0.73
Farmhouse
DH-140-13 EM 19 28 9 47 33 0.01 0.59 0.60
13-March-13 News Release
*AgEq
Hole ID Target From To Interval (Ag,Au,Pb,Zn) Ag Au Pb Zn Pb+Zn
(m) (m) (m) (gpt) (gpt) (gpt) (%) (%) (%)
North of
DH-129-13 Pit 283.00 287.00 4 94 33 0.73 0.39 0.63 1.02
North of
DH-129-13 Pit 319.00 379.00 60 81 31 0.45 0.58 0.60 1.18
North of
including Pit 354.00 376.00 22 132 50 0.71 1.01 0.96 1.96
Farmhouse
DH-135-13 EM 40.00 54.00 14 40 37 0.02 0.06 0.03 0.08
Farmhouse
DH-135-13 EM 63.00 72.00 9 52 45 0.05 0.06 0.13 0.19
Farmhouse
DH-135-13 EM 83.00 93.00 10 113 81 0.17 0.59 0.38 0.97
Farmhouse
including EM 86.00 89.00 3 274 176 0.54 1.87 1.17 3.04
Farmhouse
DH-136-13 EM 266.00 268.00 2 144 66 0.23 1.04 1.85 2.89
North of
DH-137-13 Pit 234.00 255.00 21 57 22 0.35 0.31 0.40 0.72
North of
DH-137-13 Pit 283.00 298.00 15 86 31 0.65 0.45 0.46 0.91
North of
DH-137-13 Pit 337.00 344.00 7 51 17 0.34 0.32 0.41 0.73
Farmhouse
DH-140-13 EM 19.00 28.00 9 79 33 0.63 0.01 0.59 0.60
29-Jan-13 News Release
*AgEq
Hole ID Target From To Interval (Ag,Au,Pb,Zn) Ag Au Pb Zn Pb+Zn
(m) (m) (m) (gpt) (gpt) (gpt) (%) (%) (%)
DH-121-12 NE Zone 149.00 169.00 20 53 19 0.38 0.28 0.33 0.62
including NE Zone 154.00 155.00 1 320 111 2.81 1.52 1.28 2.80
DH-121-12 NE Zone 182.00 187.00 5 59 19 0.50 0.28 0.35 0.62
DH-121-12 NE Zone 249.00 253.00 4 142 43 1.39 0.47 0.74 1.21
DH-121-12 NE Zone 324.00 327.00 3 103 84 0.22 0.05 0.29 0.34
DH-121-12 NE Zone 484.00 531.00 47 74 31 0.23 0.67 0.66 1.32
including NE Zone 504.00 521.00 17 111 48 0.32 1.02 0.98 2.00
DH-122-12 NE Zone 132.00 136.00 4 43 19 0.11 0.75 0.04 0.78
DH-122-12 NE Zone 264.00 270.00 6 74 33 0.29 0.53 0.59 1.12
DH-123-12 NE Zone 268.00 273.00 5 53 27 0.35 0.29 0.03 0.32
DH-123-12 NE Zone 316.00 322.00 6 173 34 1.72 1.34 0.82 2.16
DH-124-12 NE Zone 318.00 323.00 5 224 89 1.39 1.29 1.45 2.74
DH-124-12 NE Zone 338.00 342.00 4 60 25 0.24 0.35 0.61 0.97
DH-124-12 NE Zone 348.00 376.00 28 54 18 0.31 0.43 0.46 0.89
including NE Zone 357.00 363.00 6 108 36 0.55 1.00 0.88 1.89
DH-124-12 NE Zone 385.00 405.00 20 53 19 0.33 0.40 0.34 0.73
including NE Zone 387.00 390.00 3 208 74 1.53 1.39 1.00 2.40
DH-125-12 NE Zone 131.00 137.00 6 142 106 0.44 0.32 0.27 0.59
DH-125-12 NE Zone 324.00 327.00 3 69 44 0.20 0.36 0.27 0.63
DH-125-12 NE Zone 342.00 351.00 9 142 31 1.79 0.48 0.35 0.83
DH-125-12 NE Zone 376.00 390.00 14 147 59 1.04 0.74 0.76 1.50
including NE Zone 380.00 383.00 3 310 129 2.15 1.58 1.47 3.06
DH-126-12 NE Zone 89.00 90.00 1 547 491 0.42 0.69 0.79 1.48
Kootenay Silver: Metallurgical Testing on Diatreme Hosted Promontorio Silver Resource Indicates Gold Within Pyrite Can be Effectively Recovered Through Post Pressure Oxidation Treatment
Shares Outstanding: 56,488,850
VANCOUVER , Feb. 28, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V; OTC:KOOYF) is pleased to announce results from preliminary metallurgical testing conducted by ALS Minerals of Kamloops, British Columbia on the gold component contained within the diatreme hosted Promontorio Silver resource. Results from the ALS gold extraction tests show that recovery of gold from the Promontorio resource is possible using post pressure oxidation. After pressure oxidation 94.5% of the gold was extracted from pyrite concentrate.
The economics and capital costs of recovering the gold using pressure oxidation/cyanidation will require further evaluation. The Company reports an additional test is now underway to assess the gold recovery with partial oxidation of the pyrite concentrate of approximately 50%.
States Kootenay President and CEO James McDonald "The results from this metallurgical testing is a positive development as the Promontorio resource and mineral system contains a substantial amount of gold that has yet to be factored into any of our resource calculations. While additional work is required to assess the economics and capital costs of oxidation, and what the potential net benefits would be, these results are a promising first step, as we continue to assess the gold component at Promontorio."
The testing was conducted on a pyrite concentrate derived from flotation testing completed at ALS Minerals in Kamloops British Columbia. The pyrite concentrate had a gold head assay of about 3.0 gpt and about 98% of the pyrite was oxidized.
The pyrite concentrate was treated through a batch pressure oxidation testing unit at about 200 degrees Celsius and a pressure of 2000 kPa for 2 hours. Post oxidation the residue was further treated through a standard bottle roll cyanidation test. After 48 hours of direct cyanidation leaching 94.5 % of the gold contained in the pressure oxidation residue was leached into the solution phase. This preliminary test indicates that the gold in the pyrite concentrate can be effectively recovered through post pressure oxidation treatment.
The Company reiterates it is important to note that the economics and capital costs of recovering the gold contained within the Promontorio Silver Project using pressure oxidation/cyanidation will require further evaluation and assessment, which is currently underway on Promontorio.
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. Please visit http://www.kootenaysilver.com for more information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: http://www.kootenaysilver.com
http://finance.yahoo.com/news/metallurgical-testing-diatreme-hosted-promontorio-162400730.html
Kootenay Silver shares rise as investors look to new project management at Promontorio, and more drill results
by Carrie White
February 20, 2013 2:36 pm
Shares of Kootenay Silver (KTN.V; KOOYF) shot up over 11 per cent Wednesday, as investors look forward to more drill results from its Promontorio silver project under the guidance of its newly appointed project manager, Kristian Whitehead.
Last week, the company bolstered its management team with the appointment of Whitehead, who has more than 10 years of experience as a project geologist, specializing in the implementation and management of drilling and advance staged programs.
Kootenay said Whitehead has "extensive experience working in Mexico", having worked on several regional projects that include the Santa Lucia in Sonora, Mexico, Golconda in Sonora, and Comacho in Zacatecas.
He will be responsible for overseeing the company's current 30,000 metre, multi-phase drill and resource expansion program now in progress on the Promontorio project, where Kootenay last month unveiled the results from the first 8 holes, which revealed values as high as 199 grams per tonne (g/t) silver.
The 30,000 metre drill program is the largest drill campaign conducted on Promontorio so far, and Kootenay said it is designed to “substantially increase” the overall size of its contained silver resource and to fast track the path to a production decision.
A preliminary economic assessment (PEA) study is planned for the end of the drilling campaign, and will include an updated resource estimate with results from the latest drilling. The report will then form the basis for the pre-feasibility study at Promontorio.
In August this past year, Kootenay announced it had nearly tripled the resource size at Promontorio. In total, the updated measured and indicated mineral resource contained an estimated 61.679 million ounces of silver equivalent, with another 14.469 million ounces of silver equivalent categorized as inferred.
The company’s shares were lately up nine cents, trading at 90 cents.
http://www.proactiveinvestors.com/companies/news/40812/kootenay-silver-shares-rise-as-investors-look-to-new-project-management-at-promontorio-and-more-drill-results-40812.html
They just keep plodding along, making progress.
Kootenay Silver Announces Kristian Whitehead, B.Sc., P.Geo. Joins Exploration and Development Team as Project Manager of Promontorio Silver Project
Shares Outstanding: 56,488,850
VANCOUVER, Feb. 13, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE:KTN.V; OTC:KOOYF) is pleased to announce Mr. Kristian Whitehead, B.Sc., P.Geo. has been appointed to the position of Project Manager of the Promontorio Silver Project in Sonora, Mexico. Mr. Whitehead brings Kootenay over 10 years experience as a project geologist, specializing in the implementation and management of drilling and advance staged programs. In his capacity as Project Manager, he will report directly to Kootenay VP of Exploration Dr. Tom Richards, B.Sc., PhD. and will be responsible for directing and overseeing the Company's current 30,000 meter, multi-phase drill and resource expansion program currently in progress on the Promontorio Silver Project.
Mr. Whitehead boasts a wealth of technical, management and geological experience in all aspects of underground and surface exploration program management, crew duty delegation, mine budgeting and design. States Kootenay President and CEO James McDonald, "We are very pleased to welcome Kristian Whitehead to the Kootenay team and look forward to his valued contributions going forward. His geological and technical experience will undoubtedly play a vital role in the continued success of our ongoing resource expansion program at the Promontorio Silver Project."
Among his credentials, Mr. Whitehead is a former Senior Project Geologist for Hawthorne Gold Corporation, former Senior Project Geologist for StrataGold Corporation and former Project and Mine Geologist for Fire River Gold Corporation. As an independent Geological Consultant, he has managed numerous strategic projects, overseeing and implementing multi-million dollar operational budgets. His duties and responsibilities have included camp construction/demobilization and maintenance, in addition to directing numerous multi-phase drill and resource expansion programs. Mr. Whitehead has acted on behalf of several exploration and mining entities, including, Southbridge Resources, Teslin River Resources, Hunter Dickinson, Taseko Mines, Fortunate Sun Mining and Copper Creek Gold.
Mr. Whitehead's exploration/development assignments have spanned globally and have included projects in Guyana, Brazil, the United States - Alaska, Canada - Yukon, BC, Alberta, Saskatchewan, Manitoba and NWT. He has extensive experience working in Mexico having worked on several regional projects that include, the Santa Lucia, Sonora/Mexico, Golconda, Sonora/Mexico, Comacho, Zacatecas/Mexico.
Mr. Whitehead received his BSc. Degree from The University of Victoria, British Columbia and his P.Geo designation from the Professional Engineers and Geoscientists of B.C. (APEGBC). Mr. Whitehead is a "qualified person" as defined by National Instrument 43-101.
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. Please visit http://www.kootenaysilver.com for more information.
Contact:
James McDonald,
CEO and President at 403-238-6986
Ken Berry,
Chairman at 604-601-5652; 1-888-601-5650
http://www.stockhouse.com/news/canadianreleasesdetail.aspx?n=8737267
Kootenay Silver sees more potential to the north at Promontorio
by Deborah Bacal
Jan. 30, 2013 11:39 am
Kootenay Silver (KTN.V; KOOYF) revealed Wednesday the first drill results from its 30,000 metre resource expansion program at its Promontorio silver project in Mexico, indicating potential to the north may be better than previously thought.
Shares of the company were up by 2 cents to 89 cents this morning.
The company unveiled the results from the first 8 holes of the program today, with all holes outside of the current resource boundaries - at intervals of 50 to 100 metres.
Notable holes included DH 121-12, which returned 62 grams per tonne (g/t) silver equivalent over 47 metres, including 94 g/t silver equivalent over 17 metres.
A number of high grade silver equivalent intercepts, including 152 g/t over 5 metres, were found within 20 metres of 36 g/t silver equivalent in hole DH 124-12.
Meanwhile, hole DH 125-12 returned 119 g/t silver equivalent over 6 metres and 94 g/t over 14 metres, including 199 g/t over 3 metres.
"We are very pleased with results from step-out drilling," said CEO James McDonald.
"Mineralization in the Northeast Zone is widespread and continues to remain open to the north, northeast, east and south.
"DH 125 and 122 indicate potential to the north may be better than previously known. Wide intervals of altered diatreme facies (units) with mineralized intervals encountered over drilled lengths to 380 meters again confirm the system is very large and robust."
The company said drills are now operating in areas to the west and southwest of the pit resource, focused on expanding ounces.
Further drilling is also planned for the Northeast Zone to define the size of the mineralization.
The 30,000 metre drill program, which is the largest drill campaign conducted on Promontorio so far, is designed to substantially increase the overall size of Promontorio's contained silver resource and to fast track the path to a production decision.
A PEA study is planned for the end of the drilling campaign, and will include an updated resource estimate with results from the latest drilling. The report will then form the basis for the pre-feasibility study at Promontorio.
The news today follows the unveiling of an updated resource estimate at Promontorio in August, which saw a near tripling of the resource size.
In total, the updated measured and indicated mineral resource at Promontorio contains an estimated 61.679 million ounces of silver equivalent (AgEq), with another 14.469 million ounces of AgEq categorized as inferred.
The significant increase in resources was due to extensive additional drilling of over 37,900 metres. Kootenay said over 22,000 samples were used in the modeled wireframes compared to just over 3,000 for the previous model.
http://www.proactiveinvestors.com/companies/news/40029/kootenay-silver-sees-more-potential-to-the-north-at-promontorio-40029.html
Nice. I believe this one will eventually pay off.
Kootenay Silver Announces Promontorio Drilling Hits 47 Meters of 62 gpt Silver Eqv Including 17 Meters of 94 gpt Silver Eqv (47 Meters grading 31 gpt Silver and 1.32% Pb+Zn) and (17 Meters Grading 48 gpt Silver and 2.0% Pb+Zn)
Shares Outstanding: 56,488,850
VANCOUVER, Jan. 30, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V; OTC: KOOYF) is pleased to announce results from the first 8 holes of its 30,000 meter, multi-phase drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico. All 8 holes were step out holes outside of the resource boundaries at intervals of 50 to 100 meters.
Drilling Highlights:
DH 121-12
• 62 gpt silver Eqv over 47 meters including 94 gpt silver Eqv over 17 meters (47 meters grading 31 gpt Ag and 1.32% Pb+Zn including 17 meters grading 48 gpt Ag and 2.0 % Pb+Zn)
DH 124-12
• 152 gpt silver Eqv over 5 meters (grading 89 gpt Ag and 2.74% Pb+Zn), 80 gpt silver Eqv over 6 meters (36 gpt Ag and 1.89% Pb+Zn), 129 gpt Ag Eqv over 3 meters (74 gpt Ag and 2.4% Pb+Zn) within 20 meters of 36 gpt silver Eqv (19 gpt Ag and 0.73% Pb+Zn)
DH 125-12
• 119 gpt silver Eqv over 6 meters (106 gpt Ag and 0.59% Pb+Zn), 94 gpt silver Eqv over 14 meters including 199 gpt silver Eqv over 3 meters (129 gpt Ag and 3.06% Pb+Zn)
States Kootenay CEO James McDonald "We are very pleased with results from step-out drilling. Mineralization in the Northeast Zone is widespread and continues to remain open to the north, northeast, east and south. DH 125 and 122 indicate potential to the north may be better than previously known. Wide intervals of altered diatreme facies (units) with mineralized intervals encountered over drilled lengths to 380 meters again confirm the system is very large and robust."
Table of the full results follows:
Hole ID Target From To Interval *AgEq Ag Pb Zn Pb+Zn
(m) (m) (m) (gpt) (gpt)(%) (%) (%)
DH-121-12 NE Zone 149.00 169.00 20 33 19 0.28 0.33 0.62
including NE Zone 154.00 155.00 1 176 111 1.52 1.28 2.80
DH-121-12 NE Zone 182.00 187.00 5 33 19 0.28 0.35 0.62
DH-121-12 NE Zone 249.00 253.00 4 71 43 0.47 0.74 1.21
DH-121-12 NE Zone 324.00 327.00 3 92 84 0.05 0.29 0.34
DH-121-12 NE Zone 484.00 531.00 47 62 31 0.67 0.66 1.32
including NE Zone 504.00 521.00 17 94 48 1.02 0.98 2.00
DH-122-12 NE Zone 132.00 136.00 4 38 19 0.75 0.04 0.78
DH-122-12 NE Zone 264.00 270.00 6 59 33 0.53 0.59 1.12
DH-123-12 NE Zone 268.00 273.00 5 35 27 0.29 0.03 0.32
DH-123-12 NE Zone 316.00 322.00 6 85 34 1.34 0.82 2.16
DH-124-12 NE Zone 318.00 323.00 5 152 89 1.29 1.45 2.74
DH-124-12 NE Zone 338.00 342.00 4 47 25 0.35 0.61 0.97
DH-124-12 NE Zone 348.00 376.00 28 38 18 0.43 0.46 0.89
including NE Zone 357.00 363.00 6 80 36 1.00 0.88 1.89
DH-124-12 NE Zone 385.00 405.00 20 36 19 0.40 0.34 0.73
including NE Zone 387.00 390.00 3 129 74 1.39 1.00 2.40
DH-125-12 NE Zone 131.00 137.00 6 119 106 0.32 0.27 0.59
DH-125-12 NE Zone 324.00 327.00 3 59 44 0.36 0.27 0.63
DH-125-12 NE Zone 342.00 351.00 9 50 31 0.48 0.35 0.83
DH-125-12 NE Zone 376.00 390.00 14 94 59 0.74 0.76 1.50
including NE Zone 380.00 383.00 3 199 129 1.58 1.47 3.06
DH-126-12 NE Zone 89.00 90.00 1 525 491 0.69 0.79 1.48
Holes DH 127 and 128 had no significant results
Kootenay Silver Announces 30,000 Meter, Multi-Phase, Drill and Resource Expansion Program Continues at Promontorio. First 8 Holes Completed. Camp Facilities Upgraded
Shares Outstanding: 56,488,850
VANCOUVER , Jan. 17, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V; OTC: KOOYF) is pleased to announce following a scheduled two-week seasonal break, drilling has recommenced on its 30,000 meter, multi-phase drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico . At present, a total of three core rigs are operating on site.
Prior to the break a total of 8 core holes were completed with all 8 holes being drilled in the NE zone area. The holes were step out holes looking for extensions to known mineralization. Samples from the 8 holes have been taken and submitted for assaying and will be reported upon once received and compiled. Multi-phase drilling will now expand to the Dorotea area and southwest of the Pit Zone. The current 30,000 meter drill program, which is the largest drill campaign conducted on Promontorio to date, is designed to substantially increase the overall size of Promontorio's contained silver resource and to expedite the path to a production decision.
States Kootenay CEO James McDonald "We are very pleased to ramp up drilling again at Promontorio and to report the first 8 drill holes of our program have been completed and sent for assaying. It promises to be a very exciting year ahead. Due to the accelerated nature of the program, shareholders can expect a steady stream of upcoming drill results coming from the Promontorio camp as our drill and resource expansion program reaches full capacity over the coming weeks and months."
In other news, Kootenay's ground exploration team reports a promising new area of mineralization has recently been discovered in outcrops on the main northeast to southwest trending structure that hosts the NE and Pit resources. The new mineralization is considered important as it adds significantly to the strike extent of mineralization in the Diatreme Breccia Corridor, adding an additional 3 kilometers of potential to the mineralized trend. (For a map view: Click here or visit www.kootenaysilver.com)
In conjunction with the multi-phase drill and resource expansion program, the Company further reports it has finalized the expansion of its on-site camp facilities at Promontorio to accommodate the recent increase in camp personnel and work force. Additions to the 3-shift, 24 hour per day fully serviced camp, include an upgraded cook house, new air-conditioned bunk houses and a fully equipped medical room.
Current NI 43-101 Compliant Silver Resource
The most recent updated NI 43-101 mineral estimate on Promontorio (See KOOTENAY News Release— August 21, 2012 ) contains a combined measured and indicated silver resource of 61,679,000 silver equivalent ounces. In addition to the measured and indicated silver resources, there are an additional 14,469,000 silver equivalent ounces in the inferred category. (Measured and Indicated resources are contained in open pit resources of 36,018,000 tonnes grading an average of 51.35 g/t silver equivalent and underground resources of 2,216,000 tonnes grading an average of 48.75 g/t silver equivalent. Inferred resources are within open pit resources of 9,136,000 tonnes grading an average of 42.86 g/t silver equivalent and underground resources of 3,077,000 tonnes grading an average of 53.90 g/t silver equivalent).
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.
For additional information, please contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: http://www.kootenaysilver.com
http://finance.yahoo.com/news/kootenay-silver-announces-30-000-140000314.html
Kootenay Silver’s Latest Drill Campaign Aims To Deliver A 100 Million Ounce Silver Resource At The Promontorio Project In Mexico
By Ryan Jackson in Vancouver
December 19, 2012
Drilling work at Promontorio
Back in August, having wrapped up a 37,000 metre drill program at its flagship Promontorio silver project in Sonora Mexico, the Kootenay team was able to deliver a good-looking resource update which showed three times the silver contained in the previous estimate.
The Promontorio project now holds just over 36 million tonnes grading an average of 51.35 grams per tonne silver equivalent for nearly 62 million measured and indicated ounces.
Now Ken Berry, chairman of Kootenay Silver (TSXV: KTN; OTC:KOOYF), is planning to do it all again and the drills are turning on another 30,000 metre drill program at Promontorio.
“We are getting really close and we think we will achieve our goal of reaching a higher level with a resource that really stands out in the market”, says Ken.
Having shattered his last goal which was in the, “40 million to 50 million-plus range,” Ken has his eye on 100 million ounces-plus of silver with an equivalent lead-zinc component for the next update, and so far he’s not been one to disappoint.
The aggressive new exploration program for Promontorio was announced immediately following the successful raise of just over C$8 million by private placement in November.
While the markets are tough for explorers, it seems the Kootenay story has stayed fresh for investors with the memory of the summer resource upgrade still strong in their minds.
“We’ve been very fortunate, we have a loyal group of shareholders and they’ve backed Jim McDonald, myself, and our whole team since about 2008”, says Ken.
“It’s been over C$50 million raised on that project now since 2008, so in difficult market conditions we’ve been able to successfully continue to advance the project.”
Kootenay has hit the ground running in Mexico this winter with two drill rigs already turning and a third set to join the party shortly. The resource expansion program has been ramping up and the company expects to provide investors with a steady stream of results from the expedited resource definition program over the coming months.
As far as targets are concerned, the focus is on continuing to expand the known silver resource to the northeast and southwest of the main deposit and on five adjacent, high-priority, mineralized stockwork breccia targets that offer significant potential for further resource definition.
Much of the success in recent exploration at Promontorio stems from a fundamental shift in understanding regarding the nature of the mineralization that took place back in March of last year.
It was then that the Kootenay team re-classified the mineralized zones at Promontorio as a diatreme system similar to many large scale projects within a mineralized belt stretching right the way through Mexico and into the United States.
Most notable among them is Goldcorp’s Peñasquito mine which achieved commercial production in 2010 and will be Mexico's largest open pit mine with a production guidance of up to 390,000 ounces of gold in 2012.
With that re-classification Ken says came the realisation that Promontorio, “holds a lot more upside than we’ve seen in just the Pit Area and the Northeast Zone.”
Particularly interesting is the Dorotea region, located to the north of the pit, where gold content has been found to be higher than in the resource area. “We formerly thought it was a structurally controlled system”, says Ken, “but now we see it as a diatreme hosted one. It’s another one of these areas that we’ll focus on in the upcoming program.”
At Dorotea, only 1,000 metres from the Pit Area resource, drilling encountered a 34.5 metre intersection grading over 74 grams per tonne silver as well as a considerable amount of lead and zinc.
In fact, Dorotea is shaping up to be a very interesting zone for Kootenay and metallurgical testing is currently focusing on it to determine what sort of recoveries can be expected from the material. If a good resource with favourable metallurgy can be proven up here it will make a significant contribution as the company constructs a preliminary economic model and moves towards pre-feasibility.
Kootenay will also conduct infill drilling to upgrade the considerable inferred resource at Promontorio to the measured and indicated categories. At present Promontorio has a NI 43-101 inferred resource of 9.7 million tonnes of material at an average grade of 46.36 grams per tonne silver equivalent, for 14.5 million silver equivalent ounces.
Once again the Kootenay team has been able successfully to complete a large financing despite difficult market conditions, and the funds are already being put to good use with the intention of repeating the dramatic resource upgrade delivered in August.
With money in the bank and no shortage of targets to drill, Kootenay Silver is on good footing to deliver another boost to the resource at Promontorio in 2013. Meanwhile, metallurgical testing, baseline studies, hydrologic testing, and oriented core holes to aid in preliminary pit design are all underway. Next year should open with some strong newsflow.
http://minesite.com/news/kootenay-silvers-latest-drill-campaign-aims-to-deliver-a-100-million-ounce-silver-resource-at-the-promontorio-project-in-mexico
cautious, even skeptical, markets in general; plus news timed at a time almost all were forced to swim upstream; and the more DD challenged (chart only types) only see a significant percentage gain off the midsummer lows. As the size of those following grows, things may change, but (at least for the US ticker, much of the time the CA also) for now this is still a little below the radar imo.
Amazing to me that this news has not moved this one.
Kootenay Silver Announces 30,000 Meter, Multi-Phase Drill and Resource Expansion Program Officially Underway on Promontorio Silver Project, Sonora, Mexico
Shares Outstanding: 56,488,850
VANCOUVER , Nov. 27, 2012 /CNW/ - Kootenay Silver Inc. (TSX VENTURE:KTN.V; OTC:KOOYF) ("Kootenay") is pleased to announce drilling has commenced on its 30,000 meter, multi-phase drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico . At present, two core rigs are operating on the project with a third rig currently in transit to the property.
States Kootenay CEO James McDonald, "We are very pleased and excited to announce our aggressive, multi-phase drill and resource expansion program on the Promontorio Silver project is underway. Due to the accelerated nature of the program, shareholders can expect a steady stream of upcoming drill results coming from the Promontorio camp, as the resource expansion program ramps up over the coming weeks and months."
In conjunction with the multi-phase drill and resource expansion program, the Company reports it is currently finalizing the expansion of its on-site camp facilities at Promontorio to accommodate the recent increase in camp personnel and work force. Additions to the 2-shift, 24 hour per day fully serviced camp include the final construction of new air-conditioned bunk houses and a fully equipped medical room.
Current Drilling and Development Initiatives
The resource expansion program on Promontorio, which is designed to increase the overall size of the contained silver resource and to expedite the path to a production decision, will comprise the following components:
• Drilling focused on expanding the known resource to the SW and NE and definition of high-grade zones
• Step-out drilling on five premier breccia targets that sit outside of known silver resource
• Infill drilling to render 'inferred resources' into the 'measured and indicated' category;
• Continued scoping and baseline studies to further advance the permitting process;
• Continued metallurgical testing to further define precious metal recoveries with emphasis on determining gold recovery of the Dorotea region, where gold content is higher than the resource area;
• Oriented core holes to aid in preliminary pit design for open-pit mining;
• Monitoring wells for hydrologic measurements needed for pit design and process water assessment
This data will form the basis of a preliminary economic model and provide a foundation for advancement to a pre-feasibility study.
The recent updated NI 43-101 mineral resource (See KOOTENAY News Release— August 21, 2012 ) contains a combined measured and indicated 61,679,000 silver equivalent ounces contained in two potentially mineable open pits. In addition to the resources that fall within the optimized Whittle Pit, there are 9,136,000 silver equivalent ounces in the inferred category and underground potential of another 2,116,000 silver equivalent measured plus indicated ounces with 5,333,000 ounces of inferred.
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.
Subject to the approval of the TSX Venture Exchange, Kootenay has issued an aggregate total of 2,100,000 incentive stock options, which are exercisable for a period of five years at an exercise price of $1.05 to directors, officers and consultants of the company.
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.
Contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: http://www.kootenaysilver.com
http://finance.yahoo.com/news/kootenay-silver-announces-30-000-140000107.html
Kootenay Silver Is Cashed Up And Ready To Build On Recent Successes At Promontorio
By Ryan Jackson in Vancouver
November 12, 2012
Kootenay Silver is on a roll this year; after re-defining the type of mineralization at their flagship Promontorio Project in Sonora Mexico last spring, exploration work has massively upgraded the resource there and taken Promontorio to a state which Ken Berry, chairman of Kootenay, calls a, “a turning point on the project.” It seems the message was not lost on investors; Kootenay has recently closed a C$8.253 million financing and is gearing up to spend the capital on further exploration.
The Historic Pit At Promontorio
The resource which has been proven up so far remains open in virtually all directions and has been verified as robust through a methodical price sensitivity analysis.
With the financial horsepower needed for further exploration secured, management at Kootenay intend to see the resource grow while they simultaneously advance development though baseline studies which are currently underway.
“Back in February or March of last year”, Ken explains, “there was a real recognition that we’re on to a diatreme hosted system.” That put the mineralized structure at Promontorio in the company of many of the large scale operations in a belt which runs through Mexico and the United States.
A notable example is Goldcorp’s Peñasquito Mine; the largest open pit mine in Mexico and a fellow diatreme hosted deposit. What’s more, mineralization is being discovered at Promontorio outside of the two known resource areas and Ken points out, “that’s indicative of a diatreme system where you see multiple areas of mineralization.”
A resource update in August tripled the NI 43-101 resource at Promontorio to just over 36 million tonnes grading an average of 51.35 grams per tonne silver equivalent. “Our resource expanded dramatically from that initial resource calculation back in 2008 of about 21 million ounces of silver equivalent to well over 61 million ounces of silver equivalent plus the inferred”, elaborated Ken.
The results shattered the 40 to 50 million silver equivalent ounce target Ken set out in July and management at Kootenay believe there’s much more where that came from.
What’s more, a recent price sensitivity analysis conducted at Promontorio concluded that even when you apply even the most conservative metal prices observed during the 18 to 36 month period, there is less than a 4 per cent variance in Promontorio’s measured and indicated resource.
Ken says that the analysis was conducted to illustrate to the market just how robust the new resource at Promontorio is and that high grade intercepts made in recent drilling have bolstered the potential economic dynamics of the resource.
“We always knew we had this wide spread mineralization and our most recent drilling showed us there are many high grade intercepts that are located amongst the wide spread mineralization. These high grade zones are really attractive when you start to develop a project like this”, he concludes.
Following the hugely successful drilling program, Kootenay went back to the markets to fund further exploration and, even in the sour economic conditions, investors flocked to the private placement. On Halloween, Kootenay announced that the final C$1,050,000 tranche of their private placement had been filled bringing the grand total up to C$8.253 million.
Ken explains just how strong the interest from shareholders is: “We announced a C$6 million financing with a C$2 million overallotment and we filled it. It’s not the easiest of market conditions for many juniors so were pleased with the success of that financing.”
Counting the most recent financing, capital raised on the Promontorio project now stands at over C$50 million since 2008 and, for that investment, the results have been exciting.
He went on to explain the short term plan at Promontorio: “We’ll commence 30,000 metres of drilling and we’ll continue on resource expansion. We are getting really close and we think we will achieve our goal of reaching a higher level with a resource that really stands out in the market.”
Much of the opportunity for growth at Promontorio lies in potentially expanding the known resources which, Ken report, “remain open in pretty much all directions and at depth.”
Additionally, in July, management at Kootenay announced the discovery of multiple new targets at the Promontorio project. Of particular note is the Dorotea Zone which has been traced for more than 2 kilometres. Ken says that the Dorotea Zone, located just to the north of the Pit Resource, “was formerly thought to be a structurally controlled system but now we see it as diatreme hosted.”
Limited drilling has been conducted at Dorotea and the results so far show very high gold, silver, lead, and zinc mineralization. Given the results so far, Dorotea is sure to be an important target in the upcoming exploration program and could be the next resource area for Kootenay at Promontorio.
With the treasury filled to the brim and a number of drill targets defined, management at Kootenay are eager to get drilling again and hope to deliver another exciting resource upgrade as part of their plan to unearth the full potential of Promontorio’s diatreme system.
Source: http://minesite.com/news/kootenay-silver-is-cashed-up-and-ready-to-build-on-recent-successes-at-promontorio
Things looking pretty good IMHO.
Kootenay video
President and CEO James McDonald delivers breaking news on Kootenay (KTN.V ~ KOOYF) including the ongoing development and aggresive expansion of the Promontorio silver project.
11/7/2012
http://www.stockhouse.com/investorrelationship/videodetails.aspx?s=V.KTN
Kootenay Silver Announces 30,000 Meter, Multi-Phase Drilling and Resource Expansion Program Slated to Commence on Promontorio Silver Project, Sonora, Mexico
Shares Outstanding: 56,488,850
VANCOUVER , Nov. 7, 2012 /CNW/ - Kootenay Silver Inc. (TSX VENTURE:KTN.V; OTC:KOOYF) (the "Company") is pleased to announce that, further to its press release dated October 31, 2012 , announcing that the Company had closed a fully subscribed, $8,253,000 brokered private placement financing, it has secured drilling contracts and has begun mobilizing drill rigs to commence a major, multi-phase, 30,000 meter drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico . The upcoming drill and resource expansion program is expected to employ up to five drill rigs at full capacity, representing the single largest drilling campaign conducted on the Promontorio project to date.
States Kootenay CEO James McDonald "We could not be more pleased to close our financing and to proceed with the next major step in the advanced development of Promontorio. The multi-phase drill and resource expansion program will focus on continuing to expand the known silver resource to the NE and SW of the main deposit, and on five adjacent, high-priority, mineralized stockwork breccia targets that offer significant potential for further resource expansion. The overall objective of the multi-phase program will be to continue to define the continuity and parameters of the contained silver deposit, and to drive the overall size of the silver resource to upwards of 100 million silver equivalent ounces by the conclusion of the program."
Upcoming 30,000 Meter, Multi-Phase Drill and Resource Expansion Program
The Company is currently mobilizing drill rigs, expanding camp facilities and coordinating personnel in preparation for the multi-phase drill and resource expansion program. Slated to commence by mid Nov 2012 , initial drilling will focus on systematically expanding the known silver resource, beginning with the unconfined portions of the higher-grade resource located in the Pit and NE zones, as defined by previous drilling. Multiple core holes will also be drilled to offset significant intercepts located along strike and between the two primary zones. Multi-phase drilling will include several oriented triple-wall diamond core holes located in the conceptual pit walls to obtain sufficient data to support a preliminary pit slope design. Drilling will also focus on five high-priority, mineralized stockwork breccia targets defined by surface exploration and limited drilling.
Current Drilling and Development Initiatives
The resource expansion program on Promontorio, which is designed to increase the overall size of the contained silver resource and to expedite the path to a production decision, will comprise the following components:
• Drilling focused on expanding the known resource to the SW and NE and definition of high-grade zones.
• Step-out drilling on five premier breccia targets that sit outside of known silver resource.
• Infill drilling to render 'inferred resources' into the 'measured and indicated' category;
• Continued baseline studies to further advance the permitting process;
• Continued metallurgical testing to further define metal recoveries with emphasis on determining gold recovery of the Dorotea region, where gold content is higher than the resource area;
• Oriented core holes to aid in preliminary pit design for open-pit mining;
• Monitoring wells for hydrologic measurements needed for pit design and process water assessment.
• Commence Preliminary Economic Assessment Study.
Updated NI 43-101 Resource Estimate - Preliminary Economic Assessment Study
A Preliminary Economic Assessment is planned at the conclusion of the program . This study will include an updated resource estimation incorporating the results of the new drilling, conceptual mining plans, hydrological studies, geotechnical information, site layout, metallurgical studies, and mill plans, environmental studies, permitting, and closure plans. This data will form the basis of a preliminary economic model and provide a foundation for advancement to a pre-feasibility study.
The recent updated NI 43-101 mineral resource (See Kootenay News Release— August 21, 2012 ) contains a combined measured and indicated 59,463,000 silver equivalent ounces contained in two potentially mineable open pits as detailed in Table 1. In addition to the resources that fall within the optimized Whittle Pit there are 9,136,000 silver equivalent ounces in the inferred category with underground potential of another 2,216,000 silver equivalent indicated ounces with 5,333,000 ounces of inferred.
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. For more information, please visit: http://www.kootenaysilver.com
Click on the link below to view Table 1: Resource Statement for the Promontorio Deposit, Sonora State, Mexico: SRK Consulting (U.S.) Inc., July 31, 2012*
James McDonald,
CEO and President
at 403-238-6986
Ken Berry, Chairman
at 604-601-5652; 1-888-601-5650
http://www.stockhouse.com/news/canadianreleasesdetail.aspx?n=8661578
Oct 31,2012 Kootenay Silver Closes Final $1,050,000 Tranche of Private Placement Financing For Gross Proceeds of $8,253,000
http://www.kootenaysilver.com/s/NewsReleases.asp?ReportID=555624&_Type=News-Releases&_Title=Kootenay-Silver-Closes-Final-1050000-Tranche-of-Private-Placement-Financing...
Kootenay Silver Closes Final $1,050,000 Tranche of Private Placement Financing For Gross Proceeds of $8,253,000
Shares Outstanding: 56,488,850
VANCOUVER , Oct. 31, 2012 /CNW/ - Kootenay Silver Inc. (KTN.V) (the "Company") is pleased to announce that it has today closed the $1,050,000 balance (the "Final Tranche") of its $8,253,000 brokered private placement (the "Offering") of units (each a "Unit") as previously announced on October 4, 2012 and October 25, 2012 and has issued an additional 1,000,000 Units at a purchase price of $1.05 per Unit for gross proceeds of $1,050,000.
Each Unit consists of one common share ("Share") of the Company and one half of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one Share of the Company at a price of $1.30 for a period of 24 months from today's date. All securities issued in connection with the Final Tranche are subject to a hold period in Canada expiring on March 1, 2013.
An aggregate of 7,860,000 Units were issued pursuant to the Offering, for aggregate gross proceeds to the Company of $8,253,000 . The Offering was conducted by Dundee Securities Ltd., on behalf of a syndicate including PI Financial Corp. (the "Agents").
In connection with the Offering, the Agents received a cash commission of $495,180 , equal to 6.0% of the gross proceeds raised under the Offering, and 471,600 compensation warrants (each a "Broker Warrant"), equal to 6% of the total number of Units issued pursuant to the Offering. Each Broker Warrant is exercisable into one Share at an exercise price of $1.05 per Share until October 25, 2014 .
The net proceeds of the Offering will be used for the advancement of the Promontorio project, maintenance of other projects and general corporate purposes.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States , nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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.
Contact:
James McDonald,
CEO and President at 403-238-6986
Ken Berry
Chairman at 604-601-5652; 1-888-601-5650
or visit: http://www.kootenaysilver.com
http://finance.yahoo.com/news/kootenay-silver-closes-final-1-130000418.html
Yes, Great minds work alike. Glad to greet you here. Things here do look very good for lacking the attention. As of this moment 11 IHUB followers. NOTICED? Or NOT NOTICED? I think not. 7 followers at this point.
I will discolse, I am in (free market) much lower than the market. Just wanted to get that off the table. I am not a seller at these prices either.
"use for the cash" Wow, no company ever has a use for the cash! Yes, I think they could find a use. That was interesting. I did not read the end of the post. I did a Benghazi on that one. For the good IMHO
That is my opinion, but I have been wrong before. LOL I do love discovering the emerging before others though. I see huge positives and negligible negatives here. Obviously not my absolute favorite, but I do like it, and it could become favorite. Favorite takes a while.
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