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Tuesday, 03/14/2017 3:50:17 PM

Tuesday, March 14, 2017 3:50:17 PM

Post# of 121
AlphaStox Comments on Kootenay Zinc Inc.
Dear Alphastox Subscribers,

Kootenay Zinc (CSE:ZNK; OTCQB: KTNNF; Frankfurt: KYH), a company we’ve been involved with since their last $0.20/share financing, issued an update on their Sully Project. Here’s an excerpt taken straight from their release yesterday:

“…its Sully project team has recently completed drill hole SY17-11, which tested a portion of the E1 zone of the East anomaly. The hole did not intersect an extensive high density mass but did intersect a number of geologically significant features with similarities to the Sullivan sedimentary environment.”

This is obviously a significant release for the company as management now has the necessary data to interpret the initial results and come up with a plan going forward. They’re still waiting for their EM and MAG survey results to come in which should help them assess the best steps forward but they’re already beginning to review the data in the meantime. Although hole SY17-11 did not intersect an extensive high density mass, these initial results are positive in that they did hit a number of significant geological features similar to TECK’s Sullivan mine.

Like I’ve said many times before, they’re elephant hunting here but they have the right team to do it. When investing in a pure grassroots exploration stories, I look at management and they’re ability to create value for their investors and judging by their track record over the years, this isn’t a team you want to bet against. If there’s one team that can find a needle in a haystack it’s these guys and so far, they’re continuing to push forward with Sully so they’re obviously seeing something they like on the project. These guys work with billion dollar companies like Ivanhoe Mines (TSX:IVN) and the last thing they need is to get involved with a small junior zinc play unless they felt it had tremendous potential. We’ll know more about their plans going forward but I’m hoping to see a significant drill program to kick in after spring breakup.

I’ve gotten a number of inquiries about their recent pooling agreement and I must say, I’m pretty happy with the way the stock has performed since the initial escrow release. Aside from the first day when the stock got hammered down to $0.35/share, the stock has performed nicely hovering around the $0.50/share range. From what I’ve heard, management has a good stranglehold on the paper and own most of it so we shouldn’t see a massive block flood the market but it’s definitely something we need to be aware of and keep a very close eye on.

I’ve attached their recent news release below and encourage everyone to take a much closer look and let me know if you have any questions.

Best,
Etienne

Disclosure: Transcend Capital Inc. is a shareholder of ZNK.C and has been paid a consulting fee by the company

Kootenay Zinc Corp. Announces Updates on Sully Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 13, 2017) - Kootenay Zinc Corp. (the "Company") (CSE:ZNK)(CSE:ZNK.CN)(OTCQB:KTNNF)(FRANKFURT:KYH) is pleased to announce that its Sully project team has recently completed drill hole SY17-11, which tested a portion of the E1 zone of the East anomaly. The hole did not intersect an extensive high density mass but did intersect a number of geologically significant features with similarities to the Sullivan sedimentary environment. The project team continues to review and evaluate the new core and down hole geophysics.

At a hole depth corresponding to the projected gravity anomaly an increase in thickness of intervals of carbonaceous wacke laminate (CWL), as well as an increase in proportion of CWL to argillite were noted. A 20 meter thick CWL marks the top of the Lower Aldridge Formation at Sullivan, 30 kilometres west of Sully. That interval splits and interfingers over 200 meters with ore and associated unique sedimentary rocks that comprise the Sullivan sub-basin. The thicker than normal intervals of CWL interfingering with argillite in SY17-11 suggest a sub-basin setting is present at Sully. The gravity anomaly suggests proximity to a mass in rocks deposited at an equivalent time in what appears to be a sub-basin that is entirely consistent with the Sullivan SEDEX model.

Rare lead and zinc sulphides are also observed at a hole depth of 283 and at 298.8 meters; one associated with laminated iron sulphides and the other in a quartz veinlet. Iron sulphides, predominantly pyrrhotite that commonly is accompanied by a minor amount of pyrite, are present throughout much of the hole. These sulphides are primarily in bedding parallel laminations; however disseminations and veinlets are also present. The laminations are 1 to 5 millimeters thick and where most abundant are spaced at 10 centimeter to 1 meter intervals. These observations may indicate fringe mineralization of a SEDEX style gravity mass.

Drill hole SY17-11 drilled the upper portion of unit A1c of the Hughes Range facies of the Aldridge Formation. Two small (up to 5 meters) gabbro bodies, likely dikes were intersected. Specific gravity measurements of these rock types are in a fairly narrow range and there is little to no contrast with the gabbro intersected, indicating that gabbro is unlikely to account for the anomaly. Strata in the hole are highly strained, and they display a steeply overturned west dip, consistent with the lower limb of the Hughes Range anticline described in previous news releases.

The Project Team also completed new down hole electromagnetic (EM) and magnetic (MAG) survey on holes SY16-10 and SY17-11 to expand geophysical definition of the targets. The EM results did not identify conductive targets nearby, which may not be conclusive for targeting purposes at Sully, however a modest MAG anomaly was noted and final results will be reported shortly. MAG anomalies have also been recorded in other drill holes at Sully and the Company has recently initiated a ground MAG survey over the extent of the gravity anomalies. The results of that work will be reported once the data has been collected and interpreted.

The Company will await the results and interpretation of all of the recently collected data before drilling next planned holes, expected to start immediately following spring breakup conditions. The Company also anticipates permitting of new drill sites to be completed during this time.

About the Company

Kootenay Zinc Corp. is a mineral exploration and development company based in Vancouver, British Columbia that is presently targeting the Sully Property. The Company is focused on discovering large-scale sedimentary-exhalative ("SEDEX") deposits.

The Sully Property comprises 1,375 hectares located approximately 30 kilometres east of Kimberley, B.C., and overlies rocks of similar age and origin as those which host the world-class Sullivan deposit, owned by Teck Resources Ltd. Sullivan was discovered in 1892, and is known to be one of the largest SEDEX deposits in the world. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore, including approximately three hundred million ounces of silver, eight million tonnes of zinc and eight million tonnes of lead. The equivalent level of strata as at Sullivan and that formed on the margin of that same basin are present at the Sully Property. The Company cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Sully Property.

The scientific and technical information contained in this news release has been reviewed and approved by the Company's Project Manager, Paul Ransom, P.Geo., a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

On behalf of the Board of Directors

David Schmidt, President and Chief Executive Officer


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