Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to announce that it has acquired the Mecatona Property (the “Property”) by staking of 2,857 hectares in the Parral Silver Mining District, located south of the City of Parral in Chihuahua State, Mexico and southeast of the Company’s flagship La Cigarra Project.
To date, the Company has taken 78 samples, which include both channel and grab on the Property with silver values ranging from trace to a high of 735 gpt and gold values ranging from trace to 6.94 gpt. Appreciable base metals are also present within the mineralized system with lead and zinc values returning up to 3.5% and 8.0%, respectively. See table at the end of this release for sample details and click on this link to view maps.
The Property covers a silver-dominant epithermal mineral system hosted in veins and breccias. One anomalous structure has been traced for +1.7 kilometer and remains open along strike. Early stages of exploration by the Company have also outlined other anomalous areas including a northeast trending zone outlined by stockworks and quartz veinlets within an 80 meter-wide argillic alteration zone. Several small active mines operated by local gambusinos, located 1.5 kilometres west of the Property, are reported to host high grades greater than 1 kg/ton silver at depth.
The exploration plan at the Property is to map out and define the mineralized structures and then drill test them at the same elevations the high grade is known to occur at the neighboring small-scale mines. This exploration plan was used very successfully in discoveries such as Mag Silver's Juanacipio and Electrum's Los Gatos. Although the Property hosts several small to medium sized old workings there is no evidence of any modern exploration.
Based on the length of mineralized structures, adjacent producing properties and the context within the Parral-San Francisco Del Oro-Santa Barbara mineral camps, Kootenay believes the Mecatona Property has the potential to host high grade vein type silver deposits.
Regionally, the Property is part of the larger, productive Parral Silver District that includes the Santa Barbara and San Francisco del Oro mining facilities, Endeavour Silver’s Veta Colorada and La Pamilla projects and Kootenay’s La Cigarra.
Mecatona Property Sample Results
FC2036ch CH 133 351 70 4650 1150
FC2037g G 15 11 50 90 180
FC2038d D 158 28 30 150 310
FC2039sc SC 136 65 30 210 140
FC2040sc SC 37 368 920 15600 30
FC2041f F 91 98 240 35300 80000
FC2396f F 40 12 20 480 110
FC2397d D 5 169 40 400 130
FC2398d D 45 291 1140 1270 500
FC2399g G 19 69 50 690 360
FC2400g G N/A 97 150 480 230
FC2401g G 6 90 50 820 150
FC2402g G 9 79 60 840 410
FC2403g G 12 39 50 730 210
FC2404ch CH (1m) 43 9 20 13250 810
FC2405g G N/A 3 10 280 180
FC2406ch CH (1m) 112 14 30 1870 310
FC2407ch CH (1m) 12 10 20 15400 390
FC2408g G N/A 12 30 340 260
FC2408Ag G 6 12 20 400 260
FC2409g G 7 2 N/A 630 160
FC2410g G N/A 1 N/A 20 150
FC2411g G N/A 1 10 210 120
FC2412g G N/A 1 N/A 80 90
GG307ch CH (1m) N/A N/A N/A 170 70
GG308ch CH (1m) N/A 1 N/A 30 50
LM2570g G N/A 3 20 100 120
LM2571g G 17 14 30 11700 630
LM2572g G 11 257 40 250 170
LM2573g G N/A 205 70 370 70
LM2574g G 6 4 10 650 690
LM2575g G 11 3 N/A 100 220
LM2576sc SC 130 20 30 830 220
LM2577sc SC N/A 1 N/A 30 -20
LM2578sc SC N/A N/A N/A -20 -20
LM2579f F N/A N/A N/A 20 30
LM2580p P (2mt) N/A 5 10 160 70
LM2581ch CH (2mt) N/A 28 10 190 70
RJ068g G 16 N/A 20 50 90
RJ069g G N/A N/A 10 90 70
RJ070g G N/A 1 10 100 250
RT466f F N/A 1 N/A 660 30
RT492ch CH (3m) 16 27 20 160 90
RT493 G N/A N/A N/A 50 40
RT494 G 7 13 10 1500 220
RT495 SC 6940 753 340 5320 490
RT496 G 23 44 10 170 60
RT497ch CH (2m) 7 80 70 940 170
RT498 G 10 55 40 3120 620
RT499ch CH 7 3 10 440 480
RT500 G N/A 1 N/A 240 70
TK447g G 29 328 40 200 80
TK448g G 16 1 N/A 160 110
TK449g G 6 5 N/A 980 110
TK450d D 22 194 150 3920 350
TK451g G 5 190 250 1830 590
TK452g G 42 7 10 240 140
TK453d D 5 1 N/A 120 190
TK454sc SC 23 53 50 1300 350
TK455p P 18 92 20 450 100
TK456g G 9 1 N/A 130 120
TK457g G 8 24 40 1840 450
TK458f F 58 53 20 520 200
TK459ch CH 14 17 40 2960 510
TK460g G N/A 2 N/A 160 120
TK461p P N/A N/A N/A N/A N/A
TK462f F N/A 1 N/A 20 20
TK463f G N/A N/A N/A 20 N/A
TK464g G N/A 10 N/A 970 280
TK465ch CH 50 20 70 4570 580
TK466ch CH 435 32 110 5980 470
TK467g G N/A 1 N/A 80 110
TR1511g G N/A 4 10 130 70
TR1512g G N/A 1 10 40 40
TR1513g G N/A N/A 10 90 80
TR1514g G N/A 1 10 120 90
TR1515g G N/A 2 10 170 370
TR1516g G 22 9 10 530 190
*G: grab sample, CH: chip-channel sample, F: float sample, SC: subcrop sample, D: dump sample.
Additionally, the Company announces it has entered an option agreement to acquire a 100% interest in the Meachen Bend Project (the “Meachen Property”) located 30 kilometers southwest of the famous Sullivan silver-lead-zinc mine which hosted 350 million ounces of silver, within 160 million tonnes grading 12% lead plus zinc and 68 gpt silver. The Meachen Property is comprised of three mineral tenures totaling approximately 1,048 hectares and covers elevated base metals, alteration and stratigraphy consistent with those areas peripheral to a silver-lead-zinc Sullivan style deposit. In addition, a strong single line MT conductor sits at relatively shallow depths, which is believed by the Company could be caused by massive sulfides distinctive to a Sullivan type deposit. Pursuant to the terms of the Acquisition, the Company must issue 500,000 common shares over 4 years upon receipt of TSX Venture Exchange (“TSXV”) approval. Following completion of the option the venders will retain a 1.5% net smelter return upon earn in, of which, one-half percent (0.5%) can be purchased by the Company for $500,000.
Sampling and QA/QC
Surface samples reported herein are a combination of grab, chip and panel chip. All technical information for the Mecatona exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken under the direction of qualified geologists. Samples are then labeled placed in plastic bags, sealed and with interval, location and sample numbers recorded. Samples are delivered by the Company via courier to ALS Minerals ("ALS") in Chihuahua. The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver, B.C. Systematic assaying of standards, blanks and duplicates is performed for precision and accuracy. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30-gram fire assay with an AA finish.
The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed on behalf Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Supported by one of the largest portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of two of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.
For additional information, please contact:
James McDonald, CEO and President at 403-880-6016
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaysilver.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at October 28, 2018. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Kootenay as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Kootenay’s expectations or any change in events, conditions or circumstances on which any such statement is based.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
Copyright © 2018 Kootenay Silver Inc., All rights reserved.
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Kootenay Silver Inc.
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