VANCOUVER, Oct. 15, 2014 /CNW/ – Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to announce all seven holes of its Phase I drill program on its La Negra Diatreme Breccia prospect have returned significant grades of widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery.
Kootenay's La Negra Diatreme Breccia prospect is situated approximately 6.5 kms north of Kootenay's flagship Promontorio Silver Resource in Sonora, Mexico and is one of several new Diatreme Breccia prospects recently identified within a 25 x 15 km mineralized corridor, recently christened the 'Promontorio Mineral Belt'.
States Kootenay President and CEO James McDonald "We are very pleased and excited to report a significant and entirely new silver discovery on our La Negra prospect in Sonora, Mexico. Our continued success to date on La Negra is clearly a testimony to the hard work and diligence of our entire exploration and technical team in Sonora, Mexico, led by our VP of Exploration Dr. Tom Richards. Based on its ideal proximity and its distinct geological characteristics, La Negra exhibits excellent potential to evolve into a substantial, low-cost, near surface silver resource. As drilling continues, our objective will be to further define the continuity of silver mineralization on surface and at depth to begin determining the overall scope and extent of the contained silver."
- LN 01-14 Containing from surface;
- 110.46 gpt Ag over 41 meters including
- 223.23 gpt Ag over 13 meters
- LN 02-14 Containing from surface;
- 141.28 gpt Ag over 50 meters including
- 212.64 gpt Ag over 28 meters and
- 323.13 gpt Ag over 15 meters
- LN 03-14 Bottomed in mineralized breccia in a vertical hole from surface;
- 82.57 gpt Ag over 144 meters including
- 98 gpt Ag over 103 meters and
- 195.84 gpt Ag over 25 meters
- LN 04-14 Containing from surface;
- 92.98 gpt Ag over 92 meters including;
- 149.43 gpt Ag over 20 meters from surface and
- 146.38 gpt Ag over 31 meters from 43 meter depth
- LN 05-14 Containing from surface;
- 91 gpt Ag over 119 meters including
- 182.27 gpt Ag over 40 meters
- 367.85 gpt Ag over 14 meters
- LN 06-14 Containing from surface and bottomed in mineralized breccia;
- 92.79 gpt Ag over 98 meters including
- 168.33 gpt Ag over 21 meters including
- 214.3 gpt Ag over 14 meters
- LN 07-14 Containing from surface;
- 132.49 gpt Ag over 59 meters including
- 149.6 gpt Ag over 43 meters and
- 185.35 gpt Ag over 17 meters
States Kootenay VP of Exploration Dr. Tom Richards, BSc, PhD "La Negra is a classic Diatreme Breccia prospect and an entirely new grass roots silver discovery. On trend to Kootenay's established and evolving 92 million ounce silver equivalent Promontorio resource located 6.5 kilometers to the south this new discovery underscores and confirms the regional-scale potential for additional new discoveries within the 'Promontorio Mineral Belt'."
The seven holes tested a cross section north to south about 100 meters wide with holes LN 01-14 to LN 05-14 and a long section east to west over about 100 meters long with holes LN 06-14, LN 07-14 and LN 03-14 and to a vertical depth of 144 meters.
The breccia at this location dips about 80 degrees to the south on the north contact and 70 degrees to the north on the south contact. All intercepts are hole lengths into an elongate pipe like breccia body the width, length and depth of which is not yet known. Surface exposures are very good over a 100 by 400 meter area and extend to 500 meters in length and up to 200 meters north to south.
Details of the intercepts are in the following table:
Geologic observations and interpretations to date:
As seen at surface and in drilling, the breccia is multi-staged, intensely altered, polymictic and matrix to clast supported. Clast type is difficult to determine but appears to be varieties of feldspar porphyry and includes mineralized fragments. Alteration of clasts is intense and complete to argillic and phyllic assemblages. The breccias matrix is visually composed of very fine silicas, variable carbonate and fine, light-coloured tourmaline. Small (to cm) gaseous bubble-like forms in the matrix have been noted. The wall rocks are variably mineralized with stockwork and strong argillic alteration and strong propylitic alteration of probable andesites.
La Negra represents a set of highly explosive, diatreme-hydrothermal mineralized breccias emplaced within an E-W trending extensional structure. Main mineralization appears to be hosted within the breccia matrix and as fractures and veins in argillic-sericitic altered host rock with the breccia system. The fluids, alterations and mineralization at La Negra have been derived from a deeper source as fragments/mineralization are in marked contrast to the propylite-altered country rock. This infers a deeper source for the La Negra mineralization and that the breccias are manifestations of a potentially larger hydrothermal system.
Iron oxides occur in minor to moderate amounts in the matrix and fracture boxworks. Sulfides appear at a 50 to 60 meter depth and mixed oxides/sulfides occur up to 190 meters (the deepest drill hole thus far). Very fine-grained galena has been observed as well as probable silver sulfo salts or silver sulfide.
Preliminary petrology from surface samples indicates silver is contained in the matrix gangue as Embolite/Chlorargyrite, a silver halide. Geochemistry of drill cores indicates silver in association with silver sulfides or sulfosalts. This pattern of silver hosted in Chlorargyrite and silver sulfides/sulfo salts is observed at Pan American's Alamo Dorado mine some 190 km to the south. Gold shows a strong correlation with silver. Lead and Manganese show poor to negative correlation coefficients with silver respectively.
Phase I Drilling Program on La Negra
Drilling is currently being conducted in widely spaced fences along 400 to 500 meters of La Negra's length to provide information on the sub-surface grade, continuity and geometry of the mineralized diatreme pipe. The program is contracted to be a minimum of 2500 meters of core drilling with HQ diameter core. Fourteen holes have been completed to date. Drilling is being conducted by BD Drilling of Guadalajara Mexico.
Previous Surface Trenching & Sampling Program Confirms Widespread Silver Mineralization
An extensive trenching and surface sampling program previously conducted on La Negra from bedrock exposure shows silver mineralization is remarkably consistent throughout the breccia's exposed breadth and length (between 100 to 200 meters by 500 meters). The average of all samples taken on surface is 65 gpt silver from 50 three-meter chip samples in trenches, 19 two-meter square chip panels and 31 grab samples. (See news releases from May 28thand June 5th, 2014 for more details). Previous airborne geophysics was effective in mapping the southern contact of the breccia and indicates the breccia could be twice the aerial extent of the visible bedrock exposure.
To View Full Results of Sampling Program Visit: www.kootenaysilver.com
Current NI 43-101 Compliant Silver Resource
The current mineral estimate on Promontorio effective date March 31, 2013 (See May 14, 2013 news release) contains a combined Measured and Indicated silver resource of 92,428,000 silver equivalent ounces (39.9M oz's Ag, 508K oz's Au, 394.8M lb's Pb, 462.2M lb's Zn). In addition to the measured and indicated silver resources, there are an additional 26,814,000 silver equivalent ounces in the Inferred category (12.8M oz's Ag, 147 oz's Au, 99.5M lb's Pb, 109.1M lb's Zn). Measured and Indicated resources are contained in open pit resources of 44,504,000 tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt Ag, 0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open pit of 215,000 tonnes grading an average of 56.96 gpt silver equivalent (22.89 gpt Ag, 0.28 gpt Au and 0.95% Pb+Zn). Inferred resources are within open pit resources of 14,564,000 tonnes grading an average of 51.95 gpt silver equivalent (24.95 gpt Ag, 0.28 gpt Au and 0.59% Pb+Zn) and resources outside of the open pit of 1,265,000 tonnes grading an average of 61.17 gpt silver equivalent (26.57 gpt Ag, 0.37 gpt Au and 0.74% Pb+Zn).
The current NI 43-101 Resource Estimation conducted on Promontorio by SRK Consulting Inc. (U.S.) of Lakewood, Colorado (See May 14, 2013 news release), included gold assay results in the updated resource estimation. As a result of the addition of gold, the mineral resource is now contained in a single larger optimized Whittle Pit, as opposed to two individual smaller pits as reported in the August 21, 2012 resource estimate. The decision to include gold in the resource estimation follows extensive metallurgical testing and technical analysis conducted by ALS Minerals of Kamloops, British Columbia that confirmed up to 94.5% recovery of gold from pyrite concentrates from the Promontorio resource can be achieved using a post pressure oxidation treatment process.
Core is being detailed logged and sampled with half the core being bagged, tagged, catalogued, sealed and sent to an accredited assay lab for analysis. A quality control program including blanks, standards and replicates is being used similar to that used on the Promontorio drill program. Geotechnical data such as recovery, RQD and density are being recorded also. All drilling has been with HQ core and is being done by BD Drilling from Guadalajara, Mexico. Further Quality Assurance and Control procedures and details on assays procedures and laboratories used are disclosed on the Kootenay Silver Inc. website.
The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.
Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay's objective is to develop near term discoveries and long-term sustainable growth. Its management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: The information in this news release has been prepared as at October 14, 2014. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Kootenay as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Kootenay's expectations or any change in events, conditions or circumstances on which any such statement is based.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
SOURCE Kootenay Silver Inc.
For further information: James McDonald, CEO and President at 403-238-6986; Ken Berry, Chairman at 604-601-5652; 1-888-601-5650; or visit: www.kootenaysilver.com