VANCOUVER,Feb. 14, 2014/CNW/ –Kootenay Silver Inc. (TSX VENTURE: KTN.V)(“Kootenay”) is pleased to provide an update on geological mapping and prospecting on its 100% owned Cervantes Gold/Copper Porphyry prospect located approximately 50 km northeast of its flagship Promontorio Silver resource inSonora, Mexico. Based on geologic observations, the Company believesCervanteshas potential for hosting leachable gold resources, the thesis of which can be tested at a relatively low cost. The current work is part of a regional discovery program that is focused on multiple mineralized systems identified to the northeast and northwest of the Promontorio diatreme. The prospective systems form the basis of newly identified large mineralized belts trending northwest and northeast.
The multi-phase work program is being spearheaded by VP Exploration Dr.Tom Richards, P.Geo.
Current work shows theCervantesconcession to be underlain by a suite of mineralization styles of which theCaliforniagold/copper porphyry is most significant. Important peripheral mineralized zones to the porphyry includes the sediment-hosted shear zoneBrasilwith polymetallic gold/silver, thePurisimaspecular hematite-sericite-barite-gold bearing breccias and high and low sulphidation epithermal veins and breccia’s. The mineralized systems are hosted within Paleozoic fine-grained clastics intruded by high level, quartz-eye porphyritic intrusions. Mineralization is associated with major fault structures controlling a pull-apart basin.
The following are descriptions of the numerous prospects within theCervantesconcession.
A quartz-eye, feldspar porphyry intrusion hosts the gold and copper mineralization atLa California. The intrusion is a NE-trending keel-like stock measuring approximately 2 km long and between 200-500 metres wide. The porphyry system is divided into two parts: the main part, California East Au/Cu porphyry lies to east of Cervantes Creek and the California West (Jasper Zone) porphyry lies to the west of the creek. The porphyry is epizonal as indicated by large (100m+) enclaves of host quartzite, intrusive breccias and miarolitic cavities.
La California East
The porphyry is highly fractured and marked by intense stockwork veining and locally by breccia zones. Alteration is dominantly quartz, sericite, pyrite and locally silicic (stockwork quartz veining and silica flooding). Textures of limonites goethite, jarosite and hematite within the stockwork system are indicative of a leached cap and are strongly suggestive of secondary copper enrichment at depth.
Gold and copper assays from prospector sampling were taken within a 500 x 500 metre area that is coincident with argillic and sericitic alteration and leach-cap limonites. Ninety prospector and chip samples were taken. Fifty-eight samples gave values greater than 100 ppb (0.1gpt), with high values of 19.0, 9.8, 9.0, 5.1 and 4.4 gpt gold. The average value of gold from the porphyry and its immediate surroundings is 1.03 gpt gold (and 351 ppb or 0.35 gpt for all samples less than 2 gpt). Copper averages 554 ppm (0.05%), values consistent with published values from other supergene enriched porphyries in southwestUSA. Visible secondary copper minerals (malachite) were noted only outside the leach-cap weathering zone.
Historic exploration drilling of the California East porphyry concession was undertaken by Peñoles S.A.B. de C.V (“Peñoles”) during 1996 and1997. Peñoles is reported to have drilled 14 holes. The only information recovered of this work is from third party reports and has not been verified by Kootenay and therefore not discussed.
The extension of the main California East porphyry lies 300 metres to the west and is strongly sheared and argillized. Host rocks are comprised of quartz eye rhyolite porphyry and horrnfelsed Paleozoic dirty limestone/calcareous siltstones. Limited sampling (25 grab samples) gave values of gold from background to maximum values of 13.8, 1.85 and 0.68 gpt, silver up to 53 gpt and anomalous molybdenum (to 480 ppm). Copper (as secondary neotocite) and gold-silver mineralization are spatially associated with the porphyry Jasperoid and chalcedony occur both as replacement of country rock and pods of open-space infill’s that appear suggestive of a retrograde alteration on the edges of a porphyry system. A series of NW-trending resistant quartz-hematite strataform ribs crop out to the immediate west of the jasperoid zones.
TheBrasilprospect lies 1200 metres south of theCaliforniaporphyry, hosted within the Paleozoic sediments along a north-south trending fault that defines the east margin of the pull-apart basin. Gold-Silver-polymetallic mineralization has been noted within a 100 x 300m area associated with a series of near bedding parallel shears with argillization and erratic quartz veining accompanied by strong goethite, jarosite and hematite, often forming ocherous gossans. Individual mineralized shears are typically <1.5 metres thick, but the stacking of parallel shears over at least a 50 metre interval may provide a bulk-tonnage target. Thirty-two samples (mostly grab) have been collected over theBrasilarea with 22 giving values of gold greater than 0.1 gpt and 11 greater than 1 gpt with highs of 11.5, 6.2, 4.3, 3.6, and 3.0 gpt. A single 116 gpt silver assay was noted with 13 greater than 10 gpt. Anomalous copper, lead and zinc accompanies the precious metal mineralization. TheBrasilprospect is controlled by the same structures controlling theCaliforniaporphyry and is interpreted to represent a distal phase of the porphyry-style mineralization.
Other Areas of Anomalous Mineralization: Cervantes Concession
Purisima: Two kilometres southwest of the California West porphyry lies a 2000 x 600 metre area occupied by strong to intense argillic and sericitic altered, specular hematite and barite cemented breccia’s hosting anomalous gold and molybdenum. Of the 92 samples collected, 34 gave gold values greater than 100 ppb, 52 greater than 50 ppb and 70 greater than 25 ppb, indicating a large-scale zone of anomalous gold. Two, 1 metre chip samples gave values of 44.8 and 5.9 gpt gold from an old open-cut. Other anomalous values include 0.84, 0.68, 0.36 and 0.33 gpt gold. Silver values are uniformly low.
Cayo Norte: 400 metres north of the California East porphyry, reconnaissance exploration has noted epithermal silica veins and breccias hosting gold values from background to highs of 6.5, 6.4, 4.7, 4.2 and 1.4 gpt gold.
Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region ofMexicoand inBritish 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. Securing J/V partnerships inMexicoandCanadaon non core assets maximize potential for additional, new discoveries while maintaining minimal share dilution.
Current NI 43-101 Compliant Silver Resource
The current mineral estimate on Promontorio effective dateMarch 31, 2013(SeeMay 14, 2013news release) contains a combined Measured and Indicated silver resource of92,428,000 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 additional26,814,000 silver equivalent ouncesin the Inferred category (12.8M oz’s Ag, 147K oz’s Au, 99.5M lb’s Pb, 109.1M lb’s Zn). Measured and Indicated resources are contained in open pit resources of44,504,000tonnes 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.) ofLakewood, Colorado(SeeMay 14, 2013news 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 theAugust 21, 2012resource estimate. The decision to include gold in the resource estimation follows extensive metallurgical testing and technical analysis conducted by ALS Minerals ofKamloops, British Columbiathat 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.
All sampling reported are grab rock samples unless otherwise indicated. 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.
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 atFebruary 12, 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 Statesinvestors 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 Statesinvestors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves.United Statesinvestors 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 Presidentat 403-238-6986
Ken Berry, Chairmanat 604-601-5652; 1-888-601-5650
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