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| Nov 27, 2012 |
PROMONTORIO - Kootenay Silver Announces 30,000 Meter, Multi-Phase Drill and Resource Expansion Program Officially Underway on Promontorio Silver Project, Sonora, Mexico
Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("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.
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: www.kootenaysilver.com