News Releases

 
Jan 30, 2013
PROMONTORIO - Drilling Hits 47 Meters of 62 gpt Silver Eqv Including 17 Meters of 94 gpt Silver Eqv (47 Meters grading 31 gpt Silver and 1.32% Pb+Zn) and (17 Meters Grading 48 gpt Silver and 2.0% Pb+Zn)

Vancouver, British Columbia: Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce results from the first 8 holes of its 30,000 meter, multi-phase drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico. All 8 holes were step out holes outside of the resource boundaries at intervals of 50 to 100 meters.

Drilling Highlights:
DH 121-12

  • 62 gpt silver Eqv over 47 meters including 94 gpt silver Eqv over 17 meters (47 meters grading 31 gpt Ag and 1.32% Pb+Zn including 17 meters grading 48 gpt Ag and 2.0 % Pb+Zn)

DH 124-12

  • 152 gpt silver Eqv over 5 meters (grading 89 gpt Ag and 2.74% Pb+Zn), 80 gpt silver Eqv over 6 meters (36 gpt Ag and 1.89% Pb+Zn), 129 gpt Ag Eqv over 3 meters (74 gpt Ag and 2.4% Pb+Zn) within 20 meters of 36 gpt silver Eqv (19 gpt Ag and 0.73% Pb+Zn)

DH 125-12

  • 119 gpt silver Eqv over 6 meters (106 gpt Ag and 0.59% Pb+Zn), 94 gpt silver Eqv over 14 meters including 199 gpt silver Eqv over 3 meters (129 gpt Ag and 3.06% Pb+Zn)

States Kootenay CEO James McDonald "We are very pleased with results from step-out drilling. Mineralization in the Northeast Zone is widespread and continues to remain open to the north, northeast, east and south. DH 125 and 122 indicate potential to the north may be better than previously known. Wide intervals of altered diatreme facies (units) with mineralized intervals encountered over drilled lengths to 380 meters again confirm the system is very large and robust."

Table of the full results follows:

Hole ID Target From To Interval *AgEq (Ag,Pb,Zn) Ag Pb Zn Pb+Zn
(m) (m) (m) (gpt) (gpt) (%) (%) (%)
DH-121-12 NE Zone 149 169 20 33 19 0.28 0.33 0.62
including NE Zone 154 155 1 176 111 1.52 1.28 2.8
DH-121-12 NE Zone 182 187 5 33 19 0.28 0.35 0.62
DH-121-12 NE Zone 249 253 4 71 43 0.47 0.74 1.21
DH-121-12 NE Zone 324 327 3 92 84 0.05 0.29 0.34
DH-121-12 NE Zone 484 531 47 62 31 0.67 0.66 1.32
including NE Zone 504 521 17 94 48 1.02 0.98 2
DH-122-12 NE Zone 132 136 4 38 19 0.75 0.04 0.78
DH-122-12 NE Zone 264 270 6 59 33 0.53 0.59 1.12
DH-123-12 NE Zone 268 273 5 35 27 0.29 0.03 0.32
DH-123-12 NE Zone 316 322 6 85 34 1.34 0.82 2.16
DH-124-12 NE Zone 318 323 5 152 89 1.29 1.45 2.74
DH-124-12 NE Zone 338 342 4 47 25 0.35 0.61 0.97
DH-124-12 NE Zone 348 376 28 38 18 0.43 0.46 0.89
including NE Zone 357 363 6 80 36 1 0.88 1.89
DH-124-12 NE Zone 385 405 20 36 19 0.4 0.34 0.73
including NE Zone 387 390 3 129 74 1.39 1 2.4
DH-125-12 NE Zone 131 137 6 119 106 0.32 0.27 0.59
DH-125-12 NE Zone 324 327 3 59 44 0.36 0.27 0.63
DH-125-12 NE Zone 342 351 9 50 31 0.48 0.35 0.83
DH-125-12 NE Zone 376 390 14 94 59 0.74 0.76 1.5
including NE Zone 380 383 3 199 129 1.58 1.47 3.06
DH-126-12 NE Zone 89 90 1 525 491 0.69 0.79 1.48
Holes DH 127 and 128 had no significant results            
*Assuming 100% Metallurgical Recovery
*Prices used in Silver Equivalent (AgEq) Calculations:
Ag  dollars/oz               $28.90
Pb  dollars/lb                 $1.00
Zn  dollars/lb                $0.95

Three drills are currently operating in areas to the west and southwest of the Pit Resource focused on expansion of resources. To view map of drill results visit: http://www.kootenaysilver.com/s/DrillResults.asp Further drilling is planned for the Northeast Zone to define the geometry and size of mineralization.

Multi-phase drilling is now focused on the Dorotea area and southwest of the Pit Zone. The current 30,000 meter drill program, which is the largest drill campaign conducted on Promontorio to date, is designed to substantially increase the overall size of Promontorio's contained silver resource and to expedite the path to a production decision.

Current NI 43-101 Compliant Silver Resource
The most recent updated NI 43-101 mineral estimate on Promontorio (See Kootenay News Release---August 21, 2012) contains a combined Measured and Indicated silver resource of 61,679,000 silver equivalent ounces (37.5M oz's Silver, 372M lb's Lead, 436.9M lb's Zinc). In addition to the measured and indicated silver resources, there are an additional 14,469,000 silver equivalent ounces in the Inferred category (9.6M oz's Silver, 77.6M lb's Lead, 85.3M lb's Zinc). (Measured and Indicated resources are contained in open pit resources of 36,018,000 tonnes grading an average of 51.35 gpt silver equivalent (31.18 gpt Ag and 0.98% Pb+Zn) and underground resources of 2,216,000 tonnes grading an average of 48.75 gpt silver equivalent (30.15 gpt Ag and 0.98% Pb+Zn). Inferred resources are within open pit resources of 9,136,000 tonnes grading an average of 42.86 gpt silver equivalent (28.32 gpt Ag and 0.17% Pb+Zn) and underground resources of 3,077,000 tonnes grading an average of 53.90 gpt silver equivalent (35.94 gpt Ag and 0.88% Pb+Zn). 

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.

ABOUT 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.

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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