Kootenay Silver (KTN-V) July 18, '14 press release dated June 20, 2014, the company has received subscriptions for $1,984,050 under the non-brokered private placement of units, and has closed the initial tranche of the private placement totalling $1,633,050 and issued an aggregate of 5,443,500 units at a purchase price of 30 cents per unit. The company anticipates closing the balance of the private placement shortly and will provide an update in due course. Each unit consists of one common share and one transferable share purchase warrant of Kootenay. Each whole warrant will entitle the holder to acquire one common share at an exercise price of 55 cents for a period of 24 months from the closing date of the private placement. All securities issued in connection with the private placement are subject to a hold period, which expires on Nov. 19, 2014. Upon approval by the TSX Venture Exchange, cash finders' fees to arm's-length parties of 6 per cent, totalling $65,790, will be paid on this portion of the private placement.
The net proceeds from the private placement will be used to finance additional work on Kootenay's Promontorio property, which includes drilling the new La Negra breccia target, and on its other properties, and for general working capital.
Current National Instrument 43-101-compliant silver resource
The current mineral estimate on Promontorio, effective March 31, 2013 (see May 14, 2013, news release), contains a combined measured and indicated silver resource of 92,428,000 silver equivalent ounces (39.9 million ounces of silver, 508,000 ounces of gold, 394.8 million pounds of lead and 462.2 million pounds of zinc). In addition to the measured and indicated silver resources, there are an additional 26,814,000 silver equivalent ounces in the inferred category (12.8 million ounces Ag, 147 ounces Au, 99.5 million pounds Pb and 109.1 million pounds Zn). Measured and indicated resources are contained in open-pit resources of 44,504,000 tonnes grading an average of 64.32 grams per tonne silver equivalent (27.77 gpt Ag, 0.35 gpt Au and 0.87 per cent Pb plus 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 per cent Pb plus 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 per cent Pb plus 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 per cent Pb plus Zn).
The current NI 43-101 resource estimation conducted on Promontorio by SRK Consulting Inc. (U.S.) of Lakewood, Colo. (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 Aug. 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, B.C., that confirmed up to 94.5-per-cent recovery of gold from pyrite concentrates from the Promontorio resource can be achieved using a postpressure oxidation treatment process.
QA/QC (quality assurance/quality control)
The foregoing geological disclosure has been reviewed and verified by Kootenay's chief executive officer, James McDonald, PGeo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay. |
