Kootenay Silver (KTN-V) July 21, '16 is pleased to provide an update on activities at its 100% owned La Cigarra silver project located in Chihuahua State, Mexico. The Company reports drill permits are in place and preparations for the previously announced 3,000 metre drill program are well underway with expectations that drilling will commence on or by August 1, 2016.
The targeted drill program is designed to test the high priority RAM target and to expand La Cigarra's current mineral resource estimate by targeting continuity of high-grade trends recently identified within the resource. (Click the following link to view a map of the La Cigarra Resource and RAM drill targets)
States Kootenay President and CEO James McDonald "We are very pleased to proceed with our drill program on La Cigarra and the highly prospective nearby RAM target. This is a key drill campaign that will aid us in our goal of expanding known resources with focus on understanding and expanding high-grade silver zones extending from within the La Cigarra resource prior to proceeding with a Preliminary Economic Assessment on the project. We are also very excited to conduct a maiden drill program on the nearby RAM target that is a large, structurally controlled 3.8 kilometre anomalous silver trend that offers significant potential to further add to our current silver resources."
Drill testing will begin on the RAM target where the initial 8 holes of the program are planned, followed by drilling along extensions of the La Cigarra resource where several underlying high-grade silver zones have been identified. This includes the southern boundary of the Las Carolinas Zone where hole 155 returned 23 metres of 138 g/t silver. (See Northair News Release dated Dec 15, 2014). This area remains open down dip and along strike to the southeast, which could potentially extend an additional two kilometres. The overall objective of the program will be to further determine the controls of the high-grade mineralized zones, contained within and extending from La Cigarra with a focus on expanding the known NI 43-101 silver resource estimate.
A larger drill program will be designed as progress and results of re-logging to assess the potential to model the high-grade zones and the 3,000 metre program are made and received.
La Cigarra Resource Estimate
La Cigarra's updated NI 43-101 resource estimate was completed by Allan Armitage, PhD, P. Geo. and Joe Campbell, B.Sc., P. Geo., of GeoVector Management Inc. Resource Statement for the La Cigarra silver project located in Chihuahua State, Mexico: Effective Date January 14, 2015.
The resource estimate was calculated based on results from 156 of 173 holes totaling 27,617 metres drilled along the open ended La Cigarra mineralized system which has a defined strike length of at least three kilometres. The 156 holes included in the Property's resource estimate were positioned within a potentially surface minable area comprised of the San Gregorio and Las Carolinas mineralized zones, which combined form a total strike length of 2.4 kilometres. The resource estimate was constrained by a constrained pit shell utilizing a $22 /oz silver price and reported at a 35 g/t silver cut-off grade, and considers metallurgical recoveries of 84% silver. A summary of the mineral resource estimate is listed below:
Resource Tonnes In-Situ Grade Category* Ag (g/t) Au (g/t) Pb (%) Zn (%) Measured 3,620,000 88.9 0.074 0.14 0.19 Indicated 14,930,000 85.7 0.068 0.13 0.18 Meas + Ind 18,540,000 86.3 0.069 0.13 0.18 Inferred 4,450,000 80 0.058 0.13 0.16 Contained Metal Ag (oz) Au (oz) Pb (lbs) Zn (lbs) 10,340,000 9,000 10,920,000 15,510,000 41,130,000 33,000 42,950,000 59,260,000 51,470,000 41,000 53,870,000 74,770,000 11,460,000 8,000 12,680,000 15,610,000
The La Cigarra mineral resource is sensitive to cut-off grade. To illustrate this, the block model quantities and grade estimates within the conceptual pit are presented in the following table at different cut-off grades utilizing a $22/oz silver price.
Resource Cut-off grade Tonnes Ag (g/t) Ag (oz) Au (g/t) Pb (%) Zn (%) Category* Measured > 50 Ag g/t 2,670,000 105.7 9,060,000 0.082 0.15 0.20 > 40 Ag g/t 3,250,000 94.7 9,900,000 0.077 0.14 0.20 > 35 Ag g/t 3,620,000 88.9 10,340,000 0.074 0.14 0.19 > 30 Ag g/t 3,980,000 83.8 10,720,000 0.072 0.13 0.19 > 20 Ag g/t 5,020,000 71.6 11,550,000 0.067 0.12 0.17 > 10 Ag g/t 6,950,000 55.6 12,430,000 0.062 0.09 0.14 Indicated > 50 Ag g/t 10,700,000 102.9 35,410,000 0.075 0.14 0.20 > 40 Ag g/t 13,390,000 91.2 39,280,000 0.071 0.13 0.19 > 35 Ag g/t 14,930,000 85.7 41,130,000 0.068 0.13 0.18 > 30 Ag g/t 16,490,000 80.7 42,770,000 0.066 0.13 0.17 > 20 Ag g/t 19,820,000 71.3 45,430,000 0.063 0.12 0.16 > 10 Ag g/t 28,240,000 54.1 49,180,000 0.059 0.09 0.13 Inferred > 50 Ag g/t 3,080,000 97.1 9,600,000 0.063 0.15 0.19 > 40 Ag g/t 3,950,000 85.4 10,850,000 0.060 0.14 0.17 > 35 Ag g/t 4,450,000 80.0 11,460,000 0.058 0.13 0.16 > 30 Ag g/t 5,010,000 74.8 12,040,000 0.057 0.13 0.15 > 20 Ag g/t 6,830,000 61.2 13,440,000 0.056 0.13 0.13 > 10 Ag g/t 10,450,000 44.7 15,030,000 0.052 0.10 0.11
Note: * Values is this table are reported in relation to a conceptual pit shell at a $22/oz silver price and for cut-off grades below and above 35 g/t silver should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade. All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
Sampling and QA/QC
All technical information for the La Cigarra exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken under the direction of qualified geologists and stored in sealed bags. Samples are delivered by the Company via courier to ALS Minerals ("ALS") in Chihuahua. The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver B.C. Systematic assaying of standards is performed for precision and accuracy. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30 gram fire assay with an AA finish.
Qualified Persons
The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed on behalf Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in Mexico and in British Columbia, Canada. The Company's top priorities are the advancement of the La Cigarra silver project and the Promontorio Mineral Belt, in Chihuahua, Mexico and Sonora, Mexico, respectively. The La Cigarra property is 26 kilometres from the historic mining city of Parral and boasts nearby power, good road access, gentle topography, and established infrastructure. La Cigarra currently hosts a resource estimate of 18.54 million tonnes containing 51.47 million ounces of silver in the Measured & Indicated categories grading 86.3 g/t silver and 4.45 million tonnes containing 11.46 million ounces of silver in the Inferred category grading 80 g/t silver. The mineralized system at La Cigarra has been traced over 6.5 kilometres and is defined at surface as a silver soil anomaly and by numerous historic mine workings. The La Cigarra silver deposit is open along strike and at depth and is approximately 25 kilometres north, and along strike, of Grupo Mexico's Santa Barbara mine and Minera Frisco's San Francisco del Oro mine. The Promontorio Mineral Belt includes the Company's La Negra high-grade silver discovery and its Promontorio Silver Resource. The Promontorio Mineral Belt is under option to Pan American Silver whereby they can earn a 75% interest in the project with US$16 million of expenditures and payments with Kootenay retaining a 25% carried to production interest (see news release February 16 and March 4, 2016). The Promontorio Silver Resource currently hosts a resource estimate of 44.5 million tonnes containing 92 million ounces of silver equivalent in the Measured & Indicated categories grading 64.3 g/t silver equivalent and 14.6 million tonnes containing 24.3 million ounces of silver equivalent in the Inferred category grading 52 g/t silver equivalent. The Company's core objective is to create value by acquiring silver resources through discovery and acquisition and testing those resources with the ultimate goal of developing them into silver production if they are proven to be economically viable.
James McDonald, CEO and President at
403-880-6016;
Ken Berry, Chairman at
604-601-5652;
1-888-601-5650; or
visit: http://www.kootenaysilver.com |
