ESPIRITU JOINT VENTURE– Klondike Silver and Kootenay Gold
May 7 2010
ESPIRITU JOINT VENTURE– Klondike Silver and Kootenay Gold Report on 2135m in ten holes at Espiritu Porphyry Prospect, Sonora, Mexico
Klondike Silver Corp. (KS: TSX.V) and Kootenay Gold Inc. (KTN: TSX.V) report results from drilling at the Espiritu copper- gold porphyry prospect, Sonora Mexico.
Ten diamond drill holes totalling 2135 meters of HQ core were completed at Espiritu and all results have now been received and compiled. Drilling was designed to test mineralization within a copper-gold porphyry system identified by generative work, prospect sampling and mapping. The area hosts polymetallic veining, intense stockwork development and strongly zoned alteration of a porphyry system.
Technical Summary
The Espiritu porphyry setting covers an area of some 1200 x 800 metres, underlain by a zoned alteration sequence and stockwork system marked by intense secondary leaching. A number of localities marked by the presence of secondary chalcocite suggested the presence of a potential secondary enrichment zone associated with the porphyry setting. Nine of ten holes were drilled within the stockwork and leached zone with limited amounts of secondary copper being encountered.
Significant intercepts
| Drill Hole | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | Ag (g/t) |
|---|---|---|---|---|---|---|
| ESP-01-09 | 0.00 | 54.00 | 54.00 | 0.06 | 0.12 | 6.7 |
| Incl. | 46.50 | 48.00 | 1.50 | 0.51 | 0.31 | 34.0 |
| ESP-02-09 | 21.00 | 69.00 | 48.00 | 0.19 | 0.10 | 2.0 |
| Incl. | 31.50 | 33.00 | 1.50 | 1.80 | 0.07 | 2.0 |
| ESP-02-09 | 225.00 | 228.00 | 3.00 | 0.04 | 0.12 | 34.0 |
| ESP-03-09 | no | significant | intercepts | |||
| ESP-04-10 | 102.00 | 117.00 | 15.00 | 0.14 | 0.15 | 1.1 |
| ESP-04-10 | 144.00 | 157.50 | 13.50 | 0.06 | 0.14 | 1.2 |
| ESP-04-10 | 213.00 | 222.00 | 9.00 | 0.07 | 0.16 | 0.8 |
| ESP-05-10 | 0.00 | 36.00 | 36.00 | 0.11 | 0.05 | 1.2 |
| ESP-05-10 | 67.50 | 69.00 | 1.50 | 0.39 | 0.02 | 0.5 |
| ESP-05-10 | 132.00 | 139.50 | 7.50 | 1.17 | 0.01 | 2.3 |
| Incl. | 136.50 | 138.00 | 1.50 | 4.02 | 0.01 | 6.0 |
| ESP-06-10 | 0.00 | 220.50 | 220.50 | 0.14 | 0.15 | 1.1 |
| Incl. | 1.50 | 13.50 | 12.00 | 0.42 | 0.25 | 0.9 |
| ESP-07-10 | no | significant | intercepts | |||
| ESP-08-10 | 66.00 | 72.00 | 6.00 | 0.03 | 0.04 | 7.1 |
| ESP-09-10 | no | significant | intercepts | |||
| ESP-10-10 | no | significant | intercepts |
Collar locations are tabulated below.
| HOLE ID _ | Easting NAD27MEXZ12 | Northing NAD27MEXZ12 | Azimuth | Dip | Depth (m) |
|---|---|---|---|---|---|
| ESP-01-09 | 687324 | 3214189 | 0 | -90 | 207 |
| ESP-02-09 | 687323 | 3214188 | 180 | -60 | 240 |
| ESP-03-09 | 687130 | 3214031 | 120 | -60 | 247 |
| ESP-04-10 | 687014 | 3213796 | 300 | -60 | 262 |
| ESP-05-10 | 687206 | 3213754 | 133 | -60 | 247 |
| ESP-06-10 | 686903 | 3213743 | 360 | -60 | 250 |
| ESP-07-10 | 686513 | 3213732 | 180 | -60 | 237 |
| ESP-08-10 | 687463 | 3213533 | 0 | -90 | 209 |
| ESP-09-10 | 687996 | 3213887 | 215 | -60 | 64 |
| ESP-10-10 | 686912 | 3213556 | 90 | -60 | 172 |
QA and QC
Drill core was transported from the drill to the nearby field camp and core storage site by company staff and logged by the onsite geologist. The geologist oversaw the recording of geotechnical data and supervised the core cutting and sampling procedures.
All core samples were cut by diamond core saw with one half being returned to the core box for reference and the other being bagged in a plastic sample bag which was labeled, tagged, documented and sealed with a zip-tie. Samples were placed in labeled rice sacks and sealed. All samples were recorded and delivered to the ALS Chemex sample preparation lab in Hermosillo, Sonora, Mexico. Receipt of the samples was signed off at the preparation lab. Pulps of each sample were then prepared in Hermosillo and sent to ALS Chemex, North Vancouver B.C. Canada an ISO 9001-2000 certified full service laboratory. All of the samples referred to herein are core samples.
A QA/QC program including the regular insertion by the Company of duplicates, blanks and standards was instituted. ALS Chemex also has its own system of replicate analysis and blanks which it provides to the Company. Each pulp was analyzed using 30g fire assay for gold with AAS finish (ALS method Au- AA23) and a high grade four acid digestion ICP-AES analysis package for an additional 33 elements including Ag, Pb, Zn and Cu (ALS method ICP61a). Over limit samples for gold were subject to 30g fire assay with gravimetric finish (ALS code Au-GRA21) and over limit silver, zinc, lead and copper samples to ore grade four acid digest/leach (ALS code OG62). Sample lengths vary from 0.5 to 2.0 meters in width with the majority being 1.5 or 2.0 meters.
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 the Company.
About Klondike Silver:
Klondike Silver is a member of the Hughes Exploration Group of Companies and is led by a team with a stellar track record of discovery and development in Canada. Klondike Silver Corp. has assembled a quality portfolio of silver properties in historic mineral districts in North America, and is applying advanced exploration technologies to add value to these core assets. Klondike Silver is reviving the Gowganda and Elk Lake silver camps in Ontario, and the world-famous Klondike district of Yukon Territory. The Company owns a 100 TPD fully operational flotation mill in Sandon, BC, which is currently processing material from local mines in the historic Slocan Silver Camp. As well, Klondike Silver entered into a joint venture with Kootenay Gold Inc. to explore a copper-porphyry property in the state of Sonora in northern Mexico.
About Kootenay Gold
Kootenay is an emerging exploration Company actively developing several mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Numerous joint-venture partnerships maximize the potential for new discoveries. The Company's top priority remains the ongoing development of its Promontorio Silver project in Sonora State, northwest Mexico, which encompasses the former producing Promontorio Silver Mine.
Contact Information:
Klondike Silver Corp.
Corporate Inquiries: Kevin Hull or Alan Campbell, (604)-685-2222 Email: [email protected]
Kootenay Gold Inc.
James McDonald, CEO and President at 403-238-6986 or Ken Berry, Chairman at 604-601-5652; 1-888-601-5650 www.kootenaygold.ca
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
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.