Kootenay Clarifies Technical Disclosure
June 14, 2011
Shares Outstanding: 44,958,100
Kootenay Clarifies Technical Disclosure
Kootenay Gold Inc. (TSX.V: KTN) as a result of a review by the British Columbia Securities Commission, the company is issuing the following news release to clarify its disclosures regarding its Promontorio Silver Project, located in Sonora, Mexico.
Non-Compliant Disclosure of Mineral Resources
The company clarifies that mineral resource estimates on its website and particular its corporate presentation, investor relations material and certain news releases dated after August 18, 2010 showed an aggregate total of both the indicated and inferred resource. National Instrument (“NI”) 43-101 requires details of quantity and grade of each category of mineral reserve or resource should be disclosed and inferred mineral resources should not be added to the other categories on the mineral resource. Therefore as reported in the company’s NI 43-101 compliant resource estimate prepared by AGP Mining Consultants Inc. and filed on SEDAR September 30, 2010, the mineral resource should be disclosed by category, as follows:
| Indicated Resource 5.22 million tonnes containing: | ||
|---|---|---|
| Contained Silver | 52.7 gpt | 8.9 million oz |
| Contained Lead | 0.86 % | 99.3 million lbs |
| Contained Zinc | 0.96 % | 110.8 million lbs |
| Inferred Resource 0.65 million tonnes containing: | ||
| Contained Silver | 55.7 gpt | 1.17 million oz |
| Contained Lead | 0.94 % | 13.4 million lbs |
| Contained Zinc | 1.00 % | 14.3 million lbs |
Additionally, NI 43-101 requires the company to disclose the effective date of each estimate on mineral resources and to reference the report directly. The parameters of the estimation are detailed in the NI 43- 101 resource estimate prepared by AGP Mining Consultants Inc. effective date of September 28, 2010 and filed on SEDAR September 30, 2010.
In those instances where the company has retracted, revised, clarified or updated previous disclosure, the company advises readers not to rely on such statement as they may continue to be found in the public domain.
Failure to Name the Qualified Person
The company omitted the name of qualified person for the purpose of NI 43-101, Standards of Disclosure for Mineral Projects on its Management Discussion and Analysis (“MD&A”) for the year ended December 31, 2010. The geological disclosure included in the MD&A for December 31, 2010 had 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.
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 Gold
Kootenay Gold is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company’s flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. The Company's objective is to develop near term discoveries and long term sustainable growth. Kootenay’s 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 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. 2011 number 10