Kootenay Drill Program Outlines Resource Upside Along Extensions of the La Cigarra Resource
Kootenay Drill Program Outlines Resource
Upside Along Extensions of the La Cigarra
Resource
VANCOUVER
,
Nov. 5, 2018
/CNW/ -
Kootenay Silver Inc. (TSXV: KTN) (the "Company" or
"Kootenay")
is pleased to announce details of recently completed drill program and provides
guidance for resource expansion potential along extensions of its 100% owned La Cigarra silver
resource located in the Parral Silver District of Chihuahua State,
Mexico
.
The Company has designed a drill program (the "Program") aimed at the dual purpose of resource
expansion along the immediate extensions of the La Cigarra deposit (the "Resource") and at outlining
the scope of that potential. There are four target areas identified where the Company believes there
is untested potential to increase the Resource by significant amounts (see table below). The plan
would entail primarily exploration step out drilling of known mineralization and some infill drilling of the
successful La Borracha program earlier this year.
The four areas Kootenay plans to target are the La Borracha high grade (the mineralized trend
located 1,000 meters northwest from the northern boundary of the Resource), the La Borracha
Connection (connecting La Borracha with the
San Gregorio
area of the Resource), Gap (a very
under drilled area between the main
San Gregorio
and
Las Carolinas
zones that currently comprise
the Resource) and the Carolinas Extension (the strike extension of the Resource to the southeast).
Testing of these four areas would entail approximately 15,000 meters of drilling over 62 holes. This
Program is considered for 2019.
Target Areas and Potential Silver Ounces
Target Areas and Potential Silver Ounces (CNW Group/Kootenay Silver Inc.)
Potential Silver Ounces
Zone
Holes /
Meters
Target Area
Tonnes
60 gpt Silver
(50% tonnage)
60 gpt Silver
(100% tonnage)
85 gpt Silver
(50% tonnage)
85 gpt Silver
(100% tonnage)
GAP
24 / 6,590
18,404,620
17,753,653
35,507,305
25,151,008
50,302,016
Borracha High Grade
10 / 1,830
8,625,760
8,320,669
16,641,338
11,787,614
23,575,228
Borracha/SG Connector
13 / 2,720
18,564,000
17,907,395
35,814,791
25,368,810
50,737,621
Las Carolinas Extension
15 / 3,530
18,732,480
18,069,916
36,139,833
25,599,048
51,198,096
Total
62 /14,670
64,326,860
62,051,633
124,103,267
87,906,481
175,812,961
These exploration Targets ("Targets") are based on the interpretation and extrapolation of
the known mineralized zones using all available data including drill intercepts, geologic
surveys and surface sampling. There is no assurance that drilling the Targets will result in
any increase in the current resource. Readers are cautioned that the potential quantity and
grade is conceptual in nature, there has been insufficient exploration to define a mineral
resource and it is uncertain if further exploration will result in the target being delineated as
a mineral resource.
The Program was designed by modeling the known mineralization in existing drill intercepts and
developing three dimensional mineralized domains or shapes utilizing 3D Leap Frog software (the
"Software"). These domains were then extrapolated between wide spread drill holes outside the
resource; along strike and down dip beyond existing drill holes forming the Targets. These Targets
are the extrapolation from hard data of known drill hole intercepts or the resource itself and is further
supported by surface mapping, sampling and geophysical surveys. The Software was then used to
estimate a potential tonnage size for each Target. Grade ranges were then applied using the
resource grade and a grade 25% lower than the resource to create a range for Target potential. A
second lower range was then created by looking at tonnages at 50% of the speculated Target size.
The current Resource of 51. 5 million ounces of Measured and Indicated and 11.5 million ounces of
Inferred is open along both strike directions and down dip (see Resource table further in news
release). The 2018 drill program successfully established silver mineralization for 1000 meters to the
northwest of the Resource (see news release dated
April 11, 2018
) and further indicated open
ended mineralization to the southeast into the Carolinas Extension area (see news release
July 12,
2018
).
The La Cigarra Property is approximately 18,000 hectares and covers the northern 20-kilometer
portion of a 40+ kilometer mineralized trend which has produced over half a billion ounces of silver in
the
San Francisco Del Oro
and
Santa Barbara
mining district that in 2016 reported an estimated
reserve of 200 million ounces of silver.
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 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
Category*
Tonnes
Grade
Contained Metal
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
Ag (oz)
Au (oz)
Pb (lbs)
Zn (lbs)
Measured
3,620,000
88.9
0.074
0.14
0.19
10,340,000
9,000
10,920,000
15,510,000
Indicated
14,930,000
85.7
0.068
0.13
0.18
41,130,000
33,000
42,950,000
59,260,000
Meas + Ind
18,540,000
86.3
0.069
0.13
0.18
51,470,000
41,000
53,870,000
74,770,000
Inferred
4,450,000
80.0
0.058
0.13
0.16
11,460,000
8,000
12,680,000
15,610,000
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 and approved on behalf Kootenay by
James McDonald
, P.Geo,
President, CEO & Director for Kootenay, a Qualified Person.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development
of mineral projects in the Sierra Madre Region of
Mexico
and in
British Columbia, Canada
.
Supported by one of the largest portfolios of silver assets in
Mexico
, Kootenay continues to provide
its shareholders with significant leverage to silver prices. The Company remains focused on the
expansion of its current silver resources, new discoveries and the near-term economic
development of two of its priority silver projects located in prolific mining districts in
Sonora
, State
and Chihuahua, State,
Mexico
, respectively.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at
November 4, 2018
. Certain
statements in this news release, referred to herein as "forward-looking statements", constitute
"forward-looking statements" under the provisions of Canadian provincial securities laws. These
statements can be identified by the use of words such as "expected", "may", "will" or similar terms.
Forward-looking statements are necessarily based upon a number of factors and assumptions that,
while considered reasonable by Kootenay as of the date of such statements, are inherently subject
to significant business, economic and competitive uncertainties and contingencies. Many factors,
known and unknown, could cause actual results to be materially different from those expressed or
implied by such forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date made. Except as otherwise
required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any such statements to reflect any change in Kootenay's expectations
or any change in events, conditions or circumstances on which any such statement is based.
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.
This press release uses the terms "Measured", "Indicated", and "Inferred" resources.
United States
investors are advised that while such terms are recognized and required by Canadian regulations,
the United States Securities and Exchange Commission does not recognize them. "Inferred
Mineral Resources" have a great amount of uncertainty as to their existence, and as to their
economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or other economic studies.
United States
investors are cautioned not to assume that all or any part of Measured or Indicated Mineral
Resources will ever be converted into Mineral Reserves.
United States
investors are also
cautioned not to assume that all or any part of a Mineral Resource is economically or legally
mineable.
SOURCE
Kootenay Silver Inc.
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For further information:
please contact: James McDonald, CEO and President at 403-880-6016;
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650 or visit: www.kootenaysilver.com
CO: Kootenay Silver Inc.
CNW 09:00e 05-NOV-18