Kootenay Regains 100% of Promontorio and La Negra
Kootenay Regains 100% of Promontorio and
La Negra
VANCOUVER
,
June 7, 2019
/CNW/ -
Kootenay Silver Inc. (TSXV: KTN) (the "Company" or
"Kootenay")
announces that it has received notice from Pan American Silver Corp. ("Pan
American") relinquishing it right to earn 75% interest in the Promontorio Mineral Belt which includes
the Promontorio Resource ("Promontorio") and La Negra high-grade silver discovery (the "Project"),
located in the
state of Sonora
, Mexico.
Kootenay President and CEO,
James McDonald
stated: "We thank Pan American for the
considerable work they have done on the Project, in particular the extensive drilling completed at the
La Negra high-grade silver discovery. Combined with the existing large resource base of
Promontorio and over
US$3.6million
in exploration expenditures funded by Pan American in
advancing the Project, we are regaining control of 100% of what we consider to be very valuable
assets."
The Company is conducting an internal review of the comprehensive work performed on both La
Negra and Promontorio and will plan the next steps for advancing these assets. Pan American's and
Kootenay's drilling results at La Negra established the presence of good silver grades and continuity
of silver within a large hydrothermal breccia pipe measuring about 100 to 200 meters wide and 500
meters long at surface.
The Company is in the process of receiving and collating data of work performed by Pan American
so that it may update its digital data room in response to recent requests from other interested
parties to review the project's technical information.
About Promontorio and La Negra High Grade Silver Discovery
The Promontorio Resource is situated on the "Promontorio Mineral Belt" Property that includes the
La Negra silver discovery; located in the
state of Sonora
, Mexico. Promontorio is a large bulk
tonnage silver resource that currently hosts an estimated 44.5 million tonnes containing 92 million
ounces of silver equivalent in the Measured & Indicated categories grading 64.3 gpt silver equivalent
and 14.6 million tonnes containing 24.3 million ounces of silver equivalent in the Inferred category
grading 52 gpt silver equivalent.
La Negra, situated 7 kilometers north of the Promontorio Resource, is a high-grade silver discovery
which the Company believes has the potential to become a low strip, open pit mining operation. To
date, 87 drill holes totaling approximately 17,000 meters have been completed by Kootenay and Pan
American with most intercepts returning widespread silver mineralization from surface to a vertical
depth of over 300 meters.
NI 43-101 Compliant Silver Resource
The mineral estimate on Promontorio effective date
March 31, 2013
(See
May 14, 2013
news
release) contains a combined Measured and Indicated silver resource of 92,428,000 silver
equivalent ounces (
39.9M
oz's Ag,
508K
oz's Au,
394.8M
lb's Pb,
462.2M
lb's Zn). In addition to
the measured and indicated silver resources, there are an additional 26,814,000 silver equivalent
ounces in the Inferred category (
12.8M
oz's Ag, 147 oz's Au,
99.5M
lb's Pb,
109.1M
lb's Zn).
Measured and Indicated resources include open pit resources of 44,504,000 tonnes grading an
average of 64.32 gpt silver equivalent (27.77 gpt Ag, 0.35 gpt Au and 0.87% Pb+Zn) and
measured and indicated 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% Pb+Zn). Inferred resources
include 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% Pb+Zn) and inferred 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% Pb+Zn).
The NI 43-101 Resource Estimation was conducted on Promontorio by SRK Consulting Inc. (U.S.)
of
Lakewood, Colorado
.
Qualified Persons
The Kootenay scientific and 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.
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.
On Behalf of the Board of Directors of
KOOTENAY SILVER INC.
"James McDonald"
President & CEO
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.
CAUTIONARY NOTES:
The sampling results disclosed in this news release are not necessarily indicative and drilling is
required to confirm a mineral deposit.
The information in this news release has been prepared as at
June 6, 2019
. This news release
contains "forward-looking information" within the meaning of Canadian securities legislation and
"forward-looking statements" within the meaning of the United States Private Securities Litigation
Reform Act of 1995 (collectively, "
forward-looking statements
"). All statements, other than
statements of historical fact, that address activities, events or developments that Kootenay Silver
Inc. ("
Kootenay
" or the "
Company
") believes, expects or anticipates will or may occur in the future
including, without limitation, the anticipated exploration program results from exploration activities,
the discovery and delineation of mineral deposits and sampling results from the Promontorio
Mineral Belt and other properties, the anticipated content, commencement, and cost of exploration
programs in respect of the Company's projects and mineral properties, the anticipated business
plans and timing of future activities of the Company, future capital expenditures (including the
amount and nature thereof), business strategies and measures to implement strategies,
competitive strengths, goals, expansion and growth of the business and operations, plans and
references to the future success of the Company, and such other matters, are forward
looking
statements. These forward-looking statements reflect the current expectations or beliefs of the
Company based on information currently available to Kootenay and often use words such as
"expects", "plans", "anticipates", "estimates", "believes", "intends", "potential", "may" or variations
thereof or the negative of any of these terms.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the
actual results of the Company to differ materially from those discussed in the forward-looking
statements and, even if such actual results are realized or substantially realized, there can be no
assurance that they will have the expected consequences to, or effects on, Kootenay. Factors that
could cause actual results or events to differ materially from current expectations include, among
other things: the ability of the Company to obtain sufficient financing to fund its business activities
and plans, operating and technical difficulties in connection with mineral exploration and
development and mine development activities for Company's projects generally, actual results of
exploration activities (including the estimation or realization of mineral reserves and mineral
resources), the timing and amount of estimated future production, costs of production, capital
expenditures, the costs and timing of the development of new deposits, the availability of a
sufficient supply of water and other materials, requirements for additional capital, future prices of
gold and silver, changes in general economic conditions, changes in the financial markets and in
the demand and market price for commodities, possible variations in ore grade or recovery rates,
possible failures of plants, equipment or processes to operate as anticipated, accidents, labour
disputes and other risks of the mining industry, delays in obtaining governmental and regulatory
approvals (including of the TSX Venture Exchange), permits or financing or in the completion of
development or construction activities, changes in laws, regulations and policies affecting mining
operations, hedging practices, currency fluctuations, title disputes or claims limitations on
insurance coverage and the timing and possible outcome of pending litigation, environmental
issues and liabilities, risks related to joint venture operations, and risks related to the integration of
acquisitions, as well as those factors discussed under "Risk Factors" in the Company's most recent
annual management's discussion and analysis and other filings of the Company with the Canadian
Securities Administrators, copies of which can be found under the Company's profile on the
SEDAR website at
www.sedar.com
.
Any forward-looking statement speaks only as of the date on which it was made, and except as
may be required by applicable securities laws, Kootenay disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information, future events or
results or otherwise. Although Kootenay believes that the assumptions inherent in the forward-
looking statements are reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such statements due to their
inherent uncertainty. There can be no assurance that forward-looking statements will prove to be
accurate, and actual results and future events could differ materially from those anticipated in such
statements.
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.
SOURCE
Kootenay Silver Inc.
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%SEDAR: 00016508E
For further information:
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 07-JUN-19