Kootenay Reports Metallurgical Testing ON LA Cigarra Deposit Returns Enhanced Silver Recoveries Utilizing Silvox Process
January 22 2017
KOOTENAY REPORTS METALLURGICAL TESTING ON LA CIGARRA DEPOSIT
RETURNS ENHANCED SILVER RECOVERIES UTILIZING SILVOX PROCESS
Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “ Kootenay”) is pleased to report results from
preliminary metallurgical testing on its La Cigarra Silver Project in Chihuahua State, Mexico , applying the
proprietary Silvox Technologies Inc. (“SILVOX”) process which indicates a marked improvement in cyanide
leaching for silver recoveries versus industry standard leaching processes previously applied to the deposit.
James McDonald, P.Geo, President and CEO stated, “ Although additional metallurgical testing using standard
and SILVOX pr ocesses will be required to further ass ess silver recoveries , results from preliminary testing
utilizing the SILVOX process are highly encouraging. The ability to achieve enhanced silver recoveries could
have a profound impact on the economic viability of La Cigarra and its potential near-term development as a low-
cost, open-pit heap leach operation. Further detailed metallurgical testing using standard and SILVOX processes
is expected to be completed in the near future”.
Initial bottle roll (“BR”) testing using industry standard s (“standard”) and SILVOX processes were recently
completed using a typical 48 hour period at minus ¼ inch crush size from a bulk sample collected from La Cigarra.
Standard cyanide leaching returned an estimated 38% silver r ecovery compared to a range of 44% to 52% from
the SILVOX process, a 6% to 14% increase in silver recovery.
Additionally, two column tests using the SILVOX process were completed indicating potential for higher silver
recovery than the BR test results. T hese tests were completed over a 120 day period at minus ¼ inch crush size
with results suggesting at silver recovery of 52% to 58%. Column tests were not conducted to sufficient QA/QC
but may suggest potentially higher recoveries than BR testing.
The results of 5 bottle rolls on a bulk sample composite are shown in the chart below. Four are labeled SILVOX
1 through 4 employing the SILVOX process while the one labeled Standard used industry standard cyanide leach
methods. Reagent cost per tonne shows potential economic viability of the SILVOX process with both lower and
higher costs compared to standard cyanide leaching.
Test Type Standard SILVOX 1 SILVOX 2 SILVOX 3 SILVOX 4
Head Grade g/t Silver 90.0 81.0 87.0 77.0 72.0
Silver Recovery 38% 44% 45% 51% 52%
Incremental Recovery
Improvement
Base 6% 7% 13% 14%
Total Reagent Cost per
Tonne
$2.88 $1.78 $2.33 $3.86
$5.82
Note: La Cigarra bulk sample crushed to minus ¼ inch with 48 hour standard BR testing. Reagent cost assumes;
$2.50/kg for CN, $0.12/kg for lime and $0.1 to $4.0/kg for SILVOX
Metallurgical laboratory testing was conducted on composited samples from 10 representative core holes and 4
surface samples taken from outcrop, trenches and open cuts in the Las Caroli nas and San Gregorio zones of the
La Cigarra deposit. All BR testing was conducted by ALS Metallurgy in Kamloops, B.C. Column testing was
completed by Laboratorio Metalurgico S.A. de C.V., a division of Sonora Naturals S.A. de C.V. in Hermosillo,
Mexico.
A comprehensive metallurgical study will be undertaken using standard and SILVOX processes to assess
variability across the La Cigarra deposit. Initially, additional BR tests will include two crush sizes of minus ¼ inch
and minus 3/8 inch for both oxide and sulfide material. Further column testing to qualified standards will also be
conducted.
Upon confirmation of the detailed test work and ongoing resource re -modelling, a Preliminary Economic
Assessment (“PEA”) will be considered for La Cigarra. The PEA would focus on the development of La Cigarra
as an open pit heap leach operation transitioning into a milling operation with higher grade sulfides. Heap leach
operations typically have much lower capital requirements and lower operational costs over milli ng.
Silvox Technologies Inc. is a Canadian private company providing a proprietary process ("SILVOX PROCESS")
to the mining industry that enhances silver recoveries by simply augmenting standard heap leach and conventional
milling recovery methods. SILVOX PROCESS requires minimal capital investment and can be easily integrated
into operations. The proprietary process has been confirmed with certified lab testing and associated fieldwork on
several deposits over the past two years. Test results show increased silver recoveries of up to 30% implying
potential attractive profit margins with respect to increased recovery versus processing costs. Successful
introduction of SILVOX PROCESS could result in making an economic project more robust or be the difference
between a sub -economic project and one that is economically viable. For more information contact :
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 persons and
stored in sealed bags. Samples were delivered to ALS Minerals ("ALS") in Kamloops, B.C. and Sonora Naturals
S.A. de C.V. in Hermosillo, Sonora. 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 i nformation 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, Preside nt, 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. 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 kilometers 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 gpt silver and 4.45 million tonnes containing 11.46 million ounces of silver in
the Inferred category grading 80 gpt silver. The mineralized system at La Cigarra has been traced over 6.5
kilometers and is define d 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 kilometers 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% in terest 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 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. 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.
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.
For additional 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
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at January 20, 2017. 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 circ umstances 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 fi led with the SEC.
U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. Thi s news
release may contain forward -looking statements including but not limited to comments regarding the timing and content of upc oming 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 m ay 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 Canadia n 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 ca utioned 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.
2017 number 03