Kootenay Silver Announces Updated Mineral Resource Estimate for La Cigarra Project, Chihuahua Mexico
Kootenay Silver Announces Updated Mineral Resource Estimate for La
Cigarra Project, Chihuahua Mexico
VANCOUVER, BC
,
Jan. 25, 2024
/CNW/ -
Kootenay Silver Inc.
(TSXV: KTN)
(the "Company" or "Kootenay")
is pleased to announce an updated Mineral
Resource Estimate ("MRE") on its 100% owned La Cigarra Project ("La Cigarra"), located in the Parral Silver District of Chihuahua State,
Mexico
. The current
Resource Estimate, calculated by Allan Armitage, Ph.D., P.Geo., of SGS Geological Services in accordance with NI 43-101 standards (
May 9, 2016
), CIM
Definition Standards (
May 19, 2014
) with guidance from CIM Best Practice Guidelines (
November 29, 2019
) and supersedes a 2015 mineral resource estimate,
also prepared by Dr. Armitage for previous owner Northair Silver Corp which was acquired by Kootenay in 2016. La Cigarra is situated within a well established
Mexican mineral district and is a key property in Kootenay's portfolio of advanced silver exploration projects.
Highlights of the 2024 La Cigarra Mineral Resource Estimate are as follows:
Measured + Indicated Mineral Resources
are estimated at 15.73 Mt grading 102 g/t silver, 0.07 g/t gold, 0.16% lead, and 0.21% zinc (120 AgEq). The
Measured MRE includes resources of 51.57 Moz of silver, 33.9 koz of gold, 54.8 Mlbs of lead, and 73.5 Mlbs of zinc for 60.56 Moz AgEq.
Inferred Mineral Resources
are estimated at 3.37 Mt grading 102 g/t silver, 0.06 g/t gold, 0.20% lead, and 0.19% zinc (119 AgEq). The Inferred MRE
includes resources of 11.00 Moz of silver, 6.00 koz of gold, 14.8 Mlbs of lead, and 13.8 Mlbs of zinc for 12.85 Moz AgEq.
Measured+Indicated grade increases from 86 g/t to 102 g/t silver.
Measured+Indicated ounces increase slightly from 51.47 million to 51.57 million ounces.
Measured+Indicated tonnages decrease from 18.54 to 15.73 million tonnes (measured from 3.62 to 2.08 million tonnes and indicated from 14.93 to
13.65 million tonnes).
Inferred grade increases from 80 g/t to 102 g/t silver
Inferred tonnages decrease from 4.45 to 3.35 million tonnes
The 2024 Mineral Resource Estimate incorporates a significantly revised geological model compared to the previous resource and features a database of 201
surface diamond and RC drillholes totaling 36,988 meters and 26,419 assay intervals.
Kootenay's President & CEO,
James McDonald
states,
"The updated resource estimate for La Cigarra is part of our strategy to prepare our 3 resource projects
La Cigarra, Promontorio and La Negra for advancement in a bullish silver market while we remain focused on moving our high-grade silver project, Columba
towards an MRE.
The La Cigarra updated resource estimate is a meaningful improvement in silver grade compared to the previous calculation, largely due to detailed work by
our team which has significantly advanced understanding of the key mineral domains and structural geometry of the deposit.
In the M+I category silver only grade increases from 86 gpt to 102 gpt and contained ounces increase from 51.47 Moz to 51.57 Moz.
La Cigarra is located within 20-30 kilometres of the famous
San Francisco
del
Oro
and
Santa Barbara
deposits has significant potential for growth beyond the
limits of the new Mineral Resource. Mineralization is open along strike to the northwest and southeast, as well as down-dip."
The Company is unable to independently confirm or verify the accuracy or reliability of the
San Francisco
del
Oro
and
Santa Barbara
deposits. The Company also
reminds investors that the results, resources or mineralization on the adjacent properties are not necessarily indicative of the potential for similar to exist on La
Cigarra.
Table 1-1 La Cigarra Deposit Mineral Resource Estimate at a Base Case Cut-off Grade of 50 g/t AgEq
Resource
Class
Tonnes
(MT)
Grade
Total Metal
Ag g/t
Au g/t
Pb %
Zn %
AgEq
(g/t)
Ag
(Moz)
Au
(koz)
Pb
(Mlbs)
Zn
(Mlbs)
1
AgEq
(Moz)
Measured
2.08
103
0.06
0.16
0.22
121
6.90
4.30
7.6
9.9
8.10
Indicated
13.65
102
0.07
0.16
0.21
120
44.66
29.60
47.3
63.6
52.46
Mea. + Ind.
15.73
102
0.07
0.16
0.21
120
51.57
33.90
54.8
73.5
60.56
Inferred
3.37
102
0.06
0.20
0.19
119
11.00
6.00
14.8
13.8
12.85
The base-case AgEq Cut-off grade of 50 g/t AgEq considers metal prices of $23.50/oz Ag, $1,800/oz Au, $1.00/lb Pb and $1.30/lb Zn, and considers variable metal recoveries for Ag, Au, Pb and Zn: for oxide mineralization - 85% for Ag, 40% for Au, 75% for Pb and 65% for Zn; for
sulphide mineralization - 92% for Ag, 40% for Au, 91% for Pb and 85% for Zn.
1
AgEq = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram). Metal price assumptions are $23.50/oz silver, $1,800/oz gold, $1.00/lb lead and $1.30/lb zinc.
La Cigarra Mineral Resource Estimate Notes:
1
.
The Mineral Resource Estimate was estimated by
Allan Armitage
, Ph.D., P. Geo. of SGS Geological Services and is an independent Qualified Person as
defined by NI 43-101. Dr Armitage conducted a recent site visit to the La Cigarra Property on
November 28
and 29, 2023.
2
.
The classification of the current Mineral Resource Estimate into Measured, Indicated and Inferred mineral resources is consistent with current 2014 CIM
Definition Standards - For Mineral Resources and Mineral Reserves.
The effective date for the Updated Mineral Resource Estimate is
November 29, 2023
.
3
.
All figures are rounded to reflect the relative accuracy of the estimate
and numbers may not add due to rounding.
4
.
The mineral resource is presented undiluted and in situ, constrained by continuous 3D wireframe models, and are considered to have reasonable
prospects for eventual economic extraction.
5
.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that most
Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
6
.
The La Cigarra mineral resource estimate is based on a validated database which includes data 201 surface diamond and RC drill holes totalling
36,988
m
. The resource database totals 26,419 assay intervals representing
34,447 m
of drilling. The average assay sample length is
1.30 m
.
7
.
The mineral resource estimate is based on 9 three-dimensional ("3D") resource models, constructed in Leapfrog. Grades for Ag, Au, Pb and Zn were
estimated for each mineralization domain using 1.5 metre capped composites assigned to that domain. To generate grade within the blocks, the inverse
distance squared (ID
2
) interpolation method was used for all domains.
Each domain was then subdivided into oxide and sulphide domains.
8
.
Average density values were assigned to oxide and sulphide domains and a waste domain based on based on a database of 1,412 samples.
9
.
It is envisioned that the La Cigarra deposit may be mined using open-pit mining methods. Mineral resources are reported at a base case cut-off grade of
50 g/t AgEq. The in-pit Mineral Resource grade blocks are quantified above the base case cut-off grade, above the constraining pit shell, below topography
and within the constraining mineralized domains (the constraining volumes).
10
.
The results from the pit optimization are used solely for the purpose of testing the "reasonable prospects for economic extraction" by an open pit and do
not represent an attempt to estimate mineral reserves. There are no mineral reserves on the Property. The results are used as a guide to assist in the
preparation of a Mineral Resource statement and to select an appropriate resource reporting cut-off grade.
11
.
The base-case AgEq Cut-off grade considers metal prices of
$23.50
/oz Ag,
$1,800
/oz Au,
$1.00
/lb Pb and
$1.30
/lb Zn, and considers variable metal
recoveries for Ag, Au, Pb and Zn: for oxide mineralization - 85% for Ag, 40% for Au, 75% for Pb and 65% for Zn; for sulphide mineralization - 92% for Ag,
40% for Au, 91% for Pb and 85% for Zn.
12
.
The pit optimization and base case cut-off grade of 50 g/t AgEq considers a mining cost of
US$2.50
/t mined, and processing, treatment, refining, G&A and
transportation cost of
USD$22.40
/t of mineralized material.
13
.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other
relevant issues.
Table 1-2 La Cigarra Oxide and Sulphide MRE at a Base Case Cut-off Grade of 50 g/t AgEq
Oxide MRE
Resource
Class
Tonnes
(MT)
Grade
Total Metal
Ag g/t
Au g/t
Pb %
Zn %
AgEq
(g/t)
Ag
(Moz)
Au
(koz)
Pb
(Mlbs)
Zn
(Mlbs)
1
AgEq
(Moz)
Measured
0.50
141
0.06
0.12
0.06
152
2.28
1.00
1.3
0.7
2.46
Indicated
2.66
104
0.08
0.11
0.09
117
8.92
6.5
6.4
5.0
9.96
Mea. + Ind.
3.16
110
0.07
0.11
0.08
122
11.20
7.50
7.7
5.7
12.42
Inferred
0.89
84
0.05
0.17
0.05
94
2.40
1.30
3.4
1.0
2.70
Sulphide MRE
Resource
Class
Tonnes
(MT)
Grade
Total Metal
Ag g/t
Au g/t
Pb %
Zn %
AgEq
(g/t)
Ag
(Moz)
Au
(koz)
Pb
(Mlbs)
Zn
(Mlbs)
1
AgEq
(Moz)
Measured
1.58
91
0.07
0.18
0.26
111
4.62
3.30
6.2
9.2
5.64
Indicated
10.99
101
0.07
0.17
0.24
120
35.75
23.10
40.9
58.5
42.50
Mea. + Ind.
12.57
100
0.07
0.17
0.24
119
40.37
26.40
47.1
67.7
48.14
Inferred
2.48
108
0.06
0.21
0.24
128
8.60
4.70
11.4
12.9
10.15
Table 1-3 In-Pit Mineral Resource Estimate at Various AgEq Cut-off Grades
Cut-off
Grade
(AgEq g/t)
Tonnes
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
AgEq
(g/t)
Ag
(Moz)
Au
(kOz)
Pb
(Mlbs)
Zn
(Mlbs)
AgEq
(Moz)
Measured
30
2.73
86
0.06
0.14
0.19
102
7.54
5.30
8.5
11.4
8.94
40
2.43
93
0.06
0.15
0.20
110
7.28
4.90
8.1
10.8
8.60
50
2.08
103
0.06
0.16
0.22
121
6.90
4.30
7.6
9.9
8.10
60
1.75
114
0.07
0.18
0.23
134
6.44
3.70
7.0
9.0
7.51
70
1.48
126
0.07
0.19
0.25
146
5.99
3.10
6.3
8.1
6.94
80
1.27
137
0.06
0.21
0.26
158
5.59
2.60
5.8
7.2
6.44
Indicated
30
17.16
87
0.06
0.14
0.19
103
48.18
35.30
52.4
71.1
57.04
40
15.52
94
0.07
0.15
0.20
111
46.77
32.80
50.2
67.9
55.17
50
13.65
102
0.07
0.16
0.21
120
44.66
29.60
47.3
63.6
52.46
60
11.86
111
0.07
0.17
0.22
129
42.18
26.30
44.0
58.7
49.31
70
10.00
122
0.07
0.18
0.24
141
39.08
22.50
39.6
52.9
45.41
80
8.56
132
0.07
0.19
0.25
152
36.28
19.50
35.8
47.7
41.94
Inferred
30
4.03
90
0.06
0.18
0.17
106
11.64
7.50
15.8
15.2
13.73
40
3.77
94
0.06
0.19
0.18
111
11.44
6.80
15.4
14.7
13.44
50
3.37
102
0.06
0.20
0.19
119
11.00
6.00
14.8
13.8
12.85
60
2.87
111
0.06
0.22
0.20
130
10.28
5.20
14.0
12.8
11.98
70
2.39
123
0.06
0.24
0.22
143
9.45
4.30
12.7
11.7
10.97
80
1.99
135
0.06
0.25
0.24
156
8.67
3.60
11.1
10.7
10.01
Note:
Values in these tables reported above and below the base-case cut-off 50 g/t AgEq for in-pit Mineral Resources should not be misconstrued with a Mineral Resource Statement. The values are only presented to show the sensitivity of the block model estimates to the selection of the base
case cut-off grade. All values are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
The comparison table below shows the 2024 Resource estimate compared to the previous resource. Of note Measured and Indicated (M+I) categories include a
total of 51.57 Moz of silver, a modest increase from 51.47 Moz. The combined M+I grade, however increased from 86.3 g/t Ag to 102 g/t Ag, (an 18% increase).
Similarly, in the Indicated category total contained silver decreased from 11.46 Moz to 11 Moz, though overall grade increased from 80 g/t Ag to 102 g/t Ag, (a
27% increase).
Mineralization at La Cigarra is open along both strike directions and down-dip. The La Cigarra is a key project in Kootenay's portfolio and is currently on care and
maintenance as the company focusses on advancing the flagship Columba Silver Project, also in Chihuahua State, Mexico.
Table 1-4 Comparison of 2015 and 2024 Resources
2024 Resource ($23.50 silver, 50 g/t silver equivalent cut-off grade)
Resource
Class
Tonnes
(MT)
Grade
Total Metal
Ag g/t
Au g/t
Pb %
Zn %
AgEq
(g/t)
Ag (Moz)
Au (koz)
Pb (Mlbs)
Zn (Mlbs)
1
AgEq
(Moz)
Measured
2.08
103
0.06
0.16
0.22
121
6.9
4.3
7.6
9.9
8.1
Indicated
13.65
102
0.07
0.16
0.21
120
44.66
29.6
47.3
63.6
52.46
Mea. + Ind.
15.73
102
0.07
0.16
0.21
120
51.57
33.9
54.8
73.5
60.56
Inferred
3.37
102
0.06
0.2
0.19
119
11
6
14.8
13.8
12.85
2015 Resource ($22 silver, 35 g/t silver cut off grade)
Resource
Class
Tonnes
(MT)
Grade
Total Metal
Ag g/t
Au g/t
Pb %
Zn %
AgEq
(g/t)
2
Ag (Moz)
Au (koz)
Pb (Mlbs)
Zn (Mlbs)
2
AgEq
(Moz)
Measured
3.62
88.9
0.07
0.14
0.19
10.34
9
10.92
15.51
Indicated
14.93
85.7
0.07
0.13
0.18
41.13
33
42.95
59.26
Mea. + Ind.
18.54
86.3
0.07
0.13
0.18
51.47
41
53.87
74.77
Inferred
4.45
80
0.06
0.13
0.16
11.46
8
12.68
15.61
1
AgEq Calculation for the comparison above = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram). Metal price assumptions are $23.50/oz silver, $1,800/oz gold, $1.00/lb lead and $1.30/t zinc
2
Original 2015 MRE did not include a calculation for AqEq,
Sampling and QA/QC at La Cigarra
All technical information used within the La Cigarra Mineral Resource Estimate was obtained and reported under a formal quality assurance and quality control
("QA/QC") program. Details of the QA/QC protocols and checks.
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.
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 of Kootenay by Mr. Dale Brittliffe, BSc. P. Geo., Vice
President, Exploration of Kootenay Silver, the Company's nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for
Mineral Projects, has reviewed the scientific and technical information disclosed in this news release. Mr. Brittliffe is not independent of Kootenay Silver.
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
.
Supported by one of the largest junior 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 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
January 24, 2024
. 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 includes Mineral Reserves and Mineral Resources classification terms that comply with reporting
standards in
Canada
and the Mineral Reserves and the Mineral Resources estimates are made in accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("
NI 43-101
"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public
disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the requirements
adopted by the U.S. Securities and Exchange Commission (the "
SEC
"). The SEC sets rules that are applicable to domestic
United States
reporting companies.
Consequently, Mineral Reserves and Mineral Resources information included in this news release is not comparable to similar information that would generally
be disclosed by domestic U.S. reporting companies subject to the reporting and disclosure requirements of the SEC. Accordingly, information concerning
mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.
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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 07:15e 25-JAN-24