Kootenay Silver Announces updated Promontorio/Maiden La Negra Resource Estimate and Intention of Share Consolidation
Kootenay Silver Announces updated Promontorio/Maiden La Negra
Resource Estimate and Intention of Share Consolidation
VANCOUVER, BC
,
Oct. 12, 2023
/CNW/ -
Kootenay Silver Inc.
(TSXV: KTN) ("Kootenay" or the "Company") is pleased to announce an updated mineral
resource estimate at the Promontorio-La Negra Project in
Sonora Mexico
. The resource estimate is an update of the Promontorio deposit and a maiden mineral
resource estimate for the La Negra deposit 7km to the north. The two deposits are part of the Promontorio Mineral Belt and are considered a single project.
The mineral resource estimates ("MRE") have been prepared by
Sue Bird
, M Sc., P.Eng., Geological and Mining Engineer of by Moose Mountain Technical
Services ("MMTS") 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
).
Highlights from the 2023 Mineral Resource Estimate include:
Increased Grades of the Promontorio deposit of 24% for Ag, 21% for Au and 22% and 21% for Pb and Zn respectively (see Table 1).
A resulting 68% increase in Measured and Indicated ("M+I") Ag Equivalent ("AgEq") Metal content at the Promontorio deposit (see Table 1).
Promontorio M+I mineral resources of 140.8 million ounces ("Moz") AgEq contained in 42.1 million metric tonnes ("Mt") averaging 104 grams per tonne
("g/t"),
Promontorio Inferred mineral resources of 39.8 Moz contained in 14.6 Mt averaging 84.9 g/t. These results are calculated using 25 g/t AgEq cut off and are
contained within a potentially economically mineable pit shell. (see Table 2)
La Negra Indicated mineral resources of 22.0 Moz AgEq contained in 5.3 Mt averaging 129 g/t.
La Negra Inferred mineral resources of 4.6 Moz contained in 1.2 Mt averaging 115 g/t These results are calculated using 40 g/t AgEq cut off and are
contained within a potentially economically mineable pit shell (see Table 3 and 4).
Kootenay's President & CEO,
James McDonald
states, "We are pleased to see a significant increase in metal content on the Promontorio-La Negra property that
includes the La Negra discovery for the first time. Between the two deposits we see an exciting increase in grade and contained silver ounces.
On a silver equivalent basis, the project is now estimated to host 162.8 million ounces M+I and 44.4 million ounces inferred. On a silver only basis, the M+I
resource for silver are estimated to total 68.2 million ounces with another 17.6 million ounces inferred.
The first ever resource estimate for La Negra Silver Deposit returned excellent overall grades, averaging 129 g/t silver equivalent in the Indicated Category and
115 g/t silver equivalent in the Inferred Category. At a cutoff of 50 g/t silver equivalent these grades increase to 146 g/t and 133 g/t silver equivalent respectively
with only a modest drop in contained silver ounces.
I would like to point out our expanded resource base, on a silver equivalent basis, the estimated totals for Promontorio-La Negra plus La Cigarra are 214.2 million
silver equivalent ounces in the M+I along with 54.9 million silver equivalent ounces inferred.
On a silver only basis, Kootenay's M+I silver resources are estimated to be 120.2 million ounces and 28.2 million silver ounces inferred for the Promontorio-La
Negra and La Cigarra projects.
This work prepares the project for advancement in a stronger metals market. Meanwhile we remain focused on drilling Columba with the aim of defining a new
high-grade resource there and will be reporting on results in the coming weeks."
Mr. McDonald adds, "The Company has also decided to proceed with a share consolidation at this time as detailed below, which the Board believes is in the best
interest of shareholders. It has been an ongoing discussion point with various investors and shareholders encouraging us to proceed with the consolidation, which
could lead to increased investor interest by raising the Company profile with a lower number of outstanding shares, a higher stock price and better position the
Company to obtain financing to further advance its properties."
*La Cigarra resource estimate table can be found here
https://kootenaysilver.com/projects/la-cigarra
The following two tables summarize the Promontorio comparison and the Mineral Resource estimate ("MRE") for Promontorio. The effective date of
the Promontorio-La Negra resource estimates is
August 27, 2023
.
Table 1: 2023 Promontorio Resource Compared to 2013 Pit Resource
Year
Class
kt
AgEq
(g/t)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq
(koz)
Ag
(koz)
Au
(koz)
Pb
(klb)
Zn
(klb)
2023
MMTS
150% Pit
Measured
12,451
111.7
37.03
0.46
0.53
0.61
44,718
14,823
183
146,033
166,620
Indicated
29,664
100.7
33.50
0.41
0.47
0.55
96,072
31,950
393
306,716
360,996
Meas+Ind
42,115
104.0
34.54
0.43
0.49
0.57
140,790
46,773
575
452,748
527,616
Inferred
14,575
84.9
27.89
0.35
0.42
0.45
39,782
13,069
163
136,241
143,632
2013
SRK Pit
Measured
10,289
67.9
32.69
0.40
0.46
0.55
22,470
10,814
134
105,328
123,715
Indicated
34,215
56.0
26.30
0.34
0.38
0.45
61,572
28,926
373
287,579
335,904
Meas+Ind
44,504
58.7
27.77
0.35
0.40
0.47
84,042
39,740
506
392,907
459,619
Inferred
14,564
46.3
24.95
0.28
0.28
0.31
21,700
11,683
132
89,430
98,462
Difference
=
(2023-
2013)/2013
Measured
21 %
64 %
13 %
14 %
16 %
10 %
99 %
37 %
36 %
39 %
35 %
Indicated
-13 %
80 %
27 %
21 %
23 %
23 %
56 %
10 %
5 %
7 %
7 %
Meas+Ind
-5 %
77 %
24 %
21 %
22 %
21 %
68 %
18 %
14 %
15 %
15 %
Inferred
0 %
83 %
12 %
24 %
51 %
44 %
83 %
12 %
24 %
52 %
46 %
Table 2: 2023 Resource Statement for the Promontorio Deposit
Class
Cutoff
In situ Tonnage, Grade and Metal Content
AgEq
(g/t)
Tonnage
(kt)
AgEq
(g/t)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq
Metal
(kOz)
AG
Metal
(kOz)
Au
Metal
(kOz)
Pb
(klb)
Zn
(klb)
Measured
15
13,538
104.3
34.5
0.428
0.49
0.57
45,419
15,012
186
147,440
168,631
20
13,011
107.9
35.7
0.441
0.51
0.59
45,122
14,934
184
146,864
167,803
25
12,451
111.7
37.0
0.456
0.53
0.61
44,718
14,823
183
146,033
166,620
30
11,903
115.6
38.4
0.470
0.55
0.63
44,233
14,691
180
144,854
164,797
40
10,793
123.9
41.3
0.500
0.59
0.68
42,984
14,324
174
141,339
160,851
50
9,710
132.7
44.4
0.532
0.64
0.73
41,423
13,848
166
136,790
155,200
Indicated
15
32,225
94.3
31.3
0.387
0.44
0.52
97,728
32,439
401
311,172
366,586
20
30,993
97.4
32.4
0.399
0.45
0.53
97,033
32,235
398
309,525
364,187
25
29,664
100.7
33.5
0.412
0.47
0.55
96,072
31,950
393
306,716
360,996
30
28,179
104.6
34.8
0.426
0.49
0.57
94,756
31,564
386
302,544
355,970
40
24,961
113.6
37.9
0.461
0.53
0.62
91,133
30,447
370
291,656
342,834
50
21,907
123.1
41.3
0.497
0.58
0.68
86,721
29,089
350
278,188
326,002
Measured +
15
45,763
97.3
32.3
0.399
0.45
0.53
143,147
47,451
587
458,612
535,217
20
44,004
100.5
33.3
0.411
0.47
0.55
142,155
47,169
582
456,389
531,990
25
42,115
104.0
34.5
0.425
0.49
0.57
140,790
46,773
575
452,748
527,616
Indicated
30
40,082
107.9
35.9
0.439
0.51
0.59
138,989
46,256
566
447,397
520,768
40
35,754
116.7
38.9
0.473
0.55
0.64
134,117
44,772
543
432,996
503,684
50
31,617
126.1
42.2
0.508
0.60
0.69
128,144
42,937
516
414,978
481,202
Inferred
15
16,637
76.8
25.1
0.319
0.38
0.40
41,072
13,415
171
139,011
147,447
20
15,433
81.4
26.7
0.335
0.41
0.43
40,401
13,238
166
137,797
145,622
25
14,575
84.9
27.9
0.348
0.42
0.45
39,782
13,069
163
136,241
143,632
30
13,671
88.7
29.2
0.362
0.44
0.47
38,980
12,830
159
133,819
141,052
40
11,778
97.3
32.1
0.395
0.49
0.51
36,847
12,152
150
127,493
133,206
50
9,980
106.8
35.3
0.432
0.54
0.56
34,256
11,327
139
119,031
123,652
Notes to the 2023 Promontorio Resource Table:
1.
Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines, as required by NI43-101
2.
The base case Mineral Resource has been confined by "reasonable prospects of eventual economic extraction" shape using the following assumptions:
•
Metal prices of US$22/oz Silver, US$1800/oz Gold, US$0.95/lb Lead and US$1.25/lb Zinc. Metallurgical recovery of 74% Silver, 70% Gold, 81% Lead and 88% Zinc
•
Payable metal of 95% Silver, 99% Gold in dore 95% Au in Pb concentrate, 95% Lead and 85% Zinc. Lead payable assumes a concentrate grade of 65% Pb and a 3% unit deduction. Zinc payable assumes a concentrate grade of 52% Pb and an 8% unit deduction. Offsite costs
(transport, smelter treatment and refining) of US$1.5/oz Silver and gold in the Pb concentrate, US$10 oz Gold, US$ 0.15/lb Lead and US$0.31/ lb Zinc. Lead offsite costs assume 100 $US/dmt transport, 100 $US/ dmt treatment. Zinc offsite costs assume 100 $US/dmt transport, 200 $US/
dmt treatment.
•
Processing, General, and Administrative ("G&A") costs of US$ 12/ tonne milled. Mining cost of US$2.00 / tonne
•
50 degree pit slopes with the 150% price case pit shell is used for the confining shape
3.
The resulting NSR = Ag*US$0.63/g*74% + Au*US$56.71/g*70% + 22.0462*(Pb*US$0.77/lb*81% + Zn*US$ 0.80/lb*88%)
4.
The specific gravity of the resource averages 2.79 and is calculated from the Lead and Zinc content. Non-mineralized material is assigned an SG of 2.73.
5.
Numbers may not add due to rounding.
At Promontorio the increase in M+I metal content is considered to be due primarily to the following:
Additional drilling of 89 holes (
23,220 m
) in 2012-2013, that were not included in the previous resource estimate.
Modelling of both high grade constrained mineralized shells and a lower grade mineralized halo to better limit the data used for the interpolations.
Changes to the metal prices (particularly Ag and Au) with lower Ag price and higher Au price to conform to 3-year trailing averages which caused a large
increase in AgEq grade.
The following two tables summarize the La Negra total resource estimate, and the La Negra resource by Oxidation zone, respectively. La Negra is assumed to
produce dore, with only Au and Ag recovered. The cutoff grades of 40 g/t AgEq more than covers the assumed cost of Processing + G&A.
Table 3: 2023 Resource Statement for the La Negra Deposit
ZONE
CLASS
Cutoff
In Situ Grades and Metal Content
AgEq
(g/t)
Tonnage
(kt)
AgEq
(g/t)
Ag
(g/t)
Au
(g/t)
AgEq
Metal
(kOz)
Ag
Metal
(kOz)
Au
Metal
(kOz)
Total
Indicated
25
7,282
102.5
99.8
0.061
24,000
23,370
14.2
30
6,463
112.0
109.2
0.063
23,280
22,690
13.2
35
5,821
120.8
117.9
0.065
22,610
22,060
12.2
40
5,285
129.3
126.3
0.067
21,970
21,450
11.4
45
4,821
137.6
134.5
0.069
21,330
20,850
10.7
50
4,425
145.7
142.5
0.071
20,730
20,280
10.0
Inferred
25
1,831
88.8
86.5
0.055
5,230
5,090
3.2
30
1,607
97.3
94.9
0.057
5,030
4,900
3.0
35
1,415
106.1
103.7
0.059
4,830
4,720
2.7
40
1,257
114.8
112.2
0.060
4,640
4,540
2.4
45
1,111
124.2
121.6
0.061
4,440
4,340
2.2
50
993
133.5
130.8
0.061
4,260
4,180
2.0
Table 4: 2023 Resource Statement for the La Negra Deposit by Zone
ZONE
CLASS
Cutoff
In Situ Grades and Metal Content
AgEq
(g/t)
Tonnage
(kt)
AgEq
(g/t)
Ag
(g/t)
Au
(g/t)
AgEq
Metal
(kOz)
AG
Metal
(kOz)
Au
Metal
(kOz)
OXIDE
Indicated
25
2,383
98.8
95.1
0.049
7,570
7,280
3.7
30
2,157
106.3
102.4
0.051
7,370
7,100
3.5
35
1,964
113.6
109.5
0.053
7,170
6,910
3.3
40
1,798
120.6
116.4
0.054
6,970
6,730
3.1
45
1,661
127.0
122.7
0.056
6,780
6,550
3.0
50
1,524
134.2
129.8
0.057
6,580
6,360
2.8
Inferred
25
622
93.6
90.6
0.039
1,870
1,810
0.8
30
567
100.0
96.9
0.040
1,820
1,770
0.7
35
512
107.3
104.1
0.042
1,770
1,710
0.7
40
465
114.3
111.0
0.043
1,710
1,660
0.6
45
429
120.4
117.0
0.044
1,660
1,610
0.6
50
389
128.0
124.6
0.045
1,600
1,560
0.6
MIXED
Indicated
25
732
78.6
75.4
0.045
1,850
1,770
1.0
30
617
88.0
84.6
0.048
1,750
1,680
1.0
35
526
97.6
94.1
0.050
1,650
1,590
0.9
40
454
107.3
103.5
0.053
1,570
1,510
0.8
45
394
117.0
113.1
0.055
1,480
1,430
0.7
50
350
125.9
121.9
0.057
1,420
1,370
0.6
Inferred
25
105
89.9
88.5
0.020
300
300
0.1
30
83
106.3
104.7
0.022
280
280
0.1
35
71
119.0
117.4
0.023
270
270
0.1
40
61
132.6
130.9
0.023
260
260
0.0
45
51
149.2
147.6
0.024
240
240
0.0
50
47
158.1
156.4
0.024
240
240
0.0
SULFIDE
Indicated
25
4,167
108.8
106.8
0.071
14,580
14,310
9.5
30
3,689
119.4
117.3
0.073
14,160
13,910
8.7
35
3,331
128.7
126.6
0.075
13,790
13,560
8.1
40
3,033
137.7
135.5
0.077
13,430
13,210
7.5
45
2,766
146.9
144.7
0.079
13,060
12,870
7.0
50
2,551
155.3
153.0
0.080
12,740
12,550
6.6
Inferred
25
1,104
86.0
84.1
0.067
3,050
2,980
2.4
30
957
94.9
92.9
0.070
2,920
2,860
2.2
35
832
104.3
102.2
0.072
2,790
2,730
1.9
40
731
113.6
111.5
0.074
2,670
2,620
1.7
45
631
124.8
122.7
0.076
2,530
2,490
1.5
50
557
135.2
133.0
0.076
2,420
2,380
1.4
Notes to the 2023 La Negra Resource Tables:
1.
Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines, as required by NI43-101
2.
The base case Mineral Resource has been confined by "reasonable prospects of eventual economic extraction" shape using the following assumptions:
•
Metal prices of US$22/oz Silver, US$1800/oz Gold
•
Recovery is assumed to be as for dore. Metallurgical recovery of 82% Silver and 77% Gold in the Oxide zone, 85% Silver and 73% Gold in the Mixed zone, and 90% Silver and 31% Gold in the Sulfide zone.
•
Payable metal of 99% for Silver and Gold. Offsite costs (transport, smelter treatment and refining) of US$0.25/oz Silver and US$10/oz gold.
•
Processing, General, and Administrative (G&A) costs of US$ 12/ tonne milled. Mining cost of US$2.00/tonne
•
50 degree pit slopes with the 150% price case pit shell is used for the confining shape
3.
The resulting NSR = Ag*US$0.69/g*Zone Ag Recovery% + Au*US$56.97/g*Zone Au Recovery%
4.
Silver Equivalent (AgEq) = NSR / (US$0.69/g* Ag Recovery%)
5.
The specific gravity is assigned by rock type as 2.52 in Oxides, 2.59 in Mixes and 2.61 in Sulfides
6.
Numbers may not add due to rounding.
Resource Estimate Uncertainty
Areas of uncertainty that may materially impact the mineral resource estimates include changes to: long-term metal price assumptions; interpretations of
mineralization geometry, fault geometry and continuity of mineralized zones; net smelter return used to constrain the estimates; metallurgical recovery
assumptions; input assumptions used to derive the conceptual open pit outlines used to constrain the estimate; variations in geotechnical, hydrogeological and
mining assumptions and environmental, permitting and social license assumptions.
There are no other known environmental, legal, title, taxation, socioeconomic, marketing, political or other relevant factors that would materially affect the
estimation of mineral resources that are not discussed in this news release.
Mineral Resource Estimate Methodology
Data
The Promontorio MRE uses 59,149 assays from 311 drill holes based on drilling up to an including 2013. The La Negra MRE uses 9,311 assays in 94 drill holes
from drilling completed between 2014 and 2017.
Mineralization Envelopes
Confining shapes for the interpolations have been made using the geologic modeling shapes provided by Kootenay, the logged lithology and the metal grades. The
shapes of the main mineralized zones target the breccias and a value of approximately
US$15
/tonne Net Smelter Return (NSR). Dilution of lower grade intercepts
has been added as necessary to produce smooth shapes.
At Promontorio there are six domains modeled, as well as a low-grade halo surrounding and connecting the 2 major areas. The shapes are illustrated in Figure 1.
At La Negra one domain has been modeled and it has been split into three oxidation zones based on logging data. The shapes are illustrated in Figure 2.
Figure 1
Mineralized Shapes and Resource Pit – Promontorio (CNW Group/Kootenay Silver Inc.)
Figure 2
Mineralized Shapes and Resource Pit – La Negra (CNW Group/Kootenay Silver Inc.)
Grade Capping
The grade distributions within the mineralized domains are mainly lognormal except at very high grades where outliers are evident and therefore capping of assays
has been done as summarized in the following tables. For clarity, also summarized in the tables are the Outlier Restrictions which has been applied to the
composites during interpolation at Promontorio. For composite grades above the Outlier value provided, and at distances greater than
5m
from the data, the value
is essentially capped to the outlier.
At both deposits
2m
has been used for the base length when compositing, which is longer than the vast majority of the assays. The compositing also honored the
domain boundaries. Assay intervals less than
1 m
have been added to the previous composite to limit the number of small assay intervals.
Table 5: Capping of Assays and Outlier Restriction of Composites by Domain - Promontorio
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
Cap
Outlier
Cap
Outlier
Cap
Outlier
Cap
Outlier
Low Grade
1,600
500
4
2
9
3
10
3
Domain 1
1,600
500
10
7
9
3
10
3
Domain 2
1,600
500
9
2
9
3
10
8
Domain 3
600
500
6
6
4
4
7
5
Domain 4
500
1,000
4
2
5
5
6
5
Domain 5
1,000
600
3
3
4
3
6
5
Domain 6
100
60
1
1
2
2
2
2
Table 6 : Capping of Assays by Oxidation Zone - La Negra
Oxidation Zone
Cap, g/t
Ag
Oxide
3000
Mixed
1500
Sulfide
3000
Au
Oxide
0.5
Mixed
0.5
Sulfide
1
Variography
At Promontorio variograms have been made on each axis for each metal in Domain 1 and 2, which are the largest domains. The strongest correlations are steeply
dipping down the major axis of the mineralization with ranges from
100m
to
130m
.
At La Negra the strongest correlation is at azimuth 255 dipping 15 degrees with a range of approximately
55m
. The variograms have been used to aid in
determining the search parameters for the interpolations, as well as distances for Classification to Measured and Indicated.
Specific Gravity
The Promontorio drilling database contains 4,510 specific gravity ("SG") measurements in total and the SG is estimated based on the interpolated Pb and Zn
grade using a regression formula.
The SG at La Negra is based on 1,541 measurements within the deposit area and has been assigned based on the mean grade within each of the oxidation
zones.
Interpolations and Classification.
Interpolations have been done in 5 passes using composites coded with the domain shapes for model-composite domain matching. Searches are oriented along
the major axis of each domain. Inverse Distance squared (ID2) is used at Promontorio and Ordinary Kriging at La Negra.
Classification methodology at the two deposits is similar, the primary difference being the search distances used, which are based on the variography.
Classification at Promontorio is based on the distance between drillholes using the following process:
All interpolated blocks are initially classified as Inferred.
Block are upgraded to Indicated if the if the average distance to the 2 nearest drillholes is <=
50m
and if the distance to the furthest of those drillhole is
<=
70m
, and the drillholes must be in at least two quadrants (directions).
Blocks are further upgraded to Measured if the if the average distance to the 3 nearest drillholes is <=
30m
and if the distance to the furthest of those
drillhole is <=
50m
, and the drillholes must be in three quadrants (directions).
The low grade halo is classified as Inferred
Classification at La Negra uses the following process:
All interpolated blocks are initially classified as Inferred.
Block are upgraded to Indicated if the average distance to the 2 nearest drillholes is <=
30m
, and the distance to the furthest of those drillhole is <=
50m
, and
the drillholes must be in two quadrants (directions).
At both deposits additional manual checking and smoothing of the results has been done to ensure continuous shapes of Classification are produced.
Metallurgy
G&T Metallurgical Services Ltd,
Kamloops, BC
,
Canada
completed preliminary metallurgical programs on drill core composites from the Promontorio property for
Kootenay in 2009, 2012 and 2013. The metallurgical program investigated a standard polymetallic sequential flotation flowsheet that includes crushing, grinding,
lead flotation, zinc flotation and pyrite/arsenopyrite flotation. Pressure oxidation (POX) of the pyrite/arsenopyrite concentrate is required to extract the contained
gold by cyanidation to produce dore. Promontorio will also produce lead concentrate, zinc concentrate. The metallurgical recovery assumptions are listed with
Table 1. Overall gold recovery is estimated at 70% and is based on 65% gold recovery into the pyrite flotation concentrate followed by 94% cyanidation gold
extraction from the pyrite concentrate after pressure oxidation, plus an average 9% gold recovery into the lead flotation concentrate.
Metallurgical testing on La Negra samples has been conducted by Kappes, Cassiday & Associates of
Reno Nevada
in 2015 and McClelland Laboratories of
Sparks Nevada
in 2018. The work in 2015 did initial comparisons of flotation to cyanide leaching recovery methods on 7 composites. Silver extractions from
leaching ranged from 70% to 90% based on calculated heads which ranged from 61.71 to 242.64 grams per metric tonne and did not seem influenced by sulfide
sulfur content. Follow-up in 2018 tested 10 composites representing material from four oxidation zones. The composites were all amenable to whole ore
milling/cyanidation treatment with respect to silver recovery, but gold recoveries varied significantly.
La Negra is expected to produce silver and gold dore. The metallurgical recovery assumptions are listed with Table 2 and are based on the average results for
each oxidation type tested in the 2018 test program.
Resource Pit Limits
Lerch Grossman
("LG") pit optimization tools have been used to select a pit shape for limiting the resource. The LG pit targets Net Smelter Return (NSR)
calculated in each block using interpolation results and the economic, metallurgical, and mining parameters shown with the resource tables 1 through 4.
Cut off Grade
The COG was selected using AgEq to cover, as a minimum, the processing and G&A costs and to account for the metallurgical recovery and smelter terms. For
both deposits 25g/t AgEq will covers the assumed cost of
US$12
/tonne; however, a higher cutoff has been used for the base case for La Negra.
Block Model Validation
Several validation techniques have been utilised to ensure that the estimates are reasonable. The global grades of the model with the de-clustered composites
have been compared to ensure no bias was introduced. In addition, the total metal content for each metal at various cutoff have been compared to ensure that the
total metal compares well to that of data. Grade-tonnage curves have been created to ensure that the appropriate smoothing of modelled grades has been
accomplished with no over-prediction of metal throughout the grade distributions. Swath plots comparing the de-clustered composite grade to the ID2 modelled
estimate in Easting, Northing and Elevation were completed to ensure the model is spatially predicting grade correctly. Visual comparisons on section and plan
were also done to ensure the model compares well to the assay grades.
Qualified Persons
Ms.
Sue Bird
– P. Eng., (resource estimate) of MMTS is the Qualified Person ("QP") who prepared the mineral resource estimate, and compiled and reviewed
the resource estimate disclosed in this news release. Ms. Bird, as the Qualified Person, has approved the scientific and technical content of this news release.
Dale Brittliffe, BSc. P. Geol., Vice President, Exploration of Kootenay Silver, is 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.
Cautionary Note to Investors
While the terms
"indicated (mineral) resource" and "inferred (mineral) resource" are recognized and required by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects
, investors are cautioned that except for that portion of mineral resources classified as mineral reserves,
mineral resources do not have demonstrated economic viability. Investors are cautioned not to assume that all or any part of measured or indicated
mineral resources will ever be upgraded into mineral reserves. Additionally, investors are cautioned that inferred mineral resources have a high
degree of uncertainty as to their existence, as to whether they can be economically or legally mined, or will ever be upgraded to a higher category.
United States
investors are advised that current Mineral Resources are not current Mineral Reserves and do not have demonstrated economic
viability.
Share Consolidation
The Company is pleased to announce that its board of directors (the "Board") has approved a consolidation (the "Consolidation") of the common shares (the
"Shares") of the Company on a ten-to-one (10:1) basis. The Company currently has 457,669,033 Shares outstanding and if completed, the Consolidation would
reduce the issued and outstanding Shares to approximately 45,766,903 Shares, subject to rounding. No fractional post-Consolidation Shares will be issued
pursuant to the Consolidation. Any fractional Shares equal to or greater than one-half resulting from the Consolidation will be rounded up to the next whole number
of Shares, and any fractional Shares less than one-half resulting from the Consolidation will be rounded down to the nearest whole number.
Along with all outstanding Shares, the Company's equity incentive plan will be adjusted accordingly. The Consolidation will also affect the issued and outstanding
common share purchase warrants (each, a "Warrant") of the Company, as the number of Shares issuable upon the exercise of each Warrant will be reduced and
the exercise price will increase, all in accordance with the terms of the certificates governing the Warrants.
The Consolidation is subject to TSX Venture Exchange ("TSXV") approval. At the Company's annual general and special meeting of its shareholders (the
"Shareholders") held on
March 15, 2023
, the Shareholders approved the replacement of the Company's articles of incorporation in their entirety with a new form
of articles of incorporation (the "New Articles"). Under the New Articles, a consolidation may be implemented by the Board without shareholder approval. As such,
the Consolidation is not subject to shareholder approval. The Company will announce the effective date of the Consolidation, as well as the new CUSIP/ISIN
numbers for the post-Consolidation Shares by way of a future news release. The post-Consolidation Shares will continue to trade on the TSXV under the
Company's existing name and trading symbol.
The Consolidation will not materially affect the percentage ownership in the Company of Shareholders even though such ownership will be represented by a
smaller number of Shares. The Consolidation will merely proportionally reduce the number of Shares held by Shareholders.
Shareholders who have deposited their Shares into brokerage accounts are not required to take any action to effect an exchange of their Shares.
Shareholders with physical certificates will receive a letter of transmittal from Computershare Investor Services Inc., the Company's transfer agent. The letter of
transmittal will contain instructions on how registered Shareholders can exchange their share certificates representing pre-Consolidation Shares for new
certificates representing post-Consolidation Shares. Until surrendered, each share certificate representing pre-Consolidation shares will represent the number of
whole post-Consolidation shares to which the holder is entitled as a result of the consolidation.
About Kootenay Silver
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 Information
This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable
by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar
expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the mineral resource estimate for
the Promontorio-La Negra project; the completion and filing of a National Instrument 43-101 technical report related to the Promontorio-La Negra mineral resource
estimate; potential existence and size of mineralization within the Promontorio-La Negra project; and geological interpretations and potential mineral recovery
processes. Information concerning mineral resource estimates also may be deemed to be forward-looking information in that it reflects a prediction of
the mineralization that would be encountered if a mineral deposit were developed and mined.
In connection with the forward-looking information contained in this news release, Kootenay Silver and its subsidiaries have made numerous assumptions,
regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that Kootenay Silver has received is reliable and is based
upon practices and methodologies which are consistent with industry standards. While Kootenay Silver considers these assumptions to be reasonable, these
assumptions are inherently subject to significant uncertainties and contingencies.
Such forward-looking information and statements are based on numerous assumptions, including among others, that the Company will receive approval from the
TSXV and complete the Consolidation in the timeframe and on the terms as anticipated by management. Although the assumptions made by the Company in
providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance
that such assumptions will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Additionally, there are known and unknown risk factors which could cause Kootenay Silver's actual results, performance, or achievements to be materially different
from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include,
among others: the actual mineralization in the Promontorio–La Negra deposit may not be as favorable as suggested by the resource estimate; the NI 43-101
technical report that includes the resource estimate may not be filed within the anticipated timeframe, or at all; fluctuations in copper and other commodity prices
and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of
estimates of capital and operating costs, and recovery rates; the need to obtain additional financing to develop properties and uncertainty as to the availability and
terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and other governmental approvals.
A more complete discussion of the risks and uncertainties facing Kootenay Silver is disclosed in Kootenay Silver's continuous disclosure filings with Canadian
securities regulatory authorities at
www.sedar.com
. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Kootenay
Silver disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-
looking information contained herein to reflect future results, events, or developments, except as required by law.
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SOURCE
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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 08:00e 12-OCT-23