Kootenay Step-Out Drilling Encounters 364 g/t Silver & 2.91% Combined Lead Zinc over 4.5 Meters at Promontorio
May 12, 2010
KOOTENAY STEP-OUT DRILLING ENCOUNTERS 364 G/T SILVER & 2.91% COMBINED LEAD ZINC OVER 4.5 METERS AT PROMONTORIO
Kootenay Gold Inc. (KTN: TSX.V) is pleased to announce step-out drill results for the Promontorio Silver Project in Sonora Mexico. Highlights of drill results from the NE Zone include:
- 78 g/t silver, 1.17 g/t gold and 1.43% lead-zinc over a 29 meter interval which included;
- 364 g/t silver, 1.26 g/t gold and 2.91% combined lead-zinc over 4.5 meters in KP 81 at the northeast zone some 650m distant from the Promontorio Pit drilling.
Jim McDonald, CEO of Kootenay Gold commented, “These results from the NE Zone show a striking correlation to the Main Pit Zone discovery located 650m to the southwest. It is
encouraging to note that the IP Chargeability High is continuous between these two zones indicating they may be connected. We look forward to results from an additional 6 drill holes which will test two new targets; in addition we have contracted PEG to undertake a 43-101 resource calculation on the Pit Zone (see April 22, 2010 news release). Promontorio continues to be a target rich property with significant large scale potential”.
UPDATE ON STEPOUT DRILLING
The current phase of drilling Kootenay has completed an additional 5588m in 19 diamond drill holes over four prospect areas. Results have now been released up to KP91-10.
In addition to the drill program Kootenay is currently evaluating 2900 line kilometres of airborne geophysics to identify areas with similar airborne EM signatures to those over the Main Pit and Northeast zones. Airborne EM is proven to be effective in mapping out mineralization at the Main Pit and Northeast zones.
Northeast Zone, KP-80-10 to KP-84-10
Holes KP 80 and 81 were drilled from a single pad 650m northeast of the Promontorio pit area and holes KP-82-84 form a three-hole fence across the northeast zone some 500m from the pit discovery area. Holes encountered scattered veining and mineralized breccias reminiscent of those seen in the pit drilling:
- KP 80: 29.0 meters of 1.17 g/t gold, 78 g/t silver and 1.43 % lead-zinc including 4.5m of 1.11
g/t gold, 115 g/t silver and 5.13 % lead-zinc AND 20m of 0.65 g/t gold, 89 g/t silver and 2.14% lead-zinc.
- KP 81: 16.5 meters of 0.88 g/t gold, 144 g/t silver and 1.97 % lead-zinc; including 4.5 meters
of 1.26 g/t gold, 364 g/t silver and 2.91 % lead-zinc.
- KP 82 encountered only weakly anomalous results.
- KP 83: 9 meters of 1.21 g/t gold, 100 g/t silver and 0.72% lead-zinc.
- KP 84: 8.5 meters of 0.43 g/t gold, 17.5 g/t silver and 0.49% lead-zinc.
Pit Zone Northwest IP anomaly, KP-85-10 to KP-90-10
Holes KP 85 to 89 were drilled to test a chargeability anomaly similar to that seen at the pit. KP- 90-10 was drilled between the NW and the pit chargeability anomalies. Drilling encountered broad zones of scattered sulphide veining and numerous zones of weak mineralization. Selected intervals from KP 85, 89 and 90 are below, KP 86 and 87 returned weakly anomalous results, not considered significant.
- KP 85: 1.5 meters of 1.19 g/t gold, 101 g/t silver and 3.15% lead-zinc, 3 meters of 0.62 g/t
gold, 31.5 g/t silver, 0.72% lead-zinc and 1.5 meters of 0.56 g/t gold, 32 g/t silver and 1.31% lead-zinc.
- KP 89: 1.5 meters of 1.41 g/t gold, 11 g/t silver and 2.00% lead-zinc.
- KP 90: 18 meters of 0.68 g/t gold, 36.6 g/t silver and 1.23% lead-zinc, 13.5m of 0.62 g/t gold,
20.8 g/t silver and 0.7% lead-zinc.
Dorotea Extension, KP-71-09, KP-72-09 and KP-75-10 to KP-77-10
Five holes were drilled to test the continuation of the Dorotea trend mineralization and were collared some 600m to 780m along strike northwest of the Dorotea discovery:
- KP 71, 72 and 75 intersected the targeted structure and returned weakly anomalous results.
- KP 76: 10.5m of 1.33 g/t gold, 20 g/t silver, 0.67% lead-zinc including 4.5m of 2.58 g/t gold,
27 g/t silver and 0.77% lead-zinc.
- KP 77: 12m of 0.46 g/t gold, 21 g/t silver and 1.17% lead-zinc.
Northwest IP anomaly, KP-70-09, KP-73 and KP-74
Three holes were drilled to test a broad chargeability anomaly located beneath a prominent silicified ridge adjacent to the extension of the Dorotea trend. The holes were located between 850m to 1000m northwest of the Dorotea discovery:
- KP 70 encountered sulphide veining grading 2 meters of 10 g/t silver and 1.36 % lead-zinc.
- KP 73 and KP 74 encountered no significant results.
Ranch EM anomaly, KP-63-09, KP-78-10, KP-79-10 and KP-91-10
KP-78-10, KP-79-10 and KP-91-10 form a fence of holes testing the central portion of the Ranch EM anomaly. No significant results were returned though strong alteration was observed in the core. Assays that were outstanding for KP-63-10 have now been returned and contain no significant results but complete the section in which KP 64-09 and KP-60-09 encountered the previously reported:
- KP 64: 3.0 meters of 0.63 g/t gold, 551 g/t silver and 20% combined lead-zinc.
- KP 60: 18 meters of 0.58 g/t gold, 13 g/t silver and 0.68% lead-zinc including 2.0 meters 1.49
g/t gold, 26 g/t silver and 1.24 % lead-zinc.
Dorotea Copper Showing, KP-69-09
A single hole was drilled under a prospective structural target 200m south of the Dorotea discovery showing. No significant results were returned from this hole.
Drill holes KP 88 to 90 are completed but assays are outstanding at this time.
Drill results continue to increase the overall size potential of Promontorio property with significant mineralization being encountered in all target areas tested in the current program to date.
Table of Significant Drill Intercepts
| HOLE ID | From (m) | To (m) | Interval (m) | Au (ppm) | Ag (ppm) | Pb (%) | Zn (%) | Pb Zn Combined (%) |
|---|---|---|---|---|---|---|---|---|
| Northeast Zone | ||||||||
| KP-80-10 | 88 | 117 | 29.0 | 1.17 | 78 | 0.62 | 0.81 | 1.43 |
| incl | 94.5 | 99 | 4.5 | 1.11 | 115 | 1.98 | 3.14 | 5.13 |
| KP-80-10 | 303 | 307.5 | 20.0 | 0.65 | 89 | 1.12 | 1.03 | 2.14 |
| KP-81-10 | 190.5 | 207 | 16.5 | 0.88 | 144 | 1.08 | 0.89 | 1.97 |
| incl | 195 | 199.5 | 4.5 | 1.26 | 364 | 1.31 | 1.59 | 2.91 |
| KP-82-10 | No | significant | results | |||||
| KP-83-10 | 176 | 185 | 9.0 | 1.21 | 100.5 | 0.40 | 0.32 | 0.72 |
| KP-84-10 | 264 | 268.5 | 4.5 | 0.82 | 9.7 | 0.19 | 0.10 | 0.29 |
| and | 356 | 364.5 | 8.5 | 0.43 | 17.5 | 0.24 | 0.25 | 0.49 |
| Pit Zone Northwest I.P. Anomaly | ||||||||
| KP-85-10 | 48 | 49.5 | 1.5 | 0.50 | 11.0 | 0.21 | 0.28 | 0.49 |
| and | 201 | 204 | 3.0 | 0.62 | 31.50 | 0.31 | 0.42 | 0.72 |
| and | 207 | 213 | 6.0 | 0.20 | 27.3 | 0.38 | 0.42 | 0.81 |
| and | 238.5 | 240 | 1.5 | 1.19 | 101.0 | 1.86 | 1.29 | 3.15 |
| and | 268.5 | 270 | 1.5 | 0.08 | 40.0 | 0.71 | 1.14 | 1.85 |
| and | 318 | 319.5 | 1.5 | 0.56 | 32.0 | 0.44 | 0.87 | 1.31 |
| and | 324 | 325.5 | 1.5 | 0.71 | 39.0 | 0.69 | 0.77 | 1.46 |
| and | 348 | 349.5 | 1.5 | 0.22 | 33.0 | 1.03 | 0.50 | 1.53 |
| KP-86-10 | No | significant | results | |||||
| KP-87-10 | No | significant | results | |||||
| KP-88-10 | No | significant | results | |||||
| KP-89-10 | 231 | 232.5 | 1.5 | 1.41 | 11 | 0.85 | 1.15 | 2.00 |
| KP-90-10 | 253.5 | 271.5 | 18 | 0.68 | 36.6 | 0.54 | 0.69 | 1.23 |
| incl | 258 | 261 | 3 | 1.21 | 54 | 0.80 | 1.11 | 1.91 |
| and | 295.5 | 309 | 13.5 | 0.62 | 20.8 | 0.33 | 0.37 | 0.7 |
| incl | 300 | 301.5 | 44 | 1.38 | 44 | 0.67 | 0.73 | 1.4 |
| Dorotea Northwest Extension | ||||||||
| KP-71-09 | No | significant | results |
| KP-72-09 | No | significant | results | |||||
|---|---|---|---|---|---|---|---|---|
| KP-75-10 | No | significant | results | |||||
| KP-76-10 | 165 | 175.5 | 10.5 | 1.33 | 20 | 0.36 | 0.30 | 0.67 |
| incl | 171 | 175.5 | 4.5 | 2.58 | 27 | 0.49 | 0.28 | 0.77 |
| and | 187.5 | 192 | 4.5 | 1.20 | 4 | 0.01 | 0.01 | 0.03 |
| KP-77-10 | 79 | 91 | 12.0 | 0.46 | 21 | 0.45 | 0.72 | 1.17 |
| Dorotea Northwest I.P. Anomaly | ||||||||
| KP-70-09 | 140 | 142 | 2 | -0.05 | 10 | 0.25 | 1.11 | 1.36 |
| KP-73-09 | No | significant | results | |||||
| KP-74-09 | No | significant | results | |||||
| Ranch E.M. Anomaly | ||||||||
| KP-63-09 | No | significant | results | |||||
| KP-78-10 | No | significant | results | |||||
| KP-79-10 | No | significant | results | |||||
| KP-91-10 | No | Significant | results | |||||
| Dorotea Cu showing | ||||||||
| KP-69-09 | No | significant | results |
Drill Hole Collar Summary and complete list of Drill Hole results – visit www.kootenaygold.ca
Drilling
Drilling is all core and has been contracted to BDW International out of Guadalajara Mexico and all core has been HQ sized. Drill hole coordinates can be viewed at www.kootenaygold.ca
Sampling and Assaying
All core samples were cut by diamond core saw with one half being returned to the core box for reference and the other being bagged in a plastic sample bag which was labelled, tagged, documented and sealed with a zip-tie. Samples were placed in labelled rice sacks and sealed. All samples were recorded and delivered to the ALS Chemex sample preparation lab in Hermosillo, Sonora, Mexico. Receipt of the samples was signed off at the preparation lab. Pulps of each sample were prepared in Hermosillo and sent to ALS Chemex, North Vancouver B.C. Canada an ISO 9001-2000 certified full service laboratory. All of the samples referred to herein are core samples.
A QA/QC program including the regular insertion by the Company of duplicates, blanks and standards was instituted. ALS Chemex also has its own system of replicate analysis and blanks which it provides to the Company. Each pulp was analyzed using 30g fire assay for gold with AAS finish (ALS method Au-AA23) and a high grade four acid digestion ICP-AES analysis package for an additional 33 elements including Ag, Pb, Zn and Cu (ALS method ICP61a). Over limit samples for gold were subject to 30g fire assay with gravimetric finish (ALS code Au- GRA21) and over limit silver, zinc, lead and copper samples to ore grade four acid digest/leach (ALS code OG62). Sample lengths vary from 0.5 to 2.0 meters in width with the majority being 1.5 or 2.0 meters.
The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of the Company.
ABOUT KOOTENAY
Kootenay is an emerging exploration Company actively developing several mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Numerous joint-venture partnerships maximize the potential for new discoveries. The Company's top priority remains the ongoing development of its Promontorio Silver project in Sonora State, northwest Mexico, which encompasses the former producing Promontorio Silver Mine.
For additional information, please contact:
James McDonald, CEO and President at 403-238-6986 or Ken Berry, Chairman at 604-601-5652; 1-888-601-5650 www.kootenaygold.ca
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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. 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. 2010 number 10