Kootenay Surface Sampling Results Indicate Potential for High Grade Vein Type Deposits on New Silver Property Within the Historic Parral Silver Mining District, Mexico
Kootenay Surface Sampling Results Indicate
Potential for High Grade Vein Type Deposits
on New Silver Property Within the Historic
Parral Silver Mining District, Mexico
VANCOUVER
,
Oct. 29, 2018
/CNW/ -
Kootenay Silver Inc. (TSXV: KTN) (the "Company" or
"Kootenay")
is pleased to announce that it has acquired the Mecatona Property (the "Property") by
staking of 2,857 hectares in the Parral Silver Mining District, located south of the City of Parral in
Chihuahua State,
Mexico
and southeast of the Company's flagship La Cigarra Project.
To date, the Company has taken 78 samples, which include both channel and grab on the Property
with silver values ranging from trace to a high of 735 gpt and gold values ranging from trace to 6.94
gpt. Appreciable base metals are also present within the mineralized system with lead and zinc
values returning up to 3.5% and 8.0%, respectively. See table at the end of this release for sample
details and
click on this link to view maps
.
The Property covers a silver-dominant epithermal mineral system hosted in veins and breccias. One
anomalous structure has been traced for +1.7 kilometer and remains open along strike. Early stages
of exploration by the Company have also outlined other anomalous areas including a northeast
trending zone outlined by stockworks and quartz veinlets within an 80 meter-wide argillic alteration
zone. Several small active mines operated by local gambusinos, located 1.5 kilometres west of the
Property, are reported to host high grades greater than 1 kg/ton silver at depth.
The exploration plan at the Property is to map out and define the mineralized structures and then drill
test them at the same elevations the high grade is known to occur at the neighboring small-scale
mines. This exploration plan was used very successfully in discoveries such as Mag Silver's
Juanacipio and Electrum's Los Gatos. Although the Property hosts several small to medium sized old
workings there is no evidence of any modern exploration.
Based on the length of mineralized structures, adjacent producing properties and the context within
the Parral-San Francisco Del Oro-Santa Barbara mineral camps, Kootenay believes the Mecatona
Property has the potential to host high grade vein type silver deposits.
Regionally, the Property is part of the larger, productive Parral Silver District that includes the
Santa
Barbara
and
San Francisco
del
Oro
mining facilities, Endeavour Silver's Veta Colorada and La
Pamilla projects and Kootenay's La Cigarra.
Mecatona Property Sample Results
Sample
Number
Sample
Type
Gold
ppb
Silver
gpt
Copper
ppm
Lead
ppm
Zinc
p
pm
FC2036ch
CH
133
351
70
4650
1150
FC2037g
G
15
11
50
90
180
FC2038d
D
158
28
30
150
310
FC2039sc
SC
136
65
30
210
140
FC2040sc
SC
37
368
920
15600
30
FC2041f
F
91
98
240
35300
80000
FC2396f
F
40
12
20
480
110
FC2397d
D
5
169
40
400
130
FC2398d
D
45
291
1140
1270
500
FC2399g
G
19
69
50
690
360
FC2400g
G
N/A
97
150
480
230
FC2401g
G
6
90
50
820
150
FC2402g
G
9
79
60
840
410
FC2403g
G
12
39
50
730
210
FC2404ch
CH (1m)
43
9
20
13250
810
FC2405g
G
N/A
3
10
280
180
FC2406ch
CH (1m)
112
14
30
1870
310
FC2407ch
CH (1m)
12
10
20
15400
390
FC2408g
G
N/A
12
30
340
260
FC2408Ag
G
6
12
20
400
260
FC2409g
G
7
2
N/A
630
160
FC2410g
G
N/A
1
N/A
20
150
FC2411g
G
N/A
1
10
210
120
FC2412g
G
N/A
1
N/A
80
90
GG307ch
CH (1m)
N/A
N/A
N/A
170
70
GG308ch
CH (1m)
N/A
1
N/A
30
50
LM2570g
G
N/A
3
20
100
120
LM2571g
G
17
14
30
11700
630
LM2572g
G
11
257
40
250
170
LM2573g
G
N/A
205
70
370
70
LM2574g
G
6
4
10
650
690
LM2575g
G
11
3
N/A
100
220
LM2576sc
SC
130
20
30
830
220
LM2577sc
SC
N/A
1
N/A
30
-20
LM2578sc
SC
N/A
N/A
N/A
-20
-20
LM2579f
F
N/A
N/A
N/A
20
30
LM2580p
P (2mt)
N/A
5
10
160
70
LM2581ch
CH (2mt)
N/A
28
10
190
70
RJ068g
G
16
N/A
20
50
90
RJ069g
G
N/A
N/A
10
90
70
RJ070g
G
N/A
1
10
100
250
RT466f
F
N/A
1
N/A
660
30
RT492ch
CH (3m)
16
27
20
160
90
RT493
G
N/A
N/A
N/A
50
40
RT494
G
7
13
10
1500
220
RT495
SC
6940
753
340
5320
490
RT496
G
23
44
10
170
60
RT497ch
CH (2m)
7
80
70
940
170
RT498
G
10
55
40
3120
620
RT499ch
CH
7
3
10
440
480
RT500
G
N/A
1
N/A
240
70
TK447g
G
29
328
40
200
80
TK448g
G
16
1
N/A
160
110
TK449g
G
6
5
N/A
980
110
TK450d
D
22
194
150
3920
350
TK451g
G
5
190
250
1830
590
TK452g
G
42
7
10
240
140
TK453d
D
5
1
N/A
120
190
TK454sc
SC
23
53
50
1300
350
TK455p
P
18
92
20
450
100
TK456g
G
9
1
N/A
130
120
TK457g
G
8
24
40
1840
450
TK458f
F
58
53
20
520
200
TK459ch
CH
14
17
40
2960
510
TK460g
G
N/A
2
N/A
160
120
TK461p
P
N/A
N/A
N/A
N/A
N/A
TK462f
F
N/A
1
N/A
20
20
TK463f
G
N/A
N/A
N/A
20
N/A
TK464g
G
N/A
10
N/A
970
280
TK465ch
CH
50
20
70
4570
580
TK466ch
CH
435
32
110
5980
470
TK467g
G
N/A
1
N/A
80
110
TR1511g
G
N/A
4
10
130
70
TR1512g
G
N/A
1
10
40
40
TR1513g
G
N/A
N/A
10
90
80
TR1514g
G
N/A
1
10
120
90
TR1515g
G
N/A
2
10
170
370
TR1516g
G
22
9
10
530
190
*G: grab sample, CH: chip-channel sample, F: float sample, SC: subcrop sample, D: dump
sample.
Additionally, the Company announces it has entered an option agreement to acquire a 100% interest
in the Meachen Bend Project (the "Meachen Property") located 30 kilometers southwest of the
famous Sullivan silver-lead-zinc mine which hosted 350 million ounces of silver, within 160 million
tonnes grading 12% lead plus zinc and 68 gpt silver. The Meachen Property is comprised of three
mineral tenures totaling approximately 1,048 hectares and covers elevated base metals, alteration
and stratigraphy consistent with those areas peripheral to a silver-lead-zinc Sullivan style deposit. In
addition, a strong single line MT conductor sits at relatively shallow depths, which is believed by the
Company could be caused by massive sulfides distinctive to a Sullivan type deposit. Pursuant to the
terms of the Acquisition, the Company must issue 500,000 common shares over 4 years upon
receipt of TSX Venture Exchange ("TSXV") approval. Following completion of the option the venders
will retain a 1.5% net smelter return upon earn in, of which, one-half percent (0.5%) can be
purchased by the Company for
$500,000
.
Sampling and QA/QC
Surface samples reported herein are a combination of grab, chip and panel chip. All technical
information for the Mecatona 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
geologists. Samples are then labeled placed in plastic bags, sealed and with interval, location and
sample numbers recorded. Samples are delivered by the Company via courier to ALS Minerals
("ALS") in Chihuahua. The samples are dried, crushed and pulverized with the pulps being sent
airfreight for analysis by ALS in
Vancouver, B.C.
Systematic assaying of standards, blanks and
duplicates is performed for precision and accuracy. 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 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 on behalf Kootenay by
James McDonald
, P.Geo, President, CEO &
Director for Kootenay, a Qualified Person.
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.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at
October 28, 2018
. 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 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.
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 Canadian 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 cautioned 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.
SOURCE
Kootenay Silver Inc.
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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 13:37e 29-OCT-18