"Oxide 2", "Mixed Oxide/Sulfide" and "Sulfide". Theses Domains were defined by mineralization
Kootenay Reports Positive Metallurgical
Results from Cervantes Gold Project, Sonora,
Mexico - Under Option to Aztec Minerals
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER
,
March 12, 2019
/CNW/ -
Kootenay Silver Inc. (TSXV: KTN) (the "Company" or
"Kootenay")
is pleased to report that Aztec Minerals Corp. ("Aztec Minerals") today announced
positive bottle roll gold recoveries from metallurgical test-work conducted by Bureau Veritas on the
California
porphyry gold-copper drill core from the
Cervantes
property in
Sonora, Mexico
.
Drill core samples were grouped into 4 separate types of mineralization ("Domains"), "Oxide 1",
"Oxide 2", "Mixed Oxide/Sulfide" and "Sulfide". Theses Domains were defined by mineralization
type, gold grade, and depths to fit the possibility of a future open pit mining scenario. Testing was
conducted for 240 hours, although good recoveries generally plateaued at 48 hours, and the tests
showed low cyanide and lime consumption. Highlights of the bottle roll gold recovery results are as
follows:
85.1% recovery on 2.0mm material and 94.3% on 75 micron material in sample "Oxide 1"
87.7% recovery on 2.0mm material and 94.2% on 75 micron material in sample "Oxide 2"
77.9% recovery on 2.0mm material and 89.0% on 75 micron material in sample "Mixed
Oxide/Sulphide"
51.2% recovery on 2.0mm material and 78.7% on 75 micron material in sample "Sulphide"
The full news release issued by Aztec Minerals can be found at:
http://aztecminerals.com/
The Cervantes Property is held under an earn-in option to agreement whereby Aztec Minerals can
acquire up to 100% interest in the property in two stages, with Kootenay retaining a 2.5 % NSR and
receiving a payment of
US$5.00
per ounce or gold equivalent based on a NI 43-101 Resource
Estimate. See
Kootenay news release dated
October 13, 2015
.
Financing Update:
Additionally, the Company has closed a final tranche to its non-brokered private placement financing
(the "Private Placement") announced on
February 5, 2019
and
March 5
, 2019. The Private
Placement, which was originally for gross proceeds of
$2,500,000
, and closed oversubscribed for
total gross proceeds to the Company from both tranches of
$7,043,331.54
. The Company received
gross proceeds of
$43,041.88
for the final tranche and issued an additional 307,442 units (each a
"Unit") at a purchase price of
$0.14
per Unit. Each Unit consists of one common share ("Common
Share") and one transferable common share purchase warrant ("Warrant"). Each Warrant entitles
the holder to acquire one Common Share at an exercise price of
$0.20
per share until
March 5,
2024
. Cash finder's fees to arm's length parties totaling
$2,582.51
have been paid on a portion of
the Private Placement and total finder's fees for both tranches amounted to
$258,763.89
.
The Company intends to use the net proceeds of the Private Placement for drill testing Columba; the
advancement of Copalito to drill ready stage, advancement of Mecatona to drill targeting and further
drill targeting and target prioritization at La Cigarra. The Company will also use a portion of the net
proceeds of the Private Placement for maintenance of existing properties, investigating future
acquisitions with the focus on large high-grade deposits as well as general working capital.
All securities issued pursuant to the Private Placement are subject to a four month hold period under
applicable securities laws in
Canada
ending on
July 6
, 2019. The Private Placement is subject to the
final acceptance of the TSX Venture Exchange.
The securities described herein have not been and will not be registered under the United States
Securities Act of 1933, as amended, or any State Securities Laws and may not be offered or sold in
the United States
or to the account or benefit of a U.S. person absent an exemption from the
registration requirements of such Act. This release does not constitute an offer for sale of securities
in
the United States
.
Sampling and QA/QC
Drill core sample composites were prepared by Bureau Veritas'
Hermosillo, Sonora
Laboratory and
shipped to their
Richmond, British Columbia
lab for the cyanide leach testing. The samples were
delivered to the prep lab in
Hermosillo
by the QP,
Joey Wilkins
, who also designed and authorized
the program. The samples were split, combined, and homogenized prior to shipping to
Richmond
.
Head grade samples were analyzed by methods Fire Assay for gold and MA200 for multi-elements.
The QP reviewed the results and is satisfied they meet high standards and can be used by the
company for reporting and further metallurgical understanding of the
Cervantes
property.
Qualified Persons
The Kootenay scientific and 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 Kootenay by
James McDonald
, P.Geo, President, 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
.
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
March 11
, 2019. 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.
SOURCE
Kootenay Silver Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/March2019/12/c7286.html
%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 20:48e 12-MAR-19