Kootenay Silver Inc is a success driven exploration company; focused on the aggressive development of its flagship Promontorio Silver Project in Sonora State, Mexico. Kootenay has drilled over 67,000 meters through several individual campaigns at Promontorio over 5 years and recently reported a significant increase in the size of Promontorio’s Measured and Indicated mineral resources (August 21, 2012). The updated NI 43-101 Measured and Indicated resource contains an estimated 61,679,000 oz AgEq with another 14,469,000 oz AgEq categorized as Inferred. Two diamond drill rigs are currently operating on Promontorio with plans to ramp up to 5 drills in order to quickly advance through the current 30, 000 meter program and embark on its first PEA study.
Kootenay’s management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution. The Company's objective is to develop near term discoveries and long term sustainable growth.
The results today from 10 holes are from the 25,000 metre core drilling program at the project, which forms part of the 35,000 metre infill and resource definition campaign.
The remaining 10,000 metres were dedicated to reverse circulation drilling, with both parts of the program now complete.
Highlights of the latest core drilling results include 18 metres of 254 grams per tonne (g/t) silver equivalent, within 89 metres of 84 g/t silver equivalent in hole DH-116-12 in the Northeast Zone, the eastern most intercept to date.
Other notable results included hole DH-115-12 in the Northeast Pit Extension, which returned 3 metres of 112 g/t silver equivalent within 12 metres of 43 g/t silver equivalent. The company said this hole shows the potential opening of mineralization to the north.
Kootenay said that work for an updated NI 43-101 resource is underway, which will incorporate the results from the recent drilling.
"The high-grade results achieved from step-out drilling in the Northeast Zone is further testimony to the success of our multi-phase drill program," said CEO James McDonald.
"Since confirming our initial NI 43-101 silver resource in 2010, we established one continuous zone of silver mineralization from the Pit (Discovery) Zone through the Southwest Zone. This zone remains open to the east, west and to depth.
"We continue to encounter high-grade silver intercepts over widespread areas of silver mineralization in the Northeast Zone, some 700 meters outside of the current NI 43-101 resource.
"We expect these developments will play a critical factor in sharply boosting the size of our existing silver resource as we prepare for our updated independent NI 43-101 resource study."
The Promontorio silver mineralization is hosted in a large diatreme complex, which has significant geologic implication, the company said, as these types of systems can typically be "very large in size and result in discovery of numerous deposits".
Examples in Mexico include the Pitarrilla silver-lead-zinc deposits in Durango, and the Peñasquito silver-gold-lead-zinc mine in the northeast of the State of Zacatecas in north-central Mexico.
Silver mineralization at Kootenay's project remains open in both strike directions and down dip, between the Pit, Southwest Extension and Northeast zones, the company said.
Kootenay also said Wednesday it has identified a host of new prospective targets within the Diatreme complex, that require further drill testing, with a large follow-up drill program planned for after the release of the resource update.
Kootenay Silver is developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada.
Currently, Promontorio itself hosts an NI 43-101-compliant resource containing 8.9 million indicated ounces of silver plus 1.17 million ounces of inferred silver, 99.3 million indicated pounds of lead plus 13.4 million inferred pounds of lead, and 110.8 million indicated pounds of zinc plus 14.3 million inferred pounds of zinc.