Exploration and development company Kootenay Silver (TSXV:KTN) was in the black on Wednesday after hitting multiple high-grade intercepts during Phase I drilling at its La Negra discovery in Sonora, Mexico. The market seemed to react well to the news, as Kootenay was up roughly 14 percent during morning trading hours. More high-grade results Located roughly 6.1 kilometers north of Kootenay's flagship Promontorio silver resource, the La Negra discovery is relatively new. Phase I drilling began there late this past summer and finished this month, with 25 holes in total completed. The company released results from the program's first seven holes during October, with all of them intersecting "significant grades of widespread silver mineralization extending from surface to depth." Wednesday brought the release of results from a further 16 holes; results from the final two are pending. Highlights of Wednesday's results include:34 meters from surface of 265 grams per tonne silver, with 18 meters of 467 grams per tonne30 meters from surface of 250 grams per tonne silver, with 13 meters of 459 grams per tonne33 meters from surface of 179 grams per tonne silver, with 11 meters of 412 grams per tonne Additionally, hole LN 21-14 includes an interval of 6 meters of 1,337 grams per tonne silver — the highest-grade interval encountered at La Negra to date. Good potential To be sure, Kootenay Silver's president and CEO, James McDonald, is pleased with the results and is positive on the future of La Negra. He said in Wednesday's release that "La Negra is rapidly evolving into an exciting new silver discovery that is ideally situated and continues to yield multiple high-grade results," adding that a number of combined factors "indicate strong potential for developing a significant low cost silver operation."
In any case, it was heartening for investors and market watchers to see some silver lining in the market today. Precious metals investors will certainly be watching to see what comes next at La Negra and at Kootenay Silver's flagship Promontorio project.At close of day on Wednesday, shares of Kootenay Silver were up 11 percent, or $0.04, trading at $0.39. Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article. Kootenay Silver Gains on Further High-grade Results at La Negra from Silver Investing News