Kootenay Silver (TSXV:KTN)
Market cap: $39 million
Cash estimate: $2.5 million
Project: La Negra
Ownership: 100 percent
Historical resources: Indicated (In Pit) 44.5 million tonnes grading 27.77 g/t Ag, 0.35 g/t Au, 0.40% Pb and 0.47% Zn
Project status: Phase II exploration
Kootenay Silver announced an additional seven holes from its Phase II drilling campaign on its 100% owned La Negra discovery on the Promontorio project in Senora Mexico. The 500 by 200 metre zone was initially outlined in a prospecting and trenching program followed up by diamond drilling. The project is located approximately seven kilometres north of the Company's 100% owned Promontorio project. Highlights from the current near surface drilling include 146 metres grading 68.39 g/t Ag, 0.054 g/t Au and 0.18% Pb and 138 metres of 63.12 g/t Ag, 0.049 g/t Au and 0.21% Pb with both intervals starting surface. Within the 500 by 200 metre breccia footprint, the breccia appears to have variable mineralization with discrete high-grade intervals within lower grade "background" mineralization. Drilling also extended the high-grade zones 100-150 metres to depth with a 30 metre interval of 101.86 g/t Ag, 0.117 g/t Au and 0.42% Pb starting at 197 metres depth. A second deeper interval returned 3 metres of high-grade silver/lead mineralization grading 177 g/t Ag, 0.084 g/t Au and 3.87% Pb starting at 293 metres. Mineralization in the diatreme breccia occurs within the strongly tourmaline-sericite-quartz altered matrix as silver chlorargyrite, a potentially easily leachable silver chlorite mineral associated with alteration in other important silver deposits in Mexico. Fragments are dominantly sericite altered and include a mix of intrusive and extrusive fragments, mineralized fragments and possible basement quartzite fragments. While the mineralized diatreme breccia occurs on surface, there was little indication that the breccia was mineralized as the deposit does not contain the typical gosson usually associated with oxidized sulphide minerals. The Company's nearby Promontorio deposit hosts a measured and indicated pit constrained resource estimate of 44.5 million tonnes grading 27.77 g/t Ag, 0.35 g/t Au, 0.40% Pb and 0.47% Zn with an additional underground potential of 215,000 tonnes at 22.89 g/t Ag, 0.28 g/t Au, 0.40% Pb and 0.55% Zn.
La Negra discovery hole (October 2014): 41 metres @ 110.46 g/t Ag
Current drilling: 146 metres @ 68.39 g/t Ag from surface, 138 metres @ 63.12 g/t Ag from surface, 30 metres @ 101.86 g/t Ag from 197 metres.