Drill Tracker Weekly: Kootenay Completes Phase II Drilling At La Negra Silver Diatreme


Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Kootenay Silver (TSXV:KTN)

Price: $0.43

Market cap: $31 million

Cash estimate: $2.5 million

Project: La Negra

Country: Mexico

Ownership: 100 percent

Resources: 44.5 million tonnes grading 27.77 g/t Ag. 0.35 g/t Au, 0.40% Pb and 0.47% Zn (indicated in pit)

Project status: Phase II exploration

kootenay 1 Kootenay Silver announced the final results 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 deeper drilling include 56 metres grading 124 g/t Ag, 0.175 g/t Au and 0.10% Pb starting at a depth of 254 metres including 13 metres of 353 g/t Ag, 0.242g/t Au and 0.02% Pb. The three holes in this release were designed to test the margins of the deposit, as well as the stepping back to test the continuation of high-grade diatreme breccia at depth. The next phase of the program will involve the preliminary steps of piecing together the discrete intervals of high-grade mineralization from the drilling and trenching into a 3D model to isolate blocks of material that may be initially mined by open pit methods. The near surface nature of the deposit is highlighted by the fact that of the 41 holes to date, only 12 had mineralized intervals starting at depth of greater than 15 metres with twenty holes intersecting the zone from depths of less than 5 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. Additional similar targets in the Promontorio project are being tested by the prospecting team.

kootenay 2

La Negra discovery hole (October 2014): 41 metres @ 110.46 g/t Ag

Current drilling: 56 metres @ 124 g/t Ag, 0.175 g/t Au, 0.10% Pb, including: 13 metres @ 353 g/t Ag, 0.024 g/t Au