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Resource World - February 2013

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mining Kootenay Silver targets 100 million ounces of silver equivalent by Marco Murillo Kootenay Silver Inc. [KTN-TSXV], a silver exploration company based in Vancouver, British Columbia, has developed a large and impressive portfolio of land holdings in Canada and Mexico. The company, led by President and Chief Geologist, James McDonald, P .Geo, is focused on the exploration and development of its Promontorio property, the company's flagship, silverlead-zinc deposit in the mineral rich Sierra Madre Trend in Sonora, Mexico. 2012 was an exciting year for Kootenay Silver; they recorded an addition of approximately 25,000 metres of diamond drilling and RC drilling on the property (total to date ~65,000 metres). This led to a series of exceptional medium to highgrade silver results, such as DH #53, that intercepted 234 metres of 146 g/t silver equivalent. With over $8 million in private placement financing, management hopes that this drill success will lead to rapid expansion of its current 61 million ounce, measured and indicated, silver equivalent, NI 43-101 compliant resource. Located approximately 75 km NW of Ciudad Obregon in Sonora, Promontorio is a mega-sized property covering 76,349 Ha in the western margin of the rhyolite volcanic province of the Sierra Madre Occidental. Mineralization on the property is recognized as being hosted in diatreme breccia complexes that measure roughly 3.5 by 1.8 km. Drilling as of late has been concentrated in the Pit, SW and the NE zones on the property. Locally open along strike, they currently comprise the known mineral resources. With plans of expanding along strike (NE and SW) in 2013, McDonald and his exploration team recently launched a 30,000-metre diamond drilling development phase with the goal of driving the contained silver resource on Promontorio to over 100 million silver equivalent ounces. In addition, the company plans on drilling at least five other, high-priority, 76 www.resourceworld.com unexplored breccia targets on the property that may lead to additional expansion. Currently there are three diamond drills operating on the property, while a field crew logs core and management tracks upcoming assay grades. Results are expected to be released by the middle of January and throughout the first and second quarters of the year. With a busy exploration year ahead, the company is planning on moving into the pre-economic assessment stage once the drilling has been completed. Preliminarily mine design on the Promontorio property has been open pit, with the cutoff grade for pit optimization being 15 gpt, and 35 gpt silver equivalent for open pit and underground respectively. The recent hikes in silver prices ease the calculations of cutoff grades and equivalencies to current 18-month rolling average near $32/oz to support better ratios for Diamond drilling on Kootenay Silver's Promontorio property, Sonora, Mexico. Photo courtesy of Kootenay Silver. february 2013

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