Resource World Magazine

50 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 6 miNiNg pAN AMERICAN DRILLING KOOTENAy'S pROMONTORIO-LA NEGRA pROSpECTS Kootenay Silver Inc. [KTN-TSXV] reports that partner Pan American Silver Corp. [PAA-TSX; PAAS-NASDAQ] provided an update on exploration on the Promontorio-La Negra silver pros- pect, contained within the Promontorio Mineral Belt, Sonora, Mexico. A 3,400-metre diamond drilling program is underway and will consist of about 18 drill holes. The program will further test the La Negra Breccia and two additional targets. James McDonald, President and CEO of Kootenay Silver, said, "We are very pleased with the results to date from Pan American's exploration activities on Promontorio-La Negra. The La Negra sil- ver discovery is a premier exploration target that demonstrates excellent potential to evolve into a low-cost, open-pittable silver resource. We are excited the drill campaign on La Negra is under- way and look forward to reporting results as they are received from the program." Promontorio - La Negra Silver Discovery An updated measured and indicated resource at Promontorio contains an estimated 92,035,000 silver equivalent ounces with another 24,326,000 silver equivalent ounces categorized as inferred. The Promontorio deposit also hosts significant quanti- ties of gold. Estimated measured and indicated gold resources contained within the mineralized diatreme system total 506,000 ounces with an additional 132,000 ounces inferred. The La Negra Breccia prospect is situated approximately 6.5 km north of Kootenay's Promontorio silver resource and is contained within a 25 x 15 km mineralized corridor known as the Promontorio Mineral Belt. Initial exploration on La Negra included a successful trenching and surface sampling program that confirmed extensive silver mineralization over a large 100 to 200 metres by 500 metres area on surface. A follow up Phase I drill program on La Negra returned sig- nificant and consistent intervals of high-grade, widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery. Results from a Phase II drilling program on La Negra further confirmed the continuity of silver grades and the consistency of sil- ver mineralization to depth within the core of the diatreme breccia. The program also further reinforced La Negra's future potential as a low-cost, open pittable silver resource. Development of La Negra is currently under an option agreement with Pan American Silver Pan American can earn a 75% interest Kootenay Silver's Promontorio Mineral Belt silver properties, including the Promontorio and La Negra deposits, by paying US $8,050,000 over four years and spending US $8,000,000 on exploration. Pan American invested CDN $2,000,000 in Kootenay by subscribing for 9,090,909 Kootenay shares at CDN $0.22 per share. Kootenay Silver began drilling its 100%-owned La Cigarra silver project in Chihuahua. The program is designed to test the RAM tar- get and to expand La Cigarra's resource by targeting continuity of high-grade trends recently identified within the resource. n Q-GOLD RESOURCES DRILLING pROMISING vMS TARGET Q-Gold Resources [QGR-TSXV; QGLDF- OTC; QX-FSE] controls a diversified portfolio of prospective gold and silver properties, all of which are located in the politically stable and geologically desir- able jurisdictions of Ontario, Canada and Arizona, US. The company recently raised $400,000 in a private placement. The money is ear- marked for continued exploration of its flagship project the Green Mohave 2 claim near Crown King, Arizona. Q-Gold began the initial phase of its 2,000-metre diamond drilling campaign in early June that is designed to test the highly- conductive geophysical "A" Anomaly. This prospective anomaly is hosted within the prolific ore-bearing Central Arizona Volcanic Belt (CAVB). The CAVB is an about a 5,400 km 2 area of volcanogenic massive sulfide (VMS) ore occurrences. The belt contains 29 historic mines, many of which produced from the 1890s to the 1940s. The United Verde Mine and its extension is the largest of these mines having produced 3.7 billion pounds of copper at grades over 10%, 1.45 million oz gold and 56.5 million oz silver over its life-span. Mineralization in the area generally consists of copper sulfide minerals as well as varying amounts of gold and silver. Anomaly A was discovered by an airborne (VTEM) survey and later further delin- eated by ground geophysics. The anomaly appears to represent a highly-conductive tabular body outlined near the surface that extends to a depth of over 400 metres. It has been traced along strike for 700 metres with a thickness of about 30 metres. A secondary conductive zone extends to a depth of about 425 metres and appears to be about 15 metres thick. A third conduc- tive zone may be reflective of an oxide cap. Q-Gold reports that the first 800-metre phase of the drill program will target the upper and middle zones of the anomaly, the latter being the primary target, where both conductive and magnetic responses in the geophysical surveys were the strongest. The company hopes that the upper zone of the geophysical anomaly represents a rich silver oxide zone. This is similar to what was found at two adjacent mines; the Peck and Silver Prince. If results warrant, the remaining 1,200 metres will begin to define the size of Anomaly A. The company holds 12 other mining claims in the Peck Mining District near Crown King. Half of these claims host geophysical anomalies that are similar in nature but smaller than that found at the Green Mohave 2 claim. In addition to its Arizona claims, Q-Gold has three other gold-silver projects in Ontario: the McKenzie Grey property which hosts a small non-NI 43-101 compliant gold- silver resource; the 26,000-acre Mine Center Gold Camp property and the Foley Mine, a turn of the century past producer. n

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