Kootenay Options High-Grade Columba Silver Project in Mexico

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Kootenay Options High-Grade Columba Silver Project in Mexico

Canada NewsWire

VANCOUVER, Nov. 19, 2018 /CNW/ - Kootenay Silver Inc.  (TSXV: KTN) (the "Company" or "Kootenay") is pleased to announce that a wholly owned Mexican subsidiary of the Company has entered into an option agreement (the "Agreement") to acquire a 100% interest in the Columba silver project ("Columba" or the "Property"), which hosts a past producing, high-grade silver mine, located in the state of Chihuahua, Mexico.

Kootenay Silver Inc. (CNW Group/Kootenay Silver Inc.)

Kootenay President and CEO James McDonald states, "Columba is a very rare opportunity to get into a property with the potential for the discovery of classic high-grade Mexican style vein deposits. These opportunities only arise from the combination of depressed markets for silver and the success of our generative program to identify prospects.  As we have seen in recent months high-grade discoveries have added a lot of value to market cap to a handful of juniors. Based on our sampling and historic reports we believe that Columba has potential for such a discovery. We are very excited to get to work on rapidly advancing the Property to drilling hopefully by the first quarter of next year."

Columba is a past producing high-grade silver mine, which operated from 1900 until 1910, when work ceased in the region due to the Mexican Revolution.  The Property covers a large, high-grade silver epithermal system comprised of numerous veins, which the Company has mapped over strike lengths from 200 meters to up to 2 kilometres. Recent channel sampling on these veins conducted by the Company has returned widths of 0.5 to 6 meters and carried grades of up to 692 gpt silver (see table at the end of the release for further details).  The Property has never been systematically explored in modern times.

Mineralization at Columba is text book low to medium sulfidation epithermal vein hosted, displaying the classic zonation from non or weakly anomalous silver at high elevations that increase with depth into the classic high-grade zones that make them such profitable deposit types. (Click to view an image that shows this zonation on the Property).

Background & Historical Data

Columba is an exciting target that not only hosts a series of high-grade silver veins on surface, but also extensive underground workings.  On surface four (4) old shafts are reported to extend to depths of up to 200 meters and connect to at least six (6) levels of widespread underground drifts covering lengths of up to 1,000 meters. (Click to view an image of Columba's underground workings). The majority of the work appears to have been done in the early 1900's and again in the mid 1900's with an estimated 70,000 to 100,000 tonnes being mined. Kootenay is very encouraged with the results from its recent sampling and will be immediately exploring the Property to assess the potential for a new economic discovery.  To the best of the Company's knowledge all mineralized zones at Columba, which include the multiple epithermal veins, have not been previously drilled. Historical reports obtained by Kootenay suggest the silver grades of the main veins sampled on surface increase significantly with depth. For example, highlights of historic data from underground workings at a depth of 100 metres include nine (9) individual channel samples taken along a 25-meter length of vein where several high-grade intervals were reported to return silver values from 350 gpt over 1.2 meters to a high of 1,900 gpt over 4 meters (see table below for sample details). This pattern observed in historic data is supported by sampling and mapping work completed by the Company on surface which shows the same pattern of increasing grades with decreasing elevation. 

Historic Sampling of Vein at 100-meter Depth

Sample Type

Width

(meters)

Silver

(gpt)

Channel

1.80

600

Channel

1.25

350

Channel

1.40

650

Channel

1.50

400

Channel

1.50

600

Channel

2.00

700

Channel

3.00

1,800

Channel

4.00

1,900

Channel

4.00

600

The historic data is from plan maps of sampling across the veins in underground workings and from smelter reports reporting on tonnes and grade of material delivered which are consistent with the historic plan maps. Assays taken by the Company of surface tailings are also consistent with historic numbers.

The Company cautions that a qualified person has not done sufficient work to verify the historical sampling data and has not substantiated any data as it pertains to the Property; therefore, the reader should not rely upon such historical grades.  The information is not necessarily indicative of mineralization on the Property and is provided as background and context material for the reader.  The Company is treating the historical sampling data as a guideline to determining potential future exploration programs.

Columba Surface Sampling Results (Conducted by Kootenay)

Sample

Sample Type

Silver 

(gpt)

Gold 

(ppb)

Copper  

(ppm)

Lead 

(ppm)

Zinc 

(ppm)

FC2324ch

CH (2mt)

37

5

10

210

240

FC2325ch

CH (2mt)

44

N/A

10

90

420

FC2326ch

CH (2mt)

47

6

10

160

380

FC2327ch

CH (1,2mt)

244

38

100

240

1230

FC2328ch

CH (2mt)

57

11

20

30

180

FC2329ch

CH (1,5mt)

200

N/A

20

600

380

FC2330ch

CH (2mt)

330

10

30

730

650

FC2331ch

CH (0,5mt)

168

26

30

280

640

FC2332ch

CH (2mt)

179

13

20

480

270

FC2333ch

CH (1,3mt)

34

6

40

150

360

FC2334ch

CH (1,3mt)

57

N/A

30

130

240

FC2335ch

CH (1mt)

11

N/A

10

50

70

FC2336ch

CH (1mt)

25

N/A

10

80

70

FC2337ch

CH (1mt)

46

N/A

10

170

140

FC2338ch

CH (1mt)

175

7

40

630

680

FC2339ch

CH (0,8mt)

692

N/A

30

2290

3700

FC2340ch

CH (1mt)

195

N/A

40

930

1040

FC2341ch

CH (2mt)

271

10

40

1150

390

FC2342ch

CH (2mt)

109

N/A

20

430

320

FC2343ch

CH (1mt)

112

N/A

10

140

120

FC2344ch

CH (1mt)

115

N/A

20

270

320

FC2345ch

CH (1mt)

21

N/A

10

60

90

FC2346ch

CH (1,7mt)

25

N/A

10

50

80

FC2347ch

CH (0,5mt)

11

8

N/A

20

80

FC2348ch

CH (1mt)

9

N/A

N/A

20

220

FC2349P

P(2mt)

14

N/A

N/A

N/A

110

FC2350g

G

3

N/A

N/A

30

60

FC2351ch

CH (0,6mt)

6

N/A

N/A

20

150

FC2352g

G

1

N/A

N/A

N/A

N/A

FC2353g

G

2

19

N/A

70

380

FC2354g

G

3

27

N/A

80

110

FC2355g

G

1

23

N/A

30

50

GG295ch

CH (3mt)

215

9

30

650

290

GG296ch

CH

30

N/A

40

140

530

GG297d

D

273

29

490

4630

9600

GG298ch

CH (3mt)

152

N/A

30

540

630

GG299d

TAILING

206

23

350

4510

11550

GG300d

TAILING

162

32

340

4290

10850

LM2555g

G

8

N/A

10

100

110

LM2556g

G

9

N/A

N/A

60

110

LM2557ch

CH(1,7mt)

22

N/A

10

120

160

LM2558g

G

N/A

N/A

N/A

20

60

LM2559g

G

N/A

6

N/A

40

200

LM2560g

G

1

N/A

N/A

60

120

LM2561g

G

N/A

N/A

N/A

40

70

LM2562g

G

2

5

N/A

40

180

LM2563ch

CH(1mt)

254

N/A

80

360

490

LM2564g

G

1

N/A

N/A

20

110

LM2565g

G

4

N/A

N/A

240

310

LM2566f

F

23

N/A

10

70

90

RG005ch

CH(0,6mt)

17

5

N/A

N/A

140

RG006ch

CH(0,5mt)

3

N/A

N/A

N/A

30

RG007ch

CH(0,5mt)

8

N/A

N/A

N/A

40

RG008ch

CH(1mt)

73

N/A

10

250

130

RG009g

G

N/A

N/A

N/A

N/A

20

RG010g

G

1

N/A

N/A

N/A

40

RG011f

F

N/A

14

N/A

30

130

RG012g

G

1

N/A

N/A

80

100

RJ045g

G

170

N/A

20

630

500

RJ046g

CH (0,5mt)

35

N/A

30

260

570

RJ047d

D

391

35

150

2770

8730

RJ048g

G

105

N/A

20

250

480

Note: *G: grab sample, CH: chip-channel sample, F: float sample, SC: sub-crop sample, D: dump sample.

 

The Agreement

Under the terms of the Agreement, the Company can acquire a 100% ownership in the concessions by making staged payments over a 4-year period totaling US$3,290,000. Payments are weighted to the back-end of the agreement with an initial payment of US$15,000 and first and second years payments totalling US$75,000 and US$150,000 respectively. The Agreement includes a work commitment of US$250,000 by the first anniversary and US$750,000 by the second anniversary of the Agreement. Upon earn-in the vendors retain a 2% n.s.r. of which 1% can be purchased by the Company for US$750,000.

Sampling and QA/QC

Surface samples reported herein are a combination of grab, chip and panel chip. All technical information for the Columba exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken under the direction of qualified geologists. Samples are then labeled placed in plastic bags, sealed and with interval, location and sample numbers recorded. Samples are delivered by the Company via courier to ALS Minerals ("ALS") in Chihuahua City, Mexico. The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver, B.C. Systematic assaying of standards, blanks and duplicates is performed for precision and accuracy. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30-gram fire assay with an AA finish.

Qualified Persons

The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Kootenay Silver Inc.

Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Supported by one of the largest portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of two of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at November 18, 2018. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Kootenay as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made.  Except as otherwise required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Kootenay's expectations or any change in events, conditions or circumstances on which any such statement is based.

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

SOURCE Kootenay Silver Inc.

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Copyright CNW Group 2018

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