Kootenay Silver (CVE:KTN) said Wednesday that Pinecrest Resources (CVE:PCR) has started a phase I drilling program on Kootenay's Espiritu gold-silver polymetallic project in Sonora, Mexico under a joint venture deal.
program will comprise of 500 metres of core drilling to test two
silver/gold polymetallic mineralized zones outlined during the first
phase of exploration prospecting, mapping and soil sampling.
Pinecrest can earn a 50 percent interest in the Espiritu project by
spending $1.0 million on exploration over a four year period and by
issuing up to 750,000 common shares to Kootenay over three years.
said two drill holes will be completed on the Road Show zone to test a
500 by 500 metre target, characterized by the presence of silver, gold,
lead, zinc and copper mineralization.
From 54 prospector samples
collected during phase I exploration, silver values were as high as
1,230 grams per tonne (g/t), and gold values went as high as 4.5 g/t,
associated with "highly anomalous" lead, zinc, mercury and manganese,
the company said.
This style of mineralization is similar to
many limestone-hosted replacement deposits of the Mesa Central district
of Mexico that include the Naica and Santa Eulalia silver mines.
holes will also test the gold/silver veins and stockwork mineralization
in the Molinos zone, which is located around two kilometres southeast
of the Road Show zone.
From 31 prospector samples collected
during the phase I exploration, silver values were as high as 1,380 g/t,
with 0.97 g/t gold. The company said mineralization is associated with
"highly anomalous" copper, lead, zinc and antimony with elevated
molybdenum, tungsten and mercury.
A 500 by 1000 metre soil
survey completed over the Molinos zone outlined a broad zone of gold,
silver, lead, zinc mineralization, with gold values of 406 parts per
billion (ppb), and silver values of 72 g/t noted in soils.
said the Molinos zone is thought to represent the deeper zones of
mineralization associated with carbonate-hosted replacement (CRD)
This level of mineralization suggests a continuum of
mineralization between the Road Show into the Molinos zone, the miner
In addition to the reconnaissance drill program,
trenching will be completed in other areas of mineralization aside from
the Road Show and Molinos targets.
Trenching on the Old
Mines/Pediment zone, located roughly two to three kilometres north of
Road Show, will investigate areas of limestone breccia mineralization
where prospecting has obtained silver values of 1,160 g/t and of 2.0 g/t
is developing mineral projects in the Sierra Madre Region of Mexico and
in British Columbia, Canada. The company’s flagship property is the
former-producing Promontorio Silver mine in Sonora State.
Promontorio itself hosts an NI 43-101-compliant resource containing
8.9 million indicated ounces of silver plus 1.17 million ounces of
inferred silver, 99.3 million indicated pounds of lead plus 13.4 million
inferred pounds of lead, and 110.8 million indicated pounds of zinc
plus 14.3 million inferred pounds of zinc.
Since the 2010 resource estimate, Kootenay said in February it has
drilled 31,000 metres and has another 4,000 metres left to drill before
publishing an updated estimate within the next few months.
Notable results from the latest program, which is the single largest
and most expansive drill program conducted by Kootenay on the property
to date, include hole KP-09-07, which intersected 6.7 metres grading
1,008.0 gpt silver equivalent.