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Thursday, 14 March 2013
Kootenay Silver hits up to 246 g/t AgEq in new zone at Promontorio silver project
Kootenay Silver (CVE:KTN) on Wednesday unveiled the results of 11 more holes from its drill program at its Promontorio silver project, which hit values as high as 246 grams per tonne (g/t) silver equivalent in a newly discovered oxide zone.
The company said its 30,000-metre, ongoing, multi-phase drill program on its flagship Promontorio project in Sonora, Mexico, consists of step out and exploratory holes testing three different target areas. Included is the extension of the Pit resource to the southwest and west, the Farm EM zone to the north and the Farm EM zone to the south, it added.
In the Farm EM zone, Kootenay said it discovered a new oxide zone of mineralization of 350 to 400 metres to the southwest of the pit resource.
Drilling there intercepted three separate intervals, including hole 135, which returned 104 g/t silver equivalent or 81 g/t silver and 0.97% lead plus zinc over 10 metres, including three meters grading 246 g/t silver equivalent or 176 g/t silver and 3.04% lead plus zinc.
Meanwhile, hole 140 returned nine 9 metres of 47 g/t silver equivalent or 33 g/t silver and 0.60% lead plus zinc.
North of the pit resource, drill hole 129 intercepted two intervals including 60 metres returning 58 g/t silver equivalent, including 22 metres of 96 g/t silver equivalent and four metres of 57 g/t silver equivalent.
"We are very pleased with results from step-out drilling,” said CEO James McDonald.
“Assays returned a series of encouraging intercepts from a newly discovered mineralized zone in the Farm EM target area, which sits over 350 metres to the southwest of the pit resource and remains open in several directions.
“Additionally, mineralization in the pit resource continues to open up to the north and west.”
McDonald said that ongoing drilling and technical analysis will continue to focus on delineating the extent of mineralization in the pit area and on determining the geometry of the new zone and its relation to the pit resource.
In August this past year, Kootenay announced it had nearly tripled the resource size at Promontorio. In total, the updated measured and indicated mineral resource contained an estimated 61.679 million ounces of silver equivalent, with another 14.469 million ounces of silver equivalent categorized as inferred.
Late last month, the company bolstered its management team with the appointment of project manager Kristian Whitehead, who has more than 10 years of experience as a project geologist, specializing in the implementation and management of drilling and advance staged programs.
He will be responsible for overseeing the company's current drill program, the largest drill campaign conducted on Promontorio so far. Kootenay said the program is designed to “substantially increase” the overall size of its contained silver resource and to fast track the path to a production decision.
A preliminary economic assessment (PEA) study is planned for the end of the drilling campaign, and will include an updated resource estimate with results from the latest drilling. The report will then form the basis for the pre-feasibility study at Promontorio.