Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Thursday, 4 April 2013
Kootenay Silver commissions consulting firm for updated Promontorio resource estimate
Kootenay Silver (CVE:KTN) says it has commissioned SRK Consulting to provide an updated resource estimate for the company's flagship Promontorio silver project in Mexico, which will include and quantify gold content.
The decision to include gold assay results follows extensive metallurgical testing and technical analysis, which confirmed up to 94.5 percent recovery of gold from pyrite concentrates from the Promontorio resource can be achieved through a pressure oxidation process, the company told investors Thursday.
"We are very pleased to proceed with an updated resource calculation on Promontorio and to include the extensive gold assays found to be contained within the Promontorio diatreme system as part of our updated resource estimation," said the company in its release, citing CEO James McDonald.
"The gold in Promontorio is found to be evenly distributed throughout the silver resources and as such holds potential to further boost and enhance the value of the contained mineral resource going forward."
The company said Thursday that the economics and capital costs of recovering the gold resources will require further evaluation, which is now underway.
Currently, three drills are operating at the site, as part of a 30,000 metre resource expansion program - the largest and most expansive drilling campaign conducted at Promontorio so far.
Last month, the company unveiled the results of 11 more holes from its drill program, which hit values as high as 246 grams per tonne (g/t) silver equivalent in a newly discovered oxide zone.
The most recent NI 43-101 mineral estimate on Promontorio from last August contains a measured and indicated silver resource of 61.68 million silver equivalent ounces, as well as another 14.47 million silver equivalent ounces in the inferred category.
A preliminary economic assessment (PEA) study is planned for the end of the 30,000 metre 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.