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Tuesday, 30 July 2013
Kootenay Silver updates on work at Promontorio project
Kootenay Silver (CVE:KTN) reported Tuesday that hydrologic work and environmental baseline studies have been ongoing to advance its Promontorio project in Mexico, updating investors on the company's progress.
It said in a statement Tuesday that three monitoring wells have been installed along the main corridor of mineralization stretching from the Northeast zone through the pit on to the Southwest zone, in an effort to characterize the ground water levels to be used to develop a hydrogeological model.
According to the release, the company has so far gathered information on the property including an understanding of initial pit dewatering requirements, the initial evaluation of the potential for groundwater to supply a source of water to the project, and a collection of baseline groundwater data. The work is in preparation for evaluating groundwater conditions at the project, including potential water sources that may be required to sustain potential open pit or underground mining operations.
Alongside this work, environmental baseline work is now complete, and included surveying and data collection of surrounding flora and fauna, sampling of soil, water and sediments, and other socio-economic data. Meanwhile, geotechnical work completed so far includes the collection of extensive rock quality data, Kootenay said.
Last month, shares of the silver exploration and development company rose after it released drill results from Promontorio, saying it found a high grade silver zone between the pit and the northeast zones. The news came not even a month after the company released an updated resource at the Promontorio project that approached the 100 million ounce mark on the back of new metallurgical data that supported the recovery and inclusion of gold. Despite the new gold content, the latest resource did not include any drilling completed since the previous resource report was announced in August last year.
Highlights of the most recent drilling included 301 grams per tonne (g/t) silver equivalent over 31.7 metres, including 1,046 g/t silver equivalent over 5 metres in hole 186.
Kootenay, which earlier this year put to bed a $4.75 million investment from Agnico-Eagle Mines (NYSE:AEM), has 92 million contained silver equivalent ounces in the measured and indicated category for its Promontorio project resource, with another 24.3 million ounces in the inferred resource category. A further resource update is expected once the company's current 30,000 metre drilling campaign is finished, sometime in the third quarter of this year.