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Wednesday, 7 August 2013
Kootenay Silver says current work at Promontorio outlines several areas for potential to sharply expand resources
Kootenay Silver (CVE:KTN) says that current work at its Promontorio silver project in Mexico has outlined new zones of resource potential outside drilled areas.
Last August, the company announced a measured and indicated resource estimate for the project, which was updated with the inclusion of the gold resource potential at Promontorio earlier this year. The current resource stands at 92.4 million ounces of silver equivalent in the measured and indicated category, with another 24.3 million ounces in the inferred resource category.
Since the resource report last year, the precious metals explorer has undertaken an expansive drill program of 30,000 metres, with an updated resource estimate expected when the campaign is finished, sometime in the third quarter.
The program reinterpreted previous mapping and geophysics and tested a number of anomalies and extensions of the known mineralization, outlining areas that could potentially expand the known resource, as well as target zones where drilling could upgrade the current inferred resource.
"The current work has identified numerous additional priority areas with potential to sharply expand resources," said president and CEO James McDonald.
"Especially noteworthy are the high silver grades in drill holes DH 185 to 188. Sitting between the NE and Pit zones, these holes show potential for the existence of a high-grade core that may connect to high grades previously identified in the NE Zone."
In June, shares of the silver exploration and development company rose after it released drill results from the high grade silver zone between the pit and the northeast zones, with highlights including 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.
"As we approach our 100 million ounce silver equivalent milestone on Promontorio, we are excited about starting the next drill phase to test this new area of high grade silver mineralization along with the many other targets identified."
The company, which earlier this year put to bed a $4.75 million investment from Agnico-Eagle Mines (NYSE:AEM), also said that geological mapping has found a number of new diatreme breccias, including one some 500 metres north of the Pit zone. "The management and the technical team of Kootenay Silver believe the recognition of these diatreme breccias greatly enhances the potential size and intensity of the Promontorio Diatreme Breccia Complex as it enters its next phase of strategic drilling on the Promontorio Silver Project," it added.
The next phase of drilling is scheduled to begin in early September, said Kootenay, the details of which will be released once the various drill targets are prioritized and the number metres required to test the new targets are finalized.