Kootenay Silver's strategy has been to build a company incorporating both the property ownership dilution business model and share dilution model. They have several projects joint ventured with other junior explorers who pay costs for exploration and issue KTN shares in their company while Kootenay has retained 100% ownership of their flag ship Mexican property - the advanced stage Promontorio silver project.
The 25,000-meter drill program now in progress on Kootenay's Promontorio Silver Project represents the single largest and most expansive drilling campaigns conducted on Promontorio to date. The objective of the program is to substantially build on and expand the existing NI 43-101 silver resource identified on the project by AGP Mining Consultants in 2010. Two diamond drill rigs are currently operating on Promontorio and are focused on the numerous medium to high-grade silver intercepts identified across the project's 1 kilometer strike length.
Currently the project 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.
The next phase of drilling on Kootenay Silver Inc.'s flagship Promontorio silver project in Sonora, Mexico, is scheduled to officially commence Sept. 12, 2013. The Company will conduct a minimum of 5,000 meters of drilling in the current phase, as part of its ongoing, multi-phase, 2013 drill and resource expansion program on Promontorio. Core drilling will focus on a series of high-grade silver intercepts recently identified within a new breccia zone of silver mineralization situated between the Pit and NE Zones. (See June 4, 2013 news release) States Kootenay Silver President and CEO James McDonald "Supported by recent analysis of data from our ongoing work programs, the current phase of drilling has emerged as a much anticipated event for Promontorio. The newly identified high-grade silver zone, situated between the Pit and NE Zones, remains open, both peripheral to, and at depth, to the known calculated resource. Moreover, the new zone falls within the parameters of the Project's recently modified, single optimized Pit model, offering potential to add substantial additional ounces to our current silver Eqv. resource and enhance the project's overall economics."
THE CURRENT RESOURCE ESTIMATE UTILIZES ONE LARGE OPTOMIZED PIT AS OPPOSED TO TWO SMALLER PITS AS REPORTED IN THE AUGUST 2012 RESOURCE ESTIMATE
The current NI 43-101 Resource Estimation conducted on Promontorio by SRK Consulting Inc. (U.S.) of Lakewood, Colorado (See May 14, 2013 news release), included gold assay results in the updated resource estimation. As a result of the addition of gold, the mineral resource is now contained in a single larger optimized Whittle Pit, as opposed to two individual smaller pits as reported in the August 21, 2012 resource estimate. The decision to include gold in the resource estimation follows extensive metallurgical testing and technical analysis conducted by ALS Minerals of Kamloops, British Columbia that confirmed up to 94.5% recovery of gold from pyrite concentrates from the Promontorio resource can be achieved using a post pressure oxidation treatment process.
Current NI 43-101 Compliant Silver Resource
The current mineral estimate on Promontorio effective date March 31, 2013 (See May 14, 2013 news release) contains a combined Measured and Indicated silver resource of 92,428,000 silver equivalent ounces (39.9M oz's Ag, 508K oz's Au, 394.8M lb's Pb, 462.2M lb's Zn). In addition to the measured and indicated silver resources, there are an additional 26,814,000 silver equivalent ounces in the Inferred category (12.8M oz's Ag, 147 oz's Au, 99.5M lb's Pb, 109.1M lb's Zn). Measured and Indicated resources are contained in open pit resources of 44,504,000 tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt Ag, 0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open pit of 215,000 tonnes grading an average of 56.96 gpt silver equivalent (22.89 gpt Ag, 0.28 gpt Au and 0.95% Pb+Zn). Inferred resources are within open pit resources of 14,564,000 tonnes grading an average of 51.95 gpt silver equivalent (24.95 gpt Ag, 0.28 gpt Au and 0.59% Pb+Zn) and resources outside of the open pit of 1,265,000 tonnes grading an average of 61.17 gpt silver equivalent (26.57 gpt Ag, 0.37 gpt Au and 0.74% Pb+Zn).
The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.