VANCOUVER, June 29, 2017 /CNW/ - Kootenay Silver Inc.
(TSXV: KTN) (the "Company" or "Kootenay") is pleased to
announce that a 3,000 meter diamond drill program (the "Program")
is underway at its 100% owned Silver Fox Project (the "Project"),
located in south eastern British Columbia.
The Program is being operated by Kootenay under the guidance of
a technical committee comprised of appointees from a wholly-owned
subsidiary of Antofagasta plc
("Antofagasta") and Kootenay. Antofagasta will be funding 100% of the costs
under its earn-in agreement for Silver Fox, and drilling will focus
on 5 separate targets on the Project. These drill areas have
been identified as the Oke, Jake, Yahk Mountain, Gilnockie and Ward
targets. Location Map of Silver Fox Drill Targets.
Kootenay President and CEO James
McDonald stated, "Kootenay is pleased to have a strong and
supportive partner, Antofagasta
conduct this initial drill program at Silver Fox." "We look forward
to drill testing the first bona-fide sediment hosted silver copper
mineralized system to be found on the Proterozoic aged Creston
Formation in Canada. This is the
product of three years of commitment and persistence by our
exploration team supported by Antofagasta and we are pleased to successfully
bring Silver Fox to the drill stage."
Silver Fox Project – Background Information
The Silver Fox Property is comprised of over 21,000 hectares of
mineral claims covering the northern extension of an established
copper-silver mineralized belt originating from Montana, where the 3 principal deposits either
host or produced over 522 million ounces of silver and 2.39 million
tonnes of copper, at grades ranging from 1.7 to 2.0 ounce per ton
silver and 0.7 to 0.8 % copper. This mineralized trend is best
known as the Western Montana Copper Belt where the copper-silver
deposits are hosted in Proterozoic aged sediments of the Revett
Formation, referred to as the Creston Formation in Canada.
Terms of the Agreement
The terms of the Agreement grant Antofagasta the right to earn a 65% interest
("First Option") by funding or incurring an aggregate total of
US$2.5 million (the "First Option
Expenditures") in exploration expenditures on or before the sixth
anniversary of the Agreement (September 29,
2021). Antofagasta has the
right to accelerate the First Option Expenditures.
Upon exercising the First Option, Antofagasta will have the right to acquire a
further 15% interest ("Second Option") by incurring an additional
aggregate total US$1.65 million in
exploration expenditures within two years of the First Option
exercise date. Upon the exercise of the Second Option Antofagasta
will have earned an 80% interest and Kootenay will hold a 20%
interest in Silver Fox under a joint venture basis under the terms
of the Agreement. If Antofagasta
decides not to exercise the Second Option, a joint venture based on
a 65/35% interest will form under the Agreement in relation to the
property.
Sampling and QA/QC
All technical information
for the Silver Fox exploration program is obtained and reported
under a formal quality assurance and quality control ("QA/QC")
program. Samples are taken under the direction of qualified
geologists and stored in sealed bags. Samples are delivered by the
Company via courier to Acme Labs, British
Columbia. The samples are dried, crushed and pulverized with
the pulps being sent airfreight for analysis. Systematic assaying
of standards is performed for precision and accuracy. Analysis for
silver, zinc, lead and copper and related trace elements was done
by ICP four acid digestion, with gold analysis by 30-gram fire
assay with an AA finish. All drilling will be with HQ core
and has been contracted to Atlas Drilling from British Columbia, Canada.
Qualified Persons
The Kootenay technical
information in this news release has been prepared in accordance
with the Canadian regulatory requirements set out in National
Instrument 43-101 (Standards of Disclosure for Mineral Projects)
and reviewed on behalf Kootenay by James
McDonald, P.Geo, President, CEO & Director for Kootenay,
a Qualified Person.
About Kootenay Silver Inc.
Kootenay Silver Inc.
is an exploration company actively engaged in the discovery and
development of mineral projects in the Sierra Madre Region of
Mexico and in British Columbia, Canada. Supported by one of
the largest portfolios of silver assets in Mexico, Kootenay continues to provide its
shareholders with significant leverage to silver prices. The
Company remains focused on the expansion of its current silver
resources, new discoveries and the near-term economic development
of two of its priority silver projects located in prolific mining
districts in Sonora, State and
Chihuahua, State, Mexico,
respectively.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS:
The information in this news release has been prepared as at
June 27, 2017. Certain statements in
this news release, referred to herein as "forward-looking
statements", constitute "forward-looking statements" under the
provisions of Canadian provincial securities laws. These statements
can be identified by the use of words such as "expected", "may",
"will" or similar terms.
Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable
by Kootenay as of the date of such statements, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Many factors, known and
unknown, could cause actual results to be materially different from
those expressed or implied by such forward-looking
statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date made. Except as otherwise required by law, Kootenay
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statements to reflect
any change in Kootenay's expectations or any change in events,
conditions or circumstances on which any such statement is
based.
Cautionary Note to US Investors: This news
release may contain information about adjacent properties on which
we have no right to explore or mine. We advise U.S. investors that
the SEC's mining guidelines strictly prohibit information of this
type in documents filed with the SEC. U.S. investors are cautioned
that mineral deposits on adjacent properties are not indicative of
mineral deposits on our properties. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
This press release uses the terms "Measured", "Indicated",
and "Inferred" resources. United
States investors are advised that while such terms are
recognized and required by Canadian regulations, the United States
Securities and Exchange Commission does not recognize them.
"Inferred Mineral Resources" have a great amount of uncertainty as
to their existence, and as to their economic and legal feasibility.
It cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of Inferred Mineral Resources may not form the
basis of feasibility or other economic studies. United States investors are cautioned not to
assume that all or any part of Measured or Indicated Mineral
Resources will ever be converted into Mineral Reserves.
United States investors are also
cautioned not to assume that all or any part of a Mineral Resource
is economically or legally mineable.
SOURCE Kootenay Silver Inc.