Drill Tracker Weekly: Kootenay Completes Phase II Drilling at La Negra Silver Diatreme

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Kootenay Silver (TSXV:KTN)

Price: $0.43

Market cap: $31 million

Cash estimate: $2.5 million

Project: La Negra

Country: Mexico

Ownership: 100 percent

Resources: 44.5 million tonnes grading 27.77 g/t Ag. 0.35 g/t Au, 0.40% Pb and 0.47% Zn (indicated in pit)

Project status: Phase II exploration

• Kootenay Silver announced the final results from its Phase II drilling campaign on its 100% owned La Negra discovery on the Promontorio project in Senora Mexico. The 500 by 200 metre zone was initially outlined in a prospecting and trenching program followed up by diamond drilling. The project is located approximately seven kilometres north of the Company’s 100% owned Promontorio project.

• Highlights from the current deeper drilling include 56 metres grading 124 g/t Ag, 0.175 g/t Au and 0.10% Pb starting at a depth of 254 metres including 13 metres of 353 g/t Ag, 0.242g/t Au and 0.02% Pb. The three holes in this release were designed to test the margins of the deposit, as well as the stepping back to test the continuation of high-grade diatreme breccia at depth.

• The next phase of the program will involve the preliminary steps of piecing together the discrete intervals of high-grade mineralization from the drilling and trenching into a 3D model to isolate blocks of material that may be initially mined by open pit methods. The near surface nature of the deposit is highlighted by the fact that of the 41 holes to date, only 12 had mineralized intervals starting at depth of greater than 15 metres with twenty holes intersecting the zone from depths of less than 5 metres.

• Mineralization in the diatreme breccia occurs within the strongly tourmaline-sericite-quartz altered matrix as silver chlorargyrite, a potentially easily leachable silver chlorite mineral associated with alteration in other important silver deposits in Mexico. Fragments are dominantly sericite altered and include a mix of intrusive and extrusive fragments, mineralized fragments and possible basement quartzite fragments. While the mineralized diatreme breccia occurs on surface, there was little indication that the breccia was mineralized. Additional similar targets in the Promontorio project are being tested by the prospecting team.

La Negra discovery hole (October 2014): 41 metres @ 110.46 g/t Ag

Current drilling: 56 metres @ 124 g/t Ag, 0.175 g/t Au, 0.10% Pb, including: 13 metres @ 353 g/t Ag, 0.024 g/t Au

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly 

1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies: Roxgold Inc (TSX:ROG).
2. Integra Gold Corp. (ICG) is currently under coverage at Mackie Research Capital by analyst Peter Campbell.
3. In March 2014, Peter Campbell visited the Lamaque Gold Project in Val-d’Or, Québec. Travel to and from the site in Val d’Or were paid by Integra Gold Corp. 
4. Foran Mining Corp. (FOM) is covered at Mackie Research by analyst Peter Campbell.
5. In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran’s McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.