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In 2014, Kootenay Silver announced the discovery of a new, previously unidentified silver deposit at the La Negra prospect in Sonora, Mexico. Geologist Wayne Hewgill weighs in.
The “Drill Tracker” highlights early stage drilling and trenching results, giving a metric to evaluate exploration results and compare them against their peer group. In this report we highlight a dozen exploration companies displaying their projects in the Core Shack at the AME BC Roundup held in Vancouver between January 26 and 29, 2014.
Kootenay Silver (TSXV:KTN)
Price: $0.42
Market cap: $23.8 million
Cash estimate: $3 million
Project: La Negra
Country: Sonora, Mexico
Ownership: 100 percent
- In 2014, Kootenay Silver announced the discovery of a new, previously unidentified silver deposit at the La Negra prospect in Sonora, Mexico. The 500-by-200-meter zone was initially outlined in a trenching program followed up by diamond drilling. The project is located approximately 7 kilometers north of the company’s 100-percent-owned Promontorio project.
- The 25 holes in the initial drilling confirmed near-surface mineralization with higher grades at depth, with most holes mineralized from surface. Highlights include:
- Discovery hole – 41 meters grading 110.46 g/t silver, including:
- 13 meters of 223.23 g/t silver
- 200 meters grading 156.47 g/t silver, including 50 meters of 420.34 g/t silver
- 144 meters grading 82.57 g/t silver, including 28 meters of 212.64 g/t silver
- 34 meters grading 265.31 g/t silver, including 13 meters of 467.77 g/t silver
- Discovery hole – 41 meters grading 110.46 g/t silver, including:
- Mineralization occurs within porous, matrix-supported polyphase breccia as silver chlorargyrite, a potentially easily leachable silver chlorite mineral associated with alteration in other important silver deposits in Mexico. The high amount of void space in the matrix may indicate that mineralization could have been leached out during the weathering process.
- The company’s nearby Promontorio deposit hosts a measured and indicated pit-constrained resource estimate of 44.5 million tonnes grading 27.77 g/t silver, 0.35 g/t gold, 0.4 percent lead and 0.47 percent zinc with additional underground potential of 215,000 tonnes at 22.89 g/t silver, 0.28 g/t gold, 0.4 percent lead and 0.55 percent zinc.
Project status: New silver discovery October 2014
Resource: N/A
Catalysts: Drilling in February 2015
Disclosure: 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.
At the date of this release the author, Wayne Hewgill, owns shares in the following companies:
This report makes not recommendations to buy sell or hold.
Wayne Hewgill is a geologist with extensive knowledge of the global mining industry gained through 30 years of diversified experience in mineral exploration and new business development in Canada, as well as 10 years living in Africa, New Zealand and Australia. He was previously senior research officer at BHP Billiton, an executive with an exploration company working in Argentina and a mining analyst at three Vancouver-based financial groups where he developed the Drill Tracker database in 2006. He holds a B.Sc. in Geology from the University of British Columbia and is registered as a Professional Geoscientist (P.Geo) with APEGBC.