Touchstone Capital's Blog

Silver Price Could Double By Year's End - Wealthwire

2012-02-23T12:54:00.001-08:00

Were you cursing at your computer screen when silver nearly tripled during the short 9 months from September 2010 to May 2011? Silver at $20 seemed like an insurmountable threshold for quite some time. This caused many silver investors to give up just prior to the ascent, completely missing the ride towards $50. I believe silver is about to offer a similar ride. While it is unlikely to match the 180% advance mentioned above, look for silver to make new highs in the coming months, with the potential to double to $65 by year end.
Following the record gains in silver during late 2010 and early 2011, the metal crashed towards $25 and has since rebounded to around $33. Investor sentiment has crashed along with it. The threat of Euro nations defaulting, banks announcing they are, well, bankrupt, and a series of other factors have scared away many of the Johnny-come-lately silver bulls.

I think too many investors are underestimating the power of the central banks. While I agree they are running out of options, it seems that their ability to kick the can down the road has yet to expire. Given that the United States is heading into election season and President Obama is in full campaign mode, I expect the administration to pull out all stops in order to continue the illusion of economic prosperity a while longer. Every economic fire of consequence is being extinguished with fresh liquidity, more funny money or new legislation. In case you missed it, QE3 has been in full force for quite some time, albeit executed in a somewhat stealth manner.

The implications for silver (and gold to a lesser degree) are going to be incredibly bullish. Absent a deflationary sovereign default that spirals out of control and takes down major banks with it, stocks will continue to creep higher in volatile trade throughout the year. Once fear begins to subside, look for precious metals to come roaring back to new highs by mid-year. Whenever the next financial crisis finally hits, we are likely to witness a new injection of quantitative easing that is even stronger than what transpired in 2008.
Will a major debt default pull down gold, silver and mining stocks with it? Absolutely.
Will it last? Not likely.

Investors are a predictable bunch. They always overshoot on emotions in one direction or another. A rush for liquidity and the perceived “safety” of government bonds or U.S. dollars will be incredibly short-lived and viewed in retrospect as immensely short-sighted. Everyone that rushed for the door by dumping real assets will soon regret their folly. When the fear subsides and some semblance of rational thought returns, the realization of the worthlessness of government paper will be widespread and cause a mass exodus of fiat money.

So while it is prudent to hold a decent amount of cash in the short term, hoping to buy the irrational dip, the medium to long-term investor might consider buying silver aggressively at this juncture. In my view, commodity prices are either going to continue grinding higher throughout the remainder of the year, or there will be a short and steep dip, following by a resumption to new highs.

Either way, the silver price has a long way to go before reaching previous inflation-adjusted highs. It would need to climb to $150 to reach its 1980 high using officially-suppressed inflation statistics and closer to $300 using honest inflation statistics. Seeing as you can buy silver at around $33 today, the upside potential remains absolutely huge. Let’s take a look at the long-term chart to determine price targets for 2012 and 2013.

Charting back to the start of the silver bull market, we can see that silver remains firmly in its multi-year
uptrend. Contrary to negative sentiment expressed by some analysts, there has been no significant chart damage or other action to suggest that the bull market has run its course. Silver recently bounced off the bottom line of its trend channel, which also corresponds roughly with the 100-day moving average. This line has provided support during every one of silver’s corrections over the past decade, with the exception of the 2008 financial crisis. I expect it to continue to provide support during the current correction/consolidation.
While we could see one more quick dip below $30, I think any talk of a decline to $25 or lower is now firmly off the table. Silver is currently facing resistance at the critical level of $35. If it breaks to the upside through this level, I believe silver will quickly climb to challenge the $50 mark once again and reach a high between $55 and $65 by year end. To the downside, I think the lowest silver will close out the year is around $31, in the event that short-term deflationary forces take hold. But as mentioned earlier, I think the central banks stand ready to do whatever is necessary in order to prevent such an outcome.

These projections are relatively conservative and based on the long-term trend trajectory. Any number of events could send silver parabolic in the blink of an eye. The silver market is tiny in relationship to the paper money market and if even a small percentage of those dollars decide to buy silver, demand will overwhelm supply and send prices into triple digits. I ultimately believe silver could reach $500, but the more important consideration is the value/purchasing power increase of silver. One thousand ounces of silver used to be able to buy a median-priced home in the United States and I believe one thousand ounces will once again achieve this same feat in the near future.

Some view silver as an inflation hedge or way to preserve purchasing power. I see it as a way to vastly increase purchasing power over the next several years, with the worse case scenario being wealth preservation. I’ll take that risk/reward scenario any day.

The fundamentals are very strong for silver at this juncture. The Obama administration just put forth a budget that will result in another annual deficit of over $1 Trillion, despite promising to cut the deficit to $650 billion. The ECB is bathing Euro banks in liquidity and the US Fed has literally guaranteed an inflationary environment until late 2014. These policies create ripe conditions for commodities overall and precious metals in particular to make new all-time highs.

With less above-ground investment-grade silver available than gold, the supply/demand situation can not persist much longer at such depressed prices. Physical silver demand is growing and confirming our bullish view, as Silver Eagle sales for January posted the second strongest month ever at 6.1 million ounces!

Lastly, silver is the best form of money to own in the event of a collapse in fiat currencies. It will be difficult to use a gold eagle for small purchases, but silver eagles and junk silver will be ideal to use in purchasing food and other goods when the U.S. dollar is no longer accepted. This makes silver attractive not only for the strong returns and ability to increase an investor’s purchasing power, but also as a valuable insurance policy should the current monetary system break down.

So don’t miss the train again this time around. While silver is currently in consolidation mode, this is not likely to last long. When the silver price finally takes off once again, there will be little notice or opportunity to jump aboard the speeding train. Silver remains severely undervalued in my estimation and I expect the price to skyrocket in the near future as it approaches new highs.

You need only have the courage to take the path less chosen, buy when others aren’t interested and sell when the herd is clamoring to buy silver at any premium. While the next financial crisis may begin with panic selling of precious metals, I believe it will quickly flip to panic buying at very high premiums to spot price. I want to be well-positioned before this occurs and also have some funds on the sidelines to relieve panic sellers of their gold and silver at discount prices. A sensible approach that I advocate is to purchase in tranches, building a position now and adding to it every month or two. This will help to ensure that you don’t go “all in” at a short-term top and have funds available to take advantage of any major dip. Attempting to time the absolute bottom is nearly impossible, so I view this a opportune moments to establish or increase positions in silver.
I am currently adding to my positions, both in physical silver and undervalued silver mining stocks. The equities underperformed significantly last year, but against the backdrop of unlimited central bank easing and liquidity, I think we are likely to see a return to the leverage offered during the early stages of this bull market. Junior mining stocks in particular appear very undervalued at this juncture and could offer staggering gains if my analysis is correct.

Source: Wealthwire

Kootenay Announces Name Change to Kootenay Silver Inc.

2012-02-21T15:22:00.001-08:00

Vancouver, B.C. - Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce
that the Company has completed all necessary application processes and obtained regulatory
approval to change its name to "Kootenay Silver Inc." from "Kootenay Gold Inc.". The
Company's shares will trade on the TSX Venture Exchange under the new name at market
open on Tuesday, February 21, 2012. The trading symbol of the Company will remain as
"KTN".

States Kootenay CEO, James McDonald, "We feel the name change to Kootenay Silver Inc.
better reflects our core assets as we continue to advance drilling and development on our
flagship Promontorio Silver Project in Sonora, Mexico.”

History Lessons: Northern Vertex Elevating Historic Gold Resources Toward New Valuation

2012-02-17T18:37:00.000-08:00

Amidst a marketplace that favours assets of the more advanced variety, any opportunity to leapfrog beyond the grassroots phase en route to production is enticing to the financial community. For Northern Vertex Mining Corp. (formerly known as “Northern Vertex Capital Corp.”) (TSX-V:NEE) (NHVCF.PK), tapping into that mentality has landed them a pair of near-term projects in a relatively short amount of time, and at a $10 per ounce-in-the-ground cost that's far below the industry average.

Over a span of 7 months, the NEE team managed to raise $16 million in order to fund the acquisition of its two flagship properties in Idaho and Arizona. The business model is to negotiate the acquisition of historic gold resources at a discount, prove them up to 43-101 compliance through confirmation drilling, initiating baseline studies and in turn adding value over a short period of time. By seeking non-compliant resources, the Northern Vertex team managed to acquire ounces in the ground at a rate of less than $10/ounce, among a field that is paying on average more than $100/ounce.

LEMHI GOLD PROPERTY (IDAHO) - THE CONSOLIDATION OF YAMANA'S GOLD PROPERTY AND THREE PRIVATE LAND HOLDINGS

If there were a jewel of Northern Vertex's crown, it would the Lemhi Project, acquired in September. Through a joint venture with the privately owned Idaho State Gold Company, the Lemhi comprises four properties that include the Humbug Property, formerly owned by Yamana Gold (TSX:YRI) (NYSE:AUY). The project comes from the culmination of nearly 6 months of negotiations to consolidate 1.2 million historic gold oz, which resulted in NEE netting 51%, operatorship and the right to earn up to 75.5%.

After a financing for the project closed in November, work began shortly after to begin proving up the historic resource. With 32.36 million short tons at a grade of 0.0375 ounces per short ton, the Humbug Gold Deposit has a historic resource of 1.21 million contained ounces of gold, according to a 1996 report by Pincock Allen & Holt. With the original payment of $4.5 million from Northern Vertex, the company has thus potentially obtained its share of the deposit at less than $8/contained ounce.

Whether or not the company moves to increase its share of the project will rest on the results of initial confirmation work. But, should the confirmation work conclude that there is indeed a 43-101 compliant of approximately 1.2 million ounces, it wouldn't take long for them to pull the trigger on acquiring a larger stake.

Should the company elect to increase its interest to 75.5% share in the project, it will still have only spent around $21/ounce; A very attractive entry point.

As for the historic report, this is not from a far-gone era. It was written in 1996 based on 277 reverse circulation holes totaling 157,000ft with a cut off grade of 0.0112 opt. That said, it is important to remember that this is a non-compliant 43-101 Geological Resource, hence the discount that Northern Vertex received when it took over operatorship. For what it's worth, coupled with the report was a non-compliant Pre-Feasibility Study performed on the Humbug also in 1996 by Kappes, Cassiday & Associates based on 15,675,000 tons of ore, and an approximate 6-year mine life.

Going forward, Northern Vertex isn't hesitating to get to work. In order to begin validating and expanding the Lemhi's historic resource, an initial 30,000ft infill drill and resource definition program is underway. Based on the company's previous experience generating a substantial NI 43-101 compliant gold-silver resource on its Moss project in Idaho, it's apparent management knows how to add value for it's shareholders.

MOSS (ARIZONA) - SUCCESSFUL COMPLIANCE TRANSFORMATION WITH WESTERN UPSIDE

Not too long before the Lemhi became the apple of Northern Vertex's eye, the Moss cemented the company's ability to prove a non-compliant resource's merit with proper testing and groundwork. And though the historic resource was around half the size of the Lemhi, the game plan was still quite similar, albeit even more cost effective per contained ounce of gold. With a $500,000 price tag, and a potential 600,000 ounces of gold in the ground, Northern Vertex obtained the project for a steal.

Over the course of five months that followed the acquisition, Northern Vertex completed a 27,000ft drill program that brought the Moss to a 43-101 compliant standard. The result was a 590,000 ounce gold equivalency, close to par with the non-compliant estimate.

What lies ahead is the further development of the property, with drilling set to commence on a western extension in hopes of expanding the resource to nearly double the size in the realm of 1,000,000 ounces. It's through the west extension that the blue-sky opportunity on the project is revealed.

But even more importantly, the Moss is a very noticeable structure at the surface, which should prove to be cheaply and easily mined. The possibility of a heap leaching, open pit mine scenario is becoming clearer with the further work that's gone into the project. That said, it's also possible that mining and milling operations could be utilized, should the heap leaching not be implemented.

The Moss property itself is a 5000ft long stockwork gold structure that from the surface looks a lot like the back of a dinosaur. It's through this back of the dinosaur that very good grades have been observed. Over 600 samples have now been taken across the Moss structure, and so far most of what's been observed on surface has been matched at depth. The company is now currently testing with drilling, and will continue until mid February, after which results would be expected of follow shortly after.

COPLEY (BRITISH COLUMBIA) - A BLACKWATER-DAVIDSON LOOKALIKE

Unlike the Lemhi and the Moss, Northern Vertex's Copley project doesn't utilize the same strategy of proving up historic resources to today's standards. Instead, the Copley represents the more grass-roots approach, and is the true exploration wing of Northern Vertex's program, representing a high-risk, high-reward blue sky opportunity within NEE's project portfolio.

Originally acquired as a qualifying transaction, the Copley is a Blackwater-Davidson lookalike in the Nechako Plateau, in northern British Columbia. From its drilling program a year ago, Northern Vertex hit 30m of continuous mineralization on the project. In December they returned to drill again, the results of which are due in the next couple weeks. From a speculation standpoint, Copley offers shareholders a homerun, swing-for-the-fence opportunity.

MANAGEMENT TEAM - FUNDRAISERS EN ROUTE TO PRODUCTION

From a capital standpoint, Kenneth Berry has proven that he can gain funding when it counts. Over a 7-month span, Northern Vertex raised $16 million to fund both the Lemhi and Moss acquisitions, with money to spend on drilling.

In addition to having the financing in place to advance its assets, the company has built an experienced team of mining-minded players with a history of bringing projects through to production. The latest addition to the team is Dave Farrell who led M&A activities for Endeavour Financial (now Endeavour Mining) for 12 years. Given that Endeavour has moved on to being solely a producer, Farrell's new role as a Director for Northern Vertex is more in line with his strengths and ability, which fall on the transaction side of the business.

From the operations side, Northern Vertex has the experience of Director Joseph Bardswich, a mining engineer who has run several mines over his career. On multiple occasions, Bardswich has been charged with overseeing 200-300 people, in roles ranging from contract miner, production supervision, mining engineering, heavy civil engineering and mine management in both underground, open pit and alluvial operations in Canada, the United States, Europe and Africa.

Going forward, the team's goal is to put 30,000-100,000 ounces of production on the books. Whether this comes from the Moss, which looks to be the closest to a production decision, or through an acquisition, is yet to be seen, but it's clear that Northern Vertex believes itself to be in a favourable transition period en route to being a producer in the near term.

G. Joel Chury
The Bottom Line Report

Source: VantageWire

Northern Vertex Announces Drill Rig Mobilized to Test Western Extension on Moss Gold-Silver Project, Arizona. Phase I Confirmation Drill and Resource Expansion Program progressing at Lemhi Gold Project, Idaho

2012-02-09T10:29:00.000-08:00

Vancouver, B.C. - Northern Vertex Capital Inc. (TSX.V:NEE) (“Northern Vertex”) is pleased to
announce progress of its 2012 exploration and development programs on its newly consolidated Lemhi
Gold project in Idaho, its Moss Gold-Silver project in Arizona, and its Copley Gold project in central
British Columbia. The Company reports that budget allocations for drilling contracts, technical and
manpower requirements for multi-phase exploration and drill programs at both the Lemhi Gold and Moss
have been finalized for the Q1 and Q2, 2012 multi-phase programs.

States Northern Vertex CEO, Ken Berry, “We are pleased to report on Company activities as we prepare
for a busy year ahead. Our main objective this year is to aggressively develop our gold and silver assets
by building on our established ounces. Supported by our recent $13.3 million non-brokered financing, we
are currently well funded for an extensive confirmation drill and resource expansion program on the
Lemhi Gold project and to accelerate activities at Moss. On the acquisition front, we will continue to
evaluate accretive opportunities to grow the company”.

Consolidated Lemhi Gold Project, Idaho: The Company reports its newly acquired Lemhi Gold project
will be the site of extensive drilling and resource development over the current year. Through an
upcoming $7.7 million, Phase I development and confirmation drill and resource expansion program,
Northern Vertex will be applying the same proven resource growth model to Lemhi that it recently
applied to its Moss project in Arizona that resulted in proving up a substantial NI 43-101 gold-silver
resource in less than 7 months.

The objective of the upcoming 30,000 foot, Phase I confirmation drill and resource expansion program
will be to begin proving up and bringing to 43-101 standards the extensive historical gold resource
contained within the property’s boundaries. Northern Vertex’s Lemhi Project was recently assembled
from four underlying property holders to form a newly consolidated advanced exploration opportunity.
The Lemhi Gold Project includes Yamana's interest in the Humbug Gold Deposit and has a historical
non-compliant 43-101 resource of 32.36 million short tons at a grade of 0.0375 ounces per short ton for 1.21 million contained ounces of gold, as reported by Pincock Allen & Holt in 1996 (the "PAH
Report"). Northern Vertex cautions that a qualified person has not done sufficient work to classify
the historical estimate, or has substantiated any data as it pertains to a pre-feasibility study, as
current mineral resources or mineral reserves, therefore, it should not be relied upon on as actual
resource or reserve estimates, and should be construed only as conceptual in nature. The Company is
treating the historical estimate only a guideline to determining potential future mineral resources
or mineral reserves, and not as current mineral resources or mineral reserves.

Moss Gold-Silver project, Arizona: The Company reports a phase II drill program recently commenced
on the Moss Gold-Silver project in Arizona. The current program is supported by the favorable
conclusions returned from a recent Independent Resource Calculation conducted on Moss by Scott E.
Wilson Consulting that estimated Moss contains a gold Equivalent Indicated resource of 483,792 ounce
and 106,628 Inferred ounces. The current program is designed to test the newly discovered western
extension of the Moss Gold-Silver stockwork system.

Copley Gold Project, B.C., Canada: The Company is awaiting assay results from a recent phase II drill
program on its Copley gold property situated south of Fraser Lake in British Columbia's Nechako Plateau.
A total of 12 drill holes have been completed to test the project’s Smoking Pipe target where previous
results indicated the mineralized zoning identified on the property is near surface and the zones of gold-
enriched rocks identified in the system thicken to the west. Previous drilling on Copley included a 33 m
intersection that returned grades of 0.271 g/t Au in hole 01-04. Of the 33 m: 5.6 m averaged 0.68 g/t Au,
and 1.4 m averaged 1.57 g/t Au. Company Geologist Dr. Bob Thompson notes the geological
characteristics of Copley are similar to that of New Gold's Blackwater project, located 40 km the south.

The foregoing geological disclosure has been reviewed Dr. Bob Thompson, PhD P.Eng (a qualified
person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects).

About Northern Vertex: Northern Vertex is a gold exploration and development company operating
principally in the United States and Canada. The Company comprises an experienced management group
with a strong background in all aspects of acquisition, exploration, development and financing of precious
metal mining projects. The Company's stated mandate is to acquire, develop and advance gold projects
that demonstrate near term production potential and long-term sustainable growth.

ON BEHALF OF THE BOARD OF NORTHERN VERTEX
"Joseph Bardswich"
Director

For further information, please visit www.northernvertex.com
or contact Colin Clancy at Telephone: 604-601-3656 or 1-855-633-8798

Kootenay Gold Changes Name to Kootenay Silver

2012-02-07T10:41:00.001-08:00

Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce name change to Kootenay Silver Inc. as Company reports 25,000 meter in-fill drill and resource definition program nears completion on Promontorio Silver Project in Sonora, Mexico.

States Kootenay CEO James McDonald "The name change to Kootenay Silver better reflects our core focus on developing our flagship Promontorio Silver project. It also coincides with all the high-grade results we have achieved from drilling on Promontorio over the past year. Within this 1st quarter we will have completed over 35,000 meters of drilling since our initial resource calculation. We look forward to incorporating these numerous high-grade results into an updated NI 43-101 resource calculation at the conclusion of the current program."

Previous Announced High-Grade Results From Drilling on Promontorio

Drill Hole Intervals Above 450 g/t (15oz) Silver eq

Drill Hole	Interval (m)	AgEq (Ag,Pb,Zn) g/t*	Ag (g/t)	Pb+Zn %	Not Yet Incorporated in 43-101	Date Released
DH-086-11	1.00	1519.5	699.0	19.1	√	NEWS-06/12/11
KP-15-07	1.20	1487.6	942.1	12.7	√	NEWS-22/07/08
KP-64-09	3.00	1425.5	551.0	20.3	√	NEWS-14/01/07
DH-110-11	27.00	678.6	351.5	7.7	√	NEWS-02/01/11
Including	4.50	1145.5	645.7	11.7	√	NEWS-02/01/11
KP-09-07	6.70	1008.0	671.2	7.9		NEWS-22/07/08
PC-004-10	3.00	930.9	819.5	2.6	√	NEWS-30/11/10
KP-47-08	2.00	855.1	687.1	3.9	√	NEWS-09/01/09
KP-25-08	7.85	773.6	335.4	10.1		NEWS-22/07/08
DH-088-11	16.00	705.7	369.9	7.8	√	NEWS-17/01/11
DH-057-11	5.00	679.7	486.4	4.5	√	NEWS-15/09/11
DH-106-11	4.00	678.3	535.3	3.3	√	NEWS-01/02/11
DH-066-11	6.00	666.8	357.2	7.2	√	NEWS-03/10/11
KP-06-07	4.06	666.5	492.7	4.1		NEWS-22/07/08
KP-06-07	5.99	660.5	462.3	4.6		NEWS-22/07/08
DH-066-11	6.00	654.8	276.5	8.9	√	NEWS-03/10/11
KP-81-10	4.50	488.5	364.0	2.9	√	NEWS-12/05/11
Selected Drill Hole Intervals Over 90 M
Drill Hole	Interval (m)	AgEq (Ag,Pb,Zn)* g/t	Ag (g/t)	Pb+Zn %	Not Yet Incorporated in 43-101	Date Released
DH-056-11	251.00	116.1	47.4	1.6	√	NEWS-23/08/11
including	66.00	185.7	76.6	2.5	√	NEWS-23/08/11
DH-053-11	234.00	146.0	57.6	2.1	√	NEWS-03/05/11
including	70.00	236.3	91.4	3.4	√	NEWS-03/05/11
DH-058-11	205.00	116.9	48.9	1.6	√	NEWS-23/10/11
including	48.00	152.4	62.4	2.1	√	NEWS-23/10/11
including	50.00	168.6	73.6	2.2	√	NEWS-23/10/11
KP-25-08	190.93	196.3	79.9	2.7		NEWS-22/07/08
Including	95.54	244.4	101.8	3.3		NEWS-22/07/08
KP-23-08	189.92	138.6	52.3	2.0		NEWS-22/07/08
KP-20-07	166.57	146.7	50.5	2.2		NEWS-22/07/08
Including	86.70	181.4	64.7	2.7		NEWS-22/07/08
KP-22-07	157.65	119.5	48.9	1.7		NEWS-22/07/08
DH-068-11	149.00	145.7	59.9	2.0	√	NEWS-03/10/11
KP-33-08	131.36	98.4	42.2	1.3		NEWS-22/07/08
Including	99.65	124.0	52.8	1.7		NEWS-22/07/08
DH-079-11	120.00	164.2	68.1	2.2	√	NEWS-06/12/11
PC-002-10	120.00	100.7	42.1	1.4	√	NEWS-10/10/10
KP-44-08	119.00	142.2	52.3	2.1		NEWS-09/01/09
DH-082-11	109.00	114.9	40.3	1.7	√	NEWS-17/01/11
DH-097-11	104.00	106.8	47.3	1.4	√	NEWS-17/01/11
KP-26-08	101.65	132.9	53.0	1.9		NEWS-22/07/08
KP-35-08	97.40	145.4	50.8	2.2	√	NEWS-22/07/08
DH-061-11	96.00	182.5	71.8	2.6	√	NEWS-03/10/11
DH-072-11	96.00	107.5	42.0	1.5	√	NEWS-06/12/11
DH-080-11	95.00	145.8	51.0	2.2	√	NEWS-17/01/11
DH-062-11	92.00	147.0	56.4	2.1	√	NEWS-15/09/11

*Assuming 100% Metallurgical Recovery

*Prices used in Silver Equivalent (AgEq) Calculations: Ag dollars/oz; Zn dollars/lb Pb dollars/lb

Drilling has encountered consistent, widespread silver mineralization and multiple high-grade silver intercepts in the Pit Resource, the Southwest Extension Zone, and Northeast Zone, which sits 700 meters outside of the current 43-101 Pit Resource. (To view map and drill results visit: http://www.kootenaygold.ca/s/DrillResults.asp)

The current 25,000 meter in-fill drilling and resource definition program represents the single largest and most expansive drilling campaigns conducted by Kootenay on the Promontorio Silver project to date.

QA/QC

All holes reported here were drilled with HQ sized diamond drill core with some sections reduced down to NQ sized core. Core samples were cut using a core saw with 1 to 2 meter long sample intervals. All mineralized intercepts are drill core length drilled across a vertically inclined breccia system at angles of 45 to 70 degrees. Dimensions of the breccia system are being determined. The current resource sits approximately along 140 meters of strike by 60 meters of horizontal width in a range of 20 to 90 meters and to a 400 meter depth. Further Quality Assurance and Control procedures are disclosed on the Kootenay Gold Inc. website.

The foregoing geological disclosure has also 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.

SUBJECT TO REGULATORY APPROVAL
The Company has made application to the TSX V to change its name from Kootenay Gold Inc. to Kootenay Silver Inc. Management feels the name change is necessary to better reflect the core focus of the Company, which is to develop a substantial silver resource on its flagship Promontorio Silver Project in Sonora, Mexico. The proposed name change is subject to the acceptance of the TSXV and the registrar of companies and is therefore by no way confirmed until the Company received approval from the regulatory authorities.

ABOUT KOOTENAY
Kootenay Gold is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company's flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. The Company's objective is to develop near term discoveries and long term sustainable growth. Kootenay's management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.

-30-

For additional information, please contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaygold.ca

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. 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. 2012 number 4

Northern Vertex Joins OTCQX International Market in the U.S.

2012-02-01T11:46:00.000-08:00

Vancouver, B.C. - Northern Vertex Capital Inc. (TSX.V:NEE) (OTCQX: NHVCF) (“Northern
Vertex”) is pleased to announce that it is now trading on the OTC market highest tier “OTCQX
International” under the symbol “NHVCF”. OTC Markets Group Inc. is a leading financial information
and technology services Company that provides the world’s largest electronic inter-dealer quotation
system, trading technology and financial information provider for over-the-counter (OTC) securities in
the United States. Investors can find current financial disclosure and real-time Level 2 quotes for the
Company on www.otcqx.com and www.otcmarkets.com.

As an OTCQX company, Northern Vertex is expected to benefit from being associated with the top
segment of the United States OTC Market, bringing broader visibility to U.S. investors. Northern Vertex
joins numerous large and well-known international mining companies who have also elected to gain
access to the U.S. market using this platform.

Dorsey & Whitney LLP will serve as Northern Vertex’s Principal American Liaison (“PAL”) on
OTCQX, responsible for providing guidance on OTCQX requirements and compliance with U.S.
securities laws.

States Northern Vertex Chief Executive Officer Ken Berry; ” The OTCQX offers Northern Vertex an
ideal platform to satisfy the many requests by our U.S. shareholders and potential investors who have
asked the Company to trade its shares in the United States. We are looking forward to our new U.S.
presence bringing extra attention and liquidity to Northern Vertex as we continue to aggressively advance
our exciting Moss Gold-Silver project in Arizona and our newly acquired Lemhi Gold project in Idaho
over the coming year.”

About Northern Vertex:
Northern Vertex is a gold exploration and development company operating
principally in the United States and Canada. The Company comprises an experienced management group
with a strong background in all aspects of acquisition, exploration, development and financing of precious
metal mining projects. The Company's stated mandate is to acquire, develop and advance asset-based
gold/silver projects that demonstrate near term production potential and long-term sustainable growth.

About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates the world's largest electronic marketplace for
broker-dealers to trade unlisted stocks. Our OTC Link™ platform supports an open network of competing
broker-dealers that provide investors with the best prices in over 10,000 OTC securities. We categorize
the wide spectrum of OTC-traded companies into three tiers - OTCQX (the intelligent marketplace),
OTCQB® (the venture marketplace), and OTC Pink™ (the open marketplace) - so investors can identify
the level and quality of information companies provide. To learn more about how OTC Markets Group
makes the unlisted markets more transparent, informed, and efficient, visit www.otcmarkets.com.

Source: Northern Vertex

Kootenay Hits 873 gpt Silver Eqv Over 18 Meters in NE Zone (471 gpt Ag, 9.42% Pb+Zn) and 150 gpt Silver Eqv Over 17 Meters in SW Zone (118 gpt Ag, 0.76% Pb+Zn) as Promontorio Drilling Continues to Produce High-Grade Silver Results Within 1km Mineralized System

2012-02-01T11:14:00.000-08:00

Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from an additional 6 drill holes from its 25,000 meter, ongoing, multi-phase, step out drill and resource definition program on its Promontorio Silver Project in Sonora, Mexico.

The Company reports the multi-rig diamond drilling program continues to yield high-grade results, while demonstrating continuity of silver mineralization in the top priority Southwest and Northeast zones across the property’s central 1km mineralized corridor.

The strike continuity of silver mineralization in the Southwest Zone connecting to the NI 43-101 Pit Resource currently measures 140 meters to 300 meters. In the Northeast Zone, which sits 700 meters outside of the current NI 43-101 Pit Resource, mineralization along strike now extends approximately 210 meters.

States Kootenay CEO James McDonald “We continue to encounter multiple high-grade silver intercepts in the Northeast Zone and the Southwest Zone which once again underscores the strength and large upside potential of Promontorio’s diatreme breccia hosted mineral system. We could not be more enthused and optimistic with results from the current multi-phase program. Approximately 4000 meters of drilling remain to be completed in the 25,000 meter drill program, following which time geologic modeling and a NI 43-101 resource update will be completed.”

To view map of drill hole locations please visit:

http://www.kootenaygold.ca/i/projects/Promontorio/drillresultsmap.pdf

Highlights from the Northeast (NE) Zone include:

DH 110 in the Northeast Zone hits 18 meters of 873 pgt Silver Equivalent

(471 gpt Ag, 9.42% Pb+Zn) within 71 meters of 297 Silver Equivalent (149 gpt Ag, 3.46% Pb+Zn)

The high-grade intercept in DH 110 included 4.5 meters of 1146 gpt Silver Equivalent

(646 gpt Ag, 11.67% Pb+Zn) and a separate 4 meter interval of 1060 gpt Silver Equivalent

(667 gpt Ag, 9.21% Pb+Zn)

Highlights in the Southwest Zone include:

DH 106 hits 678 gpt Silver Equivalent over 4 meters (535 gpt Ag, 3.29% Pb+Zn)

DH 105 hits 17 meters of 150 gpt Silver Equivalent (118 gpt Ag, 0.76% Pb+Zn)

In the Southwest Zone DH 105 included two higher grade intervals of 392 gpt Silver Equivalent (310 gpt Ag, 1.91% Pb+Zn) over 4 meters and 350 gpt Silver Equivalent (287 gpt Ag and 1.48% Pb+Zn) over 2 meters

Hole ID	Target	From	To	Interval	*AgEq (Ag,Pb,Zn)	Ag	Pb	Zn	Pb+Zn
Hole ID	Target	(m)	(m)	(m)	(gpt)	(gpt)	(%)	(%)	(%)
DH-105-11	Pit SW Extension	91.00	108.00	17	150	118	0.39	0.37	0.76
including	Pit SW Extension	97.00	99.00	2	350	287	0.82	0.65	1.48
including	Pit SW Extension	103.00	107.00	4	392	310	0.97	0.94	1.91

DH-106-11	Pit SW Extension	52.00	56.00	4	678	535	2.22	1.07	3.29

DH-107-11	NE of Pit	273.00	315.00	42	47	20	0.33	0.32	0.65
DH-107-11	NE of Pit	323.00	372.00	49	62	24	0.39	0.50	0.89
including	NE of Pit	325.00	345.00	20	90	34	0.51	0.82	1.33

DH-109-11	NE of Pit	254.00	338.00	84	61	26	0.42	0.40	0.82
including	NE of Pit	254.00	264.00	10	148	68	1.04	0.81	1.85

DH-110-11	NE Zone	96.00	167.00	71	297	149	1.41	2.05	3.46
including	NE Zone	102.00	129.00	27	679	352	3.19	4.47	7.65
including	NE Zone	102.00	120.00	18	873	471	3.74	5.68	9.42
including	NE Zone	103.50	108.00	4.5	1146	646	5.29	6.37	11.67
including	NE Zone	111.00	115.00	4	1060	667	3.67	5.54	9.21

*Assuming 100% Metallurgical Recovery
*Prices used in Silver Equivalent (AgEq) Calculations:
Ag dollars/oz	15
Zn dollars/lb	0.91
Pb dollars/lb	0.97

Table of the full results:

Northeast Zone

DH 110

High grade intercept 55 meters up dip of DH 70 which hit 54 meters of 197 gpt Ag Equivalent (92 gpt Ag, 2.47% Pb+Zn) including 16 meters of 492 gpt Ag Equivalent (203 gpt Ag, 6.81% Pb+Zn)

About 35 meters on strike of high grade previously released hole DH 88 with 16 meters of 706 gpt Ag Equivalent (370 gpt Ag, 7.79% Pb+Zn)

DH 108

No significant results

Drilled 48 meters up dip of previously released DH 95 and 75 meters up dip of high grade DH 88

Southwest Zone

DH 105 and 106 both hitting high grade with DH 106 40 meters up dip of DH 105

About 134 meters southwest of Pit Resource boundary

Drilled on section with previously announced DH 91 and DH 102 with DH 106 being 85 meters up dip of DH 102 and 210 meters up dip of DH 91

DH 91 hit 86 meters of 57 gpt Ag Equivalent (23 gpt Ag, 0.81% Pb+Zn) including 9 meters of 162 gpt Ag Equivalent (67 gpt Ag, 2.19% Pb+Zn)

DH 102 hit 12 meters of 35 gpt Ag Equivalent (12 gpt Ag, 0.54% Pb+Zn) and 2 meters of 318 gpt Ag Equivalent (223 gpt Ag, 2.21% Pb+Zn)

Pit Northeast Extension

DH 109

On section with PC 52

About 40 meters northeast of Pit Resource

DH 107

Hole deviated to the southwest transversing section about 12 meters down dip of previously released DH 77

Upcoming drilling will continue to focus on step out and in-fill drilling off setting the numerous silver intercepts concentrated along a 1.0 kilometer long mineralized corridor that includes the Pit Resource, Pit NE Zone, Northeast Zone and Southwest Zone.

QA/QC

ABOUT KOOTENAY

Kootenay Gold is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company’s flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. The Company's objective is to develop near term discoveries and long-term sustainable growth. Kootenay’s management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.

-30-

For additional information, please contact:

James McDonald, CEO and President at 403-238-6986

Ken Berry, Chairman at 604-601-5652; 1-888-601-5650

or visit: www.kootenaygold.ca

Philip Ker of Union Securities Ltd talks Kootenay Gold with The Gold Report

2012-01-27T14:57:00.000-08:00

TGR: What are some other junior precious metals companies that could rebound significantly in 2012?

PK: I like Kootenay Gold Inc. (KTN:TSX.V). It has the Promontorio silver deposit down in Mexico and is currently engaged in a 25,000m drill program. It has been successful with extending mineralization outside of the current resource pit, particularly in the northeast and southwest zones. It is aiming for almost five times its current resource, targeting 100 Moz Ag eq.

TGR: What does that tell you about the project and the deposit?

PK: This northeast zone at Promontorio is not a one-hole wonder. It is continuing to intersect this zone along strike as well as along different fence lines within the zone. There definitely seems to be a high-grade area that can add significant resources in the upcoming NI 43-101.

TGR: What are you expecting from that?

PK: It is targeting 100–105 Moz Ag eq. In terms of silver prospects, it is mid to small size, but it is definitely in a good district. Mexico is one of the largest silver producers on the planet.

TGR: If it keeps hitting intercepts like that, it will not be long before that resource doubles. What is your 12-month target price for Kootenay?

PK: $2.50.

Read the Full Interview Here

Minesite.com's highlights of The Vancouver Resource Investment Conference 2012

2012-01-26T11:45:00.000-08:00

"Meanwhile, Kootenay Gold’s booth on the main floor was buzzing all day, as punters sought more information on recent drill results which showed numbers as high as 706 grams per tonne silver equivalent over 16 metres. The current drilling campaign at the Promontorio silver resource in Mexico consists of 25,000 metres of ongoing multi-phase, step out drilling and resource definition drilling. So far the program has been successful in extending the pit resource at Promontorio by 140 metres to 300 metres. In the Northeast Zone, which sits 700 metres from the Pit Resource, high grade intercepts have also been found and mineralization along strike is now 210 meters. "

Source: Minesite.com

Rick Mills talks about Kootenay Gold with The Gold Report

2012-01-26T11:39:00.000-08:00

"RM: Okay, the next one is Kootenay Gold Inc. (KTN:TSX.V), which has the 100%-owned Promontorio silver project in Sonora, Mexico. Like Cangold, Kootenay already has a significant resource. AGP Mining Consultants' resource estimate puts Indicated mineral resource at 5.2 million tons, with 8.9 Moz silver, 99 million pounds (Mlb) lead and 111 Mlb zinc. It grades 52 grams of silver, 0.86% lead and 0.96% zinc.

Since that estimate, Kootenay has drilled 53,000m into Promontorio at an average depth of 300m; the results from two-thirds of that drilling will go into a new resource estimate, which is due out in another month or two. Going back through the results on the website, you see some pretty decent assays, and I expect a very definite resource increase – a doubling or even tripling in the new estimate. Then Kootenay will launch another big and aggressive drill program. It wouldn't surprise me to see 50 Moz silver and quite likely the equivalent to that in lead and zinc after that drilling.

With all of that, plus a very good share structure with heavy management participation, a very healthy treasury, and more news coming, I refuse to believe that Kootenay won't be revalued much, much higher over the coming year.

TGR: With the flagship property actually focused more on silver than gold, is it odd that this company is Kootenay Gold rather than Kootenay Silver?

RM: The company took its name from the Kootenay region of British Columbia, where it started, and it has eight or nine serious joint ventures (JVs) with some pretty good junior resource companies on gold properties there and in other parts of B.C. – Copley, Red Lobster, Deer Creek, Jumping Josephine and Rosetta Stone.
Kootenay has the best of both worlds, and operates on the prospector generator business model, taking property dilution instead of share dilution. It uses the money that generates along with money raised to work on its 100%-owned Promontorio. I don't think most people realize that Promontorio, as a standalone, will be able to potentially produce 3-5 Moz silver a year plus another 3-5 Moz silver equivalent over a 10-year-plus timeframe. In the context of other silver producers in Mexico, that's a pretty significant asset. It usually takes these producers two or three mines to get up to production numbers like that, and Kootenay will get there with a single asset. That's pretty uncommon and pretty valuable.

TGR: A lot of great silver producers in Mexico certainly would be interested in this project.
RM: Oh, one project with the potential to produce that much silver and silver equivalent in a year has to be on every radar screen. Don't get me wrong, Kootenay can take this to production. It absolutely can. It's just a matter of whether an offer is too good to refuse."

Full interview available here:

Silver's Surge

2012-01-24T15:31:00.000-08:00

By Warren Bevan
Jan 23 2012 10:41AM

We had a super week in regard to swing trading as markets and stocks did what the charts said they were going to, now it looks like we need at least a few days of correcting and backing and filling before we attempt a new move higher but it was very nice to see the S&P move beyond 1,300.

Ideally I’d enjoy seeing the 1,300 area on the S&P tested again this week.

As for the precious metals they're doing well, especially silver and palladium but just because gold isn’t really moving up doesn’t mean it’s sick.

Metals review

Gold rose 1.51% this past week and is now trading within an uptrend channel which is now at resistance. The 50 day moving average is right here along with the $1,675 horizontal resistance level and the downtrend line.

All in all the signs are pointing to a rest for gold here. This could last at least three days or up to a week or slightly more.

Ideally a $50 range trade between $1,625 and $1,675 would be nice to see with maybe a spike lower on an intraday basis to shake out those week hands.

All I’m hearing is that physical buying is so strong at the moment that supply can hardly keep up but the paper games still dictate the price for now so that is our metric of observing the gold price.

Volume was about average in both futures and the GLD so it’s hard to say much until we move away from a pattern or technical level.

If the above observations don’t quite jive with your hopes just remember that nothing goes straight up ad down forever and if it seems like it will, then the trade is over.

While golds reverse head and shoulder pattern of last week morphed into an uptrend channel, silver remained in that nice reverse head and shoulders pattern until Friday when it broke out higher as the downtrend line was approaching that level.

It was obviously a powerful pattern, as they usually are, as silver rose 4.72% Friday alone and for the week was up a sweet 7.68%.

I mentioned last week that silver was well below it’s 200 day moving average while gold remained above it and the implications I deemed from this were that perhaps silver would lead gold on this next up-move as it has some catching up to do.

So far, so good and the 100 day average is the next stop around the $33 level. Then $34 where resistance lies on the chart then the $36 area to the 200 day average.

I did not take a trading position in silver Friday as I was more focused on booking some great profits from the week as the markets were very kind to us in regards to our swing trading portfolio. Perhaps next week I will get that chance.

In fact our swing trading portfolio was up right about 70% this past week after booking profits which is our best week this year and actually for several months as the markets haven’t been great for trading.

The SLV ETF volume was heavy on the breakout Friday which is exactly what we needed to see and now we need a follow though day on Monday with good volume. This move looks like it is for real.

The reasons why are both technical and fundamental.

Eric Sprott just announced an offering for his silver trust to the tune of $300 million US dollars. This will equate to roughly 10 million ounces of physical silver having to be found and delivered. This news alone should propel silver higher. The fact that a bullish chart pattern was formed and then resolved properly, higher, is even better.

Normally this would be stellar news that would have me in a trading position in silver but with the bankruptcy of Kodak (it’s no Kodak moment) they disclosed they have about $300 million worth of physical silver.

The timing couldn’t have been better and this silver may well fill Eric’s pockets without disrupting the market.

It’s really quite curious how many times I’ve seen a pattern form on the charts then a catalyst/news event comes to light and resolves the pattern as it should be resolved.

Technical analysis truly can help your investing tremendously and also help clear your mind as you don’t have to think about news and interpret events as much, you just focus on the chart and it’s movement along with volume.

I try and live by the KISS (Keep It Simple Stupid) mantra and technical analysis helps me do so to a large degree.

Platinum rose 2.20% this past week and continues to move away from it’s recent base and now is even holding above the 50 day moving average. Now we have some resistance at the $1,535 area and resistance higher at $1,579 where the 100 day moving average resides for now.

Volume was solid in the futures and the PPLT ETF which is perfect as price moves and now that we are stalled out a tad, lower volume is what I want to see.

All in all platinum is exhibiting very healthy action that should soon see higher prices. This little 3 to 5 day or so base is what I look for often when trading as they usually lead to higher prices.

Palladium has risen 6.24% this past week in a superb move out of this large triangle. Volume was heavy and the move could have easily been bought. Unfortunately I usually trade faster moving stocks and was heavy into them this past week and very focused on them.

We’re heading to the 200 day moving average at $709 pretty soon unless something drastic occurs.

Volume was perfect in the futures and is what you want during a breakout in order for the move to be real and thus able to be bought. The PALL ETF also showed great volume at the correct time.

Fundamental Review

This past week we saw US 10-year treasuries dip below 2% briefly. It is amazing how low the yields have gone. Even more amazing is that people actually accept that rate. It’s not even above the official rate of inflation!

Why they don’t seek out dividend yields much higher as we do, I just don’t understand. We get between 10% and 20% annually with our select dividend stocks. Now that is a return.

We saw three banks fail this past Friday after the close and kick off this years list of biggest losers. It’s been over a month since we saw a bank fail so it’s nice to get back on track.

While this week it was revealed that Newt Gingrich had asked his ex-wife for an open marriage, he himself is open to and open currency. He is calling for a review on how the US can return to a hard currency status, one which is backed by gold. Whether he’s serious or just trying to capture some of Ron Paul’s supporters is debatable though and I try to steer clear of politics for the most part.

The high and volatile cost of nickel is forcing Canada to transition to using brass coated steel to produce their $1 and $2 coins, otherwise known as a loonie and a toonie.

Iran is hoping to increases their gold production by 350% in an attempt to better their dire economic condition right now which is hefty inflation and many sanctions, neither of which are good, but gold is money and they know that and it will be accepted in trade, period.

And for fun here are all the Texas republican candidates agreeing that we need to audit the Federal Reserve. Whether it would ever actually happen is another story and one I won’t believe until I see it.

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Until next week take care and thank you for reading.

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Source: http://www.kitco.com/ind/Bevan/jan232012.html