Vancouver, B.C. - Kootenay Gold Inc. TSX.V: KTN ("Kootenay") is pleased to announce it has successfully concluded the final holes of its 10,000 meter drill program on its Promontorio Silver project in Sonora, Mexico, highlighted by a 234 meter intersection grading 146 gpt silver equivalent*. Based on the success of the 10,000 meter program Kootenay reports it has entered into a contract with BDW Drilling to immediately commence a minimum 25,000 meter multi-phase diamond drill program at Promontorio. The in-fill drilling and resource definition program will be the Company’s single largest and most expansive drill campaign ever conducted at Promontorio.
*See 10,000 meter drill highlights below - Click here for the complete drill results and map.
States James McDonald, President and CEO of Kootenay: "Hitting excellent grades of silver mineralization over a broad 234 meter intersection is further testimony to the success of our 10,000 meter drilling program on Promontorio. Paramount to its success, we confirmed that high and medium grade silver occurs along the entire 1.0 kilometer long mineralized corridor that hosts the current resource. Equally important broadly spaced holes indicate continuity of silver mineralization over 300 meters of strike in the North East Zone, which is double the strike length of our current 43-101 silver resource.”
25,000 Meter Multi-Phase Drilling Program to Commence
Kootenay reports final mobilization is underway in preparation for the current multi-phase program. Drilling is scheduled to commence with two drills June 2, 2011 and will continue into the fall 2011. With the planned addition of a third rig, a total of three diamond core drills will be working on site and a minimum of 25,000 meters of drilling is budgeted. The program is designed to substantially expand the current 43-101 resource conducted on the project by AGP Mining Consultants in 2010. Included in the program will be extensive infill and step out drilling to define continuity between silver intercepts and to test the limits of silver mineralization.
Further adds McDonald “Clearly, the upcoming 25,000 meter drill program is a major step forward and a much anticipated milestone in the development of Promontorio. A primary focus for the program will be to dramatically boost the size of our current silver resource with in-fill and step out drilling within multiple zones of widespread silver mineralization identified outside of the Pit Resource along Promontorio’s 1.0 kilometer long mineralized corridor. More than 55 holes will be dedicated to these areas."
Drilling will test new areas of mineralization and test the current resource boundaries at depth where previous drilling bottomed out in silver mineralization. Infill drilling will also focus on establishing the continuity and size of the high and medium grade silver domains now established within and outside of the silver resource.
Updated NI 43-101 Resource Calculation to Commence at Conclusion of Program
Kootenay reports an updated NI 43-101 resource calculation on Promontorio is planned to commence at the conclusion of the program. In anticipation of further advancing the development of Promontorio, the Company reports preliminary work for baseline, further metallurgical and scoping studies will be initiated concurrent with the drilling program.
Highlights of Mineralized intercepts include:
*Note: PC denotes RC holes and DH denotes core holes. All holes should be taken in context of their locations which are given in table and map form on the Company website. All silver equivalent values are calculated using silver + lead + zinc at $15.00/ oz, $0.97/lb. Pb and $0.91/lb. Zn respectively
Highlights of final holes of 10,000 meter drill program include:
PC 53
- 234 meters of 146 gpt Ag equivalent including; 70 meters of 236.3 Ag equivalent including 27 meters of 338.6 gpt Ag equivalent or 121.7 gpt Ag and 5.50 % Pb +Zn.
PC 52
- 10.5 meters of 174.2 gpt Ag equivalent or 64.1 gpt Ag and 2.57 % Pb +Zn.
PC 48
- 92 gpt Ag equivalent over 90 meters including 39 meters of 153.2 gpt Ag equivalent or 63.7 gpt Ag and 2.08 % Pb +Zn.
PC 50
- 76.5 meters of 61 gpt Ag equivalent or 24 gpt Ag and 0.87 % Pb +Zn
PC 47
- 36 meters of 82 gpt Ag equivalent including 12 meters of 183.9 gpt Ag equivalent or 125.5 gpt Ag and 1.36 % Pb +Zn.
