Drilling Success Continues at Promontorio as Kootenay Hits 205 meters of 117 gpt Silver Equivalent in Step-Out Drilling in Southwest Zone

Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from the first seven holes of its ongoing 25,000 meter multi-phase drilling program on its Promontorio Silver project in Sonora, Mexico.

Results include three holes (DH 54 to 56) of in-fill drilling of the Pit Resource and four holes (DH 58 to 61) into the Southwest Zone outside of the Pit Resource designed to confirm continuity between the two mineralized areas. Results from the first seven holes demonstrate widely disseminated Zones of silver mineralization extend beyond current resource boundaries and continuation of higher grades within the Pit Resource.

States Kootenay President and CEO James McDonald "We are very pleased with results from the first seven holes of our 25,000 meter drill program. Not only is diamond drilling continuing to hit higher grades of silver at depth where previous drilling bottomed out in silver mineralization within the Pit resource itself, equally important to our resource expansion program, we are seeing continuity of silver mineralization developing in the Southwest Zone from step-out drilling that returned impressive intervals and grades of widespread silver mineralization extending to depth".

Globe and Mail: Think Gold May Lose Some Lustre? Eric Sprott Sees a Silver Lining

Eric Sprott, the perennial gold enthusiast, has his sights set on a new precious metal.
Mr. Sprott’s charitable organization, The Sprott Foundation, is selling two million units of its gold holdings and using the money to buy silver.
The move comes as gold veers close to $1,800 (U.S.) per ounce, and less than a week after Mr. Sprott had declared the metal “the investment of the last decade” in an interview with GoldMoney Foundation. “I think silver is going to be the investment of this decade.”

Since the commodity boom kicked into high gear last fall, Mr. Sprott has been touting silver’s merits. To demonstrate his conviction, he set up and invested his own money in the exchange-traded Sprott Physical Silver Trust (PHS.U-T19.40-0.93-4.57%), which buys silver bullion and stores it at the Royal Canadian Mint. Investors in the trust can cash in their units, or take delivery of silver in physical form if they wish.
He also launched a Silver Bullion Fund that enables investors to speculate on the metal’s market price, but without the physical redemption option.