Thursday, September 29, 2011

Kootenay Gold Initiates Geotechnical, Hydrogeologic, Environmental Baseline and Metallurgical Studies to Accelerate Development of Promontorio Silver Project

  
Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce the Company has contracted U.S. based companies Hatch Engineering out of Scottsdale, Arizona and Sanguaro Geosciences Inc., as well as Canadian based G&T Metallurgical Services Ltd and independent Consulting Engineer Patricia Aguayo Hurtado to conduct preliminary environmental baseline, scoping studies and metallurgical work with respect to the Company's plans to proceed with a pre-feasibility study and mine modeling analysis on the Company's Promontorio Silver Project in Sonora, Mexico.

States Company CEO James McDonald "An extensive drilling and analysis program is underway to quantify and confirm the scope and size of our silver deposit. Based on the continued success of our current 25,000 meter drill program, combined with results from our previous phases of drilling, we are sufficiently encouraged with results to begin taking the requisite steps to pursue our ultimate goal, which is to advance the Promontorio Silver Project to commercial production".

Among the contracts secured, the Company has engaged Hatch Engineering out of Scottsdale Arizona to conduct initial hydrologic studies to design a program to characterize the ground water resources on the project and develop a conceptual hydrogeologic model. This information will then form the basis for additional studies going forward in the longer term for prefeasability level evaluation of mine water supply, including potential dewatering flow rates needed for potential open pit and underground mining and mine water supplies.

Saguaro Geosciences Inc. has been engaged to design a detailed geotechnical logging program that goes beyond the basic specific gravity and RQD data currently being recorded. The geotechnical program will collect all the necessary data appropriate to future geotechnical analysis for open pit and underground mining.

G&T Metallurgical Services Ltd. out of Kamloops B.C. has been contracted to conduct additional metallurgical work on Promontorio mineralization. Work will include grind calibrations, bond ball tests, and rougher, cleaner and locked cycle tests. Additionally acid base accounting of mineralized and wall rock will be conducted and a gold deportment study will be done to determine if the significant gold content of the deposit,which is not yet factored into any of the Company's resource calculations, can be extracted economically.

Independent Consulting Engineer Patricia Aguayo Hurtado has been contracted to conduct an environmental baseline study.

Further developments with respect to the Company's environmental baseline, scoping studies and metallurgical work will be announced in a future release.


Source: Kootenay Gold