Kootenay Hits 18 Meters of 254 gpt Silver Eqv Within 89 Meters of 84 gpt Silver Eqv (*Includes 120 gpt Silver and 3.1% Pb+Zn and 41 gpt Silver and 1.01%Pb+Zn)

Vancouver, British Columbia: Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce results from an additional 10 holes from its current 25,000 meter drill program on its Promontorio Silver Project in Sonora, Mexico. The Company reports the two-phase 35,000 meter in-fill drill and resource definition program, comprised of 25,000 meters of core drilling and 10,000 meters of RC drilling is now complete. Work on an independent NI 43-101 resource update to incorporate results from drilling is underway.

States Kootenay CEO James McDonald “The high-grade results achieved from step-out drilling in the Northeast Zone is further testimony to the success of our multi-phase drill program. Since confirming our initial NI 43-101 silver resource in 2010, we established one continuous zone of silver mineralization from the Pit (Discovery) Zone through the Southwest Zone. This zone remains open to the east, west and to depth. We continue to encounter high-grade silver intercepts over widespread areas of silver mineralization in the Northeast Zone, some 700 meters outside of the current NI 43-101 resource. We expect these developments will play a critical factor in sharply boosting the size of our existing silver resource as we prepare for our updated independent NI 43-101 resource study.”

Philip Ker, analyst with Union Securities talks Kootenay Silver, sees 12 month target of $2.50

Philip Ker, an analyst with Toronto-based Union Securities, expects the junior mining sector to witness an increase in M&A activity throughout the remainder of 2012, which could funnel more capital into the space. Philip’s coverage universe includes several gold juniors with near-term growth catalysts and lofty 12-month target prices. He sat down with SmallCapPower.com to discuss some of the companies Union Securities is covering.


SmallCapPower.com: So you’re saying that virtually everything in the junior resource sector is underperforming, especially those companies working in high-risk jurisdictions. Nonetheless, you have some companies that you believe will eventually perform. What are some of those names?

Philip Ker: Kootenay Silver Inc. (TSX.V: KTN). It’s a unique brecciaed epithermal silver deposit in Sonora State, Mexico. Kootenay is currently wrapping up a 25,000-metre drill program on its Promontorio deposit and plans to publish an initial resource estimate later this quarter. There’s a historical resource estimate of about 25 Moz silver-equivalents, which takes into account some substantial lead and zinc credits. I toured the property in February, and was impressed with the location, as well as the drill core. My target for the resource estimate going forward is 100 Mozsilver-equivalent, which would be a substantial uplift from the previous estimate. Kootenay recently hit some great intersections at Promontorio, particularly in the Northeastern zone where some grades exceeded 800 grams per tonne silver-equivalent.

SmallCapPower.com: Kootenay is trading at about C$0.95. Is there a
warrant outstanding?

Philip Ker: There is and some of those expire this year. It should bring in some capital for the company for future exploration, which is expected to start later this year. The property has numerous untested targets and some may be followed up on in conjunction with delineation drilling at Promontorio.

SmallCapPower.com: What’s your 12-month target on Kootenay?

Philip Ker: My 12-month target is $2.50 based on a conservative in-situ valuation of only $1.25/oz silver.


SmallCapPower.com: That’s great.



Read the full discussion here: 

Eric Sprott: Silver is Investment of the Next Decade

Kootenay Silver firmly focused on Promontorio project, updated resource expected

Vancouver-based junior explorer Kootenay Silver (CVE:KTN) is firmly pinning its hopes on the Promontorio silver project in Mexico.

Kootenay Silver’s flagship property is the former-producing Promontorio silver mine in Sonora State, Mexico. The company is also actively developing other mineral projects in Mexico and British Columbia, Canada.

But the company's focus on Promontorio was a driver in the recent change of its name from Kootenay Gold.

Speaking to Proactive Investors, Kootenay Silver’s chairman, Ken Berry, said: "Our focus is on the Promontorio property and building that silver resource. We feel that we're at a real stage in development where that resource is a significant asset.

"Our core asset has grown to such a stature it warranted a name change."