Kootenay Commences 10,000 Meter Multi‐Phase Drill Program Aimed at Expansion of Current Resource and Premier Promontorio Targets
September 27, 2010
Shares Outstanding: 37,276,600
Kootenay Commences 10,000 Meter Multi‐Phase Drill Program Aimed at Expansion of Current Resource and Premier Promontorio Targets
Vancouver, B.C. - Kootenay Gold Inc. TSX.V: KTN ("Kootenay") is pleased to announce the 10,000 meter drill program is now underway at Promontorio Silver Project. The Multi-Phase drill program will seek to expand the Pit Zone Resource which is open in three directions (NE, NW, and at depth) and test a 800 meter mineralized corridor trending to the North East.
Highlights of the Promontorio Pit Resource (Indicated & Inferred based on 27 drill holes):*
- Contained Silver 10,070,000 oz
- Contained Lead 112,700,000 lbs
- Contained Zinc 125,100,000 lbs
*Metal recoveries used for the above calculations: Ag-82%; Pb‐ 85%; Zn‐91%
Promontorio 43-101 Resource Calculation:
The 2010 mineral resource estimate reported in the August 18, 2010 news release provided two different cut-offs for two depth ranges to reflect the mining methodology likely to be employed at Promontorio. AGP Mining Consultants (AGP) used a cut-off of $12.50 USD for resource the first 200 m of the deposit and for resources below that, a cut-off of $32 USD was selected.
The AGP resource estimate comprises Indicated Mineral Resources of 5.22 million tonnes averaging 52.7 g/t silver, 0.86% lead and 0.96% zinc, containing 8.9 million oz Silver, 99.3 million pounds of lead and 110.8 million pounds of zinc. AGP also estimated that Promontorio contains 0.65 million tonnes averaging 55.7 g/t silver, 0.94% lead and 1.00% zinc in the Inferred category, containing 1.17 million oz Silver,13.4 million pounds of lead and 14.3 million pounds of zinc (Additional information can be
found in the August 18, 2010 News Release or at www.kootenaygold.ca).
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.
ABOUT KOOTENAY
Kootenay is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company flagship property is the former producing Promontorio Silver Mine in Sonora State, Mexico.
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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
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. 2010 number 20