|May 24, 2007|
PROMONTORIO - Surface Sampling Returns 19 Meters Grading 480 Grams per Tonne Silver and 2.51 Grams per Tonne Gold at Promontorio
Vancouver, BC -- Kootenay Gold Inc. ("Kootenay"), TSX-V KTN, is pleased to announce that chip sampling from the Promontorio sulfide zone in the Pit Breccia has returned 480 grams per tonne silver, 2.51 grams per tonne gold, 11,199 ppm lead and 17,284 ppm zinc over an estimated true width of 19 meters. All samples were taken as continuous chips over a 2 meter length.
Sampling is located on the northeast wall of the open cut mined in 1988 to 1990. Some 50 meters along strike to the southwest chip sampling in the southwest pit wall in a leached oxide zone containing remnant sulfides returned 150.67 grams per tonne silver and 0.86 grams per tonne gold over an estimated true width of 6 meters. This interval occurred within a wider zone of mineralization grading 75 grams per tonne silver and 0.99 grams per tonne gold over an estimated true width of 25 meters. Lead and zinc values in both intervals were generally below 1000 ppm. The southwest pit wall was only partially sampled due to inaccessible exposures and overburden cover. Potential for increased grades in sulfides below this interval is possible due to the leaching observed across the property.
Strong leaching of the oxide zone is observed in the Promontorio Mine area which historic work and pit exposures indicate is between 10 and 20 meters deep. Values of silver, gold, lead and zinc are found to be strongly depleted in the oxide zone unless remnant sulfides are found. As an example chip sampling in the oxide zone 8 meters directly above the sulfide zone averaging 480 grams per tonne silver and 2.51 grams per tonne gold returned silver values ranging from 1 to 34 grams per tonne and gold values from 0.011 to 0.957grams per tonne. This demonstrates that similar values of silver and gold found elsewhere in the oxide zone need to be considered good indicators of potentially higher grades in the underlying sulfide zones. Similar depletion of metals may also be caused by the pinching of the mineralized breccia upwards.
Sampling of the pit walls indicates two things. First, the grades encountered agree well with historic resource estimates and drill results and secondly, mineralization appears to be open to expansion along strike.
A second zone of mineralization has been discovered in a breccia zone about 50 meters to the west of the Pit Breccia. This zone called the Adobe Breccia is a minimum of 20 to 22 meters in width and appears to be sub parallel to the Pit Breccia. This zone was sampled in the leached oxide zone and returned 9.62 grams per tonne silver and 0.206 grams per tonne gold over the 22 meters and 10 meters to the southwest it returned 10.62 graps per tonne silver and 0.292 grams per tonne gold over 20 meters. Considering the depletion of metals in the oxide zone these values are indicative that a sulfide zone with higher values may be encountered at depth. The highest values from this zone were 50 grams per tonne silver and 0.90 grams per tonne gold. The lowest values were 2.0 grams per tonne silver and 0.066 grams per tonne gold.
A third area of significant mineralization called the Central Breccia was found some 200 meters to the northwest of the Pit Breccia. It is exposed in a small outcrop that is strongly fractured and brecciated. Recent chip sampling returned 62.78 grams per tonne silver and 0.401 grams per tonne gold over 14 meters. This zone appears to trend east west and sits some 25 meters west of a small exploration shaft sunk in the 1920's and a short hole drilled in the 1970's reported to contain 50 grams per tonne silver over 15 meters in the oxide zone and 980 grams per tonne silver in the sulfide zone over the following 12 meters to the bottom of the hole. The drill information is non 43 101 compliant, historic in nature, has yet to be confirmed and so cannot be relied upon.
Airborne geophysics and surface mapping indicate that the mineralized breccias are found along a northeast trending structural corridor at least 2.0 kilometers long and about 500 meters wide. Both ends of the mineralized trend are covered by post mineral rhyolites and electromagnetic anomalies in the airborne survey indicate mineralization may continue under the rhyolites for another 2 kilometers. This implies good discovery potential given the historic resource was reported along only 75 meters of strike length.
A 3000 meter first phase drilling program is scheduled to commence on the Promontorio project in mid June. A drill rig has been sourced and arrival to site remains on schedule. In addition to drilling an Induced Polarization survey is planned to cover the 2.0 kilometer mineralized trend as well as trenching and sampling where possible.
Pit Breccia Northeast Wall Sulfide Zone
Pit Breccia Southwest Wall in Depleted Oxide Zone with Remnant Sulfides
Adobe Breccia Northeast in Depleted Oxide Zone
Adobe Breccia Southwest in Depleted Oxide Zone
Central Breccia in Depleted Oxide Zone with Minor Remnant Sulfides
Sampling of the Pit, Adobe and Central Breccias were taken as continuous chips across 2 meter intervals excepting the Central Breccia where 1 meter samples were taken. All samples were tagged and sealed and delivered to ALS Chemex labs in Hermosillo, Sonora Mexico for preparation. Pulps were then sent to Vancouver for analysis by 32 element ICP with a fire assay AA finish on gold over 1000 ppb and silver over 200 ppm. Silver greater than 1000 grams per tonne silver is re assayed with a gravimetric finish.
Technical information contained in this release has been reviewed by James McDonald, P.Geo., Director and CEO of Exploration for Kootenay, a Qualified Person as defined in National Instrument 43-101.
Kootenay is an emerging exploration Company actively developing a suite of premier gold and silver projects in British Columbia, Canada and Mexico. The Company's top priority remains the ongoing aggressive development of its rich Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico. Supported by an experienced and accomplished technical team, over the past four years Kootenay has substantially grown its mineral asset base through key acquisitions, while successfully achieving four new mineral discoveries in the Rossland Republic Gold Trend of British Columbia.
For additional information, please contact:
James McDonald, CEO at 403- 238-6986
Ken Berry, President at 604-683-2214; 1-888-268-8688; 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.
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