|May 22, 2008|
PROMONTORIO - Kootenay Drilling Confirms Widespread Mineralization To A Depth Of 444 Meters: Highlights Include 7.85 Meters Grading 473.9 G/T & 386 Meters Grading 70.8 G/T Silver-Equivalent at Promontorio
Vancouver, B.C. - Kootenay Gold Inc. TSX.V: KTN ("Kootenay") is pleased to announce the first assay results from its ongoing phase II 10,000 meter drill program on its wholly owned Promontorio project in Sonora Mexico.
Drilling has intersected wide intervals of low to high grade silver-gold polymetalic mineralization to a depth of 444 meters (remains open at depth). Drilling will continue to test a 3D IP Geophysical Survey target which outlines a large "L" shaped area of chargeability, with one "arm" measuring 1.6 km and the other 900 meters with widths being 250 to 600 meters. Drilling is showing this chargeability anomaly is mapping out sulfide mineralization and is proving a useful tool for drill targeting (see May 14, 2008 News Release).
Jim McDonald, CEO of Kootenay commented: "We remain highly encouraged by the depth and consistency of widely disseminated mineralization at the Promontorio Silver Project. In addition, the mineralized system contains high grade gold-silver and equally significant values of lead and zinc. Based on the success of each consecutive phase of exploration to date, we intend to accelerate the current program as we systematically explore the large IP Target and surrounding regional mineralization.
Highlights of the results include (to view 3D model visit www.kootenaygold.ca):
Hole: KP 25-08
386.64 meters grading 70.8 grams per tonne ("g/t") Ag equivalent and 1.54% combined lead-zinc
270.95 meters grading 94.4 g/t Ag equivalent and 2.10 % combined lead-zinc
97.67 meters grading 144 g/t Ag equivalent and 3.24% combined lead-zinc
7.85 meters grading 473.9 g/t Ag equivalent and 10.13 % combined lead-zinc
Hole: KP 23-08
437.45 meters grading 53 g/t Ag equivalent and 1.16% combined lead-zinc
189.92 meters grading 88.5 g/t Ag equivalent and 2.00% combined lead-zinc
11.65 meters grading 207.7 g/t Ag equivalent and 4.92% combined lead-zinc
Hole: KP 20-07/081
346.37 meters grading 49.8 g/t Ag equivalent and 1.3% combined lead-zinc
166.57 meters grading 65.7 g/t Ag equivalent and 1.92% combined lead-zinc
4.76 meters grading 200.9 g/t Ag equivalent and 5.00% combined lead-zinc
Hole: KP 19- 07/082
144.1 meters grading 46.2 g/t Ag equivalent and 0.85% combined lead-zinc
26.39 meters grading 148 g/t Ag equivalents and 2.87% combined lead-zinc
Hole: KP 17-07/083
180.37 meters grading 29.6 g/t Ag equivalent and 0.69% combined lead-zinc
62.95 meters grading 65.9 g/t Ag equivalent and 1.56% combined lead-zinc
11.45 meters grading 118.7 g/t Ag equivalent and 2.46% combined lead-zinc
Hole: KP 24-08
435 meters grading 25.1 g/t Ag equivalent and 0.50% combined lead-zinc
61.81 meters grading 98.6 g/t Ag equivalent and 1.82% combined lead-zinc
1 First reported in 2007 KP 20-07 was deepened by 303.4 meters to a total depth of 408 meters.
2 First reported in 2007 KP 19-07 was deepened by 187.2 meters to 249 meters.
3 First reported in 2007 KP 17-07 was deepened by 180.85 meters to 267 meters.
Mineralization has been intersected down to a vertical depth of 444 meters (KP 23 08) and has been shown to begin at surface in some areas (KP 23, 24, 25-08 and KP 17, 19, 22-07). Mineralization continues to occur as pyrite, galena, sphalerite, and possible silver sulfosalts within veins, veinlets, fractures, disseminations and as breccia infilling. Alteration varies from sulfides associated with calcite veining and propylitic carbonate-chlorite alteration to sulfides associated with a silicic-sericite-argillic dominant alteration. The two types appear to grade into and out of one another. The host rock is predominately andesitic pyroclastics underlain and interbedded with sandstones and limey sandstones.
A summary of the averaged intervals follows in the table below. A complete listing of individual samples and sample intervals can be viewed on Kootenay's website (www.kootenaygold.ca) along with drill sections and plan maps of the holes referenced in news releases. Sample lengths vary with the majority between 0.5 and 1.30 meters in length. All reported intervals are core lengths. It appears as though the mineralization occurs in a pipe like feature with vertical edges (as indicated by 3D IP geophysics and thus far consistent with drill results) and mineralization confirmed in drilling to at least as deep as 444 meters. Until the shape of the mineralized body is further defined by drilling true widths will not be known.
* Hole KP-22-07 reported December 10, 2007, now includes an additional 6 meters of sampling at the bottom of the interval.
-Weighted averages for intervals including lost or unsampled intervals were calculated using zero values for the missing intervals.
-Prices used in calculating Ag Eqv.: Au $790/oz, Ag $14/oz, Pb $1.25/lb, Zn $1.10/lb
-If an assay value was below the detectable limit - the grade of the limit was used in the calculations:
-Au < 2 ppb = 2 ppb; Ag < 0.5 ppm = 0.5 ppm; Zn < 0.01% = 0.01%; Pb < 0.01% = 0.01%
-Grades and equivalency assumes 100% recovery
A total of 34 holes have now been drilled on the project and assays are pending on KP 26-08 through to KP 33. In addition more sampling is being undertaken on the 2007 drill holes to establish the limits of the mineralized intervals assayed and reported in 2007. Results will be released in batches once received and compiled.
Holes KP 24 through 32 were drilled as vertical holes and holes KP 17 though 20 were angle holes drilled in 2007 and deepened in the current 2008 program. Starting with KP 33 08 a number of angle holes have been designed to more quickly find the lateral limits of mineralization.
Drilling is all core and has been contracted to BDW International out of Guadalajara Mexico and all core has been HQ sized.
Sampling and Assaying
All core samples are cut by a rock saw with one half being returned to the core box for reference and the other being bagged in a plastic sample bag which is labeled, tagged, documented and sealed with wire. Each sample is placed in a rice sack and sealed with a zip tie. All samples are recorded and delivered to International Plasma Labs Ltd. ("iPL") sample preparation lab in Hermosillo, Sonora, Mexico. Receipt of the samples is signed off at the preparation lab. Pulps of each sample are then prepared and sent to iPL Laboratories in Richmond B.C. Canada an ISO 9001-2000 certified full service laboratory. All of the samples referred to herein are core samples. A QA/QC program which includes the regular insertion by the Company of duplicates, blanks and standards has been instituted. iPL Laboratories also has its own system of replicate analysis and blanks which it provides to the Company. Each pulp is analyzed using iPL's AU(FA/AAS) Ag/Ore-Grade by Multi acid digestion ICP (Cu/Pb/Zn/Ag) assay package. This is a multi acid digestion with gold analyzed with an AA finish with over limits done with gravimetric finish and silver analyzed by ICP (inductively coupled plasma) and a gravimetric finish on over limits while zinc was analyzed by ICP and lead by fire assay.
The foregoing geological disclosure has 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 the Company.
Kootenay is an emerging exploration Company actively developing mineral projects in British Columbia, Canada and the Sierra Madre Region of Mexico. The Company's top priority remains the ongoing development of its 100% owned Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico.
For additional information, please contact:
James McDonald, CEO at 403- 238-6986 or
Ken Berry, President at 604-601-5652; 1-888-601-5650
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Cautionary Note: 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.
You can view the Next News Releases item: Mon May 26, 2008, <html><FONT COLOR="0066CC"><b>FINANCING - </b></font></html>Kootenay Announces $11 million Brokered Private Placement; Increases Current 10,000 Meter Drill Program to Include an Additional 100 Drill Holes at the Promontorio Discovery
You can view the Previous News Releases item: Wed May 14, 2008, <html><FONT COLOR="FF6600"><b>PROMONTORIO - </b></font></html>Kootenay Announces 3D Induced Polorization (IP) Geophysical Survey and Surface Sampling Program on Promontorio Completed, Phase II Drill Results Pending
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