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KTN- May 3rd 2010: Kootenay and Arctic Hunter Commence a 3D Induced Polarization Study at the Santa Lucia Gold Property in Sonora, Mexico

KTN -- May 20th 2010: Surface Samples Grading 37.5 g/t GOLD & 769.0 g/t SILVER indicate the potential for a Bonanza grade system at THE SANTA LUCIA GOLD PROPERTY in SONORA, MEXICO

KTN- December 10th 2009: Kootenay and Arctic Hunter enter into Option Agreement to Drill the Santa Lucia Gold Property in Mexico

Kootenay Silver Inc.

Santa Lucia (Sonora, Mexico)

Santa Lucia Norte Gold-Silver, Sonora, Northwestern Mexico
Status: Joint Ventured with Copper Creek Gold Corp

Copper Creek Gold Corp (TSX.V: CPV) may earn an undivided 60% interest in the Santa Lucia Gold Property, on condition 1) Copper Creek delivers cash payments to Kootenay of $60,000 over three years, 2) it issues an aggregate total of 800,000 common shares of Copper Creek to Kootenay, and 3) it finances $2 million of exploration expenditures on the property within a four-year period.

  1. Prime Location: The 4,904 Hectares that comprises the Santa Lucia property (Fig.1) is part of the Sierra Madre Occidental gold-silver belt (Fig.8), host to many epithermal deposits (Fig.2) including: Mulatos, Dolores, Pinos Alto, Ocampo, Suazal amongst many others.
  2. Drilling Demonstrates Grade to Depth: Historical drill intercepts from the south, central and Genero zones (Fig.3) -- 3 of the 4 mineralized zones known (so far) -- demonstrate that mineralization extends to depth along 3 km of prospective strike length (Table II).
  3. Unexplored CSAMT Anomaly: A controlled-source audio-frequency magneto telluric anomaly about 2.5 km long, situated beneath known gold-bearing drill core and exploration pits, is consistent with the presence of a vein- stockwork-system at depth (ref. grid, Fig.3).
  4. New Discoveries near Old Workings create Blue Sky: Increased potential for multi-gram gold -- up to and exceeding 1 oz Au/t and accompanied by multi-ounce silver -- is supported by surface samples from new discoveries in the Fortuna zone (Table III; Fig.4).

  • 2010: Permitting is in place and current.
  • 2010: Agreements with local land holders are in place.
  • 2010: An IP survey on grid lines across the La Fortuna and central zones is complete (Fig.4).
  • 2009-2010: Numerous, newly discovered, highly anomalous gold showings are the product of reconnaissance prospecting.
  • 2009-2010: Geological mapping is complete.

  1. Trench and Channel Sample New Discoveries (La Fortuna and central zones; Fig.3): Exposing the extent and grades of recently discovered showings 1) adds to the overall dimensions of the mineralized system, 2) helps define its surface geometry, and 3) provides critical data preparatory to drill-bit testing.
  2. Sample and Map New Zones of Alteration-Silicification: A detailed alteration (mineral) map is a key element in understanding the nature of the epithermal system and where mineralization can be expected within it.
  3. Establish Drill Targets: Use recently acquired IP data in combination with surface geochemical data and alteration mapping to pinpoint drill targets.
  4. Drill: Test at least 4 targets with short fans at each locality. Low-sulfidation epithermal systems can be geometrically complex and unpredictable at depth; a fan of holes provides the best opportunity to determine dimensions and geometry of mineralization.

  1. Leverage $700,000 of Exploration Spending to March 31, 2010: Expenditures required to approach drill-ready status have been made: prospecting, mapping, geophysics and geochemistry have delineated strongly silicified and mineralized stockworks (Fig.5) and veins (Fig.6) accompanied by silica-flooding (Fig.7): characteristics typical of epithermal precious metal deposits of the low-sulfidation type (circulation of near-neutral pH fluids, in a reduced oxidation state, form low-sulfidation state sulphide minerals).
  2. Property Evaluation Completed: A 43-101 report was completed in July, 2010.
  3. Proven Geological Model: Santa Lucia is a large, mineralized, epithermal system (Fig.8) within a belt of producing mines sharing the same geological characteristics (Fig.2).
  4. Cost-Effective Operations: Most logistical requirements can be met from the town of Tesopaco, located 5 km from the property; the city of Obregon is within 45 minutes by paved highway.

  1. The relationship between surface showings and mineralization at depth has been verified by historical drilling (Table II); therefore, additional intersections of mineralization in drill core are probable.
  2. The property bears geological characteristics akin to nearby producers in the Sierra Madre Occidental epithermal gold-silver belt (Fig.2); this is a strong endorsement for Santa Lucia given the significant size of the mineralized system, the strong gold and silver values sampled at surface, and the potential for additional discoveries within the mineralized system.
  3. Location in a belt of producing mines increases the chances of discovering a mine (Table I).

Fig.1 / Fig.2 / Fig.3 / Fig.4 / Fig.5 / Fig.6 / Fig.7 / Fig.8 / Table I / Table II / Table III /  
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