The La Borracha Zone showed encouraging results along the northern extension of the La Cigarra resource all of which sits within a nine-kilometer-long mineralized trend.

Drill Highlights from Hole CC-17-37 in the La Borracha Zone:

  • 107.12 gpt silver over 8 meters within 47.75 gpt silver over 31 meters
  • 42.06 gpt silver over 15 meters (second interval)
  • A total of 46 meters of silver mineralization separated by 15 meters of rhyolite dyke.

Kootenay President and CEO James McDonald stated, "La Borracha is a very exciting target with the potential to add a significant number of new ounces to our resource. The zone has been traced on surface from the resource northward for at least 1,100 meters and the latest hole CC-17-37 indicates good grades and widths. The zone has seen very limited drilling and we are eager to commence the next round of drilling in the first half of February."

Drill Notes:

The La Borracha drill intercept in Hole CC-17-37, is about 500 meters northwest of the Resource with 107.2 gpt silver over 8.0 meters within a wider intercept of 31 meters grading 45.75 gpt silver. There is a total of 46 meters of mineralization in the hole separated by 15 meters of rhyolite dyke. The second interval grades 42 gpt silver over 15 meters. These results extend silver mineralization 100 meters down dip from a previous hole (CC-12-089), which returned an intercept of 56 gpt silver over 9.25 meters. To date, 12 holes have been drilled along the La Borracha trend with nine of those being drilled too far west to hit the main mineralized structure extending northward from the resource. Additional previous holes of note include 166 gpt silver over 4.5 meters (CC 12-93), 130 gpt silver over 2.95 meters (CC-11-29) and 455 gpt silver over 1.5 meters (CC-11-28).

The mineralized zone at La Borracha remains open along strike for 1,100 meters and down dip to the northeast. Surface sampling has returned strongly anomalous silver values over widths of 70-80 meters on surface. In addition to the drilling in La Borracha, the Company also completed three holes in Las Venadas and five holes in Navidad.  

Anomalous silver and elevated lead-zinc continued to be intercepted at La Venadas. Las Venadas sits about 800 meters south of the resource and includes a very broad area of mineralization in veins, vein breccias and stockworks. Follow up work will include mapping and geologic modeling to focus on those areas of best grade with particular attention to the strong and long mineralized intercepts in holes CC-17-26 and CC-17-28. The Navidad zone immediately east of the resource returned some anomalous results and no follow up drilling is anticipated at this time.

Drill widths reported are all core lengths. Hole CC-17-37 in La Borracha is interpreted to be about 90% of true width. The Venadas and Navidad true widths are not known at this time.