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Kootenay Gold hits 166 g/t silver equivalent over 83 metres at PromontorioNovember 09 2011, 9:51pm
Kootenay Gold (CVE:KTN) Wednesday unveiled the latest assay results from its ongoing 25,000 metre, multi-phase drilling and resource definition program at its flagship Promontorio silver project in Sonora, Mexico.
Of the notable highlights from the drilling program, drill hole 80 encountered 166 grams per tonne (g/t) silver equivalent (58.2 g/t silver, 2.52 percent lead and zinc) over 83 metres including 329 g/t silver equivalent over 6 metres (111 g/t silver, 5.11 percent lead and zinc) in step out drilling, extending mineralization 100 metres down dip and along strike in the project's southwest zone.
Investors welcomed the news, sending Kootenay stock up 1.79 percent to $1.14 Wednesday afternoon.
The company said that results to date demonstrate drilling has established continuity of silver mineralization between the southwest expansion zone and the pit resource, extending a further 100 metres westward beyond current resource boundaries down dip and along strike.
These two areas now represent one continuous mineralized zone for a minimum strike length of 240 metres, remaining open on strike and at depth, Kootenay Gold said.
Kootenay president and CEO James McDonald commented: "Results from the 25,000 meter program continue to meet or exceed our expectations. The establishment of continuity of silver mineralization between the southwest zone and the pit resource is a milestone development for Promontorio and will undoubtedly play a critical factor in our future resource expansion.
"Further supporting our resource growth initiatives, we continue to hit high silver grades in wide zones of hydrothermal breccia in the emerging Northeast Zone, which sits a full 700 meters outside of and on strike to the current 43-101 resource."
The company said three diamond drill rigs are currently operating on Promontorio with two stepping out in a systematic manner outside of the pit resource to the southwest and northeast. The third rig is working on stepping out from PC 28 in the northeast zone.
Kootenay Gold said upcoming drilling will continue to focus on step out and in-fill drilling off setting the numerous medium to high grade silver intercepts concentrated along a 1.0 kilometer long mineralized corridor that includes the pit resource, pit NE zone, northeast zone and southwest zone.
Promontorio currently hosts an NI 43-101-compliant resource containing 8.9 million indicated ounces of silver plus 1.17 million ounces of inferred silver, 99.3 million indicated pounds of lead plus 13.4 million inferred pounds of lead and 110.8 million indicated pounds of zinc plus 14.3 million inferred pounds of zinc.