Kootenay Silver Inc. (TSX-V:KTN) has released an updated mineral resource estimate for its Promontorio-La Negra project in Sonora, Mexico.
The resource estimate updates the Promontorio deposit and adds a maiden mineral resource estimate for the La Negra deposit seven kilometres to the north.
The two deposits are part of the Promontorio Mineral Belt and are considered a single project.
On a silver equivalent basis, the project is now estimated to host 162.8 million ounces measured and indicated and 44.4 million ounces inferred.
On a silver only basis, the measured and indicated resources for silver are estimated to total 68.2 million ounces, with another 17.6 million ounces inferred.
The company’s expanded resource base, on a silver equivalent basis, including the estimated totals for Promontorio-La Negra plus La Cigarra amounts to 214.2 million silver equivalent ounces in the measured and indicated categories, along with 54.9 million silver equivalent ounces inferred.
The new resource shows increased grades of silver, gold, lead and zinc at the Promontorio deposit.
Promontorio hosts measured and indicated resources of 140.8 million ounces silver equivalent, at an average of 104 grams per tonne, with an additional 39.8 million ounces inferred.
La Negra contains an indicated mineral resource of 22 million ounces of silver equivalent at an average of 129 grams per tonne, with a further 4.6 million ounces inferred.
“We are pleased to see a significant increase in metal content on the Promontorio-La Negra property that includes the La Negra discovery for the first time,” said Kootenay chief executive James McDonald.
“Between the two deposits we see an exciting increase in grade and contained silver ounces. The first ever resource estimate for La Negra Silver Deposit returned excellent overall grades, averaging 129 grams per tonne silver equivalent in the indicated category and 115 grams per tonne silver equivalent in the inferred category.”
He also noted that at a cutoff of 50 grams per tonne silver equivalent the La Negra grades increase, with only a modest corresponding drop in contained silver ounces.
The company has also decided to proceed with a share consolidation.