Kootenay Silver Inc. (TSX-V:KTN) is starting the new year off with a significant increase in silver grade at its La Cigarra project in Mexico.
The Canadian-listed explorer unveiled an upgraded mineral resource estimate highlighted by an 18% improvement in the combined Measured + Indicated (M+I) silver grade. The new assessment demonstrates an increase from 86 g/t to 102 g/t, showcasing the project's enhanced potential.
That is great news for Kootenay, which is focused on mineral projects in the Sierra Madre Region and boasts one of the largest junior portfolios of silver assets in the country. The upgraded resource estimate for La Cigarra aligns with the company's strategy to ready its three resource projects, including La Cigarra, Promontorio, and La Negra, for development during a favorable silver market, while simultaneously concentrating efforts on advancing the high-grade silver project, Columba, toward a Maiden Resource Estimate (MRE).
In this interview with Proactive, Kootenay CEO James McDonald delved deeper into the results at La Cigarra – and how these results will help to inform the company’s 2024 plans.
Proactive: Could you please share details about the project and elaborate on the efforts invested in this update?
JM: La Cigarra is situated in Mexico's renowned Pearl district along the Sierra Madre trend, known for significant historical production. The project lies within this geologic terrain, strategically positioned for productivity. Despite substantial exploration potential, the existing resource model was outdated. Through detailed geologic re-evaluation, we identified more specific controls on silver mineralization, prompting the need for a new resource model.
This comprehensive update resulted in a notable increase in silver grade from the 85 to 86 gram range to 102 grams, a positive outcome. The motivation behind this update extends beyond pricing considerations; we aim to align all resource projects, including La Cigarra, for potential advancement in a favorable silver market. While we maintain focus on advancing Columba, our high-grade silver project, we are actively working towards a maiden resource for the exciting new hybrid discovery at Columba and plan to achieve this milestone by year-end.
How were you able to get those grades up so much?
The previous resource model was rather simplistic, relying on two boundaries—an upper fault and a lower contact between distinct geologic units. This model uniformly distributed silver across the entire volume. However, upon closer examination through detailed geological mapping, we identified specific, mappable geologic units. Overlaying silver values highlighted a non-uniform distribution within these boundaries. Our suspicion led to a thorough geological analysis, revealing that silver was concentrated within smaller, more defined geologic units. This insight significantly reduced the volume and tonnage previously considered.
A report like this is notable for the company. Columba is obviously the focus, but I’m sure having such an asset is advantageous?
La Cigarra is a nicely sized deposit with substantial exploration potential, particularly considering the active mining south of us at depths of 2,000 meters, boasting a 400-year production history. Although we haven't defined a reserve yet, the geological indications suggest significant regional potential. Within the resource's pit shell, we've pinpointed areas with potential for additional ounces, leading to a targeted program.
This transcript has been edited for clarity