VANCOUVER, BC, Oct. 12, 2023 /CNW/ - Kootenay Silver Inc. (TSXV: KTN) ("Kootenay" or the "Company") is pleased to announce an updated mineral resource estimate at the Promontorio-La Negra Project in Sonora Mexico. The resource estimate is an update of the Promontorio deposit and a maiden mineral resource estimate for the La Negra deposit 7km to the north. The two deposits are part of the Promontorio Mineral Belt and are considered a single project.

The mineral resource estimates ("MRE") have been prepared by Sue Bird, M Sc., P.Eng., Geological and Mining Engineer of by Moose Mountain Technical Services ("MMTS") in accordance with NI 43-101 standards (May 9, 2016), CIM Definition Standards (May 19, 2014) with guidance from CIM Best Practice Guidelines (November 29, 2019).

Highlights from the 2023 Mineral Resource Estimate include:

  • Increased Grades of the Promontorio deposit of 24% for Ag, 21% for Au and 22% and 21% for Pb and Zn respectively (see Table 1).

  • A resulting 68% increase in Measured and Indicated ("M+I") Ag Equivalent ("AgEq") Metal content at the Promontorio deposit (see Table 1).

  • Promontorio M+I mineral resources of 140.8 million ounces ("Moz") AgEq contained in 42.1 million metric tonnes ("Mt") averaging 104 grams per tonne ("g/t"),

  • Promontorio Inferred mineral resources of 39.8 Moz contained in 14.6 Mt averaging 84.9 g/t. These results are calculated using 25 g/t AgEq cut off and are contained within a potentially economically mineable pit shell. (see Table 2)

  • La Negra Indicated mineral resources of 22.0 Moz AgEq contained in 5.3 Mt averaging 129 g/t.

  • La Negra Inferred mineral resources of 4.6 Moz contained in 1.2 Mt averaging 115 g/t These results are calculated using 40 g/t AgEq cut off and are contained within a potentially economically mineable pit shell (see Table 3 and 4).

 

Kootenay's President & CEO, James McDonald states, "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. Between the two deposits we see an exciting increase in grade and contained silver ounces.

On a silver equivalent basis, the project is now estimated to host 162.8 million ounces M+I and 44.4 million ounces inferred. On a silver only basis, the M+I resource for silver are estimated to total 68.2 million ounces with another 17.6 million ounces inferred.

The first ever resource estimate for La Negra Silver Deposit returned excellent overall grades, averaging 129 g/t silver equivalent in the Indicated Category and 115 g/t silver equivalent in the Inferred Category. At a cutoff of 50 g/t silver equivalent these grades increase to 146 g/t and 133 g/t silver equivalent respectively with only a modest drop in contained silver ounces.

I would like to point out our expanded resource base, on a silver equivalent basis, the estimated totals for Promontorio-La Negra plus La Cigarra are 214.2 million silver equivalent ounces in the M+I along with 54.9 million silver equivalent ounces inferred.

On a silver only basis, Kootenay's M+I silver resources are estimated to be 120.2 million ounces and 28.2 million silver ounces inferred for the Promontorio-La Negra and La Cigarra projects.

This work prepares the project for advancement in a stronger metals market. Meanwhile we remain focused on drilling Columba with the aim of defining a new high-grade resource there and will be reporting on results in the coming weeks."

Mr. McDonald adds, "The Company has also decided to proceed with a share consolidation at this time as detailed below, which the Board believes is in the best interest of shareholders. It has been an ongoing discussion point with various investors and shareholders encouraging us to proceed with the consolidation, which could lead to increased investor interest by raising the Company profile with a lower number of outstanding shares, a higher stock price and better position the Company to obtain financing to further advance its properties."

*La Cigarra resource estimate table can be found here https://kootenaysilver.com/projects/la-cigarra


The following two tables summarize the Promontorio comparison and the Mineral Resource estimate ("MRE") for Promontorio. The effective date of the Promontorio-La Negra resource estimates is August 27, 2023.

Table 1:               2023 Promontorio Resource Compared to 2013 Pit Resource

Year

Class

kt

AgEq
(g/t)

Ag  
(g/t)  

Au  
(g/t)  

Pb  
(%)  

Zn  
(%)  

AgEq
(koz)

Ag  
(koz)  

Au  
(koz)  

Pb
(klb)

Zn
(klb)

2023
MMTS
150% Pit

Measured

12,451

111.7

37.03

0.46

0.53

0.61

44,718

14,823

183

146,033

166,620

Indicated

29,664

100.7

33.50

0.41

0.47

0.55

96,072

31,950

393

306,716

360,996

Meas+Ind

42,115

104.0

34.54

0.43

0.49

0.57

140,790

46,773

575

452,748

527,616

Inferred

14,575

84.9

27.89

0.35

0.42

0.45

39,782

13,069

163

136,241

143,632

2013
SRK Pit

Measured

10,289

67.9

32.69

0.40

0.46

0.55

22,470

10,814

134

105,328

123,715

Indicated

34,215

56.0

26.30

0.34

0.38

0.45

61,572

28,926

373

287,579

335,904

Meas+Ind

44,504

58.7

27.77

0.35

0.40

0.47

84,042

39,740

506

392,907

459,619

Inferred

14,564

46.3

24.95

0.28

0.28

0.31

21,700

11,683

132

89,430

98,462

Difference
=
(2023-
2013)/2013

Measured

21 %

64 %

13 %

14 %

16 %

10 %

99 %

37 %

36 %

39 %

35 %

Indicated

-13 %

80 %

27 %

21 %

23 %

23 %

56 %

10 %

5 %

7 %

7 %

Meas+Ind

-5 %

77 %

24 %

21 %

22 %

21 %

68 %

18 %

14 %

15 %

15 %

Inferred

0 %

83 %

12 %

24 %

51 %

44 %

83 %

12 %

24 %

52 %

46 %

 

Table 2:               2023 Resource Statement for the Promontorio Deposit

Class

Cutoff

In situ Tonnage, Grade and Metal Content

AgEq
(g/t)

Tonnage
(kt)

AgEq
(g/t)

Ag
(g/t)

Au
(g/t)

Pb
(%)

Zn
(%)

AgEq
Metal
(kOz)

AG
Metal
(kOz)

Au
Metal
(kOz)

Pb
(klb)

Zn
(klb)

Measured

15

13,538

104.3

34.5

0.428

0.49

0.57

45,419

15,012

186

147,440

168,631

20

13,011

107.9

35.7

0.441

0.51

0.59

45,122

14,934

184

146,864

167,803

25

12,451

111.7

37.0

0.456

0.53

0.61

44,718

14,823

183

146,033

166,620

30

11,903

115.6

38.4

0.470

0.55

0.63

44,233

14,691

180

144,854

164,797

40

10,793

123.9

41.3

0.500

0.59

0.68

42,984

14,324

174

141,339

160,851

50

9,710

132.7

44.4

0.532

0.64

0.73

41,423

13,848

166

136,790

155,200

Indicated

15

32,225

94.3

31.3

0.387

0.44

0.52

97,728

32,439

401

311,172

366,586

20

30,993

97.4

32.4

0.399

0.45

0.53

97,033

32,235

398

309,525

364,187

25

29,664

100.7

33.5

0.412

0.47

0.55

96,072

31,950

393

306,716

360,996

30

28,179

104.6

34.8

0.426

0.49

0.57

94,756

31,564

386

302,544

355,970

40

24,961

113.6

37.9

0.461

0.53

0.62

91,133

30,447

370

291,656

342,834

50

21,907

123.1

41.3

0.497

0.58

0.68

86,721

29,089

350

278,188

326,002

Measured +
Indicated

15

45,763

97.3

32.3

0.399

0.45

0.53

143,147

47,451

587

458,612

535,217

20

44,004

100.5

33.3

0.411

0.47

0.55

142,155

47,169

582

456,389

531,990

25

42,115

104.0

34.5

0.425

0.49

0.57

140,790

46,773

575

452,748

527,616

30

40,082

107.9

35.9

0.439

0.51

0.59

138,989

46,256

566

447,397

520,768

40

35,754

116.7

38.9

0.473

0.55

0.64

134,117

44,772

543

432,996

503,684

50

31,617

126.1

42.2

0.508

0.60

0.69

128,144

42,937

516

414,978

481,202

Inferred

15

16,637

76.8

25.1

0.319

0.38

0.40

41,072

13,415

171

139,011

147,447

20

15,433

81.4

26.7

0.335

0.41

0.43

40,401

13,238

166

137,797

145,622

25

14,575

84.9

27.9

0.348

0.42

0.45

39,782

13,069

163

136,241

143,632

30

13,671

88.7

29.2

0.362

0.44

0.47

38,980

12,830

159

133,819

141,052

40

11,778

97.3

32.1

0.395

0.49

0.51

36,847

12,152

150

127,493

133,206

50

9,980

106.8

35.3

0.432

0.54

0.56

34,256

11,327

139

119,031

123,652

Notes to the 2023 Promontorio Resource Table: 

1.

Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines, as required by NI43-101 

2.

The base case Mineral Resource has been confined by "reasonable prospects of eventual economic extraction" shape using the following assumptions: 

 

Metal prices of US$22/oz Silver, US$1800/oz Gold, US$0.95/lb Lead and US$1.25/lb Zinc. Metallurgical recovery of 74% Silver, 70% Gold, 81% Lead and 88% Zinc 

 

Payable metal of 95% Silver, 99% Gold in dore 95% Au in Pb concentrate, 95% Lead and 85% Zinc. Lead payable assumes a concentrate grade of 65% Pb and a 3% unit deduction. Zinc payable assumes a concentrate grade of 52% Pb and an 8% unit deduction. Offsite costs (transport, smelter treatment and refining) of US$1.5/oz Silver and gold in the Pb concentrate, US$10 oz Gold, US$ 0.15/lb Lead and US$0.31/ lb Zinc. Lead offsite costs assume 100 $US/dmt transport, 100 $US/ dmt treatment. Zinc offsite costs assume 100 $US/dmt transport, 200 $US/ dmt treatment.

 

Processing, General, and Administrative ("G&A") costs of US$ 12/ tonne milled. Mining cost of US$2.00 / tonne

 

50 degree pit slopes with the 150% price case pit shell is used for the confining shape 

3.

The resulting NSR = Ag*US$0.63/g*74% + Au*US$56.71/g*70% + 22.0462*(Pb*US$0.77/lb*81% + Zn*US$ 0.80/lb*88%) 

4.

The specific gravity of the resource averages 2.79 and is calculated from the Lead and Zinc content. Non-mineralized material is assigned an SG of 2.73. 

5.

Numbers may not add due to rounding. 


At Promontorio the increase in M+I metal content is considered to be due primarily to the following:

  • Additional drilling of 89 holes (23,220 m) in 2012-2013, that were not included in the previous resource estimate.

  • Modelling of both high grade constrained mineralized shells and a lower grade mineralized halo to better limit the data used for the interpolations.

  • Changes to the metal prices (particularly Ag and Au) with lower Ag price and higher Au price to conform to 3-year trailing averages which caused a large increase in AgEq grade.

The following two tables summarize the La Negra total resource estimate, and the La Negra resource by Oxidation zone, respectively. La Negra is assumed to produce dore, with only Au and Ag recovered. The cutoff grades of 40 g/t AgEq more than covers the assumed cost of Processing + G&A.

Table 3:               2023 Resource Statement for the La Negra Deposit

ZONE

CLASS

Cutoff

In Situ Grades and Metal Content

AgEq
(g/t)

Tonnage
(kt)

AgEq
(g/t)

Ag
(g/t)

Au
(g/t)

AgEq
Metal
(kOz)

Ag
Metal
(kOz)

Au
Metal
(kOz)

Total

Indicated

25

7,282

102.5

99.8

0.061

24,000

23,370

14.2

30

6,463

112.0

109.2

0.063

23,280

22,690

13.2

35

5,821

120.8

117.9

0.065

22,610

22,060

12.2

40

5,285

129.3

126.3

0.067

21,970

21,450

11.4

45

4,821

137.6

134.5

0.069

21,330

20,850

10.7

50

4,425

145.7

142.5

0.071

20,730

20,280

10.0

Inferred

25

1,831

88.8

86.5

0.055

5,230

5,090

3.2

30

1,607

97.3

94.9

0.057

5,030

4,900

3.0

35

1,415

106.1

103.7

0.059

4,830

4,720

2.7

40

1,257

114.8

112.2

0.060

4,640

4,540

2.4

45

1,111

124.2

121.6

0.061

4,440

4,340

2.2

50

993

133.5

130.8

0.061

4,260

4,180

2.0

 

Table 4:               2023 Resource Statement for the La Negra Deposit by Zone

ZONE

CLASS

Cutoff

In Situ Grades and Metal Content

AgEq
(g/t)

Tonnage
(kt)

AgEq
(g/t)

Ag
(g/t)

Au
(g/t)

AgEq
Metal
(kOz)

AG
Metal
(kOz)

Au
Metal
(kOz)

OXIDE

Indicated

25

2,383

98.8

95.1

0.049

7,570

7,280

3.7

30

2,157

106.3

102.4

0.051

7,370

7,100

3.5

35

1,964

113.6

109.5

0.053

7,170

6,910

3.3

40

1,798

120.6

116.4

0.054

6,970

6,730

3.1

45

1,661

127.0

122.7

0.056

6,780

6,550

3.0

50

1,524

134.2

129.8

0.057

6,580

6,360

2.8

Inferred

25

622

93.6

90.6

0.039

1,870

1,810

0.8

30

567

100.0

96.9

0.040

1,820

1,770

0.7

35

512

107.3

104.1

0.042

1,770

1,710

0.7

40

465

114.3

111.0

0.043

1,710

1,660

0.6

45

429

120.4

117.0

0.044

1,660

1,610

0.6

50

389

128.0

124.6

0.045

1,600

1,560

0.6

MIXED

Indicated

25

732

78.6

75.4

0.045

1,850

1,770

1.0

30

617

88.0

84.6

0.048

1,750

1,680

1.0

35

526

97.6

94.1

0.050

1,650

1,590

0.9

40

454

107.3

103.5

0.053

1,570

1,510

0.8

45

394

117.0

113.1

0.055

1,480

1,430

0.7

50

350

125.9

121.9

0.057

1,420

1,370

0.6

Inferred

25

105

89.9

88.5

0.020

300

300

0.1

30

83

106.3

104.7

0.022

280

280

0.1

35

71

119.0

117.4

0.023

270

270

0.1

40

61

132.6

130.9

0.023

260

260

0.0

45

51

149.2

147.6

0.024

240

240

0.0

50

47

158.1

156.4

0.024

240

240

0.0

SULFIDE

Indicated

25

4,167

108.8

106.8

0.071

14,580

14,310

9.5

30

3,689

119.4

117.3

0.073

14,160

13,910

8.7

35

3,331

128.7

126.6

0.075

13,790

13,560

8.1

40

3,033

137.7

135.5

0.077

13,430

13,210

7.5

45

2,766

146.9

144.7

0.079

13,060

12,870

7.0

50

2,551

155.3

153.0

0.080

12,740

12,550

6.6

Inferred

25

1,104

86.0

84.1

0.067

3,050

2,980

2.4

30

957

94.9

92.9

0.070

2,920

2,860

2.2

35

832

104.3

102.2

0.072

2,790

2,730

1.9

40

731

113.6

111.5

0.074

2,670

2,620

1.7

45

631

124.8

122.7

0.076

2,530

2,490

1.5

50

557

135.2

133.0

0.076

2,420

2,380

1.4

Notes to the 2023 La Negra Resource Tables: 

1.

Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines, as required by NI43-101 

2.

The base case Mineral Resource has been confined by "reasonable prospects of eventual economic extraction" shape using the following assumptions: 

 

Metal prices of US$22/oz Silver, US$1800/oz Gold

 

Recovery is assumed to be as for dore. Metallurgical recovery of 82% Silver and 77% Gold in the Oxide zone, 85% Silver and 73% Gold in the Mixed zone, and 90% Silver and 31% Gold in the Sulfide zone.

 

Payable metal of 99% for Silver and Gold. Offsite costs (transport, smelter treatment and refining) of US$0.25/oz Silver and US$10/oz gold.

 

Processing, General, and Administrative (G&A) costs of US$ 12/ tonne milled. Mining cost of US$2.00/tonne

 

50 degree pit slopes with the 150% price case pit shell is used for the confining shape

3.

The resulting NSR = Ag*US$0.69/g*Zone Ag Recovery% + Au*US$56.97/g*Zone Au Recovery%

4.

Silver Equivalent (AgEq) = NSR / (US$0.69/g* Ag Recovery%) 

5.

The specific gravity is assigned by rock type as 2.52 in Oxides, 2.59 in Mixes and 2.61 in Sulfides 

6.

Numbers may not add due to rounding.


Resource Estimate Uncertainty

Areas of uncertainty that may materially impact the mineral resource estimates include changes to: long-term metal price assumptions; interpretations of mineralization geometry, fault geometry and continuity of mineralized zones; net smelter return used to constrain the estimates; metallurgical recovery assumptions; input assumptions used to derive the conceptual open pit outlines used to constrain the estimate; variations in geotechnical, hydrogeological and mining assumptions and environmental, permitting and social license assumptions.

There are no other known environmental, legal, title, taxation, socioeconomic, marketing, political or other relevant factors that would materially affect the estimation of mineral resources that are not discussed in this news release.

Mineral Resource Estimate Methodology

Data

The Promontorio MRE uses 59,149 assays from 311 drill holes based on drilling up to an including 2013. The La Negra MRE uses 9,311 assays in 94 drill holes from drilling completed between 2014 and 2017.

Mineralization Envelopes

Confining shapes for the interpolations have been made using the geologic modeling shapes provided by Kootenay, the logged lithology and the metal grades. The shapes of the main mineralized zones target the breccias and a value of approximately US$15/tonne Net Smelter Return (NSR). Dilution of lower grade intercepts has been added as necessary to produce smooth shapes.

At Promontorio there are six domains modeled, as well as a low-grade halo surrounding and connecting the 2 major areas. The shapes are illustrated in Figure 1.

At La Negra one domain has been modeled and it has been split into three oxidation zones based on logging data. The shapes are illustrated in Figure 2.

Figure 1  Mineralized Shapes and Resource Pit – Promontorio (CNW Group/Kootenay Silver Inc.)
Figure 1 Mineralized Shapes and Resource Pit – Promontorio (CNW Group/Kootenay Silver Inc.)
Figure 2  Mineralized Shapes and Resource Pit – La Negra (CNW Group/Kootenay Silver Inc.)
Figure 2 Mineralized Shapes and Resource Pit – La Negra (CNW Group/Kootenay Silver Inc.)

Grade Capping

The grade distributions within the mineralized domains are mainly lognormal except at very high grades where outliers are evident and therefore capping of assays has been done as summarized in the following tables. For clarity, also summarized in the tables are the Outlier Restrictions which has been applied to the composites during interpolation at Promontorio. For composite grades above the Outlier value provided, and at distances greater than 5m from the data, the value is essentially capped to the outlier.

At both deposits 2m has been used for the base length when compositing, which is longer than the vast majority of the assays. The compositing also honored the domain boundaries. Assay intervals less than 1 m have been added to the previous composite to limit the number of small assay intervals.

Table 5:               Capping of Assays and Outlier Restriction of Composites by Domain - Promontorio

 

Ag (g/t)

Au (g/t)

Pb (%)

Zn (%)

 

Cap

Outlier

Cap

Outlier

Cap

Outlier

Cap

Outlier

Low Grade

1,600

500

4

2

9

3

10

3

Domain 1

1,600

500

10

7

9

3

10

3

Domain 2

1,600

500

9

2

9

3

10

8

Domain 3

600

500

6

6

4

4

7

5

Domain 4

500

1,000

4

2

5

5

6

5

Domain 5

1,000

600

3

3

4

3

6

5

Domain 6

100

60

1

1

2

2

2

2

 

Table 6 :               Capping of Assays by Oxidation Zone - La Negra

 

Oxidation Zone

Cap, g/t

Ag

Oxide

3000

Mixed

1500

Sulfide

3000

Au

Oxide

0.5

Mixed

0.5

Sulfide

1


Variography

At Promontorio variograms have been made on each axis for each metal in Domain 1 and 2, which are the largest domains. The strongest correlations are steeply dipping down the major axis of the mineralization with ranges from 100m to 130m.

At La Negra the strongest correlation is at azimuth 255 dipping 15 degrees with a range of approximately 55m. The variograms have been used to aid in determining the search parameters for the interpolations, as well as distances for Classification to Measured and Indicated.

Specific Gravity

The Promontorio drilling database contains 4,510 specific gravity ("SG") measurements in total and the SG is estimated based on the interpolated Pb and Zn grade using a regression formula.

The SG at La Negra is based on 1,541 measurements within the deposit area and has been assigned based on the mean grade within each of the oxidation zones.

Interpolations and Classification.

Interpolations have been done in 5 passes using composites coded with the domain shapes for model-composite domain matching. Searches are oriented along the major axis of each domain. Inverse Distance squared (ID2) is used at Promontorio and Ordinary Kriging at La Negra.

Classification methodology at the two deposits is similar, the primary difference being the search distances used, which are based on the variography.

Classification at Promontorio is based on the distance between drillholes using the following process:

  • All interpolated blocks are initially classified as Inferred.

  • Block are upgraded to Indicated if the if the average distance to the 2 nearest drillholes is <= 50m and if the distance to the furthest of those drillhole is <=70m, and the drillholes must be in at least two quadrants (directions).

  • Blocks are further upgraded to Measured if the if the average distance to the 3 nearest drillholes is <= 30m and if the distance to the furthest of those drillhole is <=50m, and the drillholes must be in three quadrants (directions).

  • The low grade halo is classified as Inferred

Classification at La Negra uses the following process:

  • All interpolated blocks are initially classified as Inferred.

  • Block are upgraded to Indicated if the average distance to the 2 nearest drillholes is <= 30m, and the distance to the furthest of those drillhole is <=50m, and the drillholes must be in two quadrants (directions).

At both deposits additional manual checking and smoothing of the results has been done to ensure continuous shapes of Classification are produced.

Metallurgy

G&T Metallurgical Services Ltd, Kamloops, BC, Canada completed preliminary metallurgical programs on drill core composites from the Promontorio property for Kootenay in 2009, 2012 and 2013. The metallurgical program investigated a standard polymetallic sequential flotation flowsheet that includes crushing, grinding, lead flotation, zinc flotation and pyrite/arsenopyrite flotation. Pressure oxidation (POX) of the pyrite/arsenopyrite concentrate is required to extract the contained gold by cyanidation to produce dore. Promontorio will also produce lead concentrate, zinc concentrate. The metallurgical recovery assumptions are listed with Table 1. Overall gold recovery is estimated at 70% and is based on 65% gold recovery into the pyrite flotation concentrate followed by 94% cyanidation gold extraction from the pyrite concentrate after pressure oxidation, plus an average 9% gold recovery into the lead flotation concentrate.

Metallurgical testing on La Negra samples has been conducted by Kappes, Cassiday & Associates of Reno Nevada in 2015 and McClelland Laboratories of Sparks Nevada in 2018. The work in 2015 did initial comparisons of flotation to cyanide leaching recovery methods on 7 composites. Silver extractions from leaching ranged from 70% to 90% based on calculated heads which ranged from 61.71 to 242.64 grams per metric tonne and did not seem influenced by sulfide sulfur content. Follow-up in 2018 tested 10 composites representing material from four oxidation zones. The composites were all amenable to whole ore milling/cyanidation treatment with respect to silver recovery, but gold recoveries varied significantly.

La Negra is expected to produce silver and gold dore. The metallurgical recovery assumptions are listed with Table 2 and are based on the average results for each oxidation type tested in the 2018 test program.

Resource Pit Limits

Lerch Grossman ("LG") pit optimization tools have been used to select a pit shape for limiting the resource. The LG pit targets Net Smelter Return (NSR) calculated in each block using interpolation results and the economic, metallurgical, and mining parameters shown with the resource tables 1 through 4.

Cut off Grade

The COG was selected using AgEq to cover, as a minimum, the processing and G&A costs and to account for the metallurgical recovery and smelter terms. For both deposits 25g/t AgEq will covers the assumed cost of US$12/tonne; however, a higher cutoff has been used for the base case for La Negra.

Block Model Validation

Several validation techniques have been utilised to ensure that the estimates are reasonable. The global grades of the model with the de-clustered composites have been compared to ensure no bias was introduced. In addition, the total metal content for each metal at various cutoff have been compared to ensure that the total metal compares well to that of data. Grade-tonnage curves have been created to ensure that the appropriate smoothing of modelled grades has been accomplished with no over-prediction of metal throughout the grade distributions. Swath plots comparing the de-clustered composite grade to the ID2 modelled estimate in Easting, Northing and Elevation were completed to ensure the model is spatially predicting grade correctly. Visual comparisons on section and plan were also done to ensure the model compares well to the assay grades.

Qualified Persons

Ms. Sue Bird – P. Eng., (resource estimate) of MMTS is the Qualified Person ("QP") who prepared the mineral resource estimate, and compiled and reviewed the resource estimate disclosed in this news release. Ms. Bird, as the Qualified Person, has approved the scientific and technical content of this news release. Dale Brittliffe, BSc. P. Geol., Vice President, Exploration of Kootenay Silver, is the Company's nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed the scientific and technical information disclosed in this news release. Mr. Brittliffe is not independent of Kootenay Silver.

Cautionary Note to Investors

While the terms "indicated (mineral) resource" and "inferred (mineral) resource" are recognized and required by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, investors are cautioned that except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic viability. Investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves. Additionally, investors are cautioned that inferred mineral resources have a high degree of uncertainty as to their existence, as to whether they can be economically or legally mined, or will ever be upgraded to a higher category.

United States investors are advised that current Mineral Resources are not current Mineral Reserves and do not have demonstrated economic viability.

Share Consolidation

The Company is pleased to announce that its board of directors (the "Board") has approved a consolidation (the "Consolidation") of the common shares (the "Shares") of the Company on a ten-to-one (10:1) basis. The Company currently has 457,669,033 Shares outstanding and if completed, the Consolidation would reduce the issued and outstanding Shares to approximately 45,766,903 Shares, subject to rounding. No fractional post-Consolidation Shares will be issued pursuant to the Consolidation. Any fractional Shares equal to or greater than one-half resulting from the Consolidation will be rounded up to the next whole number of Shares, and any fractional Shares less than one-half resulting from the Consolidation will be rounded down to the nearest whole number.

Along with all outstanding Shares, the Company's equity incentive plan will be adjusted accordingly. The Consolidation will also affect the issued and outstanding common share purchase warrants (each, a "Warrant") of the Company, as the number of Shares issuable upon the exercise of each Warrant will be reduced and the exercise price will increase, all in accordance with the terms of the certificates governing the Warrants.

The Consolidation is subject to TSX Venture Exchange ("TSXV") approval. At the Company's annual general and special meeting of its shareholders (the "Shareholders") held on March 15, 2023, the Shareholders approved the replacement of the Company's articles of incorporation in their entirety with a new form of articles of incorporation (the "New Articles"). Under the New Articles, a consolidation may be implemented by the Board without shareholder approval. As such, the Consolidation is not subject to shareholder approval. The Company will announce the effective date of the Consolidation, as well as the new CUSIP/ISIN numbers for the post-Consolidation Shares by way of a future news release. The post-Consolidation Shares will continue to trade on the TSXV under the Company's existing name and trading symbol.

The Consolidation will not materially affect the percentage ownership in the Company of Shareholders even though such ownership will be represented by a smaller number of Shares. The Consolidation will merely proportionally reduce the number of Shares held by Shareholders.

Shareholders who have deposited their Shares into brokerage accounts are not required to take any action to effect an exchange of their Shares.

Shareholders with physical certificates will receive a letter of transmittal from Computershare Investor Services Inc., the Company's transfer agent. The letter of transmittal will contain instructions on how registered Shareholders can exchange their share certificates representing pre-Consolidation Shares for new certificates representing post-Consolidation Shares. Until surrendered, each share certificate representing pre-Consolidation shares will represent the number of whole post-Consolidation shares to which the holder is entitled as a result of the consolidation.

About Kootenay Silver

Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.

For additional information, please contact:
James McDonald, CEO and President at 403-880-6016
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaysilver.com

 

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the mineral resource estimate for the Promontorio-La Negra project; the completion and filing of a National Instrument 43-101 technical report related to the Promontorio-La Negra mineral resource estimate; potential existence and size of mineralization within the Promontorio-La Negra project; and geological interpretations and potential mineral recovery processes. Information concerning mineral resource estimates also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined.

In connection with the forward-looking information contained in this news release, Kootenay Silver and its subsidiaries have made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that Kootenay Silver has received is reliable and is based upon practices and methodologies which are consistent with industry standards. While Kootenay Silver considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.

Such forward-looking information and statements are based on numerous assumptions, including among others, that the Company will receive approval from the TSXV and complete the Consolidation in the timeframe and on the terms as anticipated by management. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Additionally, there are known and unknown risk factors which could cause Kootenay Silver's actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the actual mineralization in the Promontorio–La Negra deposit may not be as favorable as suggested by the resource estimate; the NI 43-101 technical report that includes the resource estimate may not be filed within the anticipated timeframe, or at all; fluctuations in copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, and recovery rates; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals.

A more complete discussion of the risks and uncertainties facing Kootenay Silver is disclosed in Kootenay Silver's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Kootenay Silver disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.

SOURCE Kootenay Silver Inc.