The seven holes were designed to extend the known areas of mineralization along strike, down dip and to fill in large gaps. Results continue to affirm La Negra’s potential for the delineation of a high-medium grade, open-pittable silver resource and for adding substantial additional silver resources at depth.

States Kootenay President and CEO James McDonald "We are very pleased with results from the current seven holes of our Phase II program. Drilling continues to return consistent intervals of high-grade silver, further underscoring La Negra’s potential as a growing silver resource that clearly displays attributes with potential to evolve into a substantial low-cost, open-pit operation. Equally exciting, holes LN-34, 37 and 38-15 successfully confirm the excellent depth potential of the La Negra diatreme breccia, hitting mineralized breccia 250 to 300 meters vertically from surface, which is a full 100 to 150 meters deeper than previous drill holes."

Kootenay further reports ongoing ground exploration immediately around a 2-3 km radius of the La Negra Breccia has identified two high priority mineralized trends with clear underlying geologic controls. These have been named the ‘La Negra Silver trend’ and ‘Vania’. Additional areas of silver and gold mineralization identified apart from these trends are currently being evaluated. Final results from the Phase II drill program along with further details of results from the expanded La Negra ground exploration program are expected mid May 2015.

Highlights include:

LN-32-15

  • 68.39 gpt Ag over 146 meters from surface including
  • 139.60 gpt Ag over 56 meters with
  • 217.32 gpt Ag over 28 meters and
  • 462.11 gpt Ag over 9 meters

LN-33-15

  • 63.12 gpt Ag over 138 meters from surface including
  • 152.62 gpt Ag over 27 meters with
  • 453.00 gpt Ag over 5 meters

LN-34-15

  • 149.27 gpt Ag over 11 meters including
  • 205.50 gpt Ag over 7 meters

LN-38-15

  • 113.15 gpt Ag over 67 meters including
  • 306.73 gpt Ag over 15 meters with
  • 850.60 gpt Ag over 5 meters and
  • 1772.50 gpt Ag over 2 meters

It is noteworthy holes LN-34, 37 and 38-15 extend mineralized breccia to 250 to 300 meters vertically below the surface exposure confirming the depth potential of the La Negra Breccia pipe. One of the deepest intercepts to date grading 373 gpt Ag over 3 meters within 30 meters of 101 gpt Ag in LN-38-15 indicates grade potential also extends to depth. Also noteworthy is LN-36-15 the easternmost intercept returned stronger than usual gold contents.

The intercept in LN-38-15 with 15 meters of 306 gpt Ag including 850 gpt over 5 meters and 1772 gpt over 2 meters sits roughly 40 meters north of the high grade in LN-21-14.

La Negra is a strong and explosive diatreme breccia event as evidenced by the strong tourmaline-sericite-quartz alteration throughout the matrix and dominant sericite alteration of clasts and textures and variety of clasts. Clasts are polymictic including instrusive and extrusive fragments, mineralized fragments and possible basement quartzite fragments indicating deep roots to the system

La Negra Silver Discovery

The La Negra Breccia prospect is situated approx. 6.5kms north of Kootenay’s flagship Promontorio Silver Resource in Sonora, Mexico and is contained within a 25 x 15 km mineralized corridor, the ‘Promontorio Mineral Belt.’ The Phase II drill program on La Negra follows a successful Phase I drill program, which returned significant and consistent intervals of high grade, widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery. Highlights included 200 meters of 156 gpt Ag bottoming in 492 gpt Ag over 17 meters above which there is 6 meters of 1337 gpt Ag, 141 gpt Ag over 50 meters, including 212 gpt Ag over 28 meters and 323 gpt Ag over 15 meters. The Phase I drill program was led by a successful trenching and surface sampling program that confirmed extensive silver mineralization over a large 100 to 200 meters by 500 meters area on surface.