Kootenay Gold drills 120 m of 42 g/t Ag at Promontorio

2010-11-10 04:23 PT - News Release


Mr.Ken Berry reports

KOOTENAY ANNOUNCES HIGHLY ENCOURAGING ASSAY RESULTS FROM THE FIRST TWO HOLES ON MULTI-PHASE PROMONTORIO DRILLING PROGRAM

Kootenay Gold Inc. is providing assay results from the first two holes as part of a 10,000-metre, multi-phase drilling program on its Promontorio silver project in Sonora, Mexico.

As part of a strategic program to substantially expand the known mineral resource at Promontorio, the first four holes have been drilled along a single fence across the western side of the Pit zone. This fence of holes is testing from 200 metres outside of the resource drilling into it on its western most edge to further delineate the mineralized contacts and expand the known mineralized area to the south. Initial results include:


Hole PC 001 returned grades of 33.57 grams per tonne silver and 1.046 per cent lead plus zinc over a mineralized zone measuring 93 metres, highlighted by 67.50 metres grading 40.30 g/t silver and 1.45 per cent lead plus zinc and three metres grading 170 g/t silver and 4.13 per cent lead plus zinc.
Hole PC 002 returned grades of 38.9 g/t silver and 1.22 per cent lead plus zinc over a mineralized zone measuring 151.5 metres, highlighted by 120 metres grading 42.13 g/t silver and 1.34 per cent lead plus zinc and 30 metres grading 63.30 g/t silver and 2.39 per cent lead plus zinc.

States Kootenay president and chief executive officer, James McDonald, "Results from the first two holes of the program have returned excellent grades and have surpassed our expectations with respect to the overall length and continuity of the mineralized intervals."

Adds McDonald, "Most importantly, the holes should play a vital role expanding the known resource by tying in and establishing continuity between previous mineralized holes drilled outside the current interpreted modeled zones used by AGP Mining Consultants (AGP) to derive its recent 43-101 Resource Calculation on Promontorio".

View CEO Video Commentary at: http://www.kootenaygold.ca/i/video/CEO/ceovideo.html

The mineralization in PC 001 was intersected precisely where expected, while that in PC 002 indicates extensive mineralization is occurring between 50 and 100 metres south of the resource block remaining open at depth and along strike.


Highlights of the Promontorio Pit Resource (See Aug 18, 2010 Release):*
Contained Silver 10,070,000 oz
Contained Lead 112,700,000 lbs
Contained Zinc 125,100,000 lbs


*Metal recoveries used for the above calculations: Ag-82%; Pb- 85%; Zn-91%

The AGP Resource Calculation was based on only 27 of 54 drill holes conducted on the project to date. Several extensively mineralized holes at the time of the report were absent from the resource calculation based on the spacing of the drill holes.

Kootenay further reports the significant gold component reported to date has yet to be included in published resource calculations. Additional metallurgy testing will be conducted on these holes in the near future to determine the gold's' leachabilty and recovery and extraction methods required.

Kootenay additionally reports, a second shift has been added to further accelerate drilling production and development on Promontorio. Full assays from PC 003 and PC 004 are expected before month end with subsequent holes expected in December 2010.

QA/QC

All holes were drilled using reverse circulation. Samples were split using riffle or rotory splitters to make representative composites. All samples are over 1.5 metre intervals. All mineralized intercepts are drill hole length drilled across a vertically inclined breccias system at 60 degree angles. Quality Assurance and Quality Control procedures are posted on the Kootenay Gold website.

The foregoing geological disclosure has also been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.