Kootenay Gold acquires Silver Fox property

2010-11-18 06:17 PT - News Release

Mr. James McDonald reports

KOOTENAY ACQUIRES DRILL READY SILVER/COPPER PROPERTY IN SOUTH EASTERN, B. C. SILVER FOX PROPERTY IS LOCATED WITHIN A "REVETT TYPE" GEOLOGICAL FORMATION WHICH IS HOST TO OVER 680 MILLION OZ SILVER AND 5,600 MILLION LBS COPPER

Kootenay Gold Inc. has acquired a 100-per-cent ownership in the Silver Fox silver/copper property in southeastern British Columbia, which comprises mineral rights to over 30 kilometres covering the same geologic formation on the Canadian side of the border, to that which hosts the Western Montana copper-sulphide belt in northwestern Montana and Idaho -- a renowned exploration and mining region that currently contains the largest silver resources in the United States.

The Western Montana copper-sulphide belt, which lies on trend with, and bears strikingly similar geological characteristics to the Silver Fox, consists of Revett-type silver-copper sediment-hosted deposits, which, combined, in the U.S. portion of the trend, are host to over 680 million ounces of silver and 5.60 billion pounds of copper in several deposits, the largest of which individually contain in excess of 200 million ounces of silver and 1,700 million pounds of copper (examples are Montanore and Rock Creek).

Kootenay president and chief executive officer James McDonald states, "The acquisition of the mineral rights which form and encompass the Silver Fox property is the result of extensive evaluation and preliminary ground exploration conducted to date by our geological team."

Further adds Mr. McDonald: "We have assessed the property's geological characteristics and structural control and have already defined several prospective drill targets. Accordingly, we clearly view the potential of the Canadian side of the formation as a significant emerging play in the region."

The impetus for Kootenay's extensive evaluation and subsequent acquisition of the Silver Fox property is based in large part to the coincidence of several recently discovered and recognized features characteristic of the deposits in the United States commonly referred to as Revett-type deposits. These features include:

• Recent discovery of several stratabound disseminated Cu occurrences in Revett-equivalent quartzites;
• Copper mineralization characterized by disseminated grains of chalcopyrite, chrysacola, bornite and chalcocite in the host quartzite with minor copper staining of azurite and malachite;
• Recognition of a northwest-trending mineralized structural domain, bracketed to the north by the historical St. Eugene Ag-Pb-Zn vein that has been active from the Precambrian to the Tertiary;
• Regional scale zones of bleaching, oxide, sulphide, carbonate and manganese alteration occurring with copper mineralization;
• Location along the northern extension of the Western Montana copper-sulphide belt;
• Same geologic host formations;
• Recognition of thick (in excess of 100 metres) sequences of quartzite-dominated stratigraphy;
• Recognition by RP Hartlaub department of mining and mineral exploration, British Columbia Institute of Technology, that the area has high potential for hosting Revett-type silver-copper deposits, found in the United States, during a multiyear program co-financed by Geoscience B.C. and Natural Resources Canada.

As evidenced by the three major discoveries in northwest Montana, this is an exciting new exploration discovery in an underexplored area for very large silver-copper deposits.

Kootenay intends to continue to assess the property to further define priority drill targets with the goal to proceed with a drilling program at the earliest possible date. Mapping and prospecting will aid in defining the strongest areas of mineralization which will be followed up by comprehensive work which will include detailed mapping, geophysics and further sampling in preparation of drilling.

QA/QC (quality assurance and quality control)

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 chief executive officer, James McDonald, PGeo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.