Here is the intial coverage blurb by the same company:

" Moving on, we tend to very rarely invest in new holdings within the Fund but made an exception in regards to the TSX-ventures (the junior market, comparable with LSE's AIM) listed exploration stage company Kootenay Gold Inc. We continue to monitor our portfolios risk levels and are in light of this wary of exploration companies and in the majority of cases prefer solid cash generative producers over the generally high risk explorers. However, we do invest in early stage companies where we see tremendous upside, Kootenay is one of those. Currently capitalised at £25.3 million, as of 30 September 2010 the company had Net Current Assets of $7.2 million (£4.5 million) and more recently raised a further $6 million (£3.7 million) via a non brokered fund raise (so has little or no expenses to pay). This is where we subscribed for our shares. The company therefore has, as we see it, plenty of cash to move forward with further dilution in the short to medium term unlikely.

The company's focus is the exploration and development of mineral license areas in British Colombia, Canada, and the Sierra Madre region of Mexico via JV agreements with the ultimate aim of a future sale or moving the asset into mineral production. The company currently has 4 sets of drill results outstanding at its Opeley Property, Jumping Josephine Gold Property, Deer Creek and Santa Lucia licenses but by far the most promising of the company's assets is its flagship Promontorio Silver Mine. Located in the mineral rich Sierra Madre region of Mexico, which historically is responsible for the discoveries of 520 million ounces of Silver and 15 million ounces of Gold, the company has already completed more than 30,000 metres of drilling to define a NI 43-101 compliant resource of 20 million ounces of Silver equivalents. 90% of the resource is within the Indicated category with the initial deposit open in three directions along a 1km mineralised trend. The management are confident that the resource has the potential to double with the return of the next 10,000m of drill results which should be due Q1/2 of 2011. At $15 Silver it is estimated that the current defined mineral resource has a recoverable metal value of $320 million, or £200 million, drastically highlighting the undemanding nature of the current £25.3 million market cap.

The management has a reputable track record with a history of delivery and with even the current defined resource at the Promontorio mine we reckon this company is cheap. The resource is defined on only a proportion of the mineralised trend so we expect a resource upgrade shortly. Furthermore, although we currently attribute very little real value to the other exploration targets mentioned above there is most obviously the huge potential upside from here onward in regards to the other prospective license areas. Longer term we would expect the company to look to bring the Promontorio mine into production with the cash generated from operations then being used to further exploration on the surrounding targets and the company's other prospective license areas."

http://uk-analyst.com/shop/page-article/action-article.show/id-130010064

Cheers, Luker

Disclosure: I hold a basket of 15 or precious metal juniors and believe that Kootenay, along with Silvermex Resources (another Mexico silver play) and ATAC Resources, have the largest SP appreciation potential.(Next tier would be Timmins Gold, Golden Minerals, Detour Gold and possibly Klondex Mines).