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Kootenay Silver Inc: Discovery, Growth And Vast Opportunity

Kootenay Silver Inc.

Overview

Kootenay Silver Inc (TSXV:KTN) is a success driven exploration and mining company focused on the aggressive development of its flagship Promontorio Silver project in Senora, Mexico. The current 25,000-meter drill program now in progress on Promontorio represents the single largest and most expansive drilling campaigns conducted on the emerging silver project to date, 21,000m is already completed.

The objective of the multi-phase program is to substantially build on and expand the existing NI 43-101 silver resource identified on the project by AGP Mining Consultants in 2010. A total of 3 diamond drill rigs are presently turning on Promontorio and are focused on the numerous medium to high-grade silver intercepts discovered outside of the current 43-101 silver resource, across the project’s entire 1 kilometer strike length. The Company expect an updated NI 43-101 resource estimate in Q2 2012.

Investment Highlights

  • 25,000 meter multi-phase program underway on Promontorio
  • NI 43-101 Resource Calculation at Promontorio Pit Discovery
  • Updated NI 43-101 Resource Expected Q2 2012
  • Good cash position, market cap of ~$60 million as of February, 2012
  • History of production back to early 1900’s

Chief Property

Promontorio Silver Project, Sonora, Mexico

Kootenay Silver is developing its 100% owned Promontorio Silver/Gold Project (~70,000 hectares) in Sonora State, Mexico. Kootenay has drilled over 40,000 meters at Promontorio to date and released an initial NI 43-101 Resource Estimate conducted by AGP Mining Consultants (AGP) for the Pit Discovery Zone at Promontorio. The AGP resource estimate comprises indicated mineral resources of 8.9 million oz. silver (52.7 g/t), 99.3 million pounds of lead (0.86%) and 110.8 million pounds of zinc (0.96). In the inferred category AGP estimated Promontorio contains 1.17 million oz. silver (55.7 g/t), 13.4 million pounds of lead (0.94%) and 14.3 million pounds of zinc (1.00%).

Setting the stage for advanced exploration and development

Following the Initial Resource Calculation, Kootenay recently concluded a comprehensive 10,000 meter drilling program on Promontorio. The program was a resounding success returning multiple high to medium grade silver intercepts across Promontorio’s entire 1 km mineralized corridor. Moreover, a series of broadly spaced holes indicate continuity of silver mineralization over 300 meters of strike in the North East Zone, which is double the size and strike length of the current 43-101 resource.

Kootenay has commenced a follow up 25,000 meter drill program, representing the single largest and most expansive drilling campaign conducted on Promontorio to date. The multi-phase step out and in-fill drilling program at Promontorio will be ongoing for the next several months, 21,000m already completed. The primary objective of the program will be to dramatically boost the size of the current 43-101 resource conducted on the project by AGP Mining Consultants in 2010. Drilling will focus on establishing the continuity and size of the high and medium grade silver domains established within and outside of the silver resource along Promontorio’s 1 km mineralized corridor. The multi-phase step out and in-fill drilling program at Promontorio will be ongoing for the next several months.

The three core drills will be concentrating on step out holes and in-fill drilling to determine continuity between the numerous medium to high-grade silver intercepts encountered along Promontorio’s 1.0 kilometer mineralized corridor. This corridor includes the Pit Resource, Pit NE zone, Northeast Zone and the Southwest zone.

Ventures

To further enhance the Company’s growth opportunities in Mexico and Canada, Kootenay has entered into a number of joint ventures with a select group of exploration partners. The various exploration programs will provide Kootenay with maximum exposure in the region, while providing a platform to substantially increase the Company’s asset value.


Management

James M. McDonald, PGeo, President and CEO- Mr. McDonald is an economic Geologist with more than 30 years experience in the mineral exploration and mining business. Mr. McDonald has co-founded and successfully developed Black Bull Resources, National Gold (merged w/Alamos Gold) and White Knight Resources. Mr. McDonald currently serves on the board of Kootenay Gold Inc and the technical committee and board of Alamos Gold Inc.

Kenneth E. Berry, BComm, Chairman& Director- Mr. Berry has over twenty years experience in the financing and corporate communications of public companies. He has served as an investment advisor and has been the founder of various public companies including Theia Resources, Kootenay Gold and Highpoint Telecommunications. His involvement resulted in the more than $275 million in financings for public companies. He currently holds the position of Chairman/Director of Kootenay Silver and CEO/Director of Theia Resources. Mr. Berry also played for the Canadian Olympic Hockey team in the 1980 and 1988 Olympics, and played professional hockey in North America and Europe.

Brian Groves, BSc Geophysics, Director- Mr.Groves has worked in the mining and exploration industries for more than 29 years. A graduate of The University of Sydney, Australia, Brian began his career in exploration as a geophysicist in Australia and North America. He has been involved in exploration for coal, gold, base metals and diamonds with junior, mid-tier and major companies such as AMAX Minerals, Noranda and Placer Dome where he served for 12 years ending as a Manager of Corporate Development, Canada.

Dick Whittington, PEng, Director- Mr. Whittington is a professional mining engineer, with a degree from the Royal School of Mines in the United Kingdom. Dick’s career spans 35 years with major mining companies companies in Canada, Panama and Australia. His experience encompasses senior engineering and management roles for several large-scale mine development projects which includes numerous feasibility studies, mine evaluations, mine development, production, mergers and acquisitions and over $1 billion of major corporate financings.

Joseph Giuffre, BA LLB, Director-  Mr.Giuffre has over 25 years of combined experience in business and legal matters, and has a transaction-based practice in the areas of corporate finance, securities and corporate and commercial, project finance, and mergers and acquisitions. Mr.Guiffre has extensive experience acting for Canadian public companies, many of which have progressed from private start-up companies to publicly listed emerging companies on several markets.

Jon Morda, CA, Director- Mr.Morda brings Kootenay over 20 years of experience in the mining industry, having served as Chief Financial Officer for several mineral exploration and gold producing companies. As a senior executive, Mr. Morda is highly adept in all areas of strategic corporate planning, operations, budgeting, accounting and taxation functions.

Dr.Tom Richards, BSc, PhD, Vice President of Exploration- An accomplished author and co-author of numerous publications involved in the science of Geology through central British Columbia. Dr.Richards was a Research Scientist with the Geological Survey of Canada during the 1970′s doing regional mapping in British Columbia. He conducted regional exploration in Canada, United States and Mexico to the early 1990′s as an independent geologist/prospector with Junior and Major mining companies (including Teck, Inco, Esso, Newmont, Falconbridge and Union Carbide) and throughout NW Argentina until 2007. He has been involved with Kootenay Silver in Mexico from 2007 to present.