Kootenay Gold Inc.

Kootenay Gold Inc.

June 04, 2007 14:14 ET

Kootenay Gold Inc.: Astral Options Property Adjacent to Jumping Josephine-Joint Venture Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2007) - Kootenay Gold Inc. ("Kootenay") (TSX VENTURE:KTN) is pleased to announce its joint venture partner Astral Mining Corporation ("Astral") (TSX VENTURE:AST) has entered into an agreement to acquire a 100% interest in the 7000 ha BlueBerry property located immediately east of the Company's Jumping Josephine (JJ) gold project. The property is considered strategic due to its location. An initial surface exploration program will be carried out on the BlueBerry property to evaluate its mineral potential this summer in conjunction with the extensive surface exploration, trenching and diamond drilling programs being carried out on the JJ Gold Project.

To earn a 100% undivided interest in the BlueBerry property Astral must issue a total of 140,000 shares and make cash payments totaling $75,000 over four years to a private Canadian company. A 25,000 share and $15,000 cash payment are due upon acceptance approval by the TSX Venture Exchange. During the term of the option Astral must keep the properties in good standing. Upon completion of the option the vendor will retain a 2.5% Net Smelter Royalty of 2.5%, 2.0% of which is purchasable by Astral for a total of $2 million.

Astral is currently earning a 60% interest in the JJ Gold Project from Kootenay Gold Inc. (see April 12, 2006 news release). Under the terms of Astral's option agreement with Kootenay Gold Inc., any properties acquired within 5 kilometres of the boundaries of the Jumping Josephine property must be offered to the other party for inclusion in the claims covered by JJ option agreement.

About Astral

Astral Mining Corporation, managed by the Grosso Group, is a Canadian-based company engaged in the exploration and development of precious metal properties in North America. By focusing on exploration in mining-friendly districts, the Company minimizes the political and social risks encountered in many other parts of the world. With a new gold discovery at the Company's Jumping Josephine Gold Project in Southern British Columbia currently being drilled for the first time, and an experienced technical team and seasoned management, Astral is poised to leverage this expertise into early exploration success. Further details on Astral Mining Corporation and its high quality portfolio of exploration projects can be found at www.astralmining.com.

About Kootenay

Kootenay is an emerging exploration Company actively developing a suite of premier gold and silver projects in British Columbia, Canada and Mexico. The Company's top priority remains the ongoing aggressive development of its rich Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico. Supported by an experienced and accomplished technical team, over the past four years Kootenay has substantially grown its mineral asset base through key acquisitions, while successfully achieving four new mineral discoveries in the Rossland Republic Gold Trend of British Columbia.

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc.

Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Kootenay Gold Inc.
    James McDonald
    (403) 238-6986
    Kootenay Gold Inc.
    Ken Berry
    (604) 683-2214 or 1-888-268-8688
    Website: www.kootenaygold.ca