SOURCE: InvestmentPitch

December 09, 2010 18:50 ET Video News Alert for Kootenay Gold (KTN - TSX.V) - Kootenay Gold and Copper Creek Gold update shareholders

VANCOUVER, BC--(Marketwire - December 9, 2010) -'s video news alert discusses Kootenay Gold's shareholder update.

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Kootenay Gold, symbol KTN, and Copper Creek Gold, symbol CPV both on the TSX Venture Exchange, have provided their shareholders with an update on the current exploration plans for the Santa Lucia Gold Project in the State of Sonora, Mexico.

This followed a recent visit to the property by representatives from both companies, which resulted in a comprehensive exploration program, scheduled to begin in late January, 2011.

Back in October, the two companies signed an agreement whereby Copper Creek may earn an undivided 60% interest in this property by paying Kootenay $60,000 over three years, issuing a total of 800,000 shares of their company to Kootenay, and financing $2,000,000 of exploration expenditures within a four year period.

Kootenay has already spent $700,000 to bring the property to drill-ready status, including prospecting, mapping, geophysics and geochemistry. Most logistical requirements can be met from the Town of Tesopaco, located five kilometres from the property, and the City of Obregon is with forty-five minutes by paved highway.

Copper Creek expects to have a drill on the property by March and will target an area where anomalies were discovered by Cominco Ltd in the 1990's. These anomalies remain untested, and underlie surface gold mineralization for approximate four kilometres.

Kootenay also announced a non-brokered private placement of up to 7.06 million units at $0.85 per unit. Sprott Asset Management LP for and on behalf of certain Sprott Funds and Managed Accounts has agreed to purchase $4 million of the non- brokered placement.

Each unit will consist of one common share of Kootenay and one-half of one transferable share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at an exercise price of $1.20 for a period of 24 months from the closing date of the private placement.

The private placement and payment of any finder's fee are subject to acceptance by the TSX Venture Exchange.

Kootenay is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia. Their flagship property is the former producing Promontorio Silver Mine in Sonora State, Mexico, which consists of contiguous claims covering a total area of approximately 79,000 hectares.

For more information on this property and Kootenay's numerous other projects, please visit their website at, or contact James McDonald at 403-238-6986.

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Source: InvestmentPitch via Thomson Reuters ONE


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