Kootenay Gold Inc.
TSX VENTURE : KTN

Kootenay Gold Inc.

July 08, 2008 08:00 ET

Joint Venture-Kootenay and Klondike Announce Exploration Update on Espiritu, El Cuervo, Suzanne

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2008) - Kootenay Gold Inc. ("Kootenay") (TSX VENTURE:KTN) and Klondike Silver (TSX VENTURE:KS) are pleased to report an exploration update on the generative properties optioned from Kootenay Gold to Klondike Silver in the state of Sonora, Mexico.

All areas are of early stages of modern discovery and in all cases there are evidences of old artisan working.

ESPIRITU

Espiritu prospect is represented by a polymetallic Au, Ag, Cu, Pb & Zn mineralization that is traceable for up to 4 km in length to 500 mts in width. The mineral system is related to a NE trending structural zone hosting stockworks, veins and breccias mineralized with secondary metallic oxides, galena, sphalerite, chalcopyrite and sulphosalts.

Mineralization is hosted in argillic, sericitic, silica and biotite alteration zones and appears to be associated with at least two porphyry systems. Metals values are anomalous to highly anomalous over the whole length of the system and includes gold (to 3720 ppb), silver (to 1231 ppm) and numerous locations of copper, lead and zinc with values greather than 1%. A total of 55 grab samples have been collected ranging from background to the above noted highs.

EL CUERVO

This prospect contains both skarn and epithermal low sulphidation mineralization. The mineralization is related to granitic rocks intruding a massive limestone unit located at and along a major basin and range front fault. The skarn has been traced for in excess of 2 km strike length and in excess of 500 m. wide along the contact of the granitic rock and the limestone. The skarn is a complex array of magnetite, hematite, garnet, pyroxene, actinolite, chlorite, epidote and ilvaite. The skarn is polymetallic with anomalous Au, Ag, Cu, Pb, Zn, Mo & W. Values range to Au (2550 ppb), Ag (237 ppm), Cu (2.9%), Pb (1.8%), Zn (10.9%), Mo (12500 ppm) & W (2100 ppm). The skarn is strongly zoned with strongest mineralization in the eastern parts.

The epithermal, low sulphidation zone is hosted in Tertiary rhyolites to the immediate west of the skarn and appears to represent a high level stage of mineralization related to the down drop margin of the basin and range front fault. Au values to 800 ppb (0.8 gr/ton) have been noted.

A total of 122 grab samples have been taken at El Cuervo with values ranging from background to the above noted highs.

SUZANNE

Is represented by a polymetallic Au/Ag/Pb/Zn sheeted vein system related to major ENE faulting. The veins and associated stockwork is traceable for in excess of 1 km and range up to 5 m. in width. Metal values for the veins and stockworks range to Au (695 ppb), Ag (665 ppm), Pb (6.4%), Zn (10.7%). Exploration peripheral to the vein revealed the probable presence of further veins with the discovery of proximal float with 506 ppb Au and 665 ppm Ag, 500 metres south from the main discovery veins.

Sixtythree grab samples were taken ranging from background to the above noted highs.

OFELIA

The Ofelia prospect is a low sulphidation epithermal quartz vein/stockworks system. Preliminary exploration has shown the system to contain gold values 5.7 gr/ton and silver values to 469 ppm, with little or no accompanying other metals or pyrite. The Ofelia system is hosted within a 5 km by 3 km alteration zone most of which has not been explored. The mineralization appears to be immediately peripheral to the alteration system.

Fortyone grab samples have been taken ranging from background to the above noted highs.

All values reported are from prospector grab samples and all were analyzed by iPL Laboratories in Richmond, B.C. Canada using multi acid digestion agua regia with ICP and a fire assay AA finish for gold and a fire assay gravimetric finish for gold and silver over 1000 ppb and 100 ppm respectively.

The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of the Company.

ABOUT KOOTENAY

Kootenay is an emerging exploration Company actively developing mineral projects in British Columbia, Canada and the Sierra Madre Region of Mexico. The Company's top priority remains the ongoing development of its Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico.

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
    CEO
    (403) 238-6986
    or
    Kootenay Gold Inc.
    Ken Berry
    President
    (604) 601-5652 or 1-888-601-5650
    Website: www.kootenaygold.ca