Kootenay Gold Inc.
TSX VENTURE : KTN

Kootenay Gold Inc.

February 23, 2009 01:00 ET

Kootenay Announces Three New Mineral Discoveries

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2009) - Kootenay Gold Inc. (TSX VENTURE:KTN) ("Kootenay") is pleased to report three New 100% owned Discoveries, the Opochi a gold-silver system; and the Espiritu and La Mina which are leached gold-copper porphyry systems. The properties were identified and staked over the last 18 months through its Generative prospecting program in the Sierra Madre Region of Northwest Mexico. Espiritu is subject to an option agreement as part of the Klondike Silver Grubstake whereby Klondike can earn 50%.

Jim McDonald, CEO of Kootenay Gold commented, "These New Discoveries have clearly defined targets and represent projects which hold potential to become flagship, company building properties. Kootenay's "Mexican Exploration Pipeline" now includes: Promontorio, Opochi, Espiritu, La Mina and 11 generative projects in the Sierra Madre Region of Northwest Mexico."

Opochi

Mineralization is related to the low to intermediate sulphidation silver-gold class of deposits. It comprises veins, stockworks and breccias within a 1 x 2 km area. Veins range from few centimeters to 5 meters and include single veins and sheeted parallel veins. Stockworks across 50 metres have been reported.

The Opochi prospect is noted for its highly anomalous values of gold, silver, copper, lead, and zinc. Of 124 grab samples taken, 58 gave gold greater than 0.100 g/t with 18 greater than 1.0 g/t (to 10.47 g/t). For silver, 47 of 124 samples were greater than 20 g/t, with 34 greater than 100 g/t and 14 greater than 500 g/t to a high of 1422 g/t. The area is also highly anomalous in copper, lead and zinc, with mean values for the 124 samples giving 0.12% Cu, 0.93% Pb and 1.17% Zn.

La Mina

The La Mina prospect is a leach cap porphyry copper prospect marked by strong to intense stockworks and fractures within an argillic/sericitic/pyritic alteration setting. The porphyry system measures some 2000 x 1000 metres elongated to the northeast. Three styles of mineralization are noted in the La Mina area: leach cap porphyry system, peripheral polymetallic-precious metal quartz veins and exotica copper. Relict copper within the leach cap of the porphyry system gave values from grab samples between 0.002 and 0.3% (20 and 3000 ppm), averaging 0.3% (300 ppm). This compares well with most of the large, economic copper porphyry systems in northwestern Mexico-southwestern USA which had leach caps that contained copper values in the range of 0.001 to 0.01's of percents (10's to 100's of ppm) copper overlaying secondary enrichment marked by a copper-chalocite blanket.

Peripheral to the northwest of the porphyry are a suite of quartz stockworks, veins and veinlets with highly anomalous silver, copper, gold, lead and zinc. Silver gave values of 432, 422, 288 and 110 g/t with 13 of the 25 samples greater than 20 g/t. Gold values to 1.0 and 0.845 g/t were noted with 7 of 25 greater than 0.1 pgt. Copper, lead and zinc are directly correlative with the precious metals and show values of 5.1%, 5.6% and 12% respectively. All samples are grab samples.

Exotica, secondary copper mineralization was found flanking the northwestern part of the alteration zone, some 500 metres northwest of the La Mina leach cap porphyry. The exotica can be traced for some 800 metres in a northeasterly trend and is open to the northeast. This copper mineralization is entirely of secondary nature hosted by strongly bleached tuffs. No sulphides are associated with this mineralization zone. Of the 12 grab samples taken from this zone, the average copper grade is 0.76%.

Espiritu

Mineralization and alteration is traceable in a northeasterly trend for some 4 kilometres and ranges up to 800 metres in width. Two zones of mineralization are recognized: a copper-gold porphyry setting in the northeast and a polymetallic silver-lead-zinc vein, stockwork and breccia setting in the southwest.

The northeastern porphyry is a 1200 x 1000 metre sub-circular area underlain by altered biotite, feldspar quartz porphyry. Anomalous metal values in the porphyry include gold, silver, copper, lead and zinc. Gold shows values to 3.6, 2.39, 1.781, 1.359 and 1.078 g/t with 30 of the 150 grab samples with values greater than 0.100 g/t. Silver values include highs of 302, 215, 182, 199, 138, 114, 133 and 145 g/t. The high gold and silver values may be the stockwork-breccia superimposed on the copper porphyry. The average copper tenor from surface grab samples over the whole of the alteration system is 0.27% (2700 ppm), including background levels. Lead returned values to 9.6% and zinc to 9.8%. These anomalous metal values are focused in the central part of the alteration within a northeasterly elongate area that covers a 1200 x 500 metre zone.

The polymetallic southwestern part zone is represented by veins, breccias and stockworks with highly anomalous in silver, lead, zinc, gold and copper. Gold is strongly anomalous with 24 of 110 grab samples with values greater than 0.1 g/t and highs of 0.844, 0.681, 0.5 and 0.569 g/t. Twenty-nine of the 110 grab samples gave silver greater than 30 g/t and 12 greater than 100 g/t with highs of 1291, 894, 857, 722, 644 and 543 g/t. Copper values range greatly with 20 of 110 grab samples taken having values greater than 0.1% (1000 ppm) with values to 1.7%. Lead values of 35 samples greater than 0.1% (1000 ppm) of the 110 samples taken and zinc gave values of 30 samples greater than 0.1% (1000 ppm), with a maximum noted of 18%. Molybdenum is locally anomalous with values to 0.12% (1210 ppm) and 7 others in excess of 0.01% (100 ppm).

About Kootenay

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

Sampling and Assaying

All samples are bagged in a plastic sample bag which is labeled, tagged, documented and sealed with wire. Each sample is placed in a rice sack and sealed with a zip tie. All samples are recorded and delivered to International Plasma Labs Ltd. ("iPL") sample preparation lab in Hermosillo, Sonora, Mexico. Receipt of the samples is signed off at the preparation lab. Pulps of each sample are then prepared and sent to iPL Laboratories in Richmond B.C. Canada an ISO 9001-2000 certified full service laboratory. All of the samples referred to herein are core samples. A QA/QC program which includes the regular insertion by the Company of duplicates, blanks and standards has been instituted. iPL Laboratories also has its own system of replicate analysis and blanks which it provides to the Company. Each pulp is analyzed using iPL's AU(FA/AAS) Ag/Ore-Grade by Multi acid digestion ICP (Cu/Pb/Zn/Ag) assay package. This is a multi acid digestion with gold analyzed with an AA finish with over limits done with gravimetric finish and silver analyzed by ICP (inductively coupled plasma) and a gravimetric finish on over limits while zinc was analyzed by ICP and lead by fire assay.

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).

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