Kootenay Gold Inc.
TSX VENTURE : KTN

Kootenay Gold Inc.

December 10, 2007 05:00 ET

Kootenay Drilling Confirms Widespread, High-Grade Mineralization: Highlights Include 18.4 Meters Grading 950 g/t & 151 Meters Grading 162 g/t Silver-Equivalent at Promontorio

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2007) - Kootenay Gold Inc. (TSX VENTURE:KTN) ("Kootenay" or "the Company") is pleased to report results from the first phase of drilling on the Promontorio Silver project in Sonora, Mexico. The 22-hole program included drilling on the Pit, Central and Adobe Breccias.

Drilling has encountered wide to moderate intervals of high-grade silver-gold polymetalic breccias in a porphyry breccia setting. Results received to date report twenty of the twenty-two holes intersected significant precious and base metal mineralization starting from surface and extending to depth.

Jim McDonald, CEO of Kootenay commented: "These results indicate that the individual Breccias drilled in the first phase are part of a single, large mineralized system with distinct characteristics indicative of a porphyry system. Accordingly, drill data suggests the Promontorio may contain a deposit of larger scale and scope than previously conceived".



Highlights of Drill results in this press release:

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Drill Hole From To Interval Silver Gold Pb+Zn SilverEqv.
Number (m) (m) Width (m) (g/t) (g/t) (%) (g/t)
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Location: Pit Breccia
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KP-02-07 71.15 94.40 23.25 233.5 1.47 3.79 527.9
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KP-05-07 66.37 80.78 14.41 338.9 1.80 4.54 698.7
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including 74.87 80.78 5.91 664.0 2.65 7.98 1265.7
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KP-09-07 61.85 80.25 18.40 366.0 3.54 6.74 950.4
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including 61.85 68.55 6.70 671.2 3.46 7.87 1314.6
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Location: Adobe Breccia
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KP-17-07 8.38 86.15 77.77 30.9 0.43 1.29 129.2
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including 47.66 63.20 15.54 56.4 0.84 2.87 267.8
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including 27.40 38.85 11.45 55.5 1.12 2.46 259.9
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including 27.40 63.20 35.80 48.4 0.77 2.19 217.1
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KP-22-07 45.47 196.85 151.38 46.0 0.48 1.56 162.0
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including 144.43 196.85 52.42 86.1 0.83 2.73 288.0
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including 172.17 196.85 24.68 117.4 1.34 3.88 413.9
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including 190.85 195.77 4.92 210.5 3.32 7.19 805.5
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Note: Silver equivalent was calculated using $790 Au;
$14 Ag; $1.25 Pb; $1.10 Zn


Pit Breccia:

Holes KP-01-07 to KP-13-07 drill tested the Pit Breccia where previous surface chip sampling returned 480.14 gpt Ag, 2.51 gpt Au, over 19 meters and 75.6 gpt Ag and 0.99 gpt Au over 25 meters including 150.67 gpt Ag and 0.86 gpt Au over 6 meters. Drilling tested the Pit Breccia along a strike of 120 meters and a dip extent of 160 meters. Andesite is the host rock and is brecciated, fractured and variously altered and mineralized throughout. The best grading mineralization is generally within a 5 to 25 meters wide zone that occurs near the bottom of the breccia above a reverse fault. Brecciation is variable throughout the holes but fracturing and alteration (weak to strong) occurs throughout the intercepts.

Adobe Breccia:

Holes KP-17-07 to KP-07-20 and KP-22-07 drill tested what is called the Adobe Breccia. These holes are significant as they encountered a well developed and well-mineralized breccia starting from surface and continuing to a minimum vertical depth of 195 meters. Also, alteration changes from a calcite dominant propylitic alteration in the Pit Breccia to a biotite-sericite-silica alteration in the Adobe Breccia.

Central Breccia:

Holes KP-14-07 to KP-16-07 were drilled into the central Breccia to test an historic exploration shaft and surface chip sampling that returned 62.78 gpt and 0.402 gpt Au over 11 meters including 152.5 gpt Ag and 1.41 gpt Au over 3.5 meters.

Drilling reported herein tested an area measuring approximately 175 meters by 270 meters, excepting a single hole drilled some 200 meters to the east (Hole KP-21-07). Further airborne geophysics indicates the mineralized area may extend over an area measuring over 2000 meters by 500 meters.



Additional detail on Phase I Drilling
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Drill Hole From To Interval Silver Gold Pb+Zn SilverEqv.
Number (m) (m) Width (m) (g/t) (g/t) (%) (g/t)
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Location: Pit Breccia
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KP-01-07 52.00 55.93 3.93 86.4 0.79 0.30 148.1
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KP-01-07 56.20 58.34 2.14 270.1 0.35 1.05 352.0
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KP-02-07 71.15 94.40 23.25 233.5 1.47 3.79 527.9
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including 79.05 94.40 15.35 340.7 1.78 4.20 677.8
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KP-04-07 110.60 130.25 19.65 18.4 0.50 0.34 66.2
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KP-05-07 66.37 80.78 14.41 338.9 1.80 4.54 698.7
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including 74.87 80.78 5.91 664.0 2.65 7.98 1265.7
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KP-06-07 110.02 121.93 11.91 194.2 1.25 1.71 362.3
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including 117.87 121.93 4.06 492.7 1.63 4.08 815.5
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KP-06-07 129.85 136.72 6.87 407.7 0.85 4.09 689.2
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including 130.73 136.72 5.99 462.3 0.93 4.63 779.3
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KP-06-07 17.20 18.90 1.70 34.8 0.63 1.69 163.3
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KP-07-07 48.95 62.15 13.20 29.7 0.62 1.34 140.3
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including 51.00 55.29 4.29 44.0 1.09 2.22 230.9
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KP-08-07 17.47 33.01 15.54 51.5 0.97 0.63 142.1
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including 17.47 24.00 6.53 71.2 1.32 0.76 188.9
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KP-08-07 41.35 45.85 4.50 13.1 0.54 0.51 71.9
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including 41.35 45.15 3.80 14.8 0.63 0.59 83.1
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KP-09-07 61.85 80.25 18.40 366.0 3.54 6.74 950.4
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including 61.85 68.55 6.70 671.2 3.46 7.87 1314.6
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KP-10-07 52.75 61.96 9.21 7.5 0.08 0.09 16.8
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KP-10-07 104.22 108.13 3.91 26.4 0.11 0.47 59.6
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KP-10-07 32.60 35.56 2.96 1.0 0.09 0.09 10.9
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KP-10-07 70.10 71.69 1.59 12.9 0.23 0.02 27.3
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KP-10-07 113.78 115.10 1.32 145.0 1.21 0.68 252.4
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KP-11-07 5.58 8.46 2.88 4.9 0.15 0.03 14.8
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KP-12-07 50.43 62.73 12.30 6.5 0.14 0.37 35.4
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KP-12-07 111.20 115.00 3.80 95.5 1.30 2.75 325.3
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KP-12-07 127.20 127.74 0.54 158.5 3.83 5.10 665.0
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KP-13-07 57.00 60.36 3.36 48.3 0.58 0.34 100.5
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Location: Central Breccia
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KP-14-07 58.88 62.17 3.29 11.2 0.11 1.19 85.6
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KP-14-07 19.20 20.75 1.55 33.9 0.57 0.54 98.5
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KP-14-07 43.30 44.08 0.78 8.6 0.34 1.07 87.9
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KP-15-07 119.91 124.18 4.27 8.4 0.27 0.66 62.6
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KP-15-07 63.45 65.40 1.95 579.8 0.98 7.86 1087.0
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including 64.20 65.40 1.20 942.1 1.51 12.70 1757.3
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KP-15-07 26.85 27.40 0.55 96.0 0.70 0.30 153.4
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KP-16-07 10.55 22.23 11.68 17.7 0.15 0.51 55.3
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KP-16-07 50.30 50.68 0.38 0.5 0.34 0.42 44.0
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Location: Adobe Breccia
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KP-17-07 8.38 86.15 77.77 30.9 0.43 1.29 129.2
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including 27.40 63.20 35.80 48.4 0.77 2.19 217.1
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including 47.66 63.20 15.54 56.4 0.84 2.87 267.8
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including 27.40 38.85 11.45 55.5 1.12 2.46 259.9
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KP-18-07 18.75 23.37 4.62 34.4 0.29 1.65 143.9
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KP-18-07 50.65 53.20 2.55 4.4 0.12 0.48 38.8
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KP-18-07 34.81 35.28 0.47 20.6 0.07 0.63 60.4
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KP-18-07 64.13 64.55 0.42 6.9 0.20 0.70 58.8
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KP-18-07 29.40 29.80 0.40 0.0 0.20 0.82 56.9
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KP-18-07 39.37 39.63 0.26 6.9 0.16 0.62 50.4
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KP-19-07 8.90 61.80 52.90 29.0 0.23 0.76 85.3
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including 24.40 27.35 2.95 137.9 0.93 4.27 434.7
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KP-20-07 35.55 104.60 69.05 25.4 0.52 1.01 112.2
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including 60.65 83.10 22.45 40.8 0.99 2.06 213.9
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including 74.73 83.10 8.37 42.4 1.26 2.21 238.8
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including 67.10 73.10 6.00 38.7 1.42 2.92 285.8
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including 60.65 62.75 2.10 107.0 1.03 3.31 355.4
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including 40.00 40.75 0.75 31.7 8.68 1.68 618.0
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KP-20-07 5.50 12.45 6.95 4.8 0.16 0.42 37.9
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KP-22-07 45.47 196.85 151.38 46.0 0.48 1.56 162.0
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including 144.43 196.85 52.42 86.1 0.83 2.73 288.0
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including 166.45 196.85 30.40 111.0 1.18 3.60 382.0
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including 172.17 196.85 24.68 117.4 1.34 3.88 413.9
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including 190.85 195.77 4.92 210.5 3.32 7.19 805.5
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including 72.45 75.95 3.50 49.5 2.22 4.53 425.9
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KP-22-07 6.30 26.10 19.80 8.0 0.16 0.22 29.4
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Assays for Hole KP-03-07 and KP-21-07 are pending as are additional intervals of each hole not reported above. A complete table showing the detail of collar coordinates and of each sample interval used to calculate the above tables will be posted on the Company's website at www.kootenaygold.ca. All intervals reported are drill core length with true widths in the Pit Breccia interpreted to be 80 to 90 % of drilled width. True widths in the Central and Adobe Breccias are not known at this time.

Mineralization:

Mineralization occurs as pyrite, galena, sphalerite and possible silver sulfosalts within fractures, breccias and as disseminations within an andesitic flow unit. In the Pit and Central Breccias alteration is dominated by sulfides associated with calcite veining and a propylitic carbonate chlorite alteration. The best grades occur within a 25 meter interval immediately above a northeast trending reverse fault interpreted to be coeval with mineralization. Westward toward the Adobe Breccia alteration grades into a distinct potassic biotite alteration over printed by strong phyllic alteration with an increase in silica and a decrease in calcite. Sulfide mineralization in the Adobe Breccia area is generally stronger and more ubiquitous as is brecciation. Only one hole in the Adobe Breccia tested the reverse fault, that is KP-22-07 which intercepted the fault at 200 meters and like Pit Breccia mineralization encountered the best grades in a 25 meter interval above the fault.

Drilling:

Drilling was contracted to Layne Drillling out of Hermosillo, Sonora, Mexico and consisted of about 3000 meters of HQ sized core in 22 holes.

Sampling and Assaying:

All core samples were taken by cutting the core in halves with a rock saw with one half going back to the core box for reference and the other being placed into a plastic sample bag. Each sample bag is labeled with a number and corresponding numbered tag in the bag and the top is sealed with wire. Each plastic bag is placed in a sack and each sack is sealed with a zip tie. The samples in each bag are then recorded and delivered to iPL's sample prep lab in Hermosillo, Sonora, Mexico where a pulp is prepared and sent to iPL Laboratories in Vancouver, B.C. for analysis.

All samples were taken in 0.3 to 2.0 meter intervals and the majority was 0.4 to 1.0 meters wide. Assays were done by multi acid digestion. Gold was analyised with an AA finish with overlimits done with gravimetric finish while silver was done with ICP and a gravimetric finish on overlimits while zinc was analyised by ICP and lead by assay. Blanks are inserted both by the Company and iPL and duplicates are run by iPL as quality control and assurance checks.

All field work related to the drilling was conducted and supervised by Resource Geosciences De Mexico, S.A. De C.V. a geologic consulting firm based out of Hermosillo, Sonora, Mexico.

The foregoing geological disclosure has been reviewed and verified by Dr. Trygve Hoy, P.Geo. (A qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects) based upon solely on the assay certificate and other information made available to Mr. Hoy. Mr. Hoy has not visited the property or verified the sampling, analytical and test process protocol. Mr. Hoy is a consultant for the Company engaged to provide technical geological consulting services from time to time. The disclosure is for the geological disclosure in this news release only.

Based on these initial results the company has commenced an IP survey, which should be completed late 2007 and will assist in Phase II drill planning set to commence early 2008.

Kootenay Gold Inc. is an exploration and mining Company actively developing mineral exploration 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.

To view a live interview with Jim McDonald on Kootenay's visit: www.kootenaygold.ca.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or 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