Kootenay Gold Inc.

Kootenay Gold Inc.

July 17, 2007 04:00 ET

Phase I Drilling has Commenced on Kootenay's Promontorio Silver Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Kootenay Gold Inc. ("Kootenay") (TSX VENTURE:KTN) is pleased to announce that the first phase of diamond drilling has commenced on Promontorio. The program consists of 3000 meters of diamond drilling with HQ size core and is contracted to Layne Drilling out of Hermosillo Sonora, Mexico.

This first drill phase will concentrate on the historic areas of mineralization where high grade silver occurs with lead-zinc sulfides in phreatic type breccias. Recent chip sampling from Promontorio in the Pit Breccia has returned 480 grams per tonne silver, 2.51 grams per tonne gold, 11,199 ppm lead and 17,284 ppm zinc over an estimated true width of 19 meters. All samples were taken as continuous chips over a 2 meter length as reported in a news release dated May 24, 2007.

In addition to the Pit Breccia two other breccias called the Adobe Breccia and Central Breccia will also be tested. Recent mapping augmented by airborne geophysics has outlined a northeast trending mineralized zone along a strike of 2000 meters and width of 500 meters. The Pit, Adobe and Central Breccias sit within a small portion of this trend in an area of about 100 by 250 meters.

Following the first phase drilling, a second round of drilling will be planned to follow up phase I results and to test additional priority target areas on the 2000 meter trend.

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 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 Toll Free: 1-888-268-8688
    Website: www.kootenaygold.ca