Kootenay Silver updates La Cigarra resource
Mexico-focused Kootenay Silver (TSXV: KTN) has released an updated resource estimate for its La Cigarra project in Chihuahua state that improved silver grades by upwards of 20% compared to a previous estimate.
Measured and indicated resources are now at 15.7 million tonnes grading 102 grams silver per tonne, 0.07 gram gold, 0.16% lead and 0.21% zinc, for 120 grams silver equivalent. The contained metal is 51.6 million oz. of silver, 33,900 oz. of gold, 54.8 million lb. of lead and 73.5 million lb. of zinc for 60.6 million oz. of silver equivalent.
Inferred resources are estimated at 3.4 million tonnes grading 102 grams silver, 0.06 gram gold, 0.2% lead and 0.19% zinc (119 grams silver equivalent), containing 11 million oz. of silver, 6,000 oz. of gold, 14.8 million lb. of lead and 13.8 million lb. of zinc (12.9 million oz. silver equivalent).
The 102 grams silver per tonne grade (in all categories) represents a near 20% increase in measured and indicated grade from a 2015 resource, and a 25% increase in the inferred grade.
The updated resource, according to Kootenay’s CEO James McDonald, is part of the company’s strategy to prepare its three resource projects — La Cigarra, Promontorio and La Negra — for advancement in a bullish silver market, while also moving the high-grade Columba towards a resource.
The new La Cigarra resource incorporates a significantly revised geological model and features a database of 201 surface diamond and RC drillholes totaling 36,988 metres and 26,419 assay intervals. The project is located in Chihuahua’s Parral silver district.
“The La Cigarra updated resource estimate is a meaningful improvement in silver grade compared to the previous calculation, largely due to detailed work by our team which has significantly advanced understanding of the key mineral domains and structural geometry of the deposit,” McDonald stated in a press release.
He also noted that the deposit is located within 20-30 kilometres of the famous San Francisco del Oro and Santa Barbara deposits that together have produced over 800 million oz. of silver to date. As such, the has La Cigarra project has “significant potential for growth beyond the limits of the new mineral resource.”
Kootenay acquired La Cigarra from Northair Silver in 2016.
Shares of Kootenay Silver rose by 2.4% to 84¢ apiece this afternoon, giving the junior miner a market capitalization of $38.4 million. The shares traded between 60¢ and $1.70 over the past 52 weeks.
