Kootenay Silver nearly triples financing after acquiring two new projects in Mexico
Kootenay Silver’s (TSXV: KTN) stock jumped over 4% after the Canadian junior explorer announced that its non-brokered private placement financing, originally for C$2.5 million, closed Wednesday for over C$7 million.
Kootenay is actively engaged in the development of major silver projects in Mexico, including the La Cigarra Silver project in Chihuahua, and the Promontorio and La Negra silver discovery in Sonora. In 2018, the company optioned the high-grade Columba silver project, also in Chihuahua, and the La Mina project in Sonora with Capstone mining.
Historic mining records indicate that up to approximately 100,000 tonnes of silver ore was mined during two different periods dating back to 1900
The Columba property is a classic epithermal vein system with the potential for the discovery of high-grade silver deposits. Historic mining records indicate that up to approximately 100,000 tonnes of silver ore was mined during two different periods dating back to 1900. Mapping and sampling completed by Kootenay of mineralized veins exposed at surface returned grades of up to 692 g/t silver.
La Mina covers the upper levels of a zoned copper porphyry mineral system exposed over a 2 by 2 kilometer area. La Mina contains a large leached argillized pyritic zone exposed at surface where surface grab and chip samples taken averaged about 300 ppm copper.
"The successful acquisition of two new projects in 2018 with the potential for the discovery of high-grade silver deposits has generated substantial interest,” Kootenay President & CEO, James McDonald said in a statement. “Moving forward particular focus will be on the Columba property due to the very high grades of silver reported from historic mine records. The company is very excited about this prospect's size potential indicated by numerous undrilled veins as well as the high level of preservation of the system.”
The first modern drill program at Columba is set begin as soon as permits are in hand, which the company expects to be in early April.