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Kootenay Silver Says Sensitivity Analysis Further Supports 60+ Mln Ounces At Promontorio

Kootenay Silver Inc. (CVE:KTN) has completed a sensitivity analysis of varying metal prices at 18, 24 and 36-month trailing averages.

This further supports the recent updated NI 43-101 resource estimate at its flagship Promontorio Silver Project in Sonora, Mexico. Full details of the analysis can be found at:http://www.kootenaysilver.com/i/pdf/Prom-2012-08-31v3.pdf

"When you apply even the most conservative metal prices observed during the 18 to 36 month period, there is less than a 4 per cent variance in Promontorio's measured and indicated resource," Kootenay Silver president and CEO James McDonald said.

"This is due to the impact of the high silver grades in the diatreme system, which is also exciting as it has a positive impact on the economic dynamics of the resource.

"Moreover, using the lowest metal prices observed over the three-year period, Promontorio still maintains a benchmark measured and indicated silver equivalent resource totaling over 60 million ounces."

Kootenay Silver is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada.

Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay's objective is to develop near term discoveries and long-term sustainable growth.

Last month, the company nearly tripled the resource size of its flagship Promontorio project in Mexico.

In total, the updated measured and indicated mineral resource contains an estimated 61.679 million ounces of silver equivalent (AgEq), with another 14.469 million ounces of AgEq categorized as inferred.

Open pit mineral resources for the Promontorio silver-lead-zinc project are just over 36 million tonnes, grading an average of 51.35 grams per tonne (g/t) of AgEq in the measured and indicated category, for a total of 59.463 million ounces of AgEq.

In the inferred category, open pit mineral resources are just over 9.13 million tonnes, grading an average of 42.86 g/t AgEq for a total of 9.136 million ounces of AgEq.

Kootenay said the resource is stated above a 15.00 g/t cut-off grade and contained within potentially economically mineable pit shells.