Entering text into the input field will update the search result below

Kootenay Silver Updates On Work At Promontorio Project

Jul. 30, 2013 3:36 PM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Short Only

Seeking Alpha Analyst Since 2009

Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

Kootenay Silver (CVE:KTN) reported Tuesday that hydrologic work and environmental baseline studies have been ongoing to advance its Promontorio project in Mexico, updating investors on the company's progress.

It said in a statement Tuesday that three monitoring wells have been installed along the main corridor of mineralization stretching from the Northeast zone through the pit on to the Southwest zone, in an effort to characterize the ground water levels to be used to develop a hydrogeological model.

According to the release, the company has so far gathered information on the property including an understanding of initial pit dewatering requirements, the initial evaluation of the potential for groundwater to supply a source of water to the project, and a collection of baseline groundwater data. The work is in preparation for evaluating groundwater conditions at the project, including potential water sources that may be required to sustain potential open pit or underground mining operations.

Alongside this work, environmental baseline work is now complete, and included surveying and data collection of surrounding flora and fauna, sampling of soil, water and sediments, and other socio-economic data. Meanwhile, geotechnical work completed so far includes the collection of extensive rock quality data, Kootenay said.

Last month, shares of the silver exploration and development company rose after it released drill results from Promontorio, saying it found a high grade silver zone between the pit and the northeast zones. The news came not even a month after the company released an updated resource at the Promontorio project that approached the 100 million ounce mark on the back of new metallurgical data that supported the recovery and inclusion of gold. Despite the new gold content, the latest resource did not include any drilling completed since the previous resource report was announced in August last year.

Highlights of the most recent drilling included 301 grams per tonne (g/t) silver equivalent over 31.7 metres, including 1,046 g/t silver equivalent over 5 metres in hole 186.

Kootenay, which earlier this year put to bed a $4.75 million investment from Agnico-Eagle Mines (NYSE:AEM), has 92 million contained silver equivalent ounces in the measured and indicated category for its Promontorio project resource, with another 24.3 million ounces in the inferred resource category. A further resource update is expected once the company's current 30,000 metre drilling campaign is finished, sometime in the third quarter of this year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.