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Tuesday, Feb 11, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

Mining

Kootenay Silver acquires high-grade silver project in Mexico for USD$3.2M

The Columba Silver Project has potential for over 100 million ounces of silver

Kootenay Silver acquires high-grade silver project in Mexico
Columba Silver Project drill camp. Image via Kootenay Silver.

Kootenay Silver Inc. (TSXV: KTN) closed the acquisition of the Columba high-grade Silver Project in Mexico after four years of payments.

The company said on Tuesday it had made staged payments totaling USD$3.2M since November 2018, with the last cash payment being USD$215,000 made mid-May.

As part of the agreement, the vendor retains a 2 per cent royalty. However, there is an option for the company to purchase 1 per cent of the royalty for USD$750,000.

“Given there has been virtually no erosion of the silver bearing part of the system, the extent of the veins mapped to date and numerous wide and high grade hits across the property we certainly believe we have the potential for the discovery of in excess of 100 million ounces of silver,” said James McDonald, president and CEO.

Since 2019, a total of 27,000 meters have been drilled at Columba. The focus has been on the F Vein, which contains the old mine shaft. This vein has consistently produced silver over a width of 700 meters and a depth of 200 meters. In addition to the F Vein, other areas of interest such as the D Vein, B Vein, and JZ Area have been identified and tested. As the geological team continues to survey the property, they are discovering more potential silver vein systems.

The drilling highlights at Columba include:

B Vein

  • CDH-20-082: 112 gpt Ag (grams per tonne silver) over 70.5 meters including 1186 gpt Ag over 4.6 meters within 691 gpt Ag over 9.0 meters
  • CDH-21-112: 434 gpt Ag over 13.05 meters including 667 gpt Ag over 7.05 meters and 1050 gpt Ag over 2.0 meters

D Vein

  • CDH-21-110: 650 gpt Ag over 17.8 meters including 1565 gpt Ag meters over 1.0 meters and 1765 gpt Ag over 1.0 meters
  • CDH-22-122: 574 gpt Ag over 3.9 meters including 861 gpt Ag over 2.03 meters
  • CDH-22-125: 540 gpt Ag over 24.45 meters including 2498 gpt Ag over 6.6 meters and 5840 gpt Ag over 2.45 meters

F Vein

  • CDH-19-008: 112 gpt Ag over 33.5 meters
  • CDH-20-051: 317 gpt Ag over 6.0 meters
  • CDH-21-094: 354 gpt Ag over 9.0 meters

JZ Area

  • CDH-20-060: 132 gpt Ag over 64.0 meters including 608 gpt Ag over 5.0 meters
  • CDH-21-103: 333 gpt Ag over 44.0 meters including 2035 gpt Ag over 6.0 meters

Read more: Sierra Madre Gold & Silver aims to resume production at shuttered Mexico mine

Read more: Wesdome Gold Mines appoints Anthea Bath as new President and CEO

Kootenay plans a three-stage drill program for summer

The upcoming plan involves a three-stage drill program totaling 50,000 meters. The first stage of this program is scheduled to begin during the upcoming summer.

The Columba site holds an unexplored high-grade vein system that has not been explored in modern times. It was a past producing silver mine that operated from approximately 1900 to 1910. This mine is known for hosting numerous classic epithermal high-grade veins, which span over 10 kilometers in strike length and have widths of 6 meters or more. According to historic records, the mine yielded silver grades ranging from 600 to 900 grams per tonne.

The underground workings of the mine comprise four shafts and six levels of drifts, measuring a total length of over 1,000 meters. It is estimated that the mine produced between 70,000 to 100,000 tonnes of silver.

Additionally, historic sampling from the mine showed strong results.

According to the new legislation passed by the Government of Mexico, which came into force in May, Kootenay Silver will have had to seek the prior approval of the Ministry of Economy.

Four other companies mining silver in Mexico include First Majestic Silver Corp. (NYSE: AG) (Frankfurt: FMV); Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS); Endeavour Silver (NYSE: EXK) (TSX: EDR) and Fresnillo plc (LON: FRES).

Shares of Kootenay Silver were flat on Tuesday at $0.082 on the TSX Venture Exchange.

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