Kootenay Silver Inc. (TSX-V: KTN) is pleased to announce the signing of an option agreement with a wholly owned subsidiary of Centerra Gold Inc. whereby Centerra is granted an option to earn a 70% interest in the Two Times Fred property located in the Nechako Plateau of Central British Columbia.
A total of C$6 million in exploration expenditures and C$500,000 in cash payments must be incurred and made over a four-year period for Centerra to earn a 70% interest. The first year requires a work expenditure of $1 million with a minimum commitment of $650,000. Current plans for this year’s work include up to 1,000 meters of trenching and 20 drill holes. Upon the fulfillment of these conditions, the two companies will enter a standard joint venture agreement with Kootenay retaining a 30% interest, and funding of further work will be done on a pro rata basis amongst the joint venture partners.
James McDonald President and CEO of Kootenay Silver states “We are very pleased to have signed an agreement with major gold producer Centerra Gold Inc. We look forward to benefiting from Centerra’s expertise and consider their participation via the option agreement a reflection of our belief that Two Times Fred has the potential to host a gold deposit of significant size.”
Two Times Fred
The Two Times Fred property is host to a large classic low-sulphidation epithermal gold vein system. It is a grass roots discovery made by the Kootenay Silver team. Over the past several years Kootenay has advanced the project with limited drilling, mapping, sampling, and geophysical surveys. The project comprises numerous northeast trending veins over a 1.5 by 3.0 kilometer trend. Select rock chip sampling at surface has returned assays as high as 12.8 gpt gold and 194 gpt silver. Limited drilling (2,628 meters over 13 drill holes) shows the main identified veins occur as classic vein and vein breccia zones from a few meters to 40 meters wide. Best drill results to date include 7.6 meters of 1.69 gpt gold and 29 gpt silver.
The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.
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