VANCOUVER, Feb. 23, 2017 /CNW/ - Kootenay Silver Inc.  (TSXV: KTN) (the "Company" or "Kootenay") is pleased to provide an update on silver exploration and development activities and to provide some guidance for its proposed activities in 2017.  

Supported by one of the largest junior owned NI 43-101 silver equivalent resource asset bases of over 140 million ounces, Kootenay continues to provide its shareholders with significant leverage to silver prices from the Company's "Established Silver Bank" consisting of:

• La Cigarra: 51 million ounces of silver in M&I grading 86.3 gpt silver*;
• Promontorio: 92 million ounces of silver equivalent in M&I grading 64.3 gpt silver*;
• La Negra: 6800 meters drilled to date with more drilling planned in 2017.

The Company's Strategic Objectives for 2017

The Company's immediate priority is to materially increase the resource size and work on determining the scope and economic viability of two of its established silver assets in Mexico for the purpose of pursuing future silver production. This includes Kootenay's carried to production interest with Pan American Silver Corp. on its high-grade La Negra silver discovery in Sonora State and the continued resource expansion and economic development of its La Cigarra silver deposit within the Prolific Silver Mining District of Parral, located in Chihuahua State.  Work programs will also be initiated on other properties located in Mexico and Canada by the Company's Joint Venture partners.

Resource Growth – "New Discoveries and Resource Growth"

• La Cigarra:
  • Prioritize 11 Peripheral Target Areas for Drill Testing;
  • Up to 7500 meters estimated for Peripheral Targets including Ram and Soledad;
  • Up to 7500 meters estimated for resource expansion along extension of La Cigarra Deposit.

• Joint Venture Programs:
  • Promontorio/La Negra Pan American drill planned for late second quarter;
  • Silver Fox Project, British Columbia, Canada, Antofagasta 3000-meter drill program;
  • Cervantes, Sonora, Mexico work program pending;
  • 2X's Fred, British Columbia, Canada work program pending.

Advancement of La Cigarra towards an Economic Assessment

• Remodeling Resource with objective of improving grade and defining drill targets;
• Advanced Leach Testing using standard and SILVOX process to Assess Potential to Lower Capex and Opex costs;
• Updated Resource Estimate;
• Set timeline for Preliminary Economic Assessment at conclusion of drilling and Resource Estimate.

Kootenay President and CEO, James McDonald states, "The ongoing success of our drill and resource expansion program on La Cigarra and its surrounding mineralized structures at La Cigarra in Chihuahua State, combined with the high-grade results returned from La Negra under our agreement with Pan American Silver Corp. in Sonora, have laid a strong foundation for our growth and development strategy in 2017, and for what we believe will be a transformational year for the Company."

Drill Planning for Resource Expansion

Current remodeling work will set the foundation for drilling the extensions of the La Cigarra deposit as detailed mapping, sampling and geophysical interpretation will aid in prioritizing and setting the drill program for the 11 peripheral targets. The top priority targets of that group will be slated for drilling in 2017. More detail on meters and targets will be released once prerequisite work is complete and drilling commences.

It is expected that the Company will be in a position to announce and begin the next round of drilling by the end of the first quarter and a new resource estimate late 2017.

Metallurgical Testing

Results from preliminary testing utilizing the proprietary SILVOX process have been highly encouraging. Additional comparative metallurgical testing using standard and SILVOX processes is now being conducted to further assess silver recoveries. Management believes the ability to achieve enhanced silver recoveries could have a significant impact on the economic viability of La Cigarra and its potential development as a low-cost, open-pit heap leach operation.

The numerous work activities will run in parallel and will focus on the dual objectives of increasing resources by drill testing multiple targets and advancing remodeling and metallurgical work to aid in economic assessment of the La Cigarra resource.

Resource Estimates for La Cigarra and Promontorio*

La Cigarra currently hosts a resource estimate of 18.54 million tonnes containing 51.47 million ounces of silver in the Measured & Indicated categories grading 86.3 gpt silver and 4.45 million tonnes containing 11.46 million ounces of silver in the Inferred category grading 80 gpt silver.

The Promontorio Silver Resource currently hosts a resource estimate of 44.5 million tonnes containing 92 million ounces of silver equivalent in the Measured & Indicated categories grading 64.3 gpt silver equivalent and 14.6 million tonnes containing 24.3 million ounces of silver equivalent in the Inferred category grading 52 gpt silver equivalent.  The Technical Reports for both projects can be found on SEDAR.