www.kootenaygold.ca
Kootenay Gold is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company’s flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. The Company's objective is to develop near term discoveries and long term sustainable growth. Encouraging results from ~28,000 meters of drilling at Promontorio suggests the possible existence of a large Porphyry system similar to major producing deposits within the region. Kootenay’s management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.
Astral in option deal with Kootenay to take full control of Jumping Josephine project for C$2 mln and 4 mln shares
Kootenay Gold Inc (TSX-V: KTN) said it and Astral Mining Corp (TSX-V: AA) have executed an option agreement which gives Astral the right to increase its current 60 percent interest in the Jumping Josephine property in British Columbia to 100 percent.
Astral can acquire Kootenay’s 40 percent interest in the gold property by spending C$2 million on exploration and issuing 4 million of its shares to Kootenay.
Planning and permitting is now underway for a trenching and diamond drilling program at Jumping Josephine for the spring 2010, as well as the previously announced bulk sampling at the JJ Main zone.
This work will continue to evaluate the two kilometre JJ Main structure, as well as testing a number of other high-priority targets.
Gold was encountered over a strike length of 900 metres and to vertical depths of up to 240 metres below surface and remains open on strike and at depth.
Kootenay also will include a 61.04 square kilometres package of claim blocks contiguous to the North and on strike with the Jumping Josephine property known as the CP/Midas Claims. Should any portion of the JJ or CP/Midas Claims go into commercial production, Astral will pay Kootenay 1 percent net smelter returns (NSR) and will issue to Kootenay an additional 400,000 common shares.
Under the option deal, Kootenay will be able to fill one Astral board position.
Kootenay is actively developing projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Promontorio gold-silver project in northwest Mexico remains its priority project, where it is currently undertaking a 5,000 meter step-out drilling program. In Mexico’s Sonora state, the Vancouver headquartered explorer has also described its Espiritu gold-copper project as a potential company maker. At Espiritu, a drilling programme is currently underway of a minimum 1,000 meters of HQ core, comprising 4 to 6 holes in 4 drill sites 100 to 500 meters apart.
