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Mexico-focused Kootenay Silver (TSXV: KTN) has released an updated NI 43-101 mineral resource estimate (MRE) for its 100% owned La Cigarra project located in the Parral silver district of Chihuahua state. The MRE showed an improvement in silver grade compared to the previous one from 2015.
Measured and indicated resources are estimated at 15.7 million tonnes grading 102 g/t silver, 0.07 g/t gold, 0.16% lead and 0.21% zinc, for 120 g/t silver equivalent (AgEq). The contained metal is 51.6 million oz. of silver, 33,900 oz. of gold, 54.8 million lb. of lead and 73.5 million lb. of zinc for 60.6 million oz. of AgEq.
Inferred resources are estimated at 3.4 million tonnes grading 102 g/t silver, 0.06 g/t gold, 0.20% lead and 0.19% zinc (119 g/t AgEq), containing 11 million oz. of silver, 6,000 oz. of gold, 14.8 million lb. of lead and 13.8 million lb. of zinc (12.9 million oz. AgEq).
The 102 g/t silver grade (in all categories) represents a near 20% increase in the M+I grade calculated in 2015, and a 25% increase in the inferred grade.
The updated resource estimate for La Cigarra, according to Kootenay’s CEO James McDonald, is part of the company’s strategy to prepare its three resource projects — La Cigarra, Promontorio and La Negra — for advancement in a bullish silver market, while also moving the high-grade Columba towards an MRE.
The 2024 La Cigarra MRE incorporates a significantly revised geological model compared to the previous resource and features a database of 201 surface diamond and RC drillholes totaling 36,988 metres and 26,419 assay intervals.
“The La Cigarra updated resource estimate is a meaningful improvement in silver grade compared to the previous calculation, largely due to detailed work by our team which has significantly advanced understanding of the key mineral domains and structural geometry of the deposit,” McDonald said in a press release.
He also noted that the deposit is located within 20-30 kilometres of the famous San Francisco del Oro and Santa Barbara deposits that together have produced over 800 million oz. of silver to date. As such, the has La Cigarra project has “significant potential for growth beyond the limits of the new mineral resource.”
The La Cigarra project was acquired from Northair Silver in 2016, and is now a key property in Kootenay’s portfolio of advanced silver exploration projects.
Shares of Kootenay Silver rose by 2.4% to C$0.84 apiece by 12:30 p.m. ET, giving the junior miner a market capitalization of C$38.4 million. The shares traded between C$0.60 and C$1.70 over the past 52 weeks.
