Kootenay Zinc Corp. Announces Updates on Sully Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 13, 2017) - Kootenay Zinc Corp. (the "Company") (CSE:ZNK)(CSE:ZNK.CN)(OTCQB:KTNNF)(FRANKFURT:KYH) is pleased to announce that its Sully project team has recently completed drill hole SY17-11, which tested a portion of the E1 zone of the East anomaly. The hole did not intersect an extensive high density mass but did intersect a number of geologically significant features with similarities to the Sullivan sedimentary environment. The project team continues to review and evaluate the new core and down hole geophysics.
At a hole depth corresponding to the projected gravity anomaly an increase in thickness of intervals of carbonaceous wacke laminate (CWL), as well as an increase in proportion of CWL to argillite were noted. A 20 meter thick CWL marks the top of the Lower Aldridge Formation at Sullivan, 30 kilometres west of Sully. That interval splits and interfingers over 200 meters with ore and associated unique sedimentary rocks that comprise the Sullivan sub-basin. The thicker than normal intervals of CWL interfingering with argillite in SY17-11 suggest a sub-basin setting is present at Sully. The gravity anomaly suggests proximity to a mass in rocks deposited at an equivalent time in what appears to be a sub-basin that is entirely consistent with the Sullivan SEDEX model.
Rare lead and zinc sulphides are also observed at a hole depth of 283 and at 298.8 meters; one associated with laminated iron sulphides and the other in a quartz veinlet. Iron sulphides, predominantly pyrrhotite that commonly is accompanied by a minor amount of pyrite, are present throughout much of the hole. These sulphides are primarily in bedding parallel laminations; however disseminations and veinlets are also present. The laminations are 1 to 5 millimeters thick and where most abundant are spaced at 10 centimeter to 1 meter intervals. These observations may indicate fringe mineralization of a SEDEX style gravity mass.
Drill hole SY17-11 drilled the upper portion of unit A1c of the Hughes Range facies of the Aldridge Formation. Two small (up to 5 meters) gabbro bodies, likely dikes were intersected. Specific gravity measurements of these rock types are in a fairly narrow range and there is little to no contrast with the gabbro intersected, indicating that gabbro is unlikely to account for the anomaly. Strata in the hole are highly strained, and they display a steeply overturned west dip, consistent with the lower limb of the Hughes Range anticline described in previous news releases.
The Project Team also completed new down hole electromagnetic (EM) and magnetic (MAG) survey on holes SY16-10 and SY17-11 to expand geophysical definition of the targets. The EM results did not identify conductive targets nearby, which may not be conclusive for targeting purposes at Sully, however a modest MAG anomaly was noted and final results will be reported shortly. MAG anomalies have also been recorded in other drill holes at Sully and the Company has recently initiated a ground MAG survey over the extent of the gravity anomalies. The results of that work will be reported once the data has been collected and interpreted.
The Company will await the results and interpretation of all of the recently collected data before drilling next planned holes, expected to start immediately following spring breakup conditions. The Company also anticipates permitting of new drill sites to be completed during this time.
About the Company
Kootenay Zinc Corp. is a mineral exploration and development company based in Vancouver, British Columbia that is presently targeting the Sully Property. The Company is focused on discovering large-scale sedimentary-exhalative ("SEDEX") deposits.
The Sully Property comprises 1,375 hectares located approximately 30 kilometres east of Kimberley, B.C., and overlies rocks of similar age and origin as those which host the world-class Sullivan deposit, owned by Teck Resources Ltd. Sullivan was discovered in 1892, and is known to be one of the largest SEDEX deposits in the world. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore, including approximately three hundred million ounces of silver, eight million tonnes of zinc and eight million tonnes of lead. The equivalent level of strata as at Sullivan and that formed on the margin of that same basin are present at the Sully Property. The Company cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Sully Property.
The scientific and technical information contained in this news release has been reviewed and approved by the Company's Project Manager, Paul Ransom, P.Geo., a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
On behalf of the Board of Directors
David Schmidt, President and Chief Executive Officer
Forward-Looking Information
This news release includes certain statements that constitute "forward-looking information" within the meaning of applicable securities law, including without limitation, statements that address the Sully Property, comments regarding the timing and content of upcoming work programs, geological interpretations, costs and timing of future exploration and development, requirements for additional capital, other statements relating to the financial and business prospects of the Company. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved), and variations of such words, and similar expressions are not statements of historical fact and may be forward-looking statements. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of zinc and other metals, anticipated costs and the ability to achieve goals. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: (i) risks related to zinc, base metal and other commodity price fluctuations; (ii) risks and uncertainties relating to the interpretation of exploration results; (iii) risks related to the inherent uncertainty of exploration and cost estimates and the potential for unexpected costs and expenses; (iv) that resource exploration and development is a speculative business; (v) that the Company may lose or abandon its property interests or may fail to receive necessary licences and permits; (vi) that environmental laws and regulations may become more onerous; (vii) that the Company may not be able to raise additional funds when necessary; (viii) the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; (ix) exploration and development risks, including risks related to accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration and development; (x) competition; (xi) the potential for delays in exploration or development activities or the completion of geologic reports or studies; (xii) the uncertainty of profitability based upon the Company's history of losses; (xiii) risks related to environmental regulation and liability; (xiv) risks associated with failure to maintain community acceptance, agreements and permissions (generally referred to as "social licence"); (xv) risks relating to obtaining and maintaining all necessary government permits, approvals and authorizations relating to the continued exploration and development of the Company's projects; (xvi) risks related to the outcome of legal actions; (xvii) political and regulatory risks associated with mining and exploration; (xix) risks related to current global financial conditions; and (xx) other risks and uncertainties related to the Company's prospects, properties and business strategy. These risks, as well as others, could cause actual results and events to vary significantly.
There can be no assurance that planned exploration will be completed as proposed or at all, or that economic resources will be discovered or developed at the Sully Property. Accordingly, actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, the loss of key directors, employees, advisors or consultants and fees charged by service providers. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this news release.