Kootenay Resources Inc. Reports Magnetotelluric Survey Results on Moyie Anticline Project in British Columbia

VANCOUVER, Aug. 9, 2022 - Kootenay Resources Inc. (the "Company" or "Kootenay") reports on the results of the magnetotelluric (MT) survey on its Moyie Anticline Project in southeastern B.C. as part of its program to discover a Tier One deposit.

The program was very successful in identifying numerous deep conductive 'feeder' zones within which are at least 29 individual strong conductors. Seven of the strongest anomalies are of a size and conductive strength thought to be comparable with that of a large sulfide deposit similar to the expected magnitude of the famous Sullivan Mine.

Figure 1a and 1b, and Figures 2a and 2b show several high priority anomalies, seen as low-resistivity responses extending from depth to the near surface. The figures labeled B show the deep conductive feeders coming from more than 20km of depth while the figures labeled A are near-surface, individual conductive zones of size and strength similar to those of a Sullivan-like deposit. Figure 3 is a plan map showing the locations of the MT anomalies.

Subject to financing, the Company plans to conduct further MT surveying around the stronger and larger anomalies to establish 3D imaging for drill targeting. The resulting targets will be evaluated against Kootenay's existing database of geological and geochemical information and ranked in order of priority based upon features indicative of Sullivan-style mineralization. Features considered important in the region include local stratigraphy, structure, alteration and geochemical signature. The Company expects to commence drill testing of high priority targets in 2023.


Background

The Moyie Anticline region of the Purcell basin has long been considered prospective for the discovery of base metal deposits similar in style to the world-famous Sullivan deposit, Kimberley, BC. In the fall of 2021, Kootenay commissioned a survey comprising, eighty-six MT stations dispersed across the Moyie Anticline Project area and readings were taken over a period of three to four weeks.

The survey was designed as a first-pass test of the large prospective land package for deep-seated (greater than 5 km depth) conductive 'feeder' zones that originate at great depths (> 10km) and continue to shallow depths or even to the surface. In Australia this application of MT surveying has lead to the understanding that detectable, crustal-scale conductive feeder-like zones can host significant ore deposits such as the super-giant polymetallic Olympic Dam Deposit.

This method is proving increasingly useful in mineral exploration by allowing the evaluation of large areas of prospective ground for crustal-scale features that may indicate the presence of hidden ore bodies. Once prospective zones are identified, follow up work including more tightly spaced surveys are expected to increase the resolution to allow for effective drill targeting.


Qualified Persons

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 Resources Inc.

KSR is an exploration company actively engaged in the exploration and discovery mineral projects in British Columbia, Canada. The Company was formed as a spin-out of Kootenay Silver Inc. (TSXV: KTN) in which prospective Canadian assets were transferred to Kootenay Resources Inc. The transaction was completed in October of 2021, Kootenay Silver Inc. currently holds ~3.2 million common shares of Kootenay Resources Inc.


On behalf of the board of directors of the Company:

James McDonald
Director



No Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at August 8, 2022. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Kootenay as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Kootenay 's expectations or any change in events, conditions or circumstances on which any such statement is based.

SOURCE Kootenay Resources Inc.



Contact

James McDonald, Director at 403-880-6016
Raj Kang, Director at 604-601-5650