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Time to Read: 4 minutes
Company Overview
Kootenay Silver is a Canadian-based exploration company focused on the discovery and development of silver resources in Mexico. The company trades under the symbol KTN on the TSX Venture Exchange. Their flagship project is La Cigarra, located in Chihuahua, Mexico, along with La Negra and Promontorio in the same region.
Kootenay Silver focuses on the high-grade La Columba silver project in Mexico. The company is actively drilling a 20,000-meter program aiming for a maiden resource estimate by year-end. Despite the challenging political climate in Mexico, Kootenay successfully completed an oversubscribed financing, reflecting strong investor confidence in La Columba’s potential. The company also has substantial resources in its La Cigarra and Promontorio projects, offering leverage to the silver price.
We aim to have a maiden resource estimate by the end of the year, ideally targeting over 50 million ounces to start, with the potential for 100 million ounces or more.
- James McDonald, CEO Kootenay Silver (TSX-V: KTN)
Kootenay Silver CEO Q&A Summary
What is the current sentiment towards mining in Mexico?
It’s hard to say definitively. We’ve just gone through six years with a president who was antagonistic towards the industry. His proposed mining reforms have been challenged legally, and the Supreme Court has signaled they don’t agree with them. We have a new president coming in, who is scientifically educated and seems more open to dialogue, so we hope for a more industry-friendly approach.
How does the political situation in Mexico affect Kootenay Silver?
For explorers and developers like us, it mainly affects the cost of capital. However, we recently completed an oversubscribed financing, driven by the strong potential of our La Columba project, indicating investor confidence despite the political climate.
Can you provide a status update on the La Columba drilling program?
We started the year with a 5,000-meter program, which we expanded to 20,000 meters after our financing. We’ve completed about 4,000 meters so far. We’re focusing on the D vein, aiming to define the edges of the mineralized shoot, and will soon add a second drill rig to accelerate the program.
What are some key highlights from the recent drilling at La Columba?
Our recent drilling extended the strike length of the D vein by nearly 50%, with intercepts like 34 meters of half-kilogram silver and 9.7 meters at 1,700 grams per ton. These results support the potential for a significant high-grade resource.
How does the variability in grade and width of the veins affect your resource estimation?
Thicker veins are beneficial as they build up tons and ounces faster and reduce mining costs. We aim to have a maiden resource estimate by the end of the year, ideally targeting over 50 million ounces to start, with the potential for 100 million ounces or more.
What are the challenges and opportunities with the La Columba project?
The main challenge is defining the mineralized zones, but the opportunity lies in the project’s size and grade potential. The D vein, for example, has shown significant promise with wide intercepts and high grades, and it’s still open at depth.
How do you manage the logistics and operational aspects of the project?
The project’s location in a relatively intact volcanic cone provides good topography for mining infrastructure. There are no major issues with core loss or unstable ground, and we have good relations with local communities and secure surface agreements.
What other projects are you focusing on besides La Columba?
Our focus is primarily on La Columba, but we also updated the resource estimates for our Promontorio and La Cigarra projects last year. These projects are ready for advancement as the silver market matures, either through raising capital or partnering with other companies.
How does the current silver market impact your strategy?
We believe we’ve entered a strong silver bull market, which is favorable for advancing our projects. Our high-grade discoveries, like La Columba, are particularly attractive in any silver price environment, making them highly sought after.
What are your plans for the rest of the year?
We aim to complete the 20,000-meter drill program at La Columba and announce regular drill results. By year-end, we hope to have a maiden resource estimate and continue drilling to expand the resource, moving towards a Preliminary Economic Assessment (PEA) next year.
What is the anticipated timeline for assay results and resource updates?
We plan to release drill results regularly, roughly every month. The goal is to have a maiden resource estimate by the end of the year, followed by continued drilling to further define and expand the resource.
Are there any other key points you’d like to highlight?
Our main goal is to demonstrate the significant potential of La Columba. We’re in a strong financial position with substantial high-grade drill results and a clear path towards a meaningful resource. This positions Kootenay Silver well for future growth and value creation.
Kootenay Silver CEO Interview (VIDEO)
Kootenay Silver is progressing well with its La Columba project, a high-grade silver vein system in Mexico. Despite a challenging political environment, the company has secured significant funding and is in the midst of a 20,000-meter drill program targeting a maiden resource estimate by year-end. The company’s focus remains on La Columba due to its high-grade potential, but it also holds significant resources at La Cigarra and Promontorio, which are poised to benefit from a rising silver market.
