Copalito Silver-gold Project

​PROJECT HIGHLIGHTS:

  • Classic low sulphidation epithermal vein system which has numerous small old workings located in Sinaloa State
  • No evidence or reports of historic exploration drilling
  • Six principal veins with individual veins currently traced over strike lengths of up to two (2) kilometers. Veins vary in width from 0.5 to 15 meters at surface\
  • Kootenay surface sampling highlights completed in 2018 and 2019:

    o 7.2 gpt gold and 3,770 gpt silver in grab samples from 5 Senores and Agua Veins, respectively;

    o 8.2 gpt gold including 583 gpt silver over a 1.1-meter chip sample across the 5 Senores Vein;

    o 401 gpt silver including 0.24 gpt gold in a chip sample across 5.3 meters on 5 Senores Vein;

    o 532 gpt silver over 3.0 meters and 306 gpt silver over 4.9 meters chip sampled across Agua Vein;

    o 17.45% zinc, 9.89% lead, 76 gpt silver and 0.52 gpt gold in a grab sample taken at Pillar Vein; and

    o Copper values of 5.1%, 1.6 % and 1.5% taken from the northern area of the Property along the Cobriza Vein.


    2020 Drill highlights

    o BDH-20-001: 250 gpt silver and 0.247 gpt gold over 5.0 meters; 360 gpt silver and 0.1 gpt gold over 1.0 meter

    o BDH-20-004: 1,297 gpt silver and 0.285 gpt gold over 3.2 meters

    o BDH-20-009: 936 gpt silver, 0.29 gpt gold and 3.31% lead+zinc (“Pb+Zn”) over 1.0 meter

    o BDH-20-015: 51 gpt silver, 2.28 gpt gold, 6.18 % Pb+Zn over 1.2 meters

    o BDH-20-033: 59 gpt silver, 7.05 gpt gold, 13.55 % Pb+Zn over 0.2 meters

    o BDH-20-037: 846 gpt silver, 3.11 gpt gold and 6.15% lead plus zinc over 1.0 meter at the 5 senores vein

    o BDH-20-040: 6.65 gpt gold, 335 gpt silver over 2,25 meters; 16.95 gpt gold, 369 gpt silver and 3.74% Pb+Zn over 0.51 meters at the 5 Senores vein (one of the deepest holes drilled to date)

    o BDH-20-042: 490.2 gpt silver, 0.525 gpt gold, and 2.26 % Pb+Zn over 5.65 meters including; 1965 gpt silver, 0.575 gpt gold, and 6.35 % Pb+Zn

    o BDH-20-046: 330 gpt silver, 1.235 gpt gold, and 1.96 % Pb+Zn over 7.97 meters; and 3160 gpt silver, 2.27 gpt gold, and 7.84 % Pb+Zn over 0.22 meters


2020 and 2021 Drill Highlights

HOLE ID

FROM
(METERS)

TO
(METERS)

INTERVAL
(METERS)

SILVER
(GPT)

GOLD
(GPT)

% Pb + Zn

BDH-20-001

8

64

56.0

58.0

-

0.19

including

29

51

22.0

106.0

-

0.28

including

29

32

3.0

244.0

1.09

0.17

including

46

51

5.0

250.0

0.247

0.48

BDH-20-004

20.82

21.25

0.4

146.0

-

0.09

BDH-20-004

41

42

1.0

100.0

-

0.15

BDH-20-004

54

67.1

13.1

347.0

0.216

0.56

including

57.78

61

1.0

2830.0

0.145

0.84

BDH-20-009

33

51

18

63

0.153

0.74

including

33

34

1

936

0.294

3.31

and

49

50

1

40

1.01

1.39

BDH-20-015

50

57

7

40

0.482

1.20

including

54.9

56.1

1.2

51

2.28

6.18

BDH-20-033

90.4

93.1

2.7

101

0.689

2.28

including

92.9

93.1

0.2

59

7.05

13.55

BDH-20-037

42

52

10

128.5

0.655

1.138

including

45.75

48

2.25

483.8

2.187

2.865

including

47

48

1

846

3.11

6.15

BDH-20-040

26

35.05

9.05

124

2.09

0.795

including

31

33.25

2.25

335

6.65

2.625

including

31.12

32.63

0.51

369

16.95

3.74

and

43

55.2

12.2

24

0.411

1.004

including

51.1

51.65

0.55

93

1.07

4.63

including

53.55

54.59

1.04

32

1.52

3.395

BDH-20-042

1.85

2.9

1.05

144

0.07

0.056

including

15

36

21

178.3

0.187

0.81

including

25.5

36

10.5

333.8

0.35

1.47

including

30

31.18

1.18

1,965.00

0.575

6.35

BDH-20-046

35.04

54.47

19.43

217.8

0.83

1.48

including

46.5

54.47

7.97

330.4

1.235

1.96

including

46.5

46.72

0.22

3160

2.27

7.84

and

63

78

15

61.3

0.752

0.39

including

63

65

2

220

3.795

0.37

The objective of the first phase drill program totaling 4,153 meters over 40 drill holes completed in 2020 was to test each of the known vein structures to determine grade, continuity potential and build a prioritized inventory of veins. The Program successfully verified the existence and continuity of mineralized gold and silver veins at the project, where there is no evidence of modern exploration. Results demonstrate several areas having potential to host high grade deposits that will be the focus of follow up drilling.

Results of forty short holes, averaging approximately 100 meters a hole, targeting a range from 50 to 184 meters in depth, confirm that gold and silver mineralization continue at depth. This mineralization is associated with a significant percent of other elements including lead, zinc and copper, which provide an important addition to the precious metals. The best intersections are related to dilation zones, “mineralized shoots”, within the veins of the low sulphidation system.

2021 DRILL PROGRAM

In March 2021, the Company commenced a 3,500-meter core drill program to follow up the drilling completed in 2020. The drill program was guided by detailed structural mapping to test veins such as 5 Senores located in the southern area where good continuity and grade potential has been shown for at least 600 meters of strike length. Drill results completed to date on the 5 Senores are highlighted by several high-grade intercepts that range to 2,830 gpt silver (BDH-20-04) and 16.95 gpt gold (BDH-20-40). Further highlights from drilling completed on other veins at Copalito include the Pilar Vein with gold values of up to 7.05 gpt and 13.55% lead plus zinc (BDH-20-33); the Chiva Vein with silver values of up to 936 gpt (BDH-20-09); and the Cobriza Vein with silver values of up to 307 gpt.

Overview

The Copalito Project is a classic low sulphidation epithermal vein system which has numerous small old workings and no evidence or reports of historic exploration drilling. The Property consists of seven concessions totaling approximately 3,700 hectares and is located 35 kilometres east of McEwen Mining’s “El Gallo Mine” complex in Sinaloa State, along the western fringes of the Sierra Madre Occidental in northwestern Mexico. Copalito has good access, topography and infrastructure. Kootenay can acquire a 100% ownership in the concessions by making staged payments over a 4-year period totaling US$985,000. The Company at its option may accelerate the payments due under the Agreement. Upon earn-in the vendors will retain a 0.5% net smelter return.

EXPLORATION WORK COMPLETED AT COPALITO

Extensive mapping and sampling work has been carried out by the Company in 2018 and 2019. The vein system comprised of numerous veins with many of the individual veins traced over strike lengths of up to two (2) kilometers. Veins vary in width from 0.5 to 15 meters at surface. Sampling in preparation for the initial drill program returned up to 7.2 gpt gold and 3,770 gpt silver in grab samples and up to 8.2 gpt gold including 583 gpt silver over a 1.1-meter chip sample.

2020 DRILL PROGRAM

WORKED PLANNED

To be announced.

GEOLOGY

Mineralization is hosted within classic low sulfidation epithermal quartz and rare calcite veins. Multiple mineral events are evidenced by banded mineralized textures, multiple cross cutting veins/veinlets, laminated banding of chalcedonic and crystalline quartz, sulfide replacement and infillings of breccia matrix. Sulfide content is generally low but does range to 20% or more in hand samples. Sulfides and their oxide equivalents include fine grained pyrite, black and yellow sphalerite, galena, chalcopyrite and silver sulphosalts. Some zonation is becoming apparent with veins in the northeast being higher in gold and base metals and those in the south being high in silver and low in base metals.

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