Kootenay Silver Stock Price, News & Analysis

Kootenay Silver Inc. (OTCQX: KOOYF, TSXV: KTN) is a mineral exploration company focused on the discovery and development of silver-dominant projects in Mexico. According to the company’s disclosures, Kootenay Silver is actively engaged in exploration in the Sierra Madre Region of Mexico and holds what it describes as one of the largest junior portfolios of silver assets in the country. The company’s strategy emphasizes the expansion of existing silver resources, new discoveries and the potential economic advancement of priority projects in prolific mining districts in the states of Sonora and Chihuahua, Mexico.

Core focus: Columba High-Grade Silver Project

A central asset for Kootenay Silver is its 100%-owned Columba Silver Project in Chihuahua, Mexico. The company describes Columba as a classic high-grade epithermal vein system hosted within a volcanic caldera setting. Mapping indicates a surface extent of mapped veins of roughly 4 kilometres by 3 kilometres, with vein mineralization occurring over a minimum vertical extent of 350 meters as shown by drilling. The veins appear to be intermediate sulfidation veins, and management notes that all veins remain open to depth and along strike.

Kootenay reports that Columba hosts a maiden NI 43-101 Mineral Resource Estimate (MRE) in the Inferred category. At a base-case cut-off grade of 150 gpt silver, the underground MRE totals 5.92 Mt grading 284 gpt silver, 0.19% lead and 0.50% zinc, representing 54.1 million ounces of silver, 25.2 million pounds of lead and 65.6 million pounds of zinc. The resource is based on 217 surface diamond drill holes totaling 53,476 meters and covers 17 epithermal veins that comprise the Columba vein system. The MRE is exclusive of mined-out material on the F Vein and is reported as having reasonable prospects for eventual economic extraction, while remaining a mineral resource rather than a mineral reserve.

Geology and vein system characteristics

The Columba project’s veins cut every known rock type on the property and can be traced across the highest elevations of the caldera, which the company interprets as indicating that the veins formed late in caldera history. As elevation increases, vein development becomes irregular and is eventually replaced by breccias at higher elevations. Company technical descriptions state that silver grades diminish with increasing elevation to background values, while silver grades increase with depth from background at higher elevations to very high grades at depth. Kootenay notes that these features suggest the vein system has undergone almost no erosion, implying that the original silver endowment is largely preserved in situ.

The company uses a conceptual “grade line” at approximately 1,750 meters above sea level, below which better silver grades tend to appear. Drilling has demonstrated vein mineralization over at least 350 meters of vertical extent, and Kootenay’s technical commentary indicates the potential for depths exceeding 700 meters of vertical extent, which remains to be tested. Vein widths in the MRE are summarized by the company as averaging 5 to 6 meters across all zones.

Resource breakdown and key veins

The Columba MRE is reported by vein, covering structures such as the D, F, Lupe, B2, HG, J, I, E and several hangingwall and footwall veins. Within the total Inferred resource of 5.92 Mt at 284 gpt silver, the D Vein is the largest contributor, with 3.29 Mt grading 293 gpt silver, 0.22% lead and 0.60% zinc, corresponding to 30.964 million ounces of silver, 15.8 million pounds of lead and 43.7 million pounds of zinc. Other veins, including F, Lupe, B2 and HG, also contribute meaningful tonnage and grade. Sensitivity tables published by the company show how the resource responds to different cut-off grades between 100 gpt and 300 gpt silver.

Company drilling updates highlight particularly high-grade intercepts within the D Vein and related structures. Reported results include intervals such as 16.50 meters grading 620 gpt silver with associated lead and zinc, including sub-intervals with grades in the thousands of grams per tonne silver. Additional drilling has intersected hangingwall and footwall vein systems and broad envelopes of lower-grade mineralization surrounding the main high-grade structures.

Ongoing exploration and staged drill programs

Kootenay Silver has outlined and begun executing a staged drill program at Columba totaling 50,000 meters. The company reports that drilling phases since 2019 have been designed to extend and expand known mineralization on multiple vein trends, including the D, F, B/Lupe and I Veins, among others. Recent news releases describe systematic step-out and extension drilling on the D Vein and Lupe/B2 trends, with holes targeting extensions of mineralized structures at nominal 100-meter spacing.

According to company updates, Kootenay is approximately 13,000 meters into the 50,000-meter program in one phase of work, with multiple holes awaiting assays and additional drill holes underway. The company states that it is fully funded through completion of the current 50,000-meter exploration drill campaign and has used an at-the-market equity distribution program to raise additional funds in prior quarters.

Discovery of gold-bearing zones at Columba

While Columba is described primarily as a silver project, Kootenay has reported the discovery of gold-bearing zones associated with the I Vein trend. Drill holes CDH-25-217 and CDH-25-218 intersected broad anomalous gold intervals hosted in rhyolite breccias and feldspar porphyritic intrusive rocks, along with quartz-calcite ± barite veining that also carries silver. These zones display features such as B-type veins, disseminated pyrite and textures indicative of porphyry-style mineralization. The company notes that the geochemical signature of the gold mineralization is distinct from the silver veins, suggesting a separate mineralizing event, and indicates that further drilling will be required to evaluate this target.

Historical context and project ownership

Prior to Kootenay Silver’s involvement, the Columba area had seen limited historical mining on one of the veins, referred to as the F Vein, with underground development and small-scale production in the early 1900s and again around 1958 to 1960. The company reports that it has acquired 100% of the project and has completed detailed mapping, lidar surveys, airborne magnetic surveys and extensive diamond drilling across various veins. Kootenay also notes that it has a 24-year surface access agreement that allows for both exploration and exploitation and covers all mineralized areas drilled to date.

Exploration practices and QA/QC

Kootenay Silver describes a formal quality assurance and quality control (QA/QC) program for its Columba exploration. Core is cut in half with a diamond saw under the supervision of qualified geologists and engineers, with samples labeled, bagged, sealed and recorded. Samples are delivered to ALS Minerals in Chihuahua, with pulps sent to ALS in Vancouver for analysis. The company states that blanks, standards and duplicates are inserted at regular intervals, with blanks on average every 100 samples and standards approximately one in every 25 samples within mineralized zones. Duplicates are taken in mineralized intervals at an average of two per hole. Analyses for silver, zinc, lead, copper and related trace elements are conducted by ICP four-acid digestion, with gold analyzed by 30-gram fire assay with an AA finish.

Capital markets and trading venues

Kootenay Silver’s common shares trade on the TSX Venture Exchange under the symbol KTN and on the OTCQX Best Market under the symbol KOOYF. The company announced the commencement of OTCQX trading under KOOYF, noting that this market is operated by OTC Markets Group and is intended to enhance visibility and accessibility to U.S. investors. The company also references its use of equity financing mechanisms, including a bought deal financing and an at-the-market equity distribution program, to support exploration activities.

Marketing and investor awareness activities

Kootenay Silver has engaged third-party marketing firms to provide services such as email campaigns, native advertising, display ads, lead generation, content creation, strategic planning and digital advertisement placement. In particular, the company has retained Sideways Frequency LLC (SFLLC) for specified terms and compensation, and has disclosed that SFLLC has engaged additional service providers in relation to promotional materials concerning the company’s common shares. Kootenay states that it maintains editorial control over promotional material for factual accuracy, while not being directly involved in its creation or distribution beyond that role.

Broader project portfolio and positioning

Beyond Columba, Kootenay Silver describes itself as being supported by a large junior portfolio of silver assets in Mexico, with projects providing shareholders with leverage to silver prices. Public commentary and third-party research coverage have referenced additional projects such as La Cigarra and Promontorio, which are discussed in external analyst reports as part of the company’s broader resource base. Kootenay’s stated focus is on expanding current silver resources, pursuing new discoveries and advancing near-term economic development of priority silver projects in well-known Mexican mining districts.

Risk and regulatory framework

The company’s technical disclosures are prepared under Canadian securities regulations, specifically National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Kootenay emphasizes that mineral resources are not mineral reserves and do not have demonstrated economic viability, and that Inferred Mineral Resources have a lower level of confidence than Indicated or Measured Mineral Resources. The company notes that mineral resource estimates may be materially affected by factors such as environmental, permitting, legal, title, taxation, socio-political or marketing issues. Cautionary notes also highlight differences between Canadian and U.S. reporting standards for mineral reserves and resources.

How investors use information on Kootenay Silver

Investors and analysts examining Kootenay Silver typically review the Columba NI 43-101 technical report, ongoing drill results, and corporate updates regarding financing and exploration plans. The detailed vein-by-vein breakdown of the Columba resource, combined with systematic drilling updates on structures such as the D, F, Lupe, B2 and I Veins, provides a technical framework for assessing the scale and continuity of mineralization. The company’s emphasis on QA/QC procedures, independent Qualified Person oversight and formal technical reporting offers a structured basis for evaluating the exploration results disclosed to the market.