Kootenay Silver Inc. entered into an option agreement through its Mexican subsidiary to acquire the Copalito silver-gold project, which comprises seven concessions totaling approximately 3,700 hectares in Sinaloa, Mexico.
The company can acquire the project by making staged payments totaling US$985,000 over four years, which it may accelerate, while the vendors will be entitled to a 0.5% net smelter royalty upon earn-in. The deal remains subject to the approval of the TSX Venture Exchange.
Kootenay management sees potential for the discovery of a high-grade silver-gold vein deposit at Copalito based on sampling work that returned grades of up to 7.2 g/t of gold and 1,620 g/t of silver with good vein widths at surface.
The company plans to map and sample veins at surface to identify the best grading areas as an initial step ahead of drill-testing.
