Kootenay Silver Announces updated Promontorio/Maiden La Negra Resource Estimate and Intention of Share Consolidation

2023-10-12

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Canada NewsWire

VANCOUVER, BC , Oct. 12, 2023 /CNW/ - Kootenay Silver Inc. (TSXV: KTN) ("Kootenay" or the "Company") is pleased to announce an updated mineral resource estimate at the Promontorio-La Negra Project in Sonora Mexico . The resource estimate is an update of the Promontorio deposit and a maiden mineral resource estimate for the La Negra deposit 7km to the north. The two deposits are part of the Promontorio Mineral Belt and are considered a single project.

The mineral resource estimates ("MRE") have been prepared by Sue Bird , M Sc., P.Eng., Geological and Mining Engineer of by Moose Mountain Technical Services ("MMTS") in accordance with NI 43-101 standards ( May 9, 2016 ), CIM Definition Standards ( May 19, 2014 ) with guidance from CIM Best Practice Guidelines ( November 29, 2019 ).

Highlights from the 2023 Mineral Resource Estimate include:

Increased Grades of the Promontorio deposit of 24% for Ag, 21% for Au and 22% and 21% for Pb and Zn respectively (see Table 1). A resulting 68% increase in Measured and Indicated ("M+I") Ag Equivalent ("AgEq") Metal content at the Promontorio deposit (see Table 1). Promontorio M+I mineral resources of 140.8 million ounces ("Moz") AgEq contained in 42.1 million metric tonnes ("Mt") averaging 104 grams per tonne ("g/t"), Promontorio Inferred mineral resources of 39.8 Moz contained in 14.6 Mt averaging 84.9 g/t. These results are calculated using 25 g/t AgEq cut off and are contained within a potentially economically mineable pit shell. (see Table 2) La Negra Indicated mineral resources of 22.0 Moz AgEq contained in 5.3 Mt averaging 129 g/t. La Negra Inferred mineral resources of 4.6 Moz contained in 1.2 Mt averaging 115 g/t These results are calculated using 40 g/t AgEq cut off and are contained within a potentially economically mineable pit shell (see Table 3 and 4).

Kootenay's President & CEO, James McDonald states, "We are pleased to see a significant increase in metal content on the Promontorio-La Negra property that includes the La Negra discovery for the first time. Between the two deposits we see an exciting increase in grade and contained silver ounces.

On a silver equivalent basis, the project is now estimated to host 162.8 million ounces M+I and 44.4 million ounces inferred. On a silver only basis, the M+I resource for silver are estimated to total 68.2 million ounces with another 17.6 million ounces inferred.

The first ever resource estimate for La Negra Silver Deposit returned excellent overall grades, averaging 129 g/t silver equivalent in the Indicated Category and 115 g/t silver equivalent in the Inferred Category. At a cutoff of 50 g/t silver equivalent these grades increase to 146 g/t and 133 g/t silver equivalent respectively with only a modest drop in contained silver ounces.

I would like to point out our expanded resource base, on a silver equivalent basis, the estimated totals for Promontorio-La Negra plus La Cigarra are 214.2 million silver equivalent ounces in the M+I along with 54.9 million silver equivalent ounces inferred.

On a silver only basis, Kootenay's M+I silver resources are estimated to be 120.2 million ounces and 28.2 million silver ounces inferred for the Promontorio-La Negra and La Cigarra projects.

This work prepares the project for advancement in a stronger metals market. Meanwhile we remain focused on drilling Columba with the aim of defining a new high-grade resource there and will be reporting on results in the coming weeks."

Mr. McDonald adds, "The Company has also decided to proceed with a share consolidation at this time as detailed below, which the Board believes is in the best interest of shareholders. It has been an ongoing discussion point with various investors and shareholders encouraging us to proceed with the consolidation, which could lead to increased investor interest by raising the Company profile with a lower number of outstanding shares, a higher stock price and better position the Company to obtain financing to further advance its properties."

| *La Cigarra resource estimate table can be found here https://kootenaysilver.com/projects/la-cigarra |

The following two tables summarize the Promontorio comparison and the Mineral Resource estimate ("MRE") for Promontorio. The effective date of the Promontorio-La Negra resource estimates is August 27, 2023 .

Table 1: 2023 Promontorio Resource Compared to 2013 Pit Resource

| Year | Class | kt | AgEq (g/t) | Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | AgEq (koz) | Ag (koz) | Au (koz) | Pb (klb) | Zn (klb) | | 2023 MMTS 150% Pit | Measured | 12,451 | 111.7 | 37.03 | 0.46 | 0.53 | 0.61 | 44,718 | 14,823 | 183 | 146,033 | 166,620 | | Indicated | 29,664 | 100.7 | 33.50 | 0.41 | 0.47 | 0.55 | 96,072 | 31,950 | 393 | 306,716 | 360,996 | | | Meas+Ind | 42,115 | 104.0 | 34.54 | 0.43 | 0.49 | 0.57 | 140,790 | 46,773 | 575 | 452,748 | 527,616 | | | Inferred | 14,575 | 84.9 | 27.89 | 0.35 | 0.42 | 0.45 | 39,782 | 13,069 | 163 | 136,241 | 143,632 | | | 2013 SRK Pit | Measured | 10,289 | 67.9 | 32.69 | 0.40 | 0.46 | 0.55 | 22,470 | 10,814 | 134 | 105,328 | 123,715 | | Indicated | 34,215 | 56.0 | 26.30 | 0.34 | 0.38 | 0.45 | 61,572 | 28,926 | 373 | 287,579 | 335,904 | | | Meas+Ind | 44,504 | 58.7 | 27.77 | 0.35 | 0.40 | 0.47 | 84,042 | 39,740 | 506 | 392,907 | 459,619 | | | Inferred | 14,564 | 46.3 | 24.95 | 0.28 | 0.28 | 0.31 | 21,700 | 11,683 | 132 | 89,430 | 98,462 | | | Difference = (2023- 2013)/2013 | Measured | 21 % | 64 % | 13 % | 14 % | 16 % | 10 % | 99 % | 37 % | 36 % | 39 % | 35 % | | Indicated | -13 % | 80 % | 27 % | 21 % | 23 % | 23 % | 56 % | 10 % | 5 % | 7 % | 7 % | | | Meas+Ind | -5 % | 77 % | 24 % | 21 % | 22 % | 21 % | 68 % | 18 % | 14 % | 15 % | 15 % | | | Inferred | 0 % | 83 % | 12 % | 24 % | 51 % | 44 % | 83 % | 12 % | 24 % | 52 % | 46 % | |

Table 2: 2023 Resource Statement for the Promontorio Deposit

| Class | Cutoff | In situ Tonnage, Grade and Metal Content | | | | | | | | | | | | AgEq (g/t) | Tonnage (kt) | AgEq (g/t) | Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | AgEq Metal (kOz) | AG Metal (kOz) | Au Metal (kOz) | Pb (klb) | Zn (klb) | | | Measured | 15 | 13,538 | 104.3 | 34.5 | 0.428 | 0.49 | 0.57 | 45,419 | 15,012 | 186 | 147,440 | 168,631 | | 20 | 13,011 | 107.9 | 35.7 | 0.441 | 0.51 | 0.59 | 45,122 | 14,934 | 184 | 146,864 | 167,803 | | | 25 | 12,451 | 111.7 | 37.0 | 0.456 | 0.53 | 0.61 | 44,718 | 14,823 | 183 | 146,033 | 166,620 | | | 30 | 11,903 | 115.6 | 38.4 | 0.470 | 0.55 | 0.63 | 44,233 | 14,691 | 180 | 144,854 | 164,797 | | | 40 | 10,793 | 123.9 | 41.3 | 0.500 | 0.59 | 0.68 | 42,984 | 14,324 | 174 | 141,339 | 160,851 | | | 50 | 9,710 | 132.7 | 44.4 | 0.532 | 0.64 | 0.73 | 41,423 | 13,848 | 166 | 136,790 | 155,200 | | | Indicated | 15 | 32,225 | 94.3 | 31.3 | 0.387 | 0.44 | 0.52 | 97,728 | 32,439 | 401 | 311,172 | 366,586 | | 20 | 30,993 | 97.4 | 32.4 | 0.399 | 0.45 | 0.53 | 97,033 | 32,235 | 398 | 309,525 | 364,187 | | | 25 | 29,664 | 100.7 | 33.5 | 0.412 | 0.47 | 0.55 | 96,072 | 31,950 | 393 | 306,716 | 360,996 | | | 30 | 28,179 | 104.6 | 34.8 | 0.426 | 0.49 | 0.57 | 94,756 | 31,564 | 386 | 302,544 | 355,970 | | | 40 | 24,961 | 113.6 | 37.9 | 0.461 | 0.53 | 0.62 | 91,133 | 30,447 | 370 | 291,656 | 342,834 | | | 50 | 21,907 | 123.1 | 41.3 | 0.497 | 0.58 | 0.68 | 86,721 | 29,089 | 350 | 278,188 | 326,002 | | | Measured + Indicated | 15 | 45,763 | 97.3 | 32.3 | 0.399 | 0.45 | 0.53 | 143,147 | 47,451 | 587 | 458,612 | 535,217 | | 20 | 44,004 | 100.5 | 33.3 | 0.411 | 0.47 | 0.55 | 142,155 | 47,169 | 582 | 456,389 | 531,990 | | | 25 | 42,115 | 104.0 | 34.5 | 0.425 | 0.49 | 0.57 | 140,790 | 46,773 | 575 | 452,748 | 527,616 | | | 30 | 40,082 | 107.9 | 35.9 | 0.439 | 0.51 | 0.59 | 138,989 | 46,256 | 566 | 447,397 | 520,768 | | | 40 | 35,754 | 116.7 | 38.9 | 0.473 | 0.55 | 0.64 | 134,117 | 44,772 | 543 | 432,996 | 503,684 | | | 50 | 31,617 | 126.1 | 42.2 | 0.508 | 0.60 | 0.69 | 128,144 | 42,937 | 516 | 414,978 | 481,202 | | | Inferred | 15 | 16,637 | 76.8 | 25.1 | 0.319 | 0.38 | 0.40 | 41,072 | 13,415 | 171 | 139,011 | 147,447 | | 20 | 15,433 | 81.4 | 26.7 | 0.335 | 0.41 | 0.43 | 40,401 | 13,238 | 166 | 137,797 | 145,622 | | | 25 | 14,575 | 84.9 | 27.9 | 0.348 | 0.42 | 0.45 | 39,782 | 13,069 | 163 | 136,241 | 143,632 | | | 30 | 13,671 | 88.7 | 29.2 | 0.362 | 0.44 | 0.47 | 38,980 | 12,830 | 159 | 133,819 | 141,052 | | | 40 | 11,778 | 97.3 | 32.1 | 0.395 | 0.49 | 0.51 | 36,847 | 12,152 | 150 | 127,493 | 133,206 | | | 50 | 9,980 | 106.8 | 35.3 | 0.432 | 0.54 | 0.56 | 34,256 | 11,327 | 139 | 119,031 | 123,652 | |

| Notes to the 2023 Promontorio Resource Table: | | | | 1. | Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines, as required by NI43-101 | | | 2. | The base case Mineral Resource has been confined by "reasonable prospects of eventual economic extraction" shape using the following assumptions: | | | | • | Metal prices of US$22/oz Silver, US$1800/oz Gold, US$0.95/lb Lead and US$1.25/lb Zinc. Metallurgical recovery of 74% Silver, 70% Gold, 81% Lead and 88% Zinc | | | • | Payable metal of 95% Silver, 99% Gold in dore 95% Au in Pb concentrate, 95% Lead and 85% Zinc. Lead payable assumes a concentrate grade of 65% Pb and a 3% unit deduction. Zinc payable assumes a concentrate grade of 52% Pb and an 8% unit deduction. Offsite costs (transport, smelter treatment and refining) of US$1.5/oz Silver and gold in the Pb concentrate, US$10 oz Gold, US$ 0.15/lb Lead and US$0.31/ lb Zinc. Lead offsite costs assume 100 $US/dmt transport, 100 $US/ dmt treatment. Zinc offsite costs assume 100 $US/dmt transport, 200 $US/ dmt treatment. | | | • | Processing, General, and Administrative ("G&A") costs of US$ 12/ tonne milled. Mining cost of US$2.00 / tonne | | | • | 50 degree pit slopes with the 150% price case pit shell is used for the confining shape | | 3. | The resulting NSR = Ag*US$0.63/g*74% + Au*US$56.71/g*70% + 22.0462*(Pb*US$0.77/lb*81% + Zn*US$ 0.80/lb*88%) | | | 4. | The specific gravity of the resource averages 2.79 and is calculated from the Lead and Zinc content. Non-mineralized material is assigned an SG of 2.73. | | | 5. | Numbers may not add due to rounding. | |

At Promontorio the increase in M+I metal content is considered to be due primarily to the following:

Additional drilling of 89 holes ( 23,220 m ) in 2012-2013, that were not included in the previous resource estimate. Modelling of both high grade constrained mineralized shells and a lower grade mineralized halo to better limit the data used for the interpolations. Changes to the metal prices (particularly Ag and Au) with lower Ag price and higher Au price to conform to 3-year trailing averages which caused a large increase in AgEq grade.

The following two tables summarize the La Negra total resource estimate, and the La Negra resource by Oxidation zone, respectively. La Negra is assumed to produce dore, with only Au and Ag recovered. The cutoff grades of 40 g/t AgEq more than covers the assumed cost of Processing + G&A.

Table 3: 2023 Resource Statement for the La Negra Deposit

| ZONE | CLASS | Cutoff | In Situ Grades and Metal Content | | | | | | | | AgEq (g/t) | Tonnage (kt) | AgEq (g/t) | Ag (g/t) | Au (g/t) | AgEq Metal (kOz) | Ag Metal (kOz) | Au Metal (kOz) | | | | Total | Indicated | 25 | 7,282 | 102.5 | 99.8 | 0.061 | 24,000 | 23,370 | 14.2 | | 30 | 6,463 | 112.0 | 109.2 | 0.063 | 23,280 | 22,690 | 13.2 | | | | 35 | 5,821 | 120.8 | 117.9 | 0.065 | 22,610 | 22,060 | 12.2 | | | | 40 | 5,285 | 129.3 | 126.3 | 0.067 | 21,970 | 21,450 | 11.4 | | | | 45 | 4,821 | 137.6 | 134.5 | 0.069 | 21,330 | 20,850 | 10.7 | | | | 50 | 4,425 | 145.7 | 142.5 | 0.071 | 20,730 | 20,280 | 10.0 | | | | Inferred | 25 | 1,831 | 88.8 | 86.5 | 0.055 | 5,230 | 5,090 | 3.2 | | | 30 | 1,607 | 97.3 | 94.9 | 0.057 | 5,030 | 4,900 | 3.0 | | | | 35 | 1,415 | 106.1 | 103.7 | 0.059 | 4,830 | 4,720 | 2.7 | | | | 40 | 1,257 | 114.8 | 112.2 | 0.060 | 4,640 | 4,540 | 2.4 | | | | 45 | 1,111 | 124.2 | 121.6 | 0.061 | 4,440 | 4,340 | 2.2 | | | | 50 | 993 | 133.5 | 130.8 | 0.061 | 4,260 | 4,180 | 2.0 | | |

Table 4: 2023 Resource Statement for the La Negra Deposit by Zone

| ZONE | CLASS | Cutoff | In Situ Grades and Metal Content | | | | | | | | AgEq (g/t) | Tonnage (kt) | AgEq (g/t) | Ag (g/t) | Au (g/t) | AgEq Metal (kOz) | AG Metal (kOz) | Au Metal (kOz) | | | | OXIDE | Indicated | 25 | 2,383 | 98.8 | 95.1 | 0.049 | 7,570 | 7,280 | 3.7 | | 30 | 2,157 | 106.3 | 102.4 | 0.051 | 7,370 | 7,100 | 3.5 | | | | 35 | 1,964 | 113.6 | 109.5 | 0.053 | 7,170 | 6,910 | 3.3 | | | | 40 | 1,798 | 120.6 | 116.4 | 0.054 | 6,970 | 6,730 | 3.1 | | | | 45 | 1,661 | 127.0 | 122.7 | 0.056 | 6,780 | 6,550 | 3.0 | | | | 50 | 1,524 | 134.2 | 129.8 | 0.057 | 6,580 | 6,360 | 2.8 | | | | Inferred | 25 | 622 | 93.6 | 90.6 | 0.039 | 1,870 | 1,810 | 0.8 | | | 30 | 567 | 100.0 | 96.9 | 0.040 | 1,820 | 1,770 | 0.7 | | | | 35 | 512 | 107.3 | 104.1 | 0.042 | 1,770 | 1,710 | 0.7 | | | | 40 | 465 | 114.3 | 111.0 | 0.043 | 1,710 | 1,660 | 0.6 | | | | 45 | 429 | 120.4 | 117.0 | 0.044 | 1,660 | 1,610 | 0.6 | | | | 50 | 389 | 128.0 | 124.6 | 0.045 | 1,600 | 1,560 | 0.6 | | | | MIXED | Indicated | 25 | 732 | 78.6 | 75.4 | 0.045 | 1,850 | 1,770 | 1.0 | | 30 | 617 | 88.0 | 84.6 | 0.048 | 1,750 | 1,680 | 1.0 | | | | 35 | 526 | 97.6 | 94.1 | 0.050 | 1,650 | 1,590 | 0.9 | | | | 40 | 454 | 107.3 | 103.5 | 0.053 | 1,570 | 1,510 | 0.8 | | | | 45 | 394 | 117.0 | 113.1 | 0.055 | 1,480 | 1,430 | 0.7 | | | | 50 | 350 | 125.9 | 121.9 | 0.057 | 1,420 | 1,370 | 0.6 | | | | Inferred | 25 | 105 | 89.9 | 88.5 | 0.020 | 300 | 300 | 0.1 | | | 30 | 83 | 106.3 | 104.7 | 0.022 | 280 | 280 | 0.1 | | | | 35 | 71 | 119.0 | 117.4 | 0.023 | 270 | 270 | 0.1 | | | | 40 | 61 | 132.6 | 130.9 | 0.023 | 260 | 260 | 0.0 | | | | 45 | 51 | 149.2 | 147.6 | 0.024 | 240 | 240 | 0.0 | | | | 50 | 47 | 158.1 | 156.4 | 0.024 | 240 | 240 | 0.0 | | | | SULFIDE | Indicated | 25 | 4,167 | 108.8 | 106.8 | 0.071 | 14,580 | 14,310 | 9.5 | | 30 | 3,689 | 119.4 | 117.3 | 0.073 | 14,160 | 13,910 | 8.7 | | | | 35 | 3,331 | 128.7 | 126.6 | 0.075 | 13,790 | 13,560 | 8.1 | | | | 40 | 3,033 | 137.7 | 135.5 | 0.077 | 13,430 | 13,210 | 7.5 | | | | 45 | 2,766 | 146.9 | 144.7 | 0.079 | 13,060 | 12,870 | 7.0 | | | | 50 | 2,551 | 155.3 | 153.0 | 0.080 | 12,740 | 12,550 | 6.6 | | | | Inferred | 25 | 1,104 | 86.0 | 84.1 | 0.067 | 3,050 | 2,980 | 2.4 | | | 30 | 957 | 94.9 | 92.9 | 0.070 | 2,920 | 2,860 | 2.2 | | | | 35 | 832 | 104.3 | 102.2 | 0.072 | 2,790 | 2,730 | 1.9 | | | | 40 | 731 | 113.6 | 111.5 | 0.074 | 2,670 | 2,620 | 1.7 | | | | 45 | 631 | 124.8 | 122.7 | 0.076 | 2,530 | 2,490 | 1.5 | | | | 50 | 557 | 135.2 | 133.0 | 0.076 | 2,420 | 2,380 | 1.4 | | |

| Notes to the 2023 La Negra Resource Tables: | | | | 1. | Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines, as required by NI43-101 | | | 2. | The base case Mineral Resource has been confined by "reasonable prospects of eventual economic extraction" shape using the following assumptions: | | | | • | Metal prices of US$22/oz Silver, US$1800/oz Gold | | | • | Recovery is assumed to be as for dore. Metallurgical recovery of 82% Silver and 77% Gold in the Oxide zone, 85% Silver and 73% Gold in the Mixed zone, and 90% Silver and 31% Gold in the Sulfide zone. | | | • | Payable metal of 99% for Silver and Gold. Offsite costs (transport, smelter treatment and refining) of US$0.25/oz Silver and US$10/oz gold. | | | • | Processing, General, and Administrative (G&A) costs of US$ 12/ tonne milled. Mining cost of US$2.00/tonne | | | • | 50 degree pit slopes with the 150% price case pit shell is used for the confining shape | | 3. | The resulting NSR = Ag*US$0.69/g*Zone Ag Recovery% + Au*US$56.97/g*Zone Au Recovery% | | | 4. | Silver Equivalent (AgEq) = NSR / (US$0.69/g* Ag Recovery%) | | | 5. | The specific gravity is assigned by rock type as 2.52 in Oxides, 2.59 in Mixes and 2.61 in Sulfides | | | 6. | Numbers may not add due to rounding. | |

Resource Estimate Uncertainty

Areas of uncertainty that may materially impact the mineral resource estimates include changes to: long-term metal price assumptions; interpretations of mineralization geometry, fault geometry and continuity of mineralized zones; net smelter return used to constrain the estimates; metallurgical recovery assumptions; input assumptions used to derive the conceptual open pit outlines used to constrain the estimate; variations in geotechnical, hydrogeological and mining assumptions and environmental, permitting and social license assumptions.

There are no other known environmental, legal, title, taxation, socioeconomic, marketing, political or other relevant factors that would materially affect the estimation of mineral resources that are not discussed in this news release.

Mineral Resource Estimate Methodology

Data

The Promontorio MRE uses 59,149 assays from 311 drill holes based on drilling up to an including 2013. The La Negra MRE uses 9,311 assays in 94 drill holes from drilling completed between 2014 and 2017.

Mineralization Envelopes

Confining shapes for the interpolations have been made using the geologic modeling shapes provided by Kootenay, the logged lithology and the metal grades. The shapes of the main mineralized zones target the breccias and a value of approximately US$15 /tonne Net Smelter Return (NSR). Dilution of lower grade intercepts has been added as necessary to produce smooth shapes.

At Promontorio there are six domains modeled, as well as a low-grade halo surrounding and connecting the 2 major areas. The shapes are illustrated in Figure 1.

At La Negra one domain has been modeled and it has been split into three oxidation zones based on logging data. The shapes are illustrated in Figure 2.

[](https://mma.prnewswire.com/media/2245287/Kootenay_Silver_IncKootenay_Silver_Announces_updated_Promontor.html)

[](https://mma.prnewswire.com/media/2245288/Kootenay_Silver_IncKootenay_Silver_Announces_updated_Promontor.html)

Grade Capping

The grade distributions within the mineralized domains are mainly lognormal except at very high grades where outliers are evident and therefore capping of assays has been done as summarized in the following tables. For clarity, also summarized in the tables are the Outlier Restrictions which has been applied to the composites during interpolation at Promontorio. For composite grades above the Outlier value provided, and at distances greater than 5m from the data, the value is essentially capped to the outlier.

At both deposits 2m has been used for the base length when compositing, which is longer than the vast majority of the assays. The compositing also honored the domain boundaries. Assay intervals less than 1 m have been added to the previous composite to limit the number of small assay intervals.

Table 5: Capping of Assays and Outlier Restriction of Composites by Domain - Promontorio

| | Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | | | | | | | Cap | Outlier | Cap | Outlier | Cap | Outlier | Cap | Outlier | | Low Grade | 1,600 | 500 | 4 | 2 | 9 | 3 | 10 | 3 | | Domain 1 | 1,600 | 500 | 10 | 7 | 9 | 3 | 10 | 3 | | Domain 2 | 1,600 | 500 | 9 | 2 | 9 | 3 | 10 | 8 | | Domain 3 | 600 | 500 | 6 | 6 | 4 | 4 | 7 | 5 | | Domain 4 | 500 | 1,000 | 4 | 2 | 5 | 5 | 6 | 5 | | Domain 5 | 1,000 | 600 | 3 | 3 | 4 | 3 | 6 | 5 | | Domain 6 | 100 | 60 | 1 | 1 | 2 | 2 | 2 | 2 |

Table 6 : Capping of Assays by Oxidation Zone - La Negra

| | Oxidation Zone | Cap, g/t | | Ag | Oxide | 3000 | | Mixed | 1500 | | | Sulfide | 3000 | | | Au | Oxide | 0.5 | | Mixed | 0.5 | | | Sulfide | 1 | |

Variography

At Promontorio variograms have been made on each axis for each metal in Domain 1 and 2, which are the largest domains. The strongest correlations are steeply dipping down the major axis of the mineralization with ranges from 100m to 130m .

At La Negra the strongest correlation is at azimuth 255 dipping 15 degrees with a range of approximately 55m . The variograms have been used to aid in determining the search parameters for the interpolations, as well as distances for Classification to Measured and Indicated.