Kootenay Commissions a Preliminary Economic Assessment on La Cigarra Silver Deposit and Continues to Aggressively Drill Columba

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# Kootenay Commissions a Preliminary Economic Assessment on La Cigarra Silver Deposit and Continues to Aggressively Drill Columba

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# Kootenay Commissions a Preliminary Economic Assessment on La Cigarra Silver Deposit and Continues to Aggressively Drill Columba
January 20, 2026
Kootenay Commissions a Preliminary Economic Assessment on
La Cigarra Silver Deposit and Continues to Aggressively Drill Columba
Kootenay Silver Inc. (TSXV: KTN; OTCQX: KOOYF) (the "Company" or "Kootenay") is
pleased to announce it has engaged engineering firms Sacré-Davey Engineering Inc. (“Sacré-
Davey”) and Canenco Consulting Corp. (“Canenco”) to conduct a Preliminary Economic
Assessment (“PEA”) on its La Cigarra Silver deposit (“La Cigarra”) which sits in the famous Parral
Mining District of Chihuahua. The PEA is expected to be finished in the second quarter of this
year.
James McDonald President and CEO of Kootenay states “In late 2023 and early 2024, in
anticipation of silver decisively breaking above $30 dollars per ounce, we updated our resource
estimates on the existing deposits of La Cigarra and Promontorio, and at the same time published
a maiden resource on the La Negra deposit. These three deposits are well positioned to be quickly
advanced with silver experiencing a nominal record high of $94.09 per ounce driven by a multi-
year supply deficit and intense industrial demand. As such, we have commissioned a Preliminary
Economic Study on the first of those three deposits, La Cigarra, for delivery in Q2. At the same
time, we are aggressively drilling Columba to achieve our goal of increasing its maiden resource
of 54 million ounces of silver to 100 million ounces followed by a PEA of its own.”
Ken Berry, Chairman, added “With 43-101 estimates on four deposits and active programs to
deliver a PEA on La Cigarra and an aggressive 50,000 meter program to push Columba’s resource
to 100 million ounces we aim to exit 2026 as a developer with a stellar set of assets in the
pipeline” .
La Cigarra
La Cigarra is host to a pit constrained resource totaling 51.57 million ounces of measured plus
indicated category (M+I) silver in 15.73 million tonnes grading 102 gpt silver, 0.07 gpt gold,
0.16% lead and 0.21 % zinc (60.56 million ounces Ag equivalent1) and another 11 million ounces
of inferred category silver in 3.37 million tonnes grading 102 gpt silver, 0.06 gpt gold, 0.2 % lead
an 0.19 % zinc (12.85 million ounces Ag equivalent1). See news release dated January 25th, 2024.
La Cigarra sits along a mineralized trend extending from the famous Santa Barbara and San
Francisco Del Oro mines about 30 km to the south where the Mexican mining companies Penoles
and Frisco are actively mining up to depths of 2000 meters.
About Sacré-Davey and Canenco
Sacré-Davey provides innovative multi-disciplinary engineering and project management
solutions, backed by nearly four decades of satisfied clients and thousands of successfully
completed projects. As a mid-market organization, their unique approach combines the reliability
of a large organization with the personalized services of a boutique firm.
Sacré-Davey is a privately-owned firm with headquarters in North Vancouver, BC, with offices
across Canada, the Unites States and Southeast Asia. With a global team of experts, they provide
quick response times and the appropriate resources to deliver projects effectively and efficiently.
Their team brings experience managing and executing mining studies and projects around the
world, giving them a broad portfolio of technical and financial expertise from which to draw.
Canenco brings technical silver expertise from mining operations in Mexico and across central
and southern Americas. With both project and operational understanding of the region’s
conditions, mining requirements, and process challenges, Canenco provides end-to-end mining
project solutions that enhance safety, efficiency, cost and sustainability. Their team has
successfully supported numerous projects—from exploration and feasibility studies to mine
design, infrastructure development, construction and process optimisation.
Together, Sacré-Davey and Canenco have worked on several projects, all of which are being
built and brought into production. Kootenay Silver looks forward to working with this dedicated
team of experts in their fields who have a proven track record of producing high quality outcomes
for their mining clients. By integrating their advanced engineering tools with local relevant
experience, they will help Kootenay Silver maximize its resource recovery while minimizing
operational risks and environmental impact, ensuring long-term value for mining stakeholders
throughout Mexico’s rich silver-producing regions.
La Cigarra Mineral Resource Estimate, 2024
 Measured + Indicated Mineral Resources are estimated at 15.73 Mt grading 102 g/t silver, 0.07
g/t gold, 0.16% lead, and 0.21% zinc (120 AgEq). The Measured MRE includes resources of 51.57
Moz of silver, 33.9 koz of gold, 54.8 Mlbs of lead, and 73.5 Mlbs of zinc (60.56 Moz AgEq).
 Inferred Mineral Resources are estimated at 3.37 Mt grading 102 g/t silver, 0.06 g/t gold, 0.20%
lead, and 0.19% zinc (119 AgEq). The Inferred MRE includes resources of 11.00 Moz of silver,
6.00 koz of gold, 14.8 Mlbs of lead, and 13.8 Mlbs of zinc (12.85 Moz AgEq).
Table 1-1 La Cigarra Deposit Mineral Resource Estimate at a Base Case Cut-off
Grade of 50 g/t AgEq
Grade Total Metal
Resource Tonnes
AgEq Au Pb Zn 1
AgEq
Class (MT) Ag g/t Au g/t Pb % Zn % Ag (Moz)
(g/t) (koz) (Mlbs) (Mlbs) (Moz)
Measured 2.08 103 0.06 0.16 0.22 121 6.90 4.30 7.6 9.9 8.10
Indicated 13.65 102 0.07 0.16 0.21 120 44.66 29.60 47.3 63.6 52.46
Mea. + Ind. 15.73 102 0.07 0.16 0.21 120 51.57 33.90 54.8 73.5 60.56
Inferred 3.37 102 0.06 0.20 0.19 119 11.00 6.00 14.8 13.8 12.85
The base-case AgEq Cut-off grade of 50 g/t AgEq considers metal prices of $23.50/oz Ag, $1,800/oz Au, $1.00/lb Pb and $1.30/lb
Zn, and considers variable metal recoveries for Ag, Au, Pb and Zn: for oxide mineralization - 85% for Ag, 40% for Au, 75% for
Pb and 65% for Zn; for sulphide mineralization - 92% for Ag, 40% for Au, 91% for Pb and 85% for Zn.
1
AgEq = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram). Metal price
assumptions are $23.50/oz silver, $1,800/oz gold, $1.00/lb lead and $1.30/lb zinc.
La Cigarra Mineral Resource Estimate Notes:
(1) The Mineral Resource Estimate was estimated by Allan Armitage, Ph.D., P. Geo. of SGS Geological Services and is an
independent Qualified Person as defined by NI 43-101. Dr Armitage conducted a recent site visit to the La Cigarra
Property on November 28 and 29, 2023.
(2) The classification of the current Mineral Resource Estimate into Measured, Indicated and Inferred mineral resources is
consistent with current 2014 CIM Definition Standards - For Mineral Resources and Mineral Reserves. The effective date
for the Updated Mineral Resource Estimate is November 29, 2023.
(3) All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
(4) The mineral resource is presented undiluted and in situ, constrained by continuous 3D wireframe models, and are
considered to have reasonable prospects for eventual economic extraction.
(5) Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral
Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted
to a Mineral Reserve. It is reasonably expected that most Inferred Mineral Resources could be upgraded to Indicated
Mineral Resources with continued exploration.
(6) The La Cigarra mineral resource estimate is based on a validated database which includes data 201 surface diamond
and RC drill holes totalling 36,988 m. The resource database totals 26,419 assay intervals representing 34,447 m of
drilling. The average assay sample length is 1.30 m.
(7) The mineral resource estimate is based on 9 three-dimensional (“3D”) resource models, constructed in Leapfrog. Grades
for Ag, Au, Pb and Zn were estimated for each mineralization domain using 1.5 metre capped composites assigned to
that domain. To generate grade within the blocks, the inverse distance squared (ID2) interpolation method was used for
all domains. Each domain was then subdivided into oxide and sulphide domains.
(8) Average density values were assigned to oxide and sulphide domains and a waste domain based on based on a database
of 1,412 samples.
(9) It is envisioned that the La Cigarra deposit may be mined using open-pit mining methods. Mineral resources are reported
at a base case cut-off grade of 50 g/t AgEq. The in-pit Mineral Resource grade blocks are quantified above the base case
cut-off grade, above the constraining pit shell, below topography and within the constraining mineralized domains (the
constraining volumes).
(10) The results from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic
extraction” by an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves
on the Property. The results are used as a guide to assist in the preparation of a Mineral Resource statement and to
select an appropriate resource reporting cut-off grade.
(11) The base-case AgEq Cut-off grade considers metal prices of $23.50/oz Ag, $1,800/oz Au, $1.00/lb Pb and $1.30/lb Zn,
and considers variable metal recoveries for Ag, Au, Pb and Zn: for oxide mineralization - 85% for Ag, 40% for Au, 75%
for Pb and 65% for Zn; for sulphide mineralization - 92% for Ag, 40% for Au, 91% for Pb and 85% for Zn.
(12) The pit optimization and base case cut-off grade of 50 g/t AgEq considers a mining cost of US$2.50/t mined, and
processing, treatment, refining, G&A and transportation cost of USD$22.40/t of mineralized material.
(13) The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-
political, marketing, or other relevant issues.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Qualified Persons
The Mineral Resource Estimate was estimated by Allan Armitage, PhD., P.Geo. of SGS
Geological Services, and is an independent Qualified Person as defined by NI 43-101. Dr.
Armitage conducted a site visit to La Cigarra Property on November 28 and 29, 2023.
The Kootenay technical information in this news release has been prepared in accordance with the
Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure
for Mineral Projects) and reviewed and approved on behalf of Kootenay by Mr. Dale Brittliffe,
BSc. P. Geol., Vice President, Exploration of Kootenay Silver, is the Company’s nominated
Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral
Projects, has reviewed the scientific and technical information disclosed in this news release. Mr.
Brittliffe is not independent of Kootenay Silver.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development
of mineral projects in the Sierra Madre Region of Mexico. Supported by one of the largest junior
portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with
significant leverage to silver prices. The Company remains focused on the expansion of its current
silver resources, new discoveries and the near-term economic development of its priority silver
projects located in prolific mining districts in Sonora, State and Chihuahua, State,

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