Drill Results Reveal High-Grade Silver and Surprise Gold Zones at Mexican Project

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Kootenay Silver Inc. (KTN:TSX.V) has announced assay results from the first seven diamond drill holes of its ongoing 50,000-meter drill program at the Columba High-Grade Silver Project in Chihuahua, Mexico. The latest drilling campaign began in September 2025 and aims to expand known silver mineralization while testing new targets across multiple vein structures. The Columba property currently hosts an inferred mineral resource of 54.1 million ounces of silver at an average grade of 284 grams per tonne (gpt), as defined in the company's May 29, 2025, NI 43-101 compliant estimate.

The recently released results include five holes drilled into the I Vein trend and two from the D Vein area. Notable silver intercepts include 10.5 meters grading 108 gpt silver in hole CDH-25-214 and 3.2 meters grading 212 gpt silver in hole CDH-25-216. Both intercepts also included lead and zinc mineralization. Additionally, hole CDH-25-218 intersected 3.97 meters of 303 gpt silver, with a 0.71-meter subinterval returning 921 gpt silver, 0.12 gpt gold, and a combined 6.8% lead and zinc content.

Gold values were also observed in the I Vein trend. Hole CDH-25-217 reported two broad anomalous gold zones: 101 meters grading 0.18 gpt gold and 26.5 meters grading 0.20 gpt gold. Hole CDH-25-218 returned multiple gold intervals, including 27 meters grading 0.22 gpt gold and 12 meters grading 0.21 gpt gold.

The company noted that the presence of porphyry-style mineralization, particularly in holes CDH-25-217 and 218, represents a new geological development at Columba. According to Kootenay President and CEO James McDonald in the news release, "Exploration at Columba continues to produce pleasant surprises. We are now seeing a gold mineralizing event with gold-moly porphyry characteristics."

VP of Exploration Dale Brittliffe stated that the gold anomalies "are testament to the complexity and thereby potential of the Columba mineral camp," adding that the company remains focused on expanding its silver resource while evaluating the new gold target.

As of this update, 17 holes have been completed in the program, with ten awaiting assay results. Drilling continues with two rigs on site, and Kootenay is increasing its core storage and accommodation capacity in anticipation of scaling up the program.

Silver Miners Navigate Volatility and Undervaluation

According to a November 17 report from Couloir Capital, "Silver prices followed gold, moving higher by 4.6% during the week, supported by safe-haven demand amid elevated geopolitical and macroeconomic risks." The firm also noted a key regulatory development on the supply side, stating that "concerns emerged after the U.S. Department of the Interior designated silver as a 'critical mineral,' raising the possibility of future trade restrictions."

In a November 19 analysis, Peter Krauth of Silver Stock described recent silver price action as volatile. He observed that silver had climbed from US$48 to US$54 before retreating to just above US$49, describing it as part of an ongoing correction. Krauth added that "momentum indicators are either neutral or bearish right now," and emphasized that the sector was in a digestion phase following strong gains earlier in the year. He also pointed out that equities had tracked silver closely, saying, "the stocks have been following silver in lockstep, as we can see with the SILJ ETF."

Chen Lin of What's Chen Buying? What's Chen Selling? wrote on November 20 that "gold and silver continued to act well despite the market correction and bitcoin broke 10-year support." He emphasized the potential implications of key price levels, stating, "As long as gold is above 4,000 and silver above 50, we will have a good chance of [a] breakout." Lin further highlighted valuation dynamics, adding, "Gold and silver miners are very undervalued compared to the high gold and silver prices as well as base metal by-products."

Analysis Points to Growth Potential at Columba

On November 19, Senior Analyst Ted Butler of Silver Advisor provided a detailed assessment of Kootenay Silver Inc. following the release of early drill results from the company's 50,000-meter campaign at the Columba Silver Project. Butler highlighted multiple intercepts of high-grade silver from the D Vein zone and noted the emergence of promising gold-bearing zones in the I Vein trend.

According to Silver Advisor, Hole CDH-25-214 returned "a healthy 10.50 meters of 108 g/t silver" including 1.50 meters of 362 g/t silver, while Hole CDH-25-216 cut 3.2 meters of 212 g/t silver with a high-grade interval of 756 g/t silver over 0.7 meters. Butler described D Vein as the "bread and butter" of Columba, referencing its contribution to the company's 54.1 million ounce silver maiden resource estimate.

The report also pointed to the significance of newly encountered porphyry-style gold mineralization along the I Vein trend. Quoting Dale Brittliffe, VP Exploration for Kootenay, the analyst cited, "The anomalous gold zones we are seeing along the I Vein trend are testament to the complexity and thereby potential of the Columba mineral camp." Butler noted that Hole CDH-25-217 returned two gold intervals over significant widths and Hole CDH-25-218 returned three, including a high-grade hit of 847 g/t silver over 0.55 meters.

Research Capital Corporation reiterated its Speculative Buy rating and CA$2.70 target price for Kootenay Silver Inc.

Butler concluded that the seven holes reported "show shareholders a glimpse into the expansion potential of the Columba resource" and emphasized the importance of additional assays expected from ten more completed holes. He stated that Silver Advisor would continue to hold its full weighting in Kootenay.

Also on November 19, Research Capital Corporation reiterated its Speculative Buy rating and CA$2.70 target price for Kootenay Silver Inc., following the release of assay results from the first seven holes of the ongoing 50,000-meter drill program at the Columba project. Analyst Stuart McDougall highlighted the emergence of a potential porphyry-style gold system alongside high-grade silver intercepts. "Five of the holes targeted the much-less explored I Vein, with two highlighting what may reflect a separate porphyry-related gold event," he wrote. These intervals included one that returned 3.97 meters grading 303 gpt silver and 2.8% lead-zinc, with a subinterval of 0.71 meters grading 921 gpt silver, 0.12 gpt gold, and 6.8% lead-zinc.

McDougall noted that Columba's resource base remains open for expansion, with the maiden resource totaling 54.1 million ounces of silver at an average grade of 284 gpt. He added that Kootenay is currently trading at US$1.30 per ounce of silver in situ, well below the average US$4.15 per ounce for peer explorers with resources over 200 gpt. The firm adjusted its valuation inputs to reflect recent equity financing but maintained a US$3.00 per ounce silver valuation metric while factoring in a 25% upside expansion assumption for the resource. The company's ongoing work across the D and B veins is expected to further inform its resource outlook.

Multiple Veins, One District: Building Out Columba

Kootenay Silver's current drilling at Columba is the first step in a fully funded 50,000-meter campaign aimed at systematically extending key mineralized veins while also testing new and underexplored targets. According to the company's November 2025 investor presentation, priority targets include the D, F, and B veins, which are scheduled for a combined 35,000 meters of drilling across more than 70 holes.

The Columba property covers a 3 by 4 kilometer vein swarm and has seen over 53,000 meters of historical drilling. The maiden mineral resource estimate filed in August 2025 was based on 5.92 million tonnes grading 284 gpt silver, 0.19% lead, and 0.50% zinc, which equates to 54.1 million ounces of contained silver. All known veins remain open to depth and along strike.

The current campaign builds on recent milestones, including a CA$20 million financing completed in June and the publication of the technical report in August. Kootenay's goal is to extend mineralized zones systematically through step-out drilling and evaluate newly identified structures using geophysical mapping and surface sampling.

The company indicated that 40,000 meters of the current program will focus on expanding known zones, while 10,000 meters will test new targets. This strategy is intended to upgrade lower-priority structures and expand the mineralized footprint across the property.

Kootenay Silver's multi-phase drilling strategy at Columba remains its primary exploration focus, supported by a cash position of approximately CA$19.8 million as of June 30, 2025. The company also holds additional silver resource assets at its La Cigarra and Promontorio-La Negra projects. 

Ownership and Share Structure¹

Nearly 1 % of the company is owned by insiders and management, and about 10 % is owned by institutions. The rest is held by retail investors.

Top shareholders include Sprott Asset Management LP with 4.37 %, Konwave AG with 4.23 %, ALPS Advisors Inc. with 0.73 %, the CEO McDonald with 0.57 %, and AIPM Azure International Portfolio Management with 0.54 %.

The company's market capitalization stood at approximately CA$113.71 million with 86.14 million shares outstanding. It traded in a 52‑week range of CA$0.84 to CA$2.15.