Kootenay Zinc Corp. Announces Updates on Sully Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 13, 2017) - Kootenay Zinc Corp. (the "Company") (CSE:ZNK)(CSE:ZNK.CN)(OTCQB:KTNNF)(FRANKFURT:KYH) is pleased to announce that its Sully project team has recently completed drill hole SY17-11, which tested a portion of the E1 zone of the East anomaly. The hole did not intersect an extensive high density mass but did intersect a number of geologically significant features with similarities to the Sullivan sedimentary environment. The project team continues to review and evaluate the new core and down hole geophysics.

At a hole depth corresponding to the projected gravity anomaly an increase in thickness of intervals of carbonaceous wacke laminate (CWL), as well as an increase in proportion of CWL to argillite were noted. A 20 meter thick CWL marks the top of the Lower Aldridge Formation at Sullivan, 30 kilometres west of Sully. That interval splits and interfingers over 200 meters with ore and associated unique sedimentary rocks that comprise the Sullivan sub-basin. The thicker than normal intervals of CWL interfingering with argillite in SY17-11 suggest a sub-basin setting is present at Sully. The gravity anomaly suggests proximity to a mass in rocks deposited at an equivalent time in what appears to be a sub-basin that is entirely consistent with the Sullivan SEDEX model.

Rare lead and zinc sulphides are also observed at a hole depth of 283 and at 298.8 meters; one associated with laminated iron sulphides and the other in a quartz veinlet. Iron sulphides, predominantly pyrrhotite that commonly is accompanied by a minor amount of pyrite, are present throughout much of the hole. These sulphides are primarily in bedding parallel laminations; however disseminations and veinlets are also present. The laminations are 1 to 5 millimeters thick and where most abundant are spaced at 10 centimeter to 1 meter intervals. These observations may indicate fringe mineralization of a SEDEX style gravity mass.

Drill hole SY17-11 drilled the upper portion of unit A1c of the Hughes Range facies of the Aldridge Formation. Two small (up to 5 meters) gabbro bodies, likely dikes were intersected. Specific gravity measurements of these rock types are in a fairly narrow range and there is little to no contrast with the gabbro intersected, indicating that gabbro is unlikely to account for the anomaly. Strata in the hole are highly strained, and they display a steeply overturned west dip, consistent with the lower limb of the Hughes Range anticline described in previous news releases.