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Kootenay and Theia successfully identify robust gold-bearing structure

Monday, May 17th, 2010

Kootenay Gold Inc and Theia Resources Ltd (THH:TSX.V) are pleased to announce results for 11 drill holes (1018.9 metres) at the Rosetta Stone project located in the west Kootenay region of British Columbia. Drilling was successful in identifying a robust gold-bearing structure (Creek Zone), which remains open along strike in both directions and to depth.
Drilling on the ‘Creek Zone’
The primary target at the Rosetta Stone property was a gold bearing hydrothermal breccia with epithermal textures hosted by a Jurassic aged granite body. Surface sampling returned selected grab samples of 21.1g/t Au. This ‘Creek Zone’ was tested with three fences of holes covering a strike length of 50metres. 7 holes, (RS09-1 thru 7) were completed in the three fences.
Drilling on the Creek zone was successful in delineating a strong hydrothermal system with intense clay and anthophyllite alteration accompanied by chalcedonic veining, qtz flooding, crackle breccias and hydrothermal breccias. Fine pyrite accompanied veining, crackle breccias and hydrothermal breccias. The structure has been traced for 50 metres along strike and to a depth of 110 metres. It remains open along strike to the northeast and southwest and at depth where it appears to be wider and more intense. It has a steep apparent dip to the southeast. This structure returned results including: 2.75 g/t Au over 1.0 metres in RS09-2 and broader zones of anomalous gold including 0.71g/t Au over 8.89 metres in RS09-5.
Drilling on the ‘Road Zone’
Two separate structures were tested on the Road zone (RS09-8,9) where surface grab samples returned up to 17 g/t Au. On surface these structures contained sericite and clay altered granite with narrow zones of hydrothermal breccia. Hole RS09-8 failed to intersect similar mineralization. Hole RS09-9 intersected two sections of anomalous gold. The uppermost section (0.29g/t Au over 2.33m) is hosted by a clay-chlorite-altered mafic dike with limonitic fractures. The lower section (0.52 g/t Au over 2.34m) is hosted by clay/anthophyllite-altered granite with crackle fracturing and chalcedonic veining similar in texture to mineralization and alteration in the Creek zone.
Drilling at the ‘Skid Trail’
Two holes (RS09-10,11) tested the ‘Skid Trail’ showing containing quartz veining within an altered granite. Hole RS09-11 intersected some narrow sections of hydrothermal breccia but the only anomalous values occurred within a lamprophyre dike cut by several narrow chalcedonic veinlets with minor pyrite, (0.27 g/t Au over 1.0m).
In conclusion this initial drill program at the Rosetta Stone project was successful in identifying a robust gold-bearing structure (Creek Zone), which remains open along strike in both directions and to depth. Exploration here will focus on determining whether there is a zonation to the gold distribution which will help in vectoring in to higher grade portions of the structure. In particular the strike extensions of this structure will be explored using a combination of geochemistry, prospecting and further drilling.

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