What Kootenay Silver (TSXV:KTN)’s Major Columba Drill Program Expansion Means For Shareholders

• Kootenay Silver recently announced ongoing exploration at its 100%-owned Columba Silver Project in Chihuahua, Mexico, with two drill rigs completing five drillholes as part of a major 50,000 meter program to build on a recent mineral resource estimate.

• This current drilling phase targets expansion of high-grade mineralized veins, following a June 2025 estimate of 54.1 million ounces of silver in inferred resources.

• With drilling aimed at extending resource boundaries, we’ll examine how this exploration milestone shapes Kootenay Silver’s investment narrative.

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If you’re following Kootenay Silver, the investment story starts with belief in the upside of its Columba Silver Project, a high-grade Mexican exploration asset that recently saw its inferred resource expand to 54.1 million ounces of silver. With two rigs drilling as part of a 50,000 meter program, the company is visibly prioritizing resource growth, which remains a key short-term catalyst. The latest exploration update shows momentum, but also underscores ongoing risks: Kootenay has no revenue, consistent annual losses, and relies on periodic funding, like the recent composite units offerings. The going concern flag from auditors looms in the background. While drill results could positively shift sentiment and resource confidence, financial sustainability and share dilution remain front of mind. This new phase could prove pivotal, but it doesn’t erase the underlying risks that have shaped Kootenay’s recent trajectory. Yet, investor optimism for drill success sits right alongside uncertainty around financing needs.

Upon reviewing our latest valuation report, Kootenay Silver’s share price might be too optimistic.

The Simply Wall St Community’s sole fair value estimate sits at CA$2.75, lacking wider consensus or directional divergence. With meaningful exploration activities underway and ongoing funding needs, you can expect a range of sharply differing views on valuation and business prospects among market participants.

Explore another fair value estimate on Kootenay Silver – why the stock might be worth as much as 49% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include KTN.V.

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