Kootenay Silver (TSXV:KTN) Is Up 9.5% After Advancing Columba Drilling And La Cigarra Assessment – Has The Bull Case Changed?

• Kootenay Silver Inc. recently reported additional assay results from nine drill holes at its Columba high-grade silver project in Chihuahua, Mexico, part of a fully funded 50,000-meter program aimed at expanding its 54.1 Moz inferred silver resource that remains open in all directions.
• Alongside this aggressive drilling, the company has engaged Sacré-Davey Engineering Inc. and Canenco Consulting Corp. to prepare a Preliminary Economic Assessment for its La Cigarra project, underscoring a shift toward advancing multiple silver assets into the development stage.
• We’ll now examine how Kootenay Silver’s push toward development, highlighted by the La Cigarra Preliminary Economic Assessment, shapes its investment narrative.

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What Is Kootenay Silver’s Investment Narrative?

To own Kootenay Silver, you have to believe that its exploration success can eventually translate into viable development projects, despite zero revenue and continued losses. The latest Columba drill results reinforce the core upside catalyst: proving out a larger, high‑grade silver system within a fully funded 50,000‑meter program. At the same time, moving La Cigarra into a Preliminary Economic Assessment introduces a new, near‑term milestone that could reshape how the market views Kootenay’s shift from pure explorer to early‑stage developer. So far, the share price has already moved very strongly over the past year, which may limit how much incremental impact this specific batch of assays has on its own. The bigger swing factors remain execution risk, dilution, and whether these projects can clear economic hurdles in a still capital‑intensive business.

However, few investors fully appreciate how funding needs and dilution risk could evolve from here.

Our valuation report here indicates Kootenay Silver may be overvalued.

Exploring Other Perspectives

The Simply Wall St Community’s two fair value estimates run from CA$0.305 to CA$3.05, underscoring very different views. When you set that against Kootenay’s aggressive drilling and La Cigarra PEA work, the spread reflects how differently people weigh exploration success against funding and project execution risks.

Explore 2 other fair value estimates on Kootenay Silver – why the stock might be worth less than half the current price!

Build Your Own Kootenay Silver Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kootenay Silver research is our analysis highlighting 2 important warning signs that could impact your investment decision.
• Our free Kootenay Silver research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Kootenay Silver’s overall financial health at a glance.

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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.

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