Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF)
(“Kutcho Copper” or the “Company”) owns the Kutcho high grade
Copper – Zinc development project located in north-western British
Columbia. The Company completed a Pre-Feasibility study
(“PFS”) dated July 31, 2017 that demonstrated positive economics
with an after tax NPV of $265 million and an IRR of 27.6%.
The Company completed the acquisition of the project in December
2017 with the support of Wheaton Precious Metals, involving a
staged financing package of over $100 million. The Kutcho project
benefits from existing ground access, a camp and airstrip on site
and highway access to the nearby port at Stewart to ship its
concentrates from.
“2019 was an important year for the Company,
with several important milestones completed that advanced the
Project towards completion of a Feasibility Study and embark on the
Environmental Assessment Process. In addition, with the
signing of the phase one US-China trade deal, market sentiment
shifted towards a bullish outlook for copper in 2020 and beyond,”
stated Vince Sorace, President & CEO of Kutcho Copper. “Kutcho
is a high margin, low capital project with lots of upside potential
and our objective in 2020 will be to continue to de-risk and
advance the project towards a production decision.”
Significant milestones achieved in 2019
include:
1) Completing an updated mineral resource estimate for the Main,
Esso and Sumac deposits resulting in 17.26 Mt of measured &
indicated mineral resources at 2.61% CuEq1 and 10.71MT of Inferred
resources at 1.67% CuEq1. Significant exploration potential
remains between, below and along strike from the existing mineral
resources, providing further upside opportunities to grow the size
of the project. The updated mineral resource incorporates the
significant work and new drilling conducted by Kutcho Copper during
its first year of ownership of the Project, including a substantial
84% increase in inferred mineral resources compared to the 2017
resource estimate. See news release dated March 4th, 2019 and our
website at www.kutcho.ca or SEDAR at www.sedar.com for the 2017 NI
43-101 Technical Report for previous mineral resource estimate
details.
2) Improved metallurgical results including 92.3% copper
recoveries and 84.2% zinc recoveries from a sample of the Main
deposit and 94.5% copper recoveries and 89.3% zinc recoveries from
a sample from the Esso deposit. The recoveries of copper and zinc
to their respective concentrates have improved significantly over
the 2017 prefeasibility study life of mine results, including
improved zinc concentrate grades and the rejection of zinc from the
copper concentrate, to generate a cleaner, higher value copper
concentrate. Silver recovery was also significantly improved.
See news releases dates September 11th and November 21st,
2019.
3) Undertook extensive quantitative mineralogical analyses by
QEMSCAN building a geo-metallurgical model of the Main and Esso
deposits. This resulted in a comprehensive understanding of the
distribution of copper and zinc bearing minerals, along with other
important minerals that has and should continue to help improve the
metallurgical performance at the Kutcho project.
4) Initiated various trade-off studies centered on mining
methods, mining costs, tailings management facility design and
location, preliminary geotechnical parameters and stope sizing.
These studies are ongoing and will be the foundation for completion
of the upcoming Feasibility Study.
5) Submission and acceptance of the final Project Description to
the British Columbia Environmental Assessment Office (BCEAO) and
reception of a Section 11 Order that defines the scope of the
Environmental Assessment and the Indigenous Nations that Kutcho and
British Columbia will engage with through the process. With
the passing of Bill C-69 (Canadian Impact Assessment Act) and
associated threshold regulations, the Kutcho Project is not
required to undertake a federal environmental assessment.
6) Joined the BC Regional Mining Alliance (“BCRMA”), a
consortium of Aboriginal groups, industry peers, the BC Government,
and AME BC. The Alliance was formed to promote and raise awareness
of British Columbia, Canada as a world-class mining
jurisdiction.
7) Signed and maintain exploration agreements with both Tahltan
and Kaska (Dena) Nations as well as working collaboratively as the
project progresses through the Environmental Assessment
Process.
8) Completed comprehensive baseline data collection for
meteorological, groundwater, and surface water (quantities and
quality) that will continue in 2020.
Kutcho Project Mineral Resources
Estimate
Class |
Tonnes (000) |
CuEq (%) |
Cu (%) |
Zn (%) |
Au (g/t) |
Ag (g/t) |
Main Deposit |
Measured |
5,831 |
2.66 |
1.92 |
2.78 |
0.48 |
28.7 |
Indicated |
9,003 |
2.20 |
1.62 |
2.13 |
0.40 |
29.2 |
Measured + Indicated |
14,834 |
2.38 |
1.74 |
2.38 |
0.43 |
29.0 |
Inferred |
1,902 |
1.98 |
1.31 |
2.16 |
0.48 |
29.7 |
Esso Deposit |
Indicated |
2,425 |
3.98 |
2.52 |
4.76 |
0.81 |
64.0 |
Inferred |
1,025 |
2.30 |
1.60 |
2.23 |
0.52 |
41.4 |
Sumac Deposit |
Inferred |
7,779 |
1.52 |
1.10 |
1.60 |
0.17 |
16.9 |
Combined |
Measured |
5,831 |
2.66 |
1.92 |
2.78 |
0.48 |
28.7 |
Indicated |
11,428 |
2.58 |
1.81 |
2.68 |
0.49 |
36.5 |
Measured + Indicated |
17,259 |
2.61 |
1.85 |
2.72 |
0.49 |
33.9 |
Inferred |
10,706 |
1.67 |
1.18 |
1.76 |
0.26 |
21.5 |
- The estimates in the table are
considered to be amenable to underground extraction methods. The
base case cut-off grade is 1.2% CuEq based on the formula CuEq
= (Cu% x 0.825) + (Zn% x 0.302) + (Ag g/t x 0.004) +
(Au g/t x 0.262). Mineral resources are not mineral reserves
because the economic viability has not been demonstrated.
- Estimate assumes Mining
(underground) US $34.00/t, Processing US $18.00/t, US G&A
$10/t, copper price US $3.00/lb, zinc price US $1.25/t, gold price
US $1350/oz, silver price US $17.00/oz, copper payable recovery
82.5%, zinc payable recovery 72.5%, silver payable recovery 45%,
gold payable recovery 40%
- Effective date of resource estimate
February 22nd, 2019
- Inferred mineral resources are
considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves. There is also no certainty that
these inferred mineral resources will be converted to the measured
and indicated categories through further drilling, or into mineral
reserves, once economic considerations are applied. It is
reasonably expected that the majority of inferred mineral resources
could be upgraded to indicated or measured mineral resources with
continued exploration.
- Assumptions used to derive the
cut-off grades in order to meet the NI43-101 requirement for
mineral resource estimates to demonstrate “reasonable prospects for
eventual economic extraction”. The cut-off grades to be used in the
upcoming feasibility study may vary from those used to limit the
mineral resources reported herein, as the inputs to that study are
determined. No inference is implied in the changes to the
assumptions used in the cut-off grade calculations from the prior
mineral resource estimates as to what will be used in the upcoming
feasibility, as those assumptions remain to be determined.
Exploration Opportunities
The Kutcho project covers 90% of the prospective
Kutcho formation rocks east of Dease Lake, B.C. These prospective
volcanic rocks are folded, repeating the mineralized horizon
threefold on the project, including the area hosting the known
deposits. Most of the drilling on the project has been
focused in and around the three known deposits. However,
significant exploration upside has been identified through a review
of historic work, including several priority drill ready targets
prospective for the discovery and definition of additional mineral
resources. These prospective targets include:
- The Corefarm Creek target (1) represents a geophysical anomaly
extending 1500 m westward from the Esso deposit. Approximately 150
m of this anomaly has been drill tested, returning several
mineralized intercepts including 7.2 m of 2.0% Cu, 5.2% Zn and ~17
g/t Ag in hole E094B3. There remains 300 m of untested Kutcho
horizon between hole E094B3 and Esso, along with an additional
1,000 m of untested horizon to the west of hole E094B3 (Estimated
true thickness of 6.12m).
- The Main-Sumac Gap (2) is a 400 m gap between the adjacent Main
and Sumac deposits that is untested by drilling. A conductive
geophysical anomaly coincides with the area and is 360 m long.
K003, the most eastern hole to intersect the Sumac deposit and
located on the western margin of the gap returned 5.12 m of 1.29%
Cu, 0.49% Zn and 7 g/t Ag (Estimated true thickness of
4.32m).
- The FWZ (4) target lies beneath the Main zone. The FWZ is open
to the east, where drilling currently ends with a 1.5 m intercept
of 3.54% Cu, 6.94% Zn, 316.9 g/t Ag and 1.47 g/t Au in hole E057
and is also open at depth.
Management Changes
Michael Rapsch (VP Corporate Communications) has
resigned as an officer of the company. We would like to thank
Michael for his time and contribution towards the current and
future success of the Company.
Qualified Persons
Robert Sim, P.Geo. Consultant to the Company and
a Qualified Person as defined by National Instrument 43-101 ("NI
43-101") has reviewed and approved the contents of this news
release related to the mineral resource estimate. All samples were
collected in accordance with industry standards. Splits from the
drill core samples were submitted to the ALS sample preparation
laboratory in Whitehorse, Yukon Territory, Canada, and then
transferred to ALS' laboratory in Vancouver, British Columbia,
Canada for fire assay and ICP analysis. Accuracy of results is
tested through the systematic inclusion of standards, blanks and
check assays. The mineral resource estimate referenced in this
press release was prepared in November 2018 by Robert Sim, P.Geo.,
an independent Qualified Person as defined by NI 43-101.
Tom Shouldice, Chief Executive Officer of Base
Metallurgical Laboratories is a professional metallurgical engineer
with over 20 years of experience in mineral processing. His
relevant experience includes plant operations, project management,
engineering and all aspects of metallurgical testing. Tom
specializes in flotation and mineralogical interpretation in
relation to metallurgical response. Mr. Shouldice is a “Qualified
Person” as defined in National Instrument 43-101 “Standards of
Disclosure for Mineral Projects” of the Canadian Securities
Administrators and has reviewed and approved metallurgical data
presented in this news release.
Kutcho's additional disclosure of a technical or
scientific nature in this press release has been reviewed and
approved by Mr. Rory Kutluoglu, B.Sc, P.Geo., who serves as a
Qualified Person under the definition of National Instrument
43-101.
About Kutcho Copper Corp.Kutcho
Copper Corp. is a Canadian resource development company
focused on expanding and developing the Kutcho high grade
copper-zinc project in northern British Columbia. Committed to
social responsibility and the highest environmental standards, the
Company intends to advance the Kutcho Project through feasibility
and permitting to a positive construction decision.
Vince Sorace President & CEO, Kutcho Copper
Corp.
For further information regarding Kutcho Copper
Corp., please email info@kutcho.ca or visit our website at
www.kutcho.ca.
Cautionary Note Regarding Forward-Looking
Statements
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This news release contains certain statements
that may be deemed “forward-looking statements” with respect to the
Company within the meaning of applicable securities laws.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
“expects”, “plans”, “anticipates”, “believes”, “intends”,
“estimates”, “projects”, “potential” and similar expressions, or
that events or conditions “will”, “would”, “may”, “could” or
“should” occur. Although Kutcho Copper believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance, are subject to risks and uncertainties, and
actual results or realities may differ materially from those in the
forward-looking statements. Such material risks and uncertainties
include, but are not limited to, the Company’s ability to raise
sufficient capital to fund its obligations under its property
agreements going forward, to maintain its mineral tenures and
concessions in good standing, to explore and develop the Kutcho
project or its other projects, to repay its debt and for general
working capital purposes; changes in economic conditions or
financial markets; the inherent hazards associates with mineral
exploration and mining operations, future prices of copper and
other metals, changes in general economic conditions, accuracy of
mineral resource and reserve estimates, the ability of the Company
to obtain the necessary permits and consents required to explore,
drill and develop the Kutcho project and if obtained, to obtain
such permits and consents in a timely fashion relative to the
Company’s plans and business objectives for the projects; the
general ability of the Company to monetize its mineral resources;
and changes in environmental and other laws or regulations that
could have an impact on the Company’s operations, compliance with
environmental laws and regulations, aboriginal title claims and
rights to consultation and accommodation, dependence on key
management personnel and general competition in the mining
industry. Forward-looking statements are based on the reasonable
beliefs, estimates and opinions of the Company’s management on the
date the statements are made. Except as required by law, the
Company undertakes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions, or other factors, should change.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/27b5c18b-cfb7-4c66-b141-e69a17cb71b2
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