Drills tap copper outside of Kutcho Main

Kutcho Copper Corp. Nov. 6 reported that initial results from this year's resource expansion drilling at Kutcho Main has expanded this high-grade copper-zinc-silver deposit at the company's namesake project in northern British Columbia.

Located about 100 kilometers (60 miles) east of Dease Lake, the Kutcho property hosts three known Kuroko-type volcanic massive sulfide deposits along an east-west trend. The largest, Main, comes to surface at the east end of the trend, with Sumac and Esso each getting deeper to the west.

A prefeasibility study updated at the time of the acquisition considers the development of a 2,500-metric-ton-per-day operation that would produce 378 million pounds of copper and 473 million lb of zinc, plus by-product precious metals over a 12-year mine life.

At the time the PFS was completed, Kutcho hosted 16.85 million metric tons of measured and indicated resources averaging 1.89 percent (701 million lb) copper; 2.87 percent (1.08 billion lb) zinc, 32.8 g/t (17.8 million oz) silver and 0.36 g/t (200,000 oz) gold.

In addition, the deposits host 5.8 million metric tons of inferred resource averaging 1.33 percent (170 million lb) copper, 1.64 percent (209 million lb) zinc, 23.2 g/t (4.3 million oz) silver and 0.24 g/t (40,000 oz) gold.

The latest batch of assay results are from resource expansion and infill drilling targeting areas of inferred resources contained within Main. The goal of this drilling is to convert inferred resource to the higher confidence indicated category, which could then be converted to reserves, as well as expanding resources beyond the existing block model.

With 62 percent of the holes drilled down-dip of the currently outlined deposit intersecting sulfide mineralization, Kutcho is encouraged by the expansion potential at Main.

Highlights from this drilling include:

• 5.5 meters of 1.91 percent copper, 7.8 percent zinc, 33.2 g/t silver and 0.60 g/t gold in hole KC18-280;

• 5.4 meters of 2.48 percent copper, 1 percent zinc, 114 g/t silver and 0.24 g/t gold in hole KC18-282; and

• 10.5 meters of 1.89 percent copper, 0.6 percent zinc, 33.4 g/t silver and 0.69 g/t gold in hole KC18-287.

Kutcho said hole KC18-282 extended mineralization 50 meters down-dip from previous drilling and beyond the boundaries of the current resource.

The Main deposit remains open down-dip in this area and along strike over a 250 metre distance where KC18-268 (assays pending), KC18-282 and KC18-285 have all intercepted mineralization.

"When we embarked on this program at Kutcho we saw the potential for down-dip expansion of resources at Main," said Kutcho Copper President and CEO Vince Sorace. "The results to date confirm this potential and we are extremely pleased that these drill holes continue to confirm the high-grade nature of the Main deposit."

"Portions of Main are still open for expansion beyond our 2018 program and we look forward to being able to test these next year," he added.

–SHANE LASLEY