New resources ready Kutcho for feasibility

Kutcho Copper Corp. March 4 reported an updated and expanded mineral resource estimate that will serve as the basis for an upcoming feasibility study on the company's Kutcho copper-zinc project located in northern British Columbia.

"We are pleased to announce an updated mineral resource estimate for the Kutcho project that incorporates the significant work and new drilling conducted by Kutcho Copper during our first full year of ownership," said Kutcho Copper President and CEO Vince Sorace.

The three deposits that make up the Kutcho project – Main, Esso and Sumac – host 17.26 million metric tons of measured and indicated resources averaging 1.85 percent (703.9 million pounds) copper, 2.72 percent (1.03 billion lb) zinc, 0.49 grams per metric ton (272,000 ounces) gold and 33.9 g/t (18.8 million oz) silver.

These measured and indicated resources are very similar to those included during a prefeasibility study that was updated just before Kutcho Copper's late-2017 acquisition of the northern B.C. property.

The 2017 prefeasibility study for Kutcho considers the development of a 2,500-metric-ton-per-day operation that would produce 378 million lb of copper and 473 million lb of zinc, plus by-product precious metals over a 12-year mine life.

This operation is based on 10.4 million metric tons of probable reserves, averaging 2.01 percent (463 million lb) copper, 3.19 percent (734 million lb) zinc, 0.37 g/t (120,000 oz) gold and 34.61 g/t (11.6 million oz) silver.

The upcoming feasibility study, expected in the second half of this year, will convert a portion of the measured and indicated resources into updated mineral reserves for the project.

"Based on new drill hole data and an independent mineral resource estimation at Kutcho, we have expanded the mineral resources at Kutcho and demonstrated potential for further reserve growth in the upcoming feasibility study," said Kutcho Copper COO Rob Duncan.

In addition, the Kutcho Copper's 2018 drill program significantly expanded the inferred resources, indicating this drilling has tapped areas that could add to the tonnage to the higher confidence resource categories.

The Kutcho property now hosts 10.71 million metric tons of inferred resource averaging 1.18 percent (278.5 million pounds) copper, 1.76 percent (415.4 million lb) zinc, 0.26 g/t (89,500 ounces) gold and 33.9 g/t (7.4 million oz) silver.

"The updated mineral resource includes a substantial 84 percent increase in inferred mineral resources compared to the 2017 resource estimate. In addition, there remains significant exploration potential between, below and along strike from the existing mineral resources, providing further upside opportunities to grow the size of the project."

These growth opportunities include four expansion targets between, below or along strike from existing mineral resources at Kutcho:

• an undrilled 400- by 380-meter between the Main and Sumac lenses that coincides with a conductive geophysical anomaly. Hole K003, the easternmost hole to intersect the Sumac lens and located on the western margin of this gap cut 5.12 meters of 1.29 percent copper, 0.49 percent zinc and seven g/t silver;

• significant portions of all three lenses remain open down dip outside of current resources;

• the Esso-West Expansion target, a 150- by 1,500-meter geophysical anomaly that lies 300 meters west of the Esso deposit. Previous drilling in this area returned several mineralized intercepts including 7.2 meters of 2 percent copper, 5.2 percent zinc and approximately 17 g/t silver in a hole drilled in 2009; and

• the Footwall Zone (FWZ Expansion), stacked sulfide horizons beneath the Main zone. The last drill hole to the east and down dip cut 1.5 meters of 3.54 percent copper, 6.94 percent zinc, 316.9 g/t silver and 1.47 g/t gold.

The company said these targets represent high probability drill areas that could result in significant accretive value to the project.

–SHANE LASLEY