Targets drilling at new copper, gold, silver prospects at central Yukon project.

Granite Creek Copper Ltd.

Granite Creek Copper Ltd. May 28 announced that its 2024 exploration at the Carmacks copper-gold project in central Yukon will include 1,800 meters of diamond drilling focused on new targets.

Located in the southern portion of the high-grade Minto Copper District, Carmacks is a 177-square-kilometer (68 square miles) advanced-stage copper-gold-silver project that is 40 kilometers (29 miles) from paved Yukon Highway 2 and 12 kilometers (7.5 miles) from grid power.

Granite Creek has emerged as a significant new copper-focused exploration and development company with an updated NI 43-101 mineral resource estimate announced in 2022, and PEA in 2023.

Including 8,200 meters of infill and expansion drilling completed by Granite Creek since its acquisition of Carmacks in 2020, Carmacks hosts 36.2 million metric tons of measured and indicated resource averaging 0.81% (644.22 million pounds) copper, 0.31 grams per metric ton (362,000 ounces) gold, and 3.41 grams per metric ton (3.97 million ounces) silver; plus an inferred resource of 29 million pounds of copper-equivalent metals.

Based on this resource, the 2023 PEA demonstrates robust project economics for a mine at Carmacks under different scenarios:

At base case metals prices of US$3.75/lb for copper, US$1,800/oz for gold, and US$22/oz for silver, the mine outlined in the PEA generates an after-tax net present value (NPV) (5% discount) of C$230 million (US$168 million) and an internal rate of return (IRR) of 29%.

Assuming metal prices of US$4.25/lb for copper, US$2,000/oz for gold, and US$25/oz for silver, the after-tax, the NPV (5% discount) increase to C$330 million (US$241 million) with an IRR of 38%.

The project anticipates a mine life of nine years operating at 7,000 metric tons per day. Initial capital costs are estimated at C$220 million (US$161 million), with a projected payback period of two years from the start of production.

Additionally, the PEA identifies potential additional cash flow opportunities through the processing of oxide tailings.

2024 exploration

Granite Creek Copper Ltd.

The 2024 field program is expected to include up to 1,800 meters of diamond drilling focused on new targets within 1,000 meters of the proposed pits identified in the PEA.

Additionally, the Gap, Sour Toe, and Zone 1213 targets were refined by induced polarity surveys, trenching, and soil sampling.

Gap – This target, which is situated between the 2000 and 147 zones, potentially indicates a fault offset involving one or both zones. Previous drilling has been shallow, and there are no holes intersecting the modeled geophysical volume. Identified by an induced polarization (IP) geophysical anomaly, the Gap target shows a significantly stronger response compared to the well-defined 147 Zone, suggesting high potential for mineralization similar to that observed in adjacent areas.

Sour Toe – Located approximately 800 meters from the 147 zone, Sour Toe represents a recent discovery identified during an IP survey. Its potential has been substantiated through trenching and soil sampling activities. Spanning two IP lines, the target extends over a strike length exceeding 200 meters, indicating significant mineralization potential in this newly identified area.

1213 target – The conceptual pit in the southern part of Zone 1213 only extends to 130 meters below surface because drilling has not fully tested the depth of mineralization in this area. Surveying in this area will further define the down-dip potential of the zone.

"We are very pleased to be launching this next phase of exploration and development of our Carmacks copper-gold-silver project," said Granite Creek President and CEO Tim Johnson. "Recent positive price action in the metals, specifically copper and gold has brought new interest to the sector. This paired with the exploration upside at Carmacks creates the phenomenal opportunity to increase shareholder value."