09/13/2021 | Press release | Distributed by Public on 09/13/2021 05:01
Vancouver, B.C., September 13, 2021. Kutcho Copper Corp. (TSXV: KC, OTCQX: KCCFF) ('Kutcho Copper' or the 'Company') is pleased to provide a progress report on the feasibility study for its high-grade copper-zinc Project ('Project') that is being led by CSA Global Consultants Canada Ltd. ('CSA Global', an ERM Group Company).
Following a series of trade-off studies, including advanced engineering and optimization work and initial consultations with our key Project partners and stakeholders, Kutcho Copper has elected to make several enhancements to the design and engineering of the Project that the Company believes will unlock significant accretive economic value. Highlights of project optimizations to be incorporated in the upcoming feasibility study (the 'Feasibility Study' or 'FS') include:
These initiatives are anticipated to result in a mining operation with lower operating costs that the Company believes has the potential to benefit the project economics. Additional details are provided below.
'Given the significant scope of the design improvements between the 2017 PFS and the FS, we now anticipate the results of the Feasibility Study to be announced by the end of October 2021. We believe this short delay is well worth the benefit in realising the full and enhanced economic potential of the Project for all our shareholders and partners,' said Vince Sorace, President & CEO of Kutcho Copper Corp. 'Negotiations for our recently announced Economic Participation Agreements with the Kaska Nation and the Tahltan Nation (see press release dated July 13, 2021) will be based on the optimized Project design. Together, all these factors will allow us to continue advancing the Project towards permitting and a production decision.'
Notes:
1. The mineral resource estimates in the table above form coherent bodies of mineralization that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Metal Prices: Copper US$3.50/lb, Zinc US$1.15/lb, Gold US$1600/oz, Silver US$20.00/oz. Projected operating costs: Mining (underground) US$43.00/t, Mining (open pit) US$2.65/t, Processing US$20.50/t, G&A US$6.00/t. Process recoveries Main and Sumac: Copper 87.6%, Zinc 64.3%, Gold 58.0%, Silver 57.9%. Process recoveries Esso: Copper 94.5%, Zinc 89.3%, Gold 66.0%, Silver 71.2%. Pit slope angle 48.9 degrees.
2. Copper-equivalent grades at Main and Sumac are calculated based on the formula: CuEq = (Cu% x 0.876) + (Zn% x 0.241) + (Au g/t x 0.441) + (Ag g/t x 0.006). Copper-equivalent grades at Esso are calculated based on the formula: CuEq = (Cu% x 0.945) + (Zn% x 0.310) + (Au g/t x 0.466) + (Ag g/t x 0.006). The base case cut-off grade for mineral resources considered amenable to open pit extraction methods at the Main deposit is 0.45% CuEq while the cut-off grade for mineral resources considered amenable to underground extraction methods at Main and Sumac deposits is 1.05% CuEq and is 0.95% Cu at the Esso deposit.
3. Mineral resources are not mineral reserves and do not have demonstrated economic viability. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. It is reasonably expected that the majority of inferred mineral resources could be upgraded to measured or indicated mineral resource with continued exploration.
4. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely
5. The estimate of mineral resources was calculated based on the Canadian Institute of Mining, Metallurgy and Petroleum ('CIM'), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.
6. The effective date of the estimate of mineral resources is July 30, 2021. Kutcho Copper is not aware of any legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.
Figure 1: Isometric View of Base Case Mineral Resource for All Three Deposits
The mineral resources are estimated in conformity with generally accepted CIM Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines (November 29, 2019) and are reported in accordance with Canadian National Instrument 43-101 (NI 43-101). Drill core samples used to estimate mineral resources were collected in accordance with industry standards and 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. The precision and accuracy of the assays were monitored through the systematic inclusion of standards, blanks and check assays. Mineral resource estimates are generated using a total of 362 drill holes at the Main deposit, 118 drill holes at the Esso deposit, and 29 drill holes in the vicinity of the Sumac deposit. Drill holes are collared from surface and extend to depths of 700m below surface in some areas. Mineral resource estimates are derived from three-dimensional block models with nominal block sizes measuring 5 x 5 x 5m for the Main deposit and 5 x 2.5 x 5m (LxWxH) for the Esso and Sumac deposits. Resource estimates are generated using drill hole sample assay results and the interpretation of geological models which relate to the spatial distribution of copper, zinc, gold and silver in the deposits. Interpolation characteristics are defined based on the geology, drill hole spacing, and geostatistical analysis of the data. The effects of potentially anomalous high-grade sample data, composited to 1 metre intervals, are controlled using both traditional top-cutting as well as limiting the distance of influence during block grade interpolation. Block grades are estimated using ordinary kriging and have been validated using a combination of visual and statistical methods to ensure they are appropriate representations of the underlying sample data. Resources in the Measured category are delineated with drill holes on a regular 25m pattern. Resources in the Indicated category are delineated with holes on a nominal 50m pattern and resources in the Inferred category occur within a maximum distance of 100m from a drill hole. The deposits form consistent zones of mineralization, above the base case cut-off grades, that are considered to exhibit reasonable prospects for eventual economic extraction using a combination of open pit and underground extraction methods.
Robert Sim, P.Geo., a Qualified Person as defined by NI 43-101, is responsible for the estimate of mineral resources presented in this news release and has reviewed, verified and approved the contents of this news release as they relate to the mineral resource estimate, including the sampling, analytical, and test data underlying the mineral resource estimate. Mr. Sim is a consultant to the Company, independent from Kutcho Copper and confirms there were no limitations from the Company in verifying the drilling and sample data with site visit observations and monitoring of the QA/QC program. The technical or scientific information in this press release has been reviewed and approved by Mr. Garth Kirkham, P.Geo., Technical Advisor for Kutcho Copper Corp., who serves as a Qualified Person under the definition of NI 43-101.
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 progress 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 [email protected] 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', 'indicates', 'opportunity', 'possible' 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 potential for new discoveries, the potential to convert inferred resources to indicated or measured resources, the potential to optimize the mine plan, 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.
Note to US Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms 'measured mineral resource', 'indicated mineral resource' and 'inferred mineral resource' are Canadian mining terms as defined in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (the 'CIM') - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The definitions of these terms differ from the definitions of such terms for purposes of the disclosure requirements of the SEC. Accordingly, information contained in this news release that describes the Company's mineral deposits or mineral resources may not be comparable to similar information made public by issuers subject to the SEC's reporting and disclosure requirements applicable to domestic United States issuers.