VANCOUVER, British Columbia, March 04, 2019 (GLOBE NEWSWIRE) -- Kutcho Copper Corp. (KC.V) (KCCFF) (“Kutcho Copper” or the “Company”) is pleased to provide an updated mineral resource estimate that will be used as the basis for its upcoming Feasibility Study on its 100% owned Kutcho high grade copper-zinc project located in British Columbia (“Kutcho Project”). The mineral resource estimate was prepared under the direction of Robert Sim, P.Geo, with the assistance of Bruce Davis, PhD, FAusIMM, by SIM Geological Inc. (SGI).
“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. The updated mineral resource includes a substantial 84% 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. This expanded mineral resource will form the foundation for the Feasibility Study, which is slated to be completed in Q2/Q3 2019”, stated Vince Sorace, President & CEO of Kutcho Copper.
|Kutcho Project - Estimate of Mineral Resources|
|Class||Tonnes (000)||CuEq (%)||Cu (%)||Zn (%)||Au (g/t)||Ag (g/t)|
|Combined – All Deposits|
- 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.
- 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.
*Please see our website for the 2017 NI 43-101 Technical Report for previous mineral resource estimate details www.kutcho.ca or SEDAR www.SEDAR.com
Updated Mineral Resource Metrics
- 38 new drill hole intersections through the Main and Esso deposits utilized to update the new mineral resource calculation (3 at Esso, 35 at Main);
- 2018 drilling successfully delineated additional mineral resources along the down-dip edge of Main, which remains open to further expansion; and
- Drilling defined a large contiguous body of Measured resources at Main (Figure 1).
“The definition of an updated, robust and larger resource estimate is a significant milestone for the Company”, stated Rob Duncan, COO for Kutcho Copper. “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.”
High Priority Near Resource Targets
Four excellent targets exist on the Kutcho project that are located between, below or along strike from existing mineral resources (Figure 1). These targets represent high probability drill areas that could result in significant accretive value to the project;
- The Main-Sumac Gap identifies a 400 m by 380m panel between the Main and Sumac lenses 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 lens 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.
- Open Down Dip: Significant portions of all three lenses remain open down dip outside of current resources including over 36% of Main, 50% of Esso and 100% of Sumac.
- The Esso-West Expansion target lies 300 m west of the Esso deposit where 150m of a 1500 m long geophysical anomaly has been drill tested. Drilling returned 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 1000 m of untested horizon to the west of hole E094B3. (Off western edge of map)
- Footwall Zone (FWZ) lies beneath the Main zone and represents a stacked massive sulphide horizon that is open in all directions. The last drill hole to the east and down dip intersected 1.5 m of 3.54% Cu, 6.94% Zn, 316.9 g/t Ag and 1.47 g/t Au in hole E057.
Mineral Resource Estimation Methodology
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 2.5 x 5m (LxWxH). Resource estimates were 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 were 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 Inferred class resources extend to a maximum distance of 100m from a drill hole. It is assumed that the Kutcho deposits would be mined using underground extraction methods. Based on projected technical and economic parameters, the deposits form consistent zones of mineralization, above a projected base case cut-off threshold of 1.2%CuEq, that are considered to be amenable to underground mining methods.
Robert Sim, P.Geo. Independent 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. The precision and 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. 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., Kutcho's Vice President of Exploration and Development, who serves as a Qualified Person under the definition of National Instrument 43-101. In the opinion of the QP, the mineral resource estimate reported herein is a reasonable representation of the mineralization found at the Kutcho project at the current level of sampling. The mineral resources were estimated in conformity with generally accepted CIM Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines (November 23, 2003) and is reported in accordance with NI 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 progress the Kutcho Project through feasibility and permitting to a positive construction decision.
President & CEO, Kutcho Copper Corp.
For further information regarding Kutcho Copper Corp., please email Michael Rapsch, VP Corporate Communications at firstname.lastname@example.org 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.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/91131221-47b9-4e78-af94-fa07e7a2259f