Kutcho Property

Kutcho is an accessible project with on-site and nearby infrastructure situated within subtle terrain

The Kutcho property is located approximately 100 km east of Dease Lake in northern British Columbia, and consists of one mining lease and 46 mineral exploration claims covering an area of approximately 17,060 hectares. The site is accessible via a 900 m long gravel airstrip located 10 km from the deposit and a 100 km long seasonal road from Dease Lake suitable for tracked and low-impact vehicles.

Property Highlights

Development project located in British Columbia – a top tier mining jurisdiction with major mines and active projects including Brucejack (Pretium), Red Chris (Imperial Metals) and Galore Creek (Teck/Newmont)

High grade copper-zinc-gold-silver volcanic massive sulphide (“VMS”) system with a Probable Mineral Reserve¹ (2017 estimate) of 10.4 Mt @ 2.01% Cu, 3.19% Zn, 34.61 g/t Ag and 0.37 g/t Au

2017 updated Prefeasibility Study (“PFS”) demonstrates robust economics: after-tax NPV (8% discount rate) and IRR of C$265 million and 27.6% respectively with a manageable initial capex (incl. 15% contingency) of C$220.7 million

Significant potential for improvement through expansion of reserve/resources and a focused permitting effort

Accessibility

100 km of existing ground access; Airstrip on property

Port facilities

in Stewart ~400 km from Dease Lake via Highway 37

Existing field camp

with 900m long gravel airstrip adjacent to camp

First Nations

ongoing engagement with Tahltan & Kaska First Nations

2017 PFS Economics

  • After tax NPV of C$265 million and IRR of 27.6% 
  • After tax cumulative undiscounted Cash Flow of C$550 million
  • Initial capex of C$221 million
  • PFS “base case” metal price assumptions
    of US$2.75/lb Cu & US$1.10/lb Zn

Production highlights (Based on 2017 PFS)

year mine life

tpd production rate

%

Cu recovery

%

Zn recovery

Mlbs LOM payable Cu production

Mlbs LOM payable ZN production

C$0.97/lb Cu

AISC (net of by products)

Kutcho updated resources

Sept 2020

The estimates in the table form coherent bodies that are considered amenable to underground extraction methods based on the following parameters: Metal Prices: Copper US $3.25/lb, Zinc US $1.25/lb, Gold US $1550/oz, Silver US $20.00/oz. Projected operating costs: Mining US $33.75/t, Processing US $17.91/t, G&A US $10.13/t. Process recoveries Main and Sumac: Copper 87.4%, Zinc 63.8%, Gold 36.9%, Silver 59.0%. Process recoveries Esso: Copper 94.5%, Zinc 89.3%, Gold 40.8%, Silver 71.2%.
The base case cut-off grade is 1.0% CuEq for the Main and Sumac deposits based on the formula: CuEq = (Cu% x 0.874) + (Zn% x 0.245) + (Au g/t x 0.257) + (Ag g/t x 0.0053). The base case cut-off grade for Esso is 0.9%CuEq based on the formula: CuEq = (Cu% x 0.945) + (Zn% x 0.343) + (Au g/t x 0.284) + (Ag g/t x 0.0064).
The effective date of the estimate of mineral resources is September 8, 2020.
Mineral resources do not have demonstrated economic viability.
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.
It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Indicated, or Measured, mineral resources with continued exploration.
Kutcho Copper is not aware of any legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.

Flotation metallurgy results

2019-2020

The Kutcho project covers 90% of the prospective Kutcho formation rocks

The prospective volcanic rocks are folded, repeating the mineralized horizon threefold on the project, including the deposit.

The massive sulphide deposits are aligned East-West and plunge at
15° towards the West.

Geological Setting

The Kutcho property lies within the King Salmon Allochthon, a narrow belt of Permo-triassic island arc volcanic rocks and Jurassic sediments, situated between two northerly-dipping thrust faults: the Nahlin fault to the north, and the King Salmon fault to the south. The belt of volcanic rocks is thickest in the area where it hosts the VMS deposits, partly due to primary deposition, but also to stratigraphic repetition by folding and possibly thrusting.

Mineralization & Alteration

Mineralization at Kutcho comprises three known “Kuroko-type” VMS deposits aligned in a westerly plunging linear trend. The largest, the Main deposit, comes to surface to the eastern end, followed by Sumac down plunge, and Esso to the western end which occurs at depths of about 400 m below surface.

“Kuroko-type” VMS deposits are typically related to felsic volcanism in island arc or back-arc tectonic settings. Features of the Kutcho deposits suggest that they formed at or near the water-seafloor interface in a structurally controlled depression, such as a half-graben type structure. The chemical composition of the alteration around the Kutcho deposits is well zoned about the hydrothermal vent areas. Mineralization consists of a pyritic footwall with zoned copper and zinc towards a sharp hanging wall contact.

Kutcho also has strong upside potential

Drill target areas

The Main-Sumac Gap

identifies a 400 m by 380m panel between Main and Sumac that is untested by drilling

Open Down Dip

36% of Main, 50% of Esso and 100% of Sumac remain open down dip and outside of the current resource model

Esso-West Expansion

target lies 300 m west of Esso where drilling returned 7.2 m of 2.0% Cu, 5.2% Zn and ~17 g/t Ag in hole E094B3

FWZ Expansion

lies beneath Main and is open in all directions. Drill hole E057, on its eastern margin, intersected 1.5 m of 3.54% Cu, 6.94% Zn, 316.9 g/t Ag and 1.47 g/t Au

There are several under-explored exploration targets

Multiple repeated VMS
sulphide horizons are
under-explored

No significant exploration
conducted on the property since 1990

High priority targets: 

1  documented sulphide horizons
2 VTEM conductors
3 strongly altered volcanic rocks

tooltip text
9

Target 9

the I-PC is associated with cherts hosted in crystal lithic tuffs and is interpreted as a hydrothermal exhalative horizon. E024 and 90K16 are proximal drill holes which show alteration in lithic tuffs and the presence of massive to laminated pyrite with minor disseminated sphalerite and chalcopyrite, indicating proximity to a productive VMS environment. This tuff unit has an apparent thickness of 70 m and occurs upstream from numerous rounded boulders of finely banded, sphalerite- and galena-bearing chert and exhalite.

8

Target 8

is described as a significant VMS-type showing located on the flank of a felsic dome. A prospect pit was excavated and reached “mineralized bedrock” at a depth of 1.6 m, assaying 0.3% Cu, 0.1% Pb, 0.1% Zn and 7 g/t Ag. Soil sampling has defined a 400 x 500 m cluster of strong Cu-Zn anomalies that are coincident with a strong, linear, chargeability anomaly. A Cu-Zn soil anomaly containing up to 0.15% Zn and 0.03% Cu occurs on the southwestern flank of the same rhyolite flow/dome complex that has not been drill tested.

7

Target 7

IRJ Northeast. Three holes drilled in 1990 returned massive to semi-massive sulphide layers up to 1 m in width and associated with argillaceous material. Hole E017 returned ~3 m of a stringer zone with an average of 20% pyrite that includes some massive bands, and which assayed 7.3 m of 0.27% Cu with a high sample of 0.45% Cu. The geochemical trends suggest that the hydrothermal vent area is further east and targeting should focus on this vector.

6

Target 6

B-C East is a 3.5 km long conductor inferred to be overlain by 30 m of silica exhalite. Host rocks comprise a narrow band of sericite schist with narrow lenses of massive pyrite and silica exhalite hosted in mafic rocks. Gravity surveys produced a broad and shallow response that suggests a diffuse zone of increased density that could indicate disseminated or stringer-style sulphide mineralization.

5

Target 5

the IRJ Northwest was first identified as a conductor in a 1990 ground-based survey and was tested with two drill holes. The holes intersected intensely altered and weakly copper-mineralized intervals, as well as a thick sequence of altered lapilli and ash. The size and strength of the alteration in both holes suggests a prospective target down dip from prior drilling efforts.

4

Target 4

the MCF lies at the east end of the Main Deposit and is coincident with a conductive VTEM geophysical anomaly and a Cu-Zn soil anomaly. Three historical holes (KC11215, 90K28 and E013) returned ~35 m of semi-massive sulphide while KC11215 intercepted long intervals of strongly altered lapilli tuff with 2-8% pyrite, trace chalcopyrite and sphalerite.

3

Target 3

Footwall Zone (FWZ) lies stratigraphically 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

2

Target 2

the Main-Sumac Gap identifies a 400 m gap 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.

1

Target 1

the Corefarm Creek target represents a geophysical anomaly extending 1500 m westward from the Esso Zone. Approximately 150 m of this anomaly has been drill tested, returning 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.

Best viewed on Desktop

Near Mine Targets

Target 1

The Kutcho property lies within the King Salmon Allochthon, a narrow belt of Permo-triassic island arc volcanic rocks and Jurassic sediments, situated between two northerly-dipping thrust faults: the Nahlin fault to the north, and the King Salmon fault to the south. The belt of volcanic rocks is thickest in the area where it hosts the VMS deposits, partly due to primary deposition, but also to stratigraphic repetition by folding and possibly thrusting.

Target 2

the Main-Sumac Gap identifies a 400 m gap 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.

Target 3

Footwall Zone (FWZ) lies stratigraphically 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

Target 4

the MCF lies at the east end of the Main Deposit and is coincident with a conductive VTEM geophysical anomaly and a Cu-Zn soil anomaly. Three historical holes (KC11215, 90K28 and E013) returned ~35 m of semi-massive sulphide while KC11215 intercepted long intervals of strongly altered lapilli tuff with 2-8% pyrite, trace chalcopyrite and sphalerite.

Greenfields Targets

Target 5

the IRJ Northwest was first identified as a conductor in a 1990 ground-based survey and was tested with two drill holes. The holes intersected intensely altered and weakly copper-mineralized intervals, as well as a thick sequence of altered lapilli and ash. The size and strength of the alteration in both holes suggests a prospective target down dip from prior drilling efforts.

Target 6

B-C East is a 3.5 km long conductor inferred to be overlain by 30 m of silica exhalite. Host rocks comprise a narrow band of sericite schist with narrow lenses of massive pyrite and silica exhalite hosted in mafic rocks. Gravity surveys produced a broad and shallow response that suggests a diffuse zone of increased density that could indicate disseminated or stringer-style sulphide mineralization.

Target 7

IRJ Northeast. Three holes drilled in 1990 returned massive to semi-massive sulphide layers up to 1 m in width and associated with argillaceous material. Hole E017 returned ~3 m of a stringer zone with an average of 20% pyrite that includes some massive bands, and which assayed 7.3 m of 0.27% Cu with a high sample of 0.45% Cu. The geochemical trends suggest that the hydrothermal vent area is further east and targeting should focus on this vector.

Target 8

is described as a significant VMS-type showing located on the flank of a felsic dome. A prospect pit was excavated and reached “mineralized bedrock” at a depth of 1.6 m, assaying 0.3% Cu, 0.1% Pb, 0.1% Zn and 7 g/t Ag. Soil sampling has defined a 400 x 500 m cluster of strong Cu-Zn anomalies that are coincident with a strong, linear, chargeability anomaly. A Cu-Zn soil anomaly containing up to 0.15% Zn and 0.03% Cu occurs on the southwestern flank of the same rhyolite flow/dome complex that has not been drill tested.

Target 9

the I-PC is associated with cherts hosted in crystal lithic tuffs and is interpreted as a hydrothermal exhalative horizon. E024 and 90K16 are proximal drill holes which show alteration in lithic tuffs and the presence of massive to laminated pyrite with minor disseminated sphalerite and chalcopyrite, indicating proximity to a productive VMS environment. This tuff unit has an apparent thickness of 70 m and occurs upstream from numerous rounded boulders of finely banded, sphalerite- and galena-bearing chert and exhalite.

Technical Reports

2017 Project Feasibility Study

View our Corporate Presentation

More about Kutcho Copper

Team

Meet the team behind
Kutcho Copper

News

Checkout our latest
news and updates

Investors

Everything you need to know
to start investing in Kutcho

ESG

The environment and our community mean everything

Subscribe for our Latest News and Events