Vancouver, B.C., September 11, 2018. Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF) (“Kutcho Copper” or the “Company”) is pleased to announce initial drill results from the Esso deposit at its 100% owned Kutcho high grade copper-zinc project located in British Columbia and enters into the mineral resource expansion drilling phase of the 2018 field program.
Drill hole KC18-038-W1 returned 28m of 2.09% Cu, 6.1% Zn, 65.8 g/t Ag and 0.82 g/t Au or a CuEq of 5.7% including a 10.4m massive sulphide intersection of 3.80% Cu, 14.4% Zn, 134.6g/t Ag and 1.84g/t Au or a CuEq of 12%*.
In addition, drill hole KC18-227-W1 intersected massive to semi-massive sulphide mineralization that returned 1.17% Cu, 2.5% Zn, 45.7g/t Ag and 0.57g/t Au, or 3% CuEq* over 3.2m. Cross sections of drill hole locations and mineralization are provided in Figures 1 and 2 below.
|Cu %||Zn %||Ag g/t||Au g/t||CuEq %*|
True width estimated to be 85% length of intercepts.
*CuEq = Copper Equivalent calculated using $2.75/t Cu, $1.10/t Zn, $17.00/Oz Ag, $1250/Oz Au.
Vince Sorace, President & CEO stated, “We have now moved into an exciting phase of the field program as the mineral resource expansion drilling at Kutcho is now in full swing and we anticipate releasing drill results frequently over the course of the next few months. The initial drill holes from Esso represent the unique high-grade opportunity achievable at the Kutcho project.”
Kutcho Project Update
The comprehensive field program underway at Kutcho is designed to capture all necessary components to complete the Feasibility Study (FS) that is being led by Ausenco Engineering. Field work completed and ongoing to date consists of:
- Hydrogeological drilling and well installation has been completed at both Main and Esso.
- All geotechnical drill holes at the Esso deposit have been completed. Geotechnical drilling at the Main deposit is currently underway and is anticipated to be completed by the end of September.
- Completion of the surface geotechnical program that consists of a combination of test pit and drill hole investigations for engineering of the site infrastructure and tailings management facility.
- Metallurgical drilling at both the Esso and Main deposits is complete. Lab work to refine recoveries and mill process design will continue for the next 3 to 4 months.
- Baseline environmental programs including water quality measurements, terrestrial and aquatic wildlife surveys, air quality measurements and meteorological data collection at both the regional and site-specific scales are 50% complete. Components of this comprehensive program will be continuously on-going throughout the 2018 and 2019.
- Road engineering field studies have been completed along the proposed corridor to access the project from highway 37.
The Company is also progressing detailed engineering studies, design work and trade-off studies (mining method, mine schedule, plant/throughput studies, tailings management facilities, site infrastructure) towards completion of the Feasibility Study, which is on schedule to be completed in Q2 2019.
Figure 1 & Figure 2
TCS Project Update
Kutcho has also commenced a surface program at the TCS property. The TCS property is located 16km east of Dease Lake and covers the Permo-Triassic Kutcho formation of bimodal volcanic rocks, which host the Kutcho deposits approximately 90km to the east. TCS presents a pure greenfields opportunity which has never been drilled. Previous exploration programs have identified mineralized and altered bedrock in creek outcrops and a 600m by 800m Cu-Zn soil anomaly. The 2018 program will consist of prospecting, mapping and soil sampling to potentially delineate drill targets for future campaigns.
QA/QC Statement on Assay Results
Diamond drilling conducted on the Kutcho property for 2018 isby Cyr Drilling International of Winnipeg, Manitoba, using Boyles BBS-37 surface drills, with HQ diameter drill rods. All holes were oriented using an ACT III core orientation tool and after completion of the drill hole, holes were surveyed using a downhole gyroscopic tool rented from Terraplus Inc. of Richmond Hill, Ontario. Kutcho systematically inserts certified standards, blanks, and field duplicates consisting of half core samples into each batch of samples at regular intervals. Samples are placed in sealed bags and shipped directly to the ALS Minerals preparatory laboratory in Whitehorse. The 2018 samples are analyzed by ALS Global of Vancouver, British Columbia. Samples are prepared by crushing the entire sample to 70% passing -2mm, riffle splitting of 250g and pulverizing the split to better than 85% passing 75 microns. The core samples also undergo a robust duplicate assay program that tests rejects and pulps for reproducibility. Samples are also sent to an umpire lab.
The gold assays are determined by Au-AA23 fire assay method which reports in parts per million (ppm) (equivalent to grams per tonne (g/t)). Any samples greater than 9.00g/t gold are analyzed by Au-GRA21 fire assay method with a gravimetric finish.
Base metal assays are first determined using the ME-ICP41 method, which reports results as part per million (ppm). All analyses that reach the overlimits of ME-ICP61 are reanalyzed with an Ore Grade method. The analytical results are verified with the application of industry standard Quality Control and Quality (QA/QC) procedures.
Rory Kutluoglu, B.Sc. P.Geo., a Qualified Person as defined by National Instrument 43-101, has read and approved all technical and scientific information contained in this news release. Mr. Kutluoglu is the Company’s Vice President Exploration.
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.
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.