Kutcho Copper poised to test new VMS targets at B.C. project
Kutcho Copper Corp. [KC-TSXV, KCCFF-OTC] said it is poised to test two new targets with 4,100 metres of drilling planned for this year at its the company’s flagship Kutcho high-grade copper-zinc project in British Columbia.
“Volcanogenic massive sulphide (VMS) mineralizing systems like Kutcho commonly host multiple deposits, and Kutcho already hosts three – Main, Sumac, and Esso,’’ the company said in a press release, Wednesday. The company said it plans to test the Esso West target, which covers an area of 1,900 metres strike by 500 metres down dip and is defined by coincident ZTEM, VTEM, magnetic and seismic anomalies that lie to the west of the high-grade Esso deposit.
The company is also planning to test the Mother Target, a 7.5-kilometre long, partially coincident ZTEM and VTEM target, where four historical drill holes have tested portions of the target and have defined a prospective geological environment for potential VMS deposits. A preliminary ground-based geologic and sampling program is planned for 2024, prior to drill testing the target.
Kutcho shares advanced on the news, rising 2.7% or $0.005 to 19 cents. The shares currently trade in a 52-week range of 24 cents and $0.08.
The Kutcho project is located approximately 100 kilometres east of Dease Lake. It ranks as a high-grade development project with 22.8 million tonnes of measured and indicated resources at 2.26% copper equivalent (CuEq) representing over 1.1 billion pounds of copper equivalent contained metal.
Kutcho Copper, formerly known as Desert Star Resources Ltd., acquired a 100% interest in the Kutcho project from Capstone Copper Corp. (CS-TSX) in June 2017. Capstone now owns a 13.5% stake in Kutcho Copper.
In December, 2017, the company closed a $20 million subordinated secured convertible term debt loan and a US$65 million early deposit precious metals purchase agreement with Wheaton Precious Metals Corp. (WPM-TSXV, WPM-NYSE). The deal entitled Wheaton to up to 100% of the payable silver production and up to 100% of the gold production from the Kutcho copper-zinc-silver-gold project.
The company completed a feasibility study on the Kutcho project in 2021.
“Kutcho Copper finished 2023 with several fundamental accomplishments and we anticipate that 2024 will be another year of progress for the company,’’ said Kutcho President and CEO Vince Sorace. “We are uniquely positioned with a feasibility-stage, high-grade, low-cost copper-zinc development project located in a Tier 1 jurisdiction that has the potential for significant exploration upside,’’ he said.
“With Canada now focusing on critical metals (including copper and zinc), copper prices firmly above US$4.00 per pound (enhancing the project’s potential economic performance), and copper supply struggling to keep up with increasing demand for electrification and decarbonization, we will continue to explore and expand on opportunities for the Kutcho project on our path towards a construction decision.’’