Kutcho Copper raises $4.1 million for B.C. project

Exploring the Kutcho high-grade copper-zinc-silver-gold project located 100 km east of Dease Lake, northern British Columbia. Photo courtesy Kutcho Copper Corp.

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Kutcho Copper Corp. [KC-TSXV; KCCFF-OTC] said Wednesday June 16 that it has raised $4.1 million from a private placement financing, money that will be used to fund exploration expenses at the company’s flagship Kutcho high-grade copper-zinc project in northern British Columbia.

The private placement consists of 5.2 million hard-dollar shares priced at 50 cents, for gross proceeds of $2.6 million and 2.5 million flow-through shares priced at 60 cents per share, generating additional gross proceeds of $1.5 million.

“This financing was led by a strategic investor with proceeds targeting continued advancement of the Kutcho copper-zinc project and for additional initiatives the company is currently pursuing in order to optimize the value of the project,” said Kutcho Copper President and CEO Vince Sorace. “We expect to provide updates with regards to continued developments around the feasibility study in the near future.”

Kutcho shares advanced on the news, rising 5.8% or $0.003 to 55 cents. The shares are currently trading in a 52-week range of 82 cents and $0.11.

Kutcho Copper, formerly known as Desert Star Resources Ltd., acquired a 100% interest in the Kutcho project from Capstone Mining Corp. [CS-TSX] in June 2017. Capstone now owns a 13.5% stake in Kutcho Copper.

The Kutcho project is located approximately 100 km east of Dease Lake. Mineralization on the 17,060-hectare property is hosted in three known volcanic massive sulphide (VMS) deposits. The largest is the Main deposit. The other two are Sumac and Esso.

According to an updated mineral resource estimate that will be used for the upcoming feasibility study, measured and indicated resources in all deposits stand at 17.3 million tonnes grading 2.61% copper equivalent, 1.85% copper, 2.72% zinc, 0.49 g/t gold and 33.9 g/t silver.

On top of that is an inferred resource of 10.7 million tonnes of 1.67% copper equivalent, 1.18% copper, 1.76% zinc, 0.26 g/t gold and 21.5 g/t silver.

CSA Global Consultants Canada is leading the feasibility study and is supported by a team of resource, geotechnical, environmental, metallurgical processing and mining consultants. The feasibility study is expected to be completed in the second quarter of 2021.

The 2017 pre-feasibility study envisaged a 12-year mine life with a 2,500 tonne-per-day production rate. Total payable production over the life of the mine was expected to be 378 million pounds of copper, and 473 million pounds of zinc, plus by-product gold and silver.

Average annual production was forecast at 33 million pounds of copper and 42 million pounds of zinc, plus by-product gold and silver. However, the company aims to double the production rate from 2017 forecasts to 100 million pounds of copper equivalent annually.

 


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