CSA Global Consultants Canada will lead the feasibility study. The study is expected to be completed in Q2 2021.
Kutcho shares drifted lower on Thursday, falling 2.1% or $0.005 to 23.5 cents. The shares are currently trading in a 52-week range of 35 cents and $0.05.
Kutcho Copper, formerly known as Desert Star Resources, acquired the Kutcho Project from Capstone Mining Corp. [CS-TSX] in June 2017. Capstone now owns a 13.5% of 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, NYS]. 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 Kutcho Project is about 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 resource estimate to 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.
Inferred resources are 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.
The updated estimate includes an 84% increase in the inferred resources compared to the 2017 estimate. In addition, there remains significant exploration potential between, below and along strike from the existing resources.
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-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.
Initial capital costs, including a 15% contingency, have been estimated at $220.7 million.