Kutcho Copper Commences Feasibility Study on its High Grade Copper-Zinc Project
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Kutcho Copper Corp. | 717 – 1030 West Georgia Street | Vancouver, British Columbia | Canada | V6E 2Y3
Telephone: (604) 628-5623 | www.kutcho.ca
Kutcho Copper Commences Feasibility Study on its High Grade Copper-Zinc
Project
Vancouver, B.C., November 17, 2020. Kutcho Copper Corp. (TSXV: KC, OTC: KCCFF) (“Kutcho
Copper” or the “Company” ) is pleased to announce it has begun work on a feasibility study for its high
grade Kutcho copper -zinc development project located in northwestern British Columbia . CSA Global
Consultants Canada Ltd. (“CSA Global”, an ERM Group company) has been chosen to lead the feasibility
study and will be supported by a team of resource, geotechnical, environmental, metallurgical, processing,
and mining consultants.
“With a significant amount of preliminary work already completed, and now the selection of CSA Global
to lead the feasibility study, we look forward to an efficient and timely process in completing the next
significant milestone in the life cycle of the Kutcho project,” stated Vince Sorace, President and CEO of
Kutcho Copper. “We have recently seen an encouraging rise in the price of copper and, along with bullish
sentiment for the coming years and the accelerating trend towards the electrification of everything, Kutcho
is well positioned to take advantage of this anticipating completion of the feasibility study in Q2, 2021 .
Kutcho is a high margin, low capital project with significant upside potential; our objective in 2021 will be
to continue to de-risk and advance the project towards a production decision.”
Under the engineering lead of CSA Global , who will undertake the mining, hydrology and site water
balance work, the feasibility study team will be supported by Mineit for mining engineering , processing
and recovery, reserve estimation and financial modelling; Allnorth for process plant and infrastructure
design and engineering and Piteau Associates for waste and tailings management engineering and design.
Incorporated into the feasibility st udy team, but contracted directly to Kutcho Copper, will be SIM
Geological Inc. for resource modeling and estimation, Terrane Geoscience Inc. for mining geotechnical
engineering, and OnSite Engineering Inc. for main access road design and engineering.
Kutcho PFS Highlights (2017)
Kutcho Copper completed a Pre-Feasibility study (“PFS”) dated July 31, 2017 that demonstrated positive
economics with an after-tax NPV of CAD$265 million and an IRR of 27.6%. The Company completed the
acquisition of the project in December 2017 with the support of Wheaton Precious Metals, involving a
staged financing package of over $100 million. The Kutcho project benefits from existing ground access,
and an on-site camp and airstrip. Proximal highway access will facilitate the shipping of concentrate from
the nearby port at Stewart. Additional details can be found in the technical report on SEDAR.
Significant Milestones Achieved in 2019 & 2020 to be Incorporated into the Feasibility Study Include:
1) Completed an updated mineral resource estimate for the Main, Esso and Sumac deposits
resulting in 17.26 Mt of measured & indicated mineral resources at 2.61% CuEq1 and 10.71MT
of Inferred mineral resources at 1.67% CuEq1 (refer to Table 1 below for details).
Significant exploration potential remains between, below and along strike from the existing
mineral resources, providing further upside opportunities to grow the size of the project.
The updated mineral resource incorporates the significant work and new drilling conducted
by Kutcho Copper during its first year of ownership of the Project, resulting in a substantial
84% increase in inferred mineral resources compared to the 2017 resource estimate . See
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news release dated March 4 th, 2019 and our website at www.kutcho.ca or SEDAR at
www.sedar.com for the 2017 NI 43 -101 Technical Report for previous mineral resource
estimate details.
Table 1. Kutcho Project Mineral Resources Estimate
Class Tonnes
(000) CuEq (%) Cu (%) Zn (%) Au (g/t) Ag (g/t)
Main Deposit
Measured 5,831 2.66 1.92 2.78 0.48 28.7
Indicated 9,003 2.20 1.62 2.13 0.40 29.2
Measured
+
Indicated
14,834 2.38 1.74 2.38 0.43 29.0
Inferred 1,902 1.98 1.31 2.16 0.48 29.7
Esso Deposit
Indicated 2,425 3.98 2.52 4.76 0.81 64.0
Inferred 1,025 2.30 1.60 2.23 0.52 41.4
Sumac Deposit
Inferred 7,779 1.52 1.10 1.60 0.17 16.9
Main + Esso + Sumac Combined
Measured 5,831 2.66 1.92 2.78 0.48 28.7
Indicated 11,428 2.58 1.81 2.68 0.49 36.5
Measured
+
Indicated
17,259 2.61 1.85 2.72 0.49 33.9
Inferred 10,706 1.67 1.18 1.76 0.26 21.5
1. The estimates in the table are considered to be amenable to underground extraction methods. The base case cut -off grade is
1.2% CuEq based on the formula CuEq = (Cu% x 0.825) + (Zn% x 0.302) + (Ag g/t x 0.004) + (Au g/t x 0.262). Mineral resources
are not mineral reserves because the economic viability has not been demonstrated.
2. Estimate assumes Mining (underground) US $34.00/t, Processing US $18.00/t, US G&A $10/t, copper price US $3.00/lb, zinc price
US $1.25/t, gold price US $1350/oz, silver price US $17.00/oz, copper payable rec overy 82.5%, zinc payable recovery 72.5%,
silver payable recovery 45%, gold payable recovery 40%
3. Effective date of resource estimate February 22nd, 2019
4. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would
enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted
to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated or measured mineral
resources with continued exploration.
5. Assumptions used to derive the cut -off grades in orde r to meet the NI43 -101 requirement for mineral resource estimates to
demonstrate “reasonable prospects for eventual economic extraction”. The cut -off grades to be used in the upcoming feasibility
study may vary from those used to limit the mineral resource s reported herein, as the inputs to that study are determined. No
inference is implied in the changes to the assumptions used in the cut-off grade calculations from the prior mineral resource estimates
as to what will be used in the upcoming feasibility, as those assumptions remain to be determined.
2) Additional testwork delivered improved metallurgical results including (see press release dated
June 25, 2020):
Main Lens flotation recoveries improved to 87.4% copper, 63.8% zinc, 36.9% gold and
59.0% silver
Esso Lens flotation recoveries improved to 94.5% copper, 89.3% zinc, 40.8% gold and
71.2% silver
Main Lens tailings stream leaching achieve d additional incremental recoveries of an
estimated 8.0% copper, 32.9% gold and 20.7% silver
Esso Lens tailings stre am leaching achieve d additional incremental recoveries of an
estimated 2.7% copper, 27.6% gold and 11.2% silver
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Approximate Life of Mine (LOM) blend comprising 75% LOM feed from the Main Lens
and 25% LOM feed from the Esso Lens and combining flotation and tailings leach
recoveries yields 96.4% copper, 75.1% zinc, 70.4% gold and 82.9% silver
3) Undertook extensive quantitative mineralogical analyses by QEMSCAN and built a geo -
metallurgical model of the Main and Esso deposits. This resulted in a comprehensive
understanding of the distribution of copper and zinc bearing minerals, along with other
important minerals that has and should continue to help improve the metallurgical performance
at the Kutcho project.
4) Initiated various trade -off studies centered on mining methods, mining costs, tailings
management facility design and location, preliminary geotechnical parameters and stope
sizing. These studies are ongoing and wil l be the foundation for completion of the upcoming
Feasibility Study.
5) Submission and acceptance of the final Project Description to the British Columbia
Environmental Assessment Office (BCEAO) and reception of a Section 11 Order that defines
the scope of the Environmental Assessment and the Indigenous Nations that Kutcho and British
Columbia will engage with through the process. In further discussion with Indigenous Nations,
Kutcho has agreed for the project to be reviewed under the new BC Environmental Assessment
Act. With the passing of Bill C-69 (Canadian Impact Assessment Act) and associated threshold
regulations, the Kutcho Project is not required to undertake a federal environmental assessment.
6) Signed and maintain exploration agreements with both Tahltan and Kaska (Dena) Nations as
well as working collaboratively as the project progresses.
7) Completed comprehensive baseline data collection for meteorological, groundwater, and
surface water (quantities and quality).
About CSA Global
CSA Global, an ERM Group company, is an international mining consultancy with headquarters in Perth
and offices in Vancouver, Toronto, Dublin, Horsham (UK), Johannesburg, Jakarta, Brisbane, and the
additional global network of ERM, which is one of the world’s largest sustainability consultancies operating
in more than 40 countries and territories around the world . CSA Global’s core expertise is in geology,
mineral resources, mining, geochemistry, geometallurgy and hydrogeology/hydrology with additional close
associates who bring expertise in geotechnical engineering, metallurgy and process engineering. Through
ERM, CSA Global brings industry leading experience and reputation in environmental and community
studies and all other aspects of ESG and sustainability. CSA Global has undertaken many PEA to FS level
studies globally and in 2019 was the lead consultant for BMC Minerals’ Feasibility Study on the Kudz ze
Kayah polymetallic VMS project in the Yukon.
Qualified Persons
Robert Sim, P.Geo. Consultant to the Company and a Qualified Person as defined by National Instrument
43-101 ("NI 43-101") has reviewed and approved the contents of this news release related to the mineral
resource estimate. All samples were collected in accordance with industry standards. Splits fro m the drill
core samples were submitted to the ALS sample preparation laboratory in Whitehorse, Yukon Territory,
Canada, and then transferred to ALS' laboratory in Vancouver, British Columbia, Canada for fire assay and
ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check
assays. The mineral resource estimate referenced in this press release was prepared in November 2018 by
Robert Sim, P.Geo., an independent Qualified Person as defined by NI 43-101.
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Tom Shouldice, Chief Executive Officer of Base Metallurgical Laboratories is a professional metallurgical
engineer with over 20 years of experience in mineral processing. His relevant experience includes plant
operations, project management, engineering and a ll aspects of metallurgical testing. Tom specializes in
flotation and mineralogical interpretation in relation to metallurgica l response. Mr. Shouldice is a
“Qualified Person” as defined in National Instrument 43-101 “Standards of Disclosure for Mineral Projects”
of the Canadian Securities Administrators and has reviewed and approved metallurgical data presented in
this news release.
Kutcho's additional disclosure of a technical or scientific nature in this press release has been reviewed and
approved by Mr. Rory Kutluoglu, B.Sc, P.Geo., who serves as a Qualified Person under the definition of
National Instrument 43-101.
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 advance the Kutcho Project through
feasibility and permitting to a positive construction decision.
Vince Sorace
President & CEO, Kutcho Copper Corp.
For further information regarding Kutcho Copper Corp., please email [email protected] or visit our website
at www.kutcho.ca.
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 securitie s 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” and similar expression s, 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 w orking 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 mine ral resource and reserve estimates, 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 C ompany’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 opinio ns, or other factors, should change.