Kutcho Copper Expands High-grade Mineral Resources to 17.26 MT of Measured & Indicated at 2.61% CuEq1 and 10.71MT of Inferred at 1.67% CuEq1; Outlines Additional Near Resource Targets
*Please see our website for the 2017 NI 43-101 Technical Report for previous mineral resource
estimate details www.kutcho.ca or SEDAR www.SEDAR.com
Kutcho Copper Corp. | 717 – 1030 West Georgia Street | Vancouver, British Columbia | Canada | V6E 2Y3
Telephone: (604) 628-5623 | www.kutcho.ca
Kutcho Copper Expands High-grade Mineral Resources to 17.26 MT of Measured &
Indicated at 2.61% CuEq1 and 10.71MT of Inferred at 1.67% CuEq1;
Outlines Additional Near Resource Targets
Vancouver, B.C., March 4th, 2019. Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF ) (“Kutcho
Copper” or the “Company”) is pleased to provide an updated mineral resource estimate that will be used as
the basis for its upcoming Feasibility Study on its 100% owned Kutcho high grade copper-zinc project
located in British Columbia (“Kutcho Project”). The mineral resource estimate was prepared under the
direction of Robert Sim, P.Geo, with the assistance of Bruce Davis, PhD, FAusIMM , by SIM Geological
Inc. (SGI).
“We are pleased to announce an updated mineral resource estimate for the Kutcho Project that incorporates
the significant work and new drilling conducted by Kutcho Copper during our first full year of ownership.
The updated mineral resource includes a substantial 84% increase in inferred mineral resources compared
to the 2017 resource estimate*. In addition, there remains significant exploration potential between, below
and along strike from the existing mineral resources, providing further upside opportunities to grow the size
of the project. This expanded mineral resource will form the foundation for the Feasibility Study, which is
slated to be completed in Q2/Q3 2019”, stated Vince Sorace, President & CEO of Kutcho Copper.
Kutcho Project - Estimate of Mineral Resources
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
Combined – All Deposits
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.
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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 recovery 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.
5. Assumptions used to derive the cut -off grades in order 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 resources 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.
Updated Mineral Resource Metrics
38 new drill hole intersections through the Main and Esso deposits utilized to update the new
mineral resource calculation (3 at Esso, 35 at Main);
2018 drilling successfully delineated additional mineral resources along the down-dip edge of
Main, which remains open to further expansion; and
Drilling defined a large contiguous body of Measured resources at Main (Figure 1).
“The definition of a n updated, robust and larger resource estimate is a significant milestone for the
Company”, stated Rob Duncan, COO for Kutcho Copper. “Based on new drill hole data and an independent
mineral resource estimation at Kutcho , we have expanded the mineral resources at Ku tcho and
demonstrated potential for further reserve growth in the upcoming Feasibility Study.”
Figure 1: Resources by category looking SW with Exploration Targets
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High Priority Near Resource Targets
Four excellent targets exist on the Kutcho project that are located between, below or along s trike from
existing mineral resources (Figure 1). These targets represent high probability drill areas that could result
in significant accretive value to the project;
1. The Main-Sumac Gap identifies a 400 m by 380m panel between the Main and Sumac lenses that
is untested by drilling. A conductive geophysical anomaly coincides with the area and is 360 m
long. K003, the most eastern hole to intersect the Sumac lens and located on the western margin of
the gap returned 5.12 m of 1.29% Cu, 0.49% Zn and 7 g/t Ag.
2. Open Down Dip: Significant portions of all three lenses remain open down dip outside of current
resources including over 36% of Main, 50% of Esso and 100% of Sumac.
3. The Esso-West Expansion target lies 300 m west of the Esso deposit where 150m of a 1500 m
long geophysical anomaly has been drill tested. Drilling returned several mineralized intercepts
including 7.2 m of 2.0% Cu, 5.2% Zn and ~17 g/t Ag in hole E094B3. There remains 300 m of
untested Kutcho horizon between hole E094B3 and Esso, along with an additional 1000 m of
untested horizon to the west of hole E094B3. (Off western edge of map)
4. Footwall Zone ( FWZ) lies beneath the Main zone and represents a stacked massive sulphide
horizon that is open in all directions. The last drill hole to the east and down dip intersected 1.5 m
of 3.54% Cu, 6.94% Zn, 316.9 g/t Ag and 1.47 g/t Au in hole E057.
Mineral Resource Estimation Methodology
Mineral resource estimates are generated using a total of 362 drill holes at the Main deposit, 118 drill holes
at the Esso deposit, and 29 drill holes in the vicinity of the Sumac deposit. Drill holes are collared from
surface and extend to depths of 700m below surface in some areas. Mineral resource estimates are derived
from three -dimensional block models with nominal block sizes measuring 5 x 2.5 x 5m (LxWxH).
Resource estimates were generated using drill hole sample assay results and the interpretation of geological
models which relate to the spatial distribution of copper, zinc, gold and silver in the deposits. Interpolation
characteristics were defined based on the geology, drill hole spacing, and geostatistical analysis of the data.
The effects of potentially anomalous high-grade sample data, composited to 1 metre intervals, are controlled
using both traditional top -cutting as well as limiting the distance of influence during block grade
interpolation. Block grades are estimated using ordinary kriging and have been validated using a
combination of visual and st atistical methods to ensure they are appropriate representations of the
underlying sample data. Resources in the Measured category are delineated with drill holes on a regular
25m pattern. Resources in the Indicated category are delineated with holes on a nominal 50m pattern and
Inferred class resources extend to a maximum distance of 100m from a drill hole. It is assumed that the
Kutcho deposits would be mined using underground extraction methods. Based on projected technical and
economic parameters, the d eposits form consistent zones of mineralization , above a projected base case
cut-off threshold of 1.2%CuEq, that are considered to be amenable to underground mining methods.
Qualified Person
Robert Sim, P.Geo. Independent 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 indus try standards. Splits
from 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. The precision and accuracy of results is tested through the systematic inclusion of
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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. 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., Kutcho's Vice President of Exploration and
Development, who serves as a Qualified Person under the definition of National Instrument 43-101. In the
opinion of the QP, the mineral resource estimate reported herein is a reasonable representation of the
mineralization found at the Kutcho project at the current level o f sampling. The mineral resources were
estimated in conformity with generally accepted CIM Estimation of Mineral Resources and Mineral
Reserves Best Practices Guidelines (November 23, 2003) and is reported in accordance with NI 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 progress 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 Michael Rapsch, VP Corporate
Communications at [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 t o 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”, “es timates”, “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 stan ding, 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, complianc e 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.