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Kutcho advancing towards production decision

Kutcho Copper (TSXV: KC) says having achieved significant milestones in 2019 including a resource update and citing a bullish outlook for copper, it will continue de-risking and advancing its namesake project in British Columbia towards a production decision.
Kutcho advancing towards production decision Kutcho advancing towards production decision Kutcho advancing towards production decision Kutcho advancing towards production decision Kutcho advancing towards production decision

Core from Kutcho Copper’s Kutcho project in BC

Staff reporter

The copper-zinc project has a measured and indicated 17.26 million tonne resource at 2.61% copper-equivalent and a 10.71Mt inferred resource at 1.67% Cu-eq. 

Kutcho said metallurgical results last year had improved on the copper and zinc recoveries compared with a 2017 prefeasibility study and the silver recovery also improved.

It was progressing through the provincial environmental process and had trade-off studies underway which would be the foundation for an upcoming feasibility study.

The 2017 PFS had outlined a 12-year mine producing an average annual 33 million pounds of copper and 42Mlb of zinc, plus gold and silver by-products, with initial capex of C$220.7 million (US$166 million), an after-tax NPV (8% discount) of $265 million (US$199 million) and an IRR of 27.6%.

Kutcho acquired the project in 2017 with the support of streaming company Wheaton Precious Metals involving a plus-C$100 million (US$75 million) financing package.

Wheaton holds about 10.5% of Kutcho and in November agreed to allow the junior to defer interest payments due under a $20 million convertible debenture investment and provided a $1.3 million loan.

Kutcho had raised $2.1 million in an over-subscribed placement in June at 20c per unit.

Its shares closed up 5.6% yesterday to 19c, at the lower end of its 52-week range of 13c-47c, capitalising it about $13 million (US$9.8 million).