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Kutcho rises on resource update

Kutcho Copper's share price gained more than 15% in Toronto Thursday after the company released a resource update for its namesake project in British Columbia ahead of a feasibility study due out by June.
Kutcho rises on resource update Kutcho rises on resource update Kutcho rises on resource update Kutcho rises on resource update Kutcho rises on resource update

Kutcho Copper has released an updated mineral resource estimate for its namesake project in British Columbia, Canada

Staff Reporter

Overall, the company expanded the September 2020 measured and indicated resource 8% to 18.6 million tonnes grading 2.6% copper-equivalent, comprising the Main, Esso and Sumac deposits. Inferred resources grew 24% to 13.2Mt grading 1.6% Cu-eq.

Kutcho sees compelling further exploration potential between, below and along strike from existing resources, and has prioritised areas such as the Main-Sumac Gap of about 400m-by-380m between the Main and Sumac lenses, and below the three main deposits.

It says just 150m of a 1,500m-long geophysical anomaly has been drilled at Esso-West, about 300m west of the high-grade Esso deposit. 

Another priority target is the Footwall Zone beneath the Main zone, a stacked massive sulphide horizon that remains open and where previous drilling encountered 1.5m of 3.54% copper, 6.94% zinc, 316.9g/t silver and 1.47g/t gold.

Kutcho's 2017 PFS 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 support from streaming company Wheaton Precious Metals involving a plus-C$100 million (US$75 million) financing package.

Kutcho shares (TSXV:KC) last traded at 53c, capitalising it at $41.2 million (US$32.5 million).