Kutcho Copper Outlines Potential Open Pit & Underground Resource Expansion Targets

05.10.2021  |  GlobeNewswire

VANCOUVER, Oct. 05, 2021 - Kutcho Copper Corp. (TSXV: KC, OTCQX: KCCFF) ("Kutcho Copper" or the "Company") is pleased to provide an overview of exploration targets at the Kutcho project (the "Project") with an emphasis on open pit and underground targets at the Main, Sumac and Esso deposits that have the potential to expand the open pit and underground mineral resources beyond those contemplated for inclusion in the upcoming feasibility study.

"We are finalizing a detailed exploration plan for the Project that provides numerous opportunities to increase the open pit and underground mineral resources available for inclusion in future mine plans at the existing Main, Sumac and Esso deposits," said Vince Sorace, President & CEO of Kutcho Copper. "In addition, we plan to advance a number of green fields targets that show potential for discovery of completely new deposits and which have not seen any exploration conducted since 1990. The prospective mineralized horizons that host the three existing deposits repeat three times across our land position and VMS deposits typically occur in clusters along favourable horizons. With three deposits already identified along the Main-Sumac-Esso horizon and multiple underexplored targets, the Project has the making of a classic VMS district with significant upside potential."

The Kutcho Project mineral rights encompass ~90% of the prospective Kutcho formation rocks east of Dease Lake, B.C. These prospective volcanic rocks are folded, repeating the favourable mineralized horizon that hosts the Main, Sumac and Esso volcanogenic massive sulphide ("VMS") deposits three times within the Project boundary, including the areas hosting the known deposits. Following an updated comprehensive review of available technical information, significant exploration opportunities have been identified, including several priority, drill-ready targets prospective for the discovery and definition of additional mineral resources.

Near Resource Targets (Figure 1)

Main Deposit

• Open Pit Shell (Target 1): 459,000 tonnes of inferred mineral resources grading 1.35% copper equivalent ("CuEq") (comprised of 0.78% Cu, 1.24% Zn, 0.60g/t Au and 16.8g/t Ag) lie within a 0.45% CuEq cut-off grade pit shell for the Main deposit. and available for potential conversion into the measured and indicated mineral resource categories through additional drilling. This represents about 2.3% of the total combined estimate of open pit mineral resources for the Main deposit and has the potential to not only increase the material available processing but also reduce the strip ratio by converting material being treated as waste in the upcoming feasibility study into material available to feed the mill.
  
  
• Main-Sumac Gap (Target 2): The western margin of the Main deposit is partially open and joins the 'Main-Sumac Gap' where a 400m by 380m panel between the adjacent Main and Sumac deposits is untested by drilling. The near surface portion of this target could have potential to be an open pit target. A conductive geophysical anomaly coincides with the area and is ~360m long. K003, the most eastern hole to intersect the Sumac deposit and located on the western margin of the gap, returned 5.12m (estimated true thickness of 4.32m) of 1.29% Cu, 0.49% Zn and 7g/t Ag). Discovery of additional mineralization in this area could potentially result in an expanded open pit or be accessed from the proposed underground decline connecting the Main and Esso deposits.
  
  
• Underground & Down dip (Target 3): 1,717,000 tonnes grading 1.87% CuEq (comprised of 1.19% Cu, 1.90% Zn, 0.49g/t Au, 26.1g/t Ag) of Main deposit Inferred mineral resources lies below the pit shell using a 1.05% CuEq cut-off grade. This represents about 68.4% of the total combined estimate of underground mineral resources for the Main deposit and are available for potential conversion into the measured and indicated mineral resource categories. In addition, over 35% of the Main deposit remains open down-dip.
  

• Footwall Zone ("FWZ") (Target 4): The FWZ target comes near to surface, lies stratigraphically beneath the Main deposit and south of the open pit design. The FWZ is open to the east and partially down dip. Drill hole E057, near its eastern margin, intersected 1.5 m of 3.54% Cu, 6.94% Zn, 316.9g/t Ag and 1.47g/t Au. The FWZ is also open at depth and could represent a parallel mineralizing horizon. Stacked mineralizing horizons are common in VMS districts and could open up additional prospective areas to future exploration.
  

Esso Deposit

• Underground & Down Dip (Target 3): 1,624,000 tonnes grading 2.15% CuEq, (comprised of 1.32% Cu, 1.59% Zn, 0.42g/t Au, 35.8g/t Ag) of Esso deposit are characterized as inferred mineral resources using a 0.95% CuEq cut-off grade. This represents about 38.5% of the total combined estimate of underground mineral resources for the Esso deposit and have potential for conversion to measured and indicated mineral resource through additional drilling. Conversion would significantly increase the quantity of mineral resources available for inclusion in potential future mine plans with minimal additional development capital required for access. In addition, over 50% of the strike extent of the Esso deposit remains open down-dip.
  
  Esso West (Target 5): The Esso West expansion target is represented by a geophysical anomaly extending 1,500m westward from the Esso deposit, with approximately only 150m (10%) of the anomaly being drill tested. This drilling returned several mineralized intercepts including 7.2m of 2.0% Cu, 5.2% Zn and 17g/t Ag in hole E094B3 (estimated true thickness of 6.12m), which lies 300m west of the Esso deposit. The 300m of prospective Kutcho horizon between hole E094B3 and the Esso deposit is untested by drilling, as is the further 1,000 m of prospective Kutcho horizon to the west of hole E094B3. Any discoveries in these areas could take advantage of the proposed underground development for the Esso deposit.

Sumac Deposit

• Sumac (Target 6): The entire inferred mineral resource at the Sumac deposit, consisting of 9,086,000 tonnes grading 1.49% CuEq (comprised of 1.06% Cu, 1.53% Zn, 0.16g/t Au and 16.2g/t Ag), is open down dip and available for potential resource expansion and resource conversion from the inferred to measured and indicated resource categories. The underground access decline design for the Esso deposit passes across the entire length of the Sumac deposit which could provide drill platforms for underground drilling to convert the Sumac deposit into higher categories of mineralization, allowing incorporation into future mine plans with minimal additional development.
  

Details regarding the estimate of mineral resources are presented in a press release dated Sept 13, 2021 and can be seen on the Company's web site.

Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c3a2d233-b7a8-415f-a194-c843822b66be.

Regional Targets (Figure 2)

• Target 1 - the IRJ Northwest target was first identified as a conductor in a 1990 ground-based survey and was tested with two drill holes. The holes intersected intensely altered and weakly copper-mineralized intervals, as well as a thick sequence of altered lapilli tuff and ash. The size and strength of the alteration in both holes suggests a prospective target down dip from prior drilling efforts and is prospective for the discovery of a new VMS deposit.
  
  
• Target 2 - the IRJ Northeast target has been intersected by three holes drilled in 1990 that returned massive to semi-massive sulphide layers up to 1m thick that were associated with argillaceous material. Hole E017 returned ~3m of a stringer zone with an average of 20% pyrite that includes some massive bands, which assayed 7.3m of 0.27% Cu. The geochemical trends suggest that a hydrothermal vent area lies further east and that targeting higher grade mineralization should focus on this vector in order to potentially discover a new VMS deposit.
  
  
• Target 3 - This target is a significant VMS-type showing located on the flank of a felsic dome. A prospect pit was excavated and reached "mineralized bedrock" at a depth of 1.6 m, returning assays of 0.3% Cu, 0.1% Pb, 0.1% Zn and 7g/t Ag. Soil sampling over the area defined a 400m x 500m cluster of strong Cu-Zn anomalies that are coincident with a strong, linear, chargeability anomaly. A Cu-Zn soil anomaly containing up to 0.15% Zn and 0.03% Cu occurs on the southwestern flank of the same rhyolite flow/dome complex that has not been drill tested either. Rhyolite domes are often associated with vent areas in VMS deposits, with massive sulphides often lying on the flanks, suggesting that Target R3 may represent a new mineralizing centre.
  
  
• Target 4 - B-C East is a 3.5km long conductor inferred to be overlain by 30m of silica exhalite. Host rocks comprise a narrow band of sericite schist with narrow lenses of massive pyrite and silica exhalite hosted in mafic rocks. Gravity surveys produced a broad and shallow response that suggests a diffuse zone of increased density that could indicate disseminated or stringer-style sulphide mineralization commonly associated with VMS deposits.
  
  
• Target 5 - The I-PC area is associated with cherts hosted in crystal lithic tuffs and is interpreted as a hydrothermal exhalative horizon. E024 and 90K16 are proximal drill holes which show alteration in lithic tuffs and the presence of massive to laminated pyrite with minor disseminated sphalerite and chalcopyrite, indicating proximity to a productive VMS environment. This tuff unit has an apparent thickness of 70m and occurs upstream from numerous rounded boulders of finely banded, sphalerite- and galena-bearing chert and exhalate, suggesting potential for a nearby sub-cropping VMS system.
  

Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c4399a12-cddb-4199-b72e-19a17bddebe4.

Future Exploration Plans

Kutcho Copper is assessing plans to aggressively test these priority targets in 2022 where they have the potential to enhance the size and scale of the Project. In conjunction with these efforts, Kutcho Copper will also conduct an airborne geophysical VTEM survey over portions of the property that have not been covered by geophysical surveys in the past (Figure 2). A VTEM survey carried out in 2011 was highly effective at confirming known mineralization and identifying new anomalies for follow-up.

Qualified Persons

Robert Sim, P.Geo., a Qualified Person as defined by NI 43-101, is responsible for the estimate of mineral resources presented in this news release and has reviewed, verified and approved the contents of this news release as they relate to the mineral resource estimate, including the sampling, analytical, and test data underlying the mineral resource estimate. Mr. Sim is a consultant to the Company, independent from Kutcho Copper and confirms there were no limitations from the Company in verifying the drilling and sample data with site visit observations and monitoring of the QA/QC program. The technical or scientific information in this press release has been reviewed and approved by Mr. Garth Kirkham, P.Geo., Technical Advisor for Kutcho Copper Corp., who serves as a Qualified Person under the definition of 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 info@kutcho.ca 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 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", "estimates", "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 standing, 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, 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 opinions, or other factors, should change.