Vancouver, B.C., November 8, 2021. Kutcho Copper Corp. (TSXV: KC, OTCQX: KCCFF) (“Kutcho Copper” or the “Company”) is pleased to announce the results of the 2021 Feasibility Study (“FS” or “Feasibility Study”) for the development of the 100% owned Kutcho copper and zinc project (“the Kutcho project” or “the Project”) in northern British Columbia.
Robust Project Economics
- Base case metal prices⁽¹⁾ of $3.50/lb Cu, $1.15/lb Zn
- Pre-tax NPV7% C$737 million, IRR 31%
- After-tax NPV7% C$461 million, IRR 25%
- Spot metal prices⁽²⁾ of $4.50/lb Cu, $1.57/lb Zn
- Pre-tax NPV7% of C$1,467 million; IRR 51%
- After-tax NPV7% of C$931 million; IRR 41%
Low Cost Production
- Cash costs of US$1.11/lb of CuEq⁽³⁾
- All-in sustaining costs⁽⁴⁾ of US$1.80/lb of CuEq
- Initial capital cost of C$483 million
Eleven-Year Open Pit And Underground Mine Life
- Metal production of 533 Mlbs Cu, 841 Mlbs Zn, 10.6 Moz Ag, 129.7 koz Au
High Grade Mineral Resource ⁽⁵⁾
- 8 million tonnes grading 2.26% CuEq containing 1.1 Blbs CuEq (764 Mlbs Cu, 1,096 Mlbs Zn)
- An additional 12.9 million tonnes grading 1.62% CuEq containing 460 Mlbs CuEq in the inferred category (312 Mlbs Cu, 449 Mlbs Zn)
Stable Mining Jurisdiction Situated In Northern British Columbia, Canada
- One of the safest global mining jurisdictions, located in the traditional territories of the Tahltan Nation and Kaska Dena Nation
Vince Sorace, President & CEO of Kutcho Copper commented:
“The Feasibility Study represents a major milestone for Kutcho Copper as we continue to advance the high-grade Kutcho copper-zinc project towards a development decision. The significant redesign and engineering of the Project delivers a mine plan that is a predominantly open pit mining operation with the concurrent development of two underground mines. The mine plan has resulted in a technically robust and capital efficient Project with a minimised footprint. The results of the Feasibility Study highlight the attractive economics of the Kutcho project which are resilient at lower metal prices, very attractive at base case prices and exhibit significant leverage to rising prices as reflected in spot metal prices with a C$931 million after-tax NPV7% and a 41% IRR. We believe that the results of the Feasibility Study mean that Kutcho Copper is now one of the most undervalued copper investment opportunities in North America.”
The Kutcho project is located in northern British Columbia (BC), approximately 100 km east of Dease Lake within the traditional territories of the Tahltan Nation and Kaska Dena Nation. The Project described in the Feasibility Study contemplates mining the Main and Esso deposits to extract mainly copper and zinc, with minor quantities of gold and silver. The Main deposit is designed to be mined primarily as a conventional shovel and truck open pit operation, with a deeper remnant mined by underground longitudinal longhole open stoping (LLHOS) with cemented rock fill (CRF). The underground Esso deposit is also designed to be mined using LLHOS with CRF. A total of 17.3 Mt is planned to be mined over an 11 year mine life, with 14.5 Mt coming from the open pit and 2.8 Mt from the underground mines. A steady-state crusher production rate of 4,500 tonnes per day (tpd) is expected be achieved by the end of the first year of operations.
After primary crushing at an average steady state rate of 4,500 tpd, an ore sorter utilizing an x-ray transmission (XRT) sensor would remove low-grade and waste material from the feed to the SAG and ball mills, followed by conventional flotation, regrind and dewatering circuits. Approximately 3,900 tpd of ore would report to the milling and flotation circuit after ore sorting. A total of 533 Mlbs of copper and 841 Mlbs of zinc as primary products, and 10.6 Moz of silver and 129 koz of gold is anticipated to be recovered to concentrate for sale.
The Project design includes an extensive progressive reclamation programme, including the backfilling of the open pit and water treatment during operations and for the closure period.
The Project is located within the traditional territories of the Tahltan Nation and Kaska Dena Nation. Kutcho has a good working relationship with these Nations and has started discussions with both to develop Economic Participation Agreements that would safeguard their interests, provide employment, and benefit the Nations economically.
Feasibility Study Participation
The study was led by CSA Global and included the support of SIM Geological Inc., Allnorth Consultants Ltd., ABH Engineering Inc., Mineit Consulting Inc., Terrane Geoscience Inc., Piteau Associates, and Onsite Engineering Ltd., all of which are independent of the Company.
SOURCE: Kutcho Copper Corp
DATE: November 8, 2021