Feb 21 2019
Kutcho Copper Corp. has provided an update on the ongoing developments at its fully owned Kutcho high-grade copper zinc development project situated in Northern British Columbia, approximately 100 km east of Dease Lake.
Kaska Exploration Agreement
Kaska Nation—as represented by Dease River First Nation (“Kaska”) and Kutcho Copper Corp.—are happy to report that they have signed an exploration agreement in relation to the Kutcho Project.
As part of this contract, the Kaska Nation and Kutcho Copper Corp. have agreed to work together in a spirit of cooperation and collaboration o develop a mutually beneficial and positive working association.
The main goals of the contract include:
- Identifying business and employment opportunities for Kaska Nation related to the exploration activities
- Encouraging timely communication and dialogue to foster a direct, open, and respectful association
- Establishing a collaborative and co-operative working arrangement between the Kaska Nation and Kutcho Copper Corp.
- Improving the capacity of Kaska Nation to take part in opportunities in relation to the baseline data collection and exploration activities
- Establishing a working group
We are pleased to sign this agreement on behalf of the Kaska Nation with Kutcho Copper as they help set the standard for how exploration should be conducted in Kaska territory. We look forward to working with Kutcho Copper to advance our people’s understanding of both the project’s potential impacts and benefits.
Myles Manygreyhorses, Chief, Dease River First Nation
The signing of the Exploration Agreement with Kaska marks a significant milestone in the evolution of the Kutcho Project. This agreement confirms Kutcho Copper and Kaska’s commitment to work collaboratively while maximizing opportunities for Kaska as the project advances towards development of the Feasibility Study.
Vince Sorace, President and CEO, Kutcho Copper Corp.
The Kaska Nation will get 300,000 share purchase warrants as part of the agreement. From the execution date of the contract, each share purchase warrant will be exercisable to obtain a single common share of Kutcho Copper Corp. at a cost of $1.00 over a five-year period. However, the issuance of the share purchase warrants will be subject to Kutcho Copper Corp.’s filing needs with the TSX Venture Exchange.
Corporate Update
The 2018 field programs of Kutcho Copper Corp. effectively delivered all the remaining in-depth datasets needed to conclude the feasibility study, which is ongoing and expected to be over by the second or third quarter of 2019. Furthermore, Kutcho Copper Corp. is planning to venture into the Environmental Assessment process. Other ongoing efforts and milestones realized to date include:
- Metallurgical Program—considerable developments have been made, focusing on an optimized reagent scheme and a streamlined process with an aim to lower costs
- Resource Drill Program—drilling program developed to broaden the mineral resource base proved successful in targeting regions of the Main Lens along its down dip edge, in which considerable parts of the mineralization stay open
- Permitting Progress—re-establishment of a detailed collection of baseline environmental data
- Geotechnical Models—completion of the detailed geotechnical drilling program to offer stope design and geotechnical models as a basis for the latest mine design
- First Nations—as mentioned above, with the signing of the exploration agreement, Kutcho Copper Corp. currently has agreements in place with the Tahltan Central Government as well as the Kaska Nation
Following are the important project milestones that will be declared in the forthcoming weeks and will form the key components of the permitting initiative and feasibility study:
- Update of metallurgical program
- Updated 43-101 resource estimate
- Submission of Kutcho Copper Corp.’s project description, which will signify the official entry of the project into the environmental assessment process.
We have made significant progress towards the completion of our Feasibility study. With a very successful 2018 field program and subsequent completion of key technical components, we look forward to announcing some of those results over the coming weeks.
Vince Sorace, President and CEO, Kutcho Copper Corp.
Subject to TSXV approval, an arms-length party will receive a C$1.5 million one-year term lending facility from Kutcho Copper Corp. In addition, 500,000 bonus shares will be issued by Kutcho Copper Corp. and these will be subject to an agreed period of four months and a day from issuance. The loan carries a 5% interest and proceeds of which will be used to complete the feasibility study.