The first four holes of Kodiak’s 25,000m 2022 drill program at the MPD copper-gold porphyry Project in British Columbia (BC) are in. The wide medium- to high-grade intercepts from holes MPD-22-004 and -002 were drilled as part of infill drilling within the southern Gate Zone to address a 200m-wide gap between 2021 intersections of copper-gold-silver mineralization (Exhibit 1). The other two holes, MPD-22-001 and -003 were step outs to the southeast and southwest, respectively, from the southernmost hole from the 2021 drill program at the Southern Gate Zone.
Highlighted drill intercepts included:
- MPD-22-004: 501m of 0.20% copper, 0.12g/t gold and 0.98g/t silver (0.28% CuEq*), including 114m grading 0.30% copper, 0.20g/t gold and 2.36g/t silver (0.44% CuEq)
- MPD-22-002: 227m of 0.20% copper, 0.06g/t gold and 0.10g/t silver (0.24% CuEq), including 47m grading 0.33% copper, 0.08g/t gold and 0.29g/t silver (0.38% CuEq)
* Copper equivalent grades (%CuEq) are for comparative purposes only. Calculations are uncut and recovery is assumed to be 100% as no metallurgical data is available. Metal prices of US$4.25/lb copper, US$1,800/oz gold, and US$26/oz silver, using the formula: %CuEq = Cu grade + (Au price x Au grade + Ag price x Ag grade)/31.104/(Cu price*22.046).
Originally discovered in 2020, Kodiak previously drilled 21,750m in 2021 to expand the Gate Zone Discovery mineralization over a 1km strike length (north-south), 350m width (east-west) and depth of 850m with a best historical intercept of 535m grading 0.49% copper and 0.29g/t gold, including 282m grading 0.70% copper and 0.49g/t gold and including 45.7m of 1.41% copper and 1.46g/t gold in historical Hole MPD-20-004. After the discovery of the Gate Zone in 2020, Teck Resources (TECK.A and TECK.B-TSX) became a 9.9% shareholder in Kodiak.
Exhibit 1. Plan View of Gate Zone Drilling (Property Location Reference Lower Left)
Source. Kodiak Copper Corp.
Kodiak’s MPD Copper Gold Porphyry Project is located in the prolific Quesnel Trough in south-central B.C., Canada, situated between Teck’s Highland Valley Copper Mine and Copper Mountain Mining Corp.’s (CMMC-TSX) Copper Mountain Mine (Exhibit 2). MPD hosts several historical targets with exploration potential in addition to the 2020 high-grade Gate Zone Discovery, including Prime, Dillard, Man, West, Adit and South. Kodiak notes that MPD has the hallmarks of a large, multi-centered porphyry system.
Additionally, Kodiak owns a 100% interest in the Mohave copper-molybdenum-silver porphyry project in Arizona, USA, near Freeport-McMoRan’s (FCX-NYSE) world-class Bagdad Mine.
Exhibit 2. District Location of the MPD Project
Source. Kodiak Copper Corp.
The Significance
The wide intercepts of copper-gold mineralization intersected in holes MPD-22-002 and -004 demonstrate the continuity of mineralization between historical 2021 wide intersections of mineralization (Exhibit 3). In addition, mineralization was extended down-dip with Hole MPD-22-004.
Importantly, the results seem to suggest a correlation between the 3D IP conductor anomalies and mineralization. Given the correlation, Kodiak views areas where these geophysical anomalies are coincident with copper-in-soil anomalies as high-potential exploration targets.
Furthermore, Hole MPD-22-002 ended prematurely in the mineralized zone where the hole was lost, meaning mineralization could extend further down-dip.
The other two press-released holes tested beyond the outer margins of the Gate Zone to the south and intersected minor alteration and sulphide mineralization typical of the outer margins of a mineralized porphyry system. According to Kodiak, the results from these step-out holes further establish the close association between copper-in-soil anomalies and underlying mineralization in the project area.
Exhibit 3. Cross Section of Recently-Released Drill Holes at the Southern Gate Zone
Source. Kodiak Copper Corp.
Next Steps
Kodiak is busy with ongoing drilling, up to 25,000m planned, on potential extensions to Gate and other proximal similar geophysical targets around Gate with two drills. Thirteen holes and 9,651m in the current program had been completed as of June 26, 2022.
Following the planned drilling at the Gate Zone, other high-priority targets, such as Dillard, are expected targets following receipt of new 3D IP data collected this year. The new 3D IP survey covers 7.5km2 and is reportedly half-complete. The 3D IP Survey coverage includes southward from Gate to the Man and Dillard areas where there are planned and historical soil geochemical surveys.
Kodiak reports the Gate and Dillard Zones remain open in multiple directions and the 2022 program also remains focussed on extending known mineralization in these areas. Additional listed high-priority targets with similar geophysical and geochemical signatures as the Gate Zone include the Prime, Man and Axe areas.
Company Highlights
- Kodiak has 100% control of two copper porphyry projects in mining-friendly jurisdictions – British Columbia, Canada and Arizona, USA
- The MPD Project is a recently-consolidated, 147km2 land package in a world class mining district – 2022 drill program is underway
- Consolidated from four historical properties: Man, Prime, Dillard and Axe
- Situated midway between the towns of Merritt and Princeton and near three producing mines, Copper Mountain, Highland Copper and New Gold’s (NGD-TSX) New Afton Mine.
- Discovery of high-grade, copper-gold Gate Zone in 2020
- The Mohave Project is situated in the prolific Arizona Mining District – Maiden drill program is planned for 2022
- 10km2 land package in Mohave County
- 33km west of Freeport’s Baghdad Mine
- Adjacent to Highway 93 and only 160km from Phoenix, Arizona
- Nearby transmission lines with plenty of road access
- Both projects are proximal to major infrastructure, including paved highways and electrical grids, and are year-round accessible
- Proven management team led by Chris Taylor (formerly President and CEO of Great Bear Resources before the Kinross acquisition of Great Bear)
- Support from a Major – Teck holds a 9.9% ownership since 2020 Gate Zone Discovery
- Analyst Coverage by Cormark Securities
- Strong treasury – C$14mln in cash (as of July 4, 2022)
- Part of the Discovery Group – led by John Robbins
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For more information on Kodiak Copper and the MPD Project, visit the company website here.
