Kodiak Copper Hits Broad Copper from Surface at MPD’s West Zone

Kodiak Copper Corp. reported the best drill holes from the emerging West Zone at its MPD Copper Project in southern British Columbia (see Exhibit 1).

The assay results from five drill holes at the West Zone (see Exhibit 2), released on October 17, follow the company applying a “Cadia-Ridgeway” or “Red Chris” style of exploration model that targets higher grades and the vertical extents within the total mineralized system.

Supported by recent drilling at the West Zone, which returned the deepest copper-gold porphyry intercepts yet reported from the project, the results feed into a growing conviction that porphyry-related mineralization at MPD is more extensive and complex than previously known.

Moreover, the company’s fully funded, 25,000m drill programme is focused mostly on new porphyry targets that Kodiak has not previously drilled.

Exhibit 1. Location of Kodiak’s MPD Copper-Gold Project in Southern BC

West Zone Drilling Key Highlights

• Hole AXE-23-011 (see Exhibit 3) in the southern West Zone reaching from bedrock surface to 962m depth, returning 0.49% copper (Cu), 0.29 grams per tonne gold (g/t Au), and 1.30 g/t silver (Ag) over 254m. This was within a broader 941m intersection grading 0.21% Cu, 0.16 g/t Au, and 0.64 g/t Ag. This hole also extended the known mineralized hydrothermal breccia zone by 185m, which yielded 0.32% Cu, 0.16 g/t Au, and 0.95 g/t Ag over 89m.
• Hole AXE-23-008, drilled to the north and to a depth of 540m, returned 0.33% Cu, 0.18 g/t Au, and 0.88 g/t Ag across 198m. This was inside a more extensive zone measuring 519m grading 0.18% Cu, 0.16 g/t Au, and 0.59 g/t Ag. A 153m section of this hole also encountered a new hydrothermal breccia zone.
• Hole AXE-23-007 extended the West Zone’s northern boundary, returning an intersection of 0.10% Cu, 0.11 g/t Au, and 0.36 g/t Ag over 182m.
• Holes AXE-23-005 and 006 were stopped prematurely due to challenging ground conditions but still returned significant gold concentrations. Notably, AXE-23-005 returned 0.04% Cu and 4.54 g/t Au over 6m, while AXE-23-006 cut 0.12% Cu and 2.08 g/t Au over 4m.

Exhibit 2. 2023 Porphyry Zones and Target Location Map – MPD Project, Southern BC

The Significance

Kodiak interprets the drill results as encouraging indications that it is tracing significant mineralization at depth. The West Zone is proving to be considerably larger than initially believed.

Not only is it more extensive, but it also boasts higher grades of copper, gold and silver. The company has identified distinct geological features in the West Zone that have resulted in a concentration of copper and gold. Notably, near-surface copper at the West Zone and other porphyry centers at MPD enhance the deeper, high-grade mineralization found at the Gate Zone discovery of 2020.

Exhibit 3. Zone North-South Long Section at 677400mE (looking west).

That was followed by successful follow-up drilling that revealed significant size potential, including discoveries at Prime Zone and Beyer Gold-Silver Zone in 2022.

This year’s drilling initiative marks a pivotal phase in the exploration journey. The strategy that uncovered the Gate Zone has been employed to explore five new prospective areas. The main goal is to understand the true extent of the large MPD project.

The recent 2023 drilling at the West Zone has brought to light another high-grade porphyry center, adding to the initial Gate discovery. This progression solidifies the significance of the MPD project.

As first reported in hole AXE-23-002 (news release July 27), this new zone has now been extended to 185m of strike and remains open.

Kodiak’s exploration in the West Zone has validated the presence of porphyry mineralization covering an area of 300m by 300m, reaching depths up to 819m, surpassing previous drillings and with potential for further expansion.

A discovery zone showcasing high-grade, copper-gold-silver mineral deposits has also been identified east of the West Zone. Notably, for the first time, the MPD project has undergone drilling that has revealed significant mineralized hydrothermal breccia, with the breccia containing copper mineralized clasts, indicating the possibility of more undiscovered mineralization deeper down.

Exhibit 4. West Zone plan map showing 2023 Kodiak drilling to date and new holes reported herein as yellow traces. Bar graphs present downhole copper (green) and gold (red) values. The background is Heli-Airborne TMI magnetic data (Xstrata, 2012).

Next Steps

This year, the company has allocated a fully funded budget to drill up to 25,000 metres. In June, a second drill rig was added to speed up progress with assessing new targets.

Based on a 3D-induced polarization geophysical survey Kodiak pinpointed a fresh drilling target from the surface down to a 600m depth. This extends beneath the earlier discovered shallow copper and gold deposits of the Man Zone located in the southern section of the MPD property (refer to the news release from February 28), which the second rig was explicitly deployed to explore.

The team has pinpointed 18 potential target regions, but only three – Gate, Prime, and Dillard Zones – have undergone considerable drilling.

The year’s strategy first focused on the original MPD North claims, encompassing the Man, Beyer, Dillard East, Blue, Sky, and Eclipse sections, before the focus turned to the MPD South claims, previously known as the Axe Zone, which entail the 1516, South, and West Zones.

As the year progresses, more results are expected from the laboratory, promising further updates from various target zones in the near term.

For complete information about Kodiak Copper, please visit the website by clicking here.

The full press release is available here.

Company Highlights

• MPD is a 100% Kodiak-owned copper porphyry project in British Columbia and encompasses 226km² in an established mining region.
• Low-risk jurisdiction, high standards for environmental stewardship and community engagement.
• Fully financed for 2023 exploration and strong capital structure with $6 million cash and only 64 million shares outstanding
• Discovery of high-grade mineralization in 2020 at the Gate Zone.
• Further drilling significantly expanded the Gate Zone to over 1km in length, 350m in width and 850m in depth to date, open in multiple directions.
• Up to 25,000-metre drill programme will further test the Gate Zone, and several other porphyry centres with similar discovery potential, including the emerging West Zone.
• MPD has all the hallmarks of an extensive, multi-centred porphyry system.
• Experienced management:
  • John Robins’ Discovery Group backs Kodiak.
  • Founded by Chairman Chris Taylor (former President and CEO of Great Bear Resources which Kinross Gold acquired in 2022 for $1.8 billion).
  • Led by Claudia Tornquist (former GM at Rio Tinto and former VP Business Development at Sandstorm Gold).
• Teck Resources owns 9.9% of Kodiak.