Kutcho advancing towards production decision
Kutcho Copper (TSXV: KC) says having achieved significant milestones in 2019 including a resource update and citing a bullish outlook for copper, it will continue de-risking and advancing its namesake project in British Columbia towards a production decision.
The copper-zinc project has a measured and indicated 17.26 million tonne resource at 2.61% copper-equivalent and a 10.71Mt inferred resource at 1.67% Cu-eq.
Kutcho said metallurgical results last year had improved on the copper and zinc recoveries compared with a 2017 prefeasibility study and the silver recovery also improved.
It was progressing through the provincial environmental process and had trade-off studies underway which would be the foundation for an upcoming feasibility study.
The 2017 PFS had outlined a 12-year mine producing an average annual 33 million pounds of copper and 42Mlb of zinc, plus gold and silver by-products, with initial capex of C$220.7 million (US$166 million), an after-tax NPV (8% discount) of $265 million (US$199 million) and an IRR of 27.6%.
Kutcho acquired the project in 2017 with the support of streaming company Wheaton Precious Metals involving a plus-C$100 million (US$75 million) financing package.