Ms. Claudia Tornquist reports
KODIAK DRILLS 282 M OF 0.70% COPPER AND 0.49 G/T GOLD (1.16% CUEQ), INCLUDING 45.7 M OF 1.41% COPPER AND 1.46 G/T GOLD (2.75% CUEQ)
Kodiak Copper Corp. has discovered a significant high-grade copper-gold extension of the recently discovered Gate zone at the company's 100-per-cent-owned MPD copper-gold porphyry project in Southern British Columbia. The MPD project is accessible year-round from paved highways 5A and 97C.
Chris Taylor, chairman of Kodiak, said: "As compelling as our 2019 discovery of the Gate zone was, it now appears we had only grazed the margins of a much stronger copper-gold zone, which we have now successfully targeted. Our new results include discovery of a central high-grade copper-gold zone within the wider copper-gold-mineralized envelope of the Gate zone. These drill results are among the strongest that have been reported from this well-established copper mining district in Southern British Columbia. Drilling is ongoing, and we will be releasing additional results throughout the coming months."
Claudia Tornquist, president and chief executive officer of Kodiak, said: "While we are just beginning to unlock the untapped potential of the MPD project, we view this new discovery as transformative for the project and, by extension, for Kodiak. Especially remarkable are the new high gold values, which we would have viewed as a successful stand-alone gold discovery in the absence of any copper. Given our 100-per-cent ownership of MPD and its position adjacent to highways with year-round accessibility, we anticipate a very active remainder of 2020 and that 2021 will be our most exciting and productive year so far."
- A significant high-grade copper-gold discovery has been made on a 75-metre stepout south of the Gate zone discovery, which was originally drilled in late 2019 and announced in January, 2020. New results are from a higher-grade extension of the Gate zone that is likely near a porphyry centre, based on mineralization and alteration strength.
- A 282-metre section of strongly mineralized and altered drill core from drill hole MPD-20-004 (drilled to 785 metres and partially reported herein) was prioritized and rushed through assay, returning 0.7 per cent copper, 0.49 gram per tonne gold and 2.64 g/t silver (1.16 per cent copper equivalent) over 282 metres from 263 metres to 545 metres (see attached tables).
- The central section of the MPD-20-004 interval included 1.41 per cent copper, 1.46 g/t gold and 5.56 g/t silver (2.75 per cent CuEq) over 45.7 metres from 380 metres to 425.7 metres.
- The gold content of the MPD-20-004 interval (expressed in grams per tonne) approximately matches the copper content (expressed in percentage points). This approximately 1:1 ratio of gold to copper is generally indicative of higher-temperature porphyry mineralization proximal to a porphyry centre.
- A wider envelope of copper mineralization (pyrite plus chalcopyrite plus/minus bornite) was observed within MPD-20-004 over a total interval of 475 metres (from 255 m to 730 m depth). Assays are pending for the remainder of this drill hole. The strongest observed porphyry-style mineralization is from the MPD-20-004 interval reported in this release.
- Two holes have been completed on this east-west drill section, and a third is under way. Drill hole MPD-004 (partially reported herein) was drilled to 785 metres at a minus-65-degree angle, and drill hole MPD-20-005 was completed to 739 metres at minus-71 degrees (results pending). Drill hole MPD-20-006 is currently being drilled at a minus-55-degree angle from this same set-up. All drill holes are directed west and approximately perpendicular to the interpreted northerly strike of the mineralized zone.
- Pending drill hole MPD-20-005 has intersected similar porphyry-style sulphide mineralization as MPD-20-004.
- Copper-gold mineralization in recent drilling projects upward toward historic copper-in-soil anomalies seen at surface to the west and south of the Gate zone.
Additional new drill results:
- New drill holes MPD-20-001, MPD-20-002 and MPD-20-003 were collared 190 metres east of the original 2019 Gate discovery set-up and drilled as a fan westward. All holes successfully intersected the Gate zone mineralization.
- Drill hole MPD-20-001 is the only drill hole with complete assays to date. It intersected a central zone of 0.39 per cent copper, 0.12 g/t gold and 1.71 g/t silver (0.52 per cent CuEq) over 78.5 metres within a broader zone of 0.34 per cent copper, 0.1 g/t gold and 1.35 g/t silver (0.45 per cent CuEq) over 142.6 metres.
- The total mineralized envelope in MPD-20-001 was 0.19 per cent copper, 0.06 g/t gold and 0.76 g/t silver (0.25 per cent CuEq) over 626.8 metres from 152 metres to 778.8 metres.
Gate zone drilling summary
The Gate zone was discovered by Kodiak in 2019 by drilling into bedrock beneath glacial till cover in an area where an approximately one-kilometre-long (north-south) by 300 m wide (east-west) copper-in-soil target is present.
The 2020 phase 2 drilling program at the MPD property is continuing. The program has completed five holes, with a sixth hole currently under way, resulting in 3,870 metres drilled to date. Drilling has focused on determining the extent of copper-gold mineralization around discovery hole MPD-19-003 by drilling fans of angled holes through the zone from two set-ups. Holes MPD-20-001 to MPD-20-003 were collared from the first set-up, located 190 metres east of the 2019 discovery hole, and drilled westward. In order to understand the orientation and continuity of copper at Gate, holes MPD-20-004 to MPD-20-006 were collared from a second and separate set-up, located 75 metres south, and drilled similarly to the west. All holes have intersected significant mineralization over substantial widths, with complete assays from MPD-20-001 and partial assays from MPD-20-004 reported herein. Mineralization occurs as chalcopyrite plus pyrite in strongly altered porphyritic diorite (and volcanic equivalents), siliceous breccia and quartz veining. Intermittent bornite generally occurs below 500 m depth.
The 2020 phase 2 program at the Gate zone has encountered mineralization and altered porphyritic host rocks that have all the hallmarks of a well-developed and prospective alkalic porphyry system. Kodiak will continue drilling at Gate to further understand geological and structural controls for high-grade copper-gold encountered to date. Kodiak is fully permitted and has a multiyear, area-based exploration permit for the MPD project to late 2021.
Kodiak will host a webinar to discuss the company's recent results and future exploration plans. The webinar will take place on Thursday, Sept. 3, 2020, at 1 p.m. PT (4 p.m. ET). Management will be available to answer questions following the presentation.
Quality assurance/quality control procedures
All core samples were sent to ALS Canada Ltd. in North Vancouver, B.C., for preparation and analysis. ALS meets all requirements of international standards ISO/IEC 17025:2005 and ISO 9001:2015 for analytical procedures. Samples were analyzed using ALS's fire assay fusion method (Au-AA24) with an AA finish for gold and by a 33-element four-acid digest ICP-AES analysis (ME-ICP61) with additional analysis for ore-grade elements (ME-OG62) and ore-grade Cu (Cu-OG62). In addition to ALS quality assurance/quality control protocols, Kodiak implements an internal quality assurance/quality control program, which includes the insertion of sample blanks, duplicates and standards in the field.
Jeff Ward, PGeo, vice-president of exploration, the qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this release. Kodiak believes that the historic results referenced herein are from reliable sources using industry standards at the time. However, the company has not independently verified, or cannot guarantee, the accuracy of this historic information.
About Kodiak Copper Corp.
Kodiak is focused on its 100-per-cent-owned copper porphyry projects in Canada and the United States. The company's most advanced asset is the MPD copper-gold porphyry project in the prolific Quesnel trough in south-central British Columbia, Canada, where the company made a discovery of high-grade mineralization in 2020. Kodiak also holds the Mohave copper-molybdenum-silver porphyry project in Arizona, United States, near the world-class Bagdad mine. Kodiak's porphyry projects have been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.
The company also holds the advanced-stage Kahuna diamond project in Nunavut, Canada. Kahuna hosts a high-grade, near-surface inferred diamond resource and numerous kimberlite pipe targets.
Kodiak's founder and chairman is Chris Taylor, who is well known for his gold discovery success with Great Bear Resources. Kodiak is also a part of Discovery Group, which is led by John Robins, one of the most successful mining entrepreneurs in Canada.
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