Ms. Claudia Tornquist reports
KODIAK PROVIDES UPDATE AND 2021 EXPLORATION PLANS FOR ITS MPD COPPER-GOLD PORPHYRY PROJECT
Kodiak Copper Corp. has released the plans for its continuing exploration program at the 100-per-cent-owned MPD porphyry project. The company has just completed a successful 2020 drill campaign that resulted in a transformative discovery of a high-grade central core within a broader, well-developed copper-gold porphyry system at the Gate zone. Kodiak will continue exploring at MPD in early 2021 with a fully financed, significantly larger program. Plans include up to 30,000 metres of drilling in several target areas, as well as further geophysical and geochemical surveying, prospecting, and geotechnical studies.
MPD is a large, recently consolidated land package (9,733 hectares) located near several operating mines in the southern Quesnel trough, British Columbia's primary copper-gold-producing belt. The project is located midway between the towns of Merritt and Princeton, with excellent infrastructure nearby that includes year-round road access from several paved highways.
- A total of 6,698 m of drilling in nine holes was completed at the Gate zone. All holes drilled by Kodiak at MPD have intersected prospective sulphide-bearing, strongly altered porphyritic host rocks, including all drill holes with pending assay results.
- Assay results for four holes have been released to date. Results for the last batch of five holes drilled in 2020 are expected in January, 2021.
- Exploration to date shows all the hallmarks of a large, well-developed, multicentred alkalic porphyry system at MPD, with copper and gold mineralization drilled over 10 square kilometres.
- Drilling at the Gate zone intersected some of the best early-stage copper-gold intervals reported from Southern B.C., including broad intervals of mineralization with grades higher than typically mined by local producers.
- Results include 282 m of 0.7 per cent copper, 0.49 gram per tonne gold and 2.65 g/t silver (1.16 per cent copper equivalent) in hole MPD-20-004, and 192 m of 0.74 per cent copper, 0.48 g/t gold and 2.75 g/t silver (1.21 per cent CuEq) in hole MPD-20-005 (see Oct. 22 and Nov. 9, 2020, news releases).
- The newly discovered high-grade zone at Gate is part of a wider, significantly enriched copper-gold envelope, which, to date, has been intersected by Kodiak over substantial widths and to a depth of over 800 m.
- In September, Teck Resources invested $8-million and became a 9.9-per-cent strategic shareholder in Kodiak based on the success of early drill results at MPD.
- The company is fully financed for the 2021 work program at MPD, with a strong cash position of over $14-million and a tight capital structure.
Claudia Tornquist, president and chief executive officer of Kodiak, said: "We are very encouraged by the rapid progress we have made at MPD in such a short period of time. It has been less than a year since we first reported results from our maiden drill program and, with only 12 holes drilled by Kodiak to date, results continue to exceed all expectations. The significant copper-gold discovery at the Gate zone, followed by a strategic investment by Teck Resources, have been a game changer for the company. We are looking forward to a busy year ahead, in which Kodiak is fully funded to conduct the largest exploration campaign ever mounted at MPD. Against a backdrop of copper prices rallying strongly, we are confident we can build on our exploration success to date and continue to add significant value for our shareholders in 2021."
Exploration plans 2021:
- The 2021 MPD program will include up to 30,000 m of drilling, commencing with one drill early in the new year, with plans to include additional drills as work progresses.
- The data from the property-wide ZTEM airborne geophysical survey in 2020, combined with new drilling, historic soil surveys and ground geophysics, provided insight into the district-scale controls of mineralization at the MPD property and has highlighted several priority target areas for 2021.
- Only 125 m of the approximately one km long copper-in-soil anomaly at the Gate zone has been drilled to date. This geochemical feature is central to a larger regional magnetic low with three km of strike length and extends to the Man zone in the south. Drilling in 2021 will prioritize sites along the Gate trend, using systematic stepout drilling to expand the central high-grade zone and larger copper-gold mineralized envelope.
- Drilling in 2021 will also test analogous high-priority target areas across the MPD project that have strong potential for similar copper-gold mineralization. Similar to Gate, the Dillard and Dillard East zones are characterized by large regional magnetic lows, copper-in-soil anomalies and some encouraging historical drilling.
- The 2021 exploration program will also expand ground geophysical and geochemical coverage across the property. Geotechnical studies related to both the current and historic work are continuing (that is, age dating, petrography, modelling).
- Kodiak is establishing a field office and technical facility in Merritt to support year-round operations and provide more core logging, sampling and storage capacity.
Jeff Ward, PGeo, vice-president of exploration and the qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this release. Kodiak believes historic results referenced herein to be 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 B.C., where the company made a discovery of high-grade mineralization within a wide mineralized envelope in 2020. Kodiak also holds the Mohave copper-molybdenum-silver porphyry project in Arizona, near the world-class Bagdad mine. Kodiak's porphyry projects have both 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. 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 part of Discovery Group led by John Robins, one of the most successful mining entrepreneurs in Canada.
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