Ms. Claudia Tornquist reports
KODIAK EXPANDS MPD PROJECT THROUGH ACQUISITION OF AXE COPPER-GOLD PROPERTY
Kodiak Copper Corp. has entered into a purchase agreement to acquire a 100-per-cent interest in the Axe copper-gold property from Orogen Royalties. Axe is contiguous with Kodiak's 100-per-cent-owned MPD project in Southern British Columbia in the prolific Quesnel trough, with year-round accessibility from paved roads and excellent infrastructure. Axe is host to a porphyry complex comprising four drill-proven copper-gold porphyry centres and has potential for additional targets similar to Kodiak's Gate zone.
Axe property highlights
- 4,980-hectare property located 20 kilometres north of the town of Princeton, immediately south of and contiguous with Kodiak's MPD property.
- The Axe acquisition expands Kodiak's landholdings to 14,716 hectares (147 square kilometres) to become a large-scale exploration opportunity with multiple proven copper-gold occurrences with exploration upside.
- The Axe property hosts similar geology as the MPD property and is situated within Nicola volcanic belt rocks that are also associated with the Highland Valley, Copper Mountain and New Afton mines.
- Four known zones of porphyry copper-gold mineralization (West, Adit, Mid and South) occur within an extensive copper-gold porphyry system having a 17-square-kilometre hydrothermal footprint.
- 264 holes (24,577 metres) of historic drilling date back to the 1960s. The vast majority are shallow percussion/reverse circulation holes with only 12 diamond drill holes exceeding 300 metres depth.
- Historic drill results from the West zone target include:
- 124 metres of 0.38 per cent copper and 0.22 gram per tonne gold including 10.5 metres of 1.55 per cent copper and 0.94 g/t gold;
- 45 metres of 0.53 per cent copper and 0.15 g/t gold;
- 49.5 metres of 0.31 per cent copper and 1.29 g/t gold.
- The 1516 zone represents an underexplored, near-term drill target situated in eastern Nicola group belt rocks, having similar structural, geochemical and geophysical properties to the Gate zone.
- Like Gate, the 1516 zone is a copper, gold, molybdenum-in-soil anomaly (2,200 metres by 400 metres and open) with a coincident chargeability and conductivity geophysical anomaly. It is represented by a magnetic low/break in the north-northeast regional magnetic trend, and appears associated with complex faults or splays off the regional Summers Creek fault.
- Quality historic exploration datasets are available for the Axe property which will quickly and cost-effectively advance exploration and generate new targets.
- The Axe property is permitted for drilling with a multiyear, area-based exploration permit.
Claudia Tornquist, president and chief executive officer of Kodiak, said: "The acquisition of the contiguous Axe claims extends our MPD project area and is an excellent strategic fit for Kodiak. Like MPD, the Axe property hosts several significant, historic copper-gold porphyry centres and has potential for large-scale copper-gold porphyry mineralization. Historic work has focused on the west side of the property, with most discoveries made by near-surface drilling less than 300 metres deep. Kodiak believes there is considerable exploration upside at depth, and in underexplored areas on the property, particularly the 1516 zone. We look forward to unlocking this excellent potential with a view to potentially making another transformative discovery."
Chris Taylor, chairman of Kodiak, said: "The unprecedented positive market conditions for copper make Kodiak's control of an easily accessed copper-gold region within the prolific Quesnel belt a compelling opportunity for our shareholders. Previous drilling on the property could have missed Gate zone-style high-grade copper-gold targets that may also exist at Axe. Kodiak will now apply the same systematic exploration approach that led to the discovery of the Gate zone at MPD."
Kodiak has entered into a property purchase agreement to acquire a 100-per-cent interest in the Axe property, subject to the approval of the TSX Venture Exchange and other customary conditions. The consideration for Axe consists of:
- 950,000 in Kodiak shares upon closing of the transaction;
- A 2-per-cent net smelter returns royalty on the Axe property of which 0.5 per cent may be purchased by Kodiak for $2-million at any time;
- A cash payment equivalent to the value of 75,000 Orogen shares up to a maximum of $50,000 upon the completion of 5,000 metres of drilling on the Axe property;
- A cash payment equivalent to the value of 200,000 Orogen shares up to a maximum of $150,000 upon the announcement of a measured or indicated mineral resource estimate of at least 500 million tonnes at a grade of at least 0.40 per cent copper equivalent;
- A cash payment equivalent to the value of 250,000 Orogen shares up to a maximum of $200,000 upon the completion of a feasibility study on the Axe property.
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 here to be from reliable sources using industry standards at the time. However, the company has not performed any exploration at Axe to date and cannot guarantee the accuracy of historic information contained herein.
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 within a wide mineralized envelope 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 both been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.
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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