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Kodiak Copper (TSXV: KDK) is delaying the release of an initial resource for its MPD copper-gold project in British Columbia until it achieves a “significant outcome,” chairman Chris Taylor said in an interview.
“Rather than rush out a smaller initial figure, we’ve focused on systematically drilling and building a resource base that will give us more critical mass,” Taylor said at the company’s Vancouver office. “We want a resource that truly reflects the project’s potential.”
The chairman was presenting MPD drill core to investors and analysts. Near-surface copper, gold and silver mineralization has been found in several zones across MPD in southern BC, he said.
With copper crucial for renewable energy, electric vehicles and battery storage, Kodiak’s MPD has relevance amid an expected medium-term global supply crunch. The project is in the copper-rich Quesnel Terrane near major highways, power lines and established mines. These include Imperial Metals’ (TSX: III) Mount Polley mine, where Taylor worked early in his career, and Hudbay Minerals’ (TSX: HBM; NYSE: HBM) Copper Mountain about 15 km south.
Kodiak’s disciplined approach aligns with the region’s record of sizable porphyry deposits, he said. Copper Mountain shares similar geology and benefits from southern BC’s infrastructure.
“MPD is about more than one mineralized zone,” he said. “It’s a district-scale project that we’re systematically building. Copper Mountain’s success shows the potential for large-scale copper production in this region. We see MPD following a similar path.”
Kodiak’s September acquisition of the adjacent Aspen Grove property adds a 69 sq.-km expansion to the MPD project. It brings in high-grade copper-gold targets and boosts the total land package to 338 sq. km, Kodiak’s CEO, Claudia Tornquist, said during a presentation.
This new property includes the Ketchan discovery, a near-surface porphyry centre. It is 4.5 km from the Gate zone. This enhances MPD’s potential for district-scale mineralization, Tornquist said.
Old drill results from the Ketchan zone at the Aspen Grove property include notable intercepts. One is 266 metres of 0.26% copper and 0.11 gram gold per tonne. This includes 78 metres at 0.5% copper and 0.15 gram gold.
This year’s drill program at the MPD project consists of 9,252 metres drilled across 25 holes, targeting many zones including Adit and Celeste. The remaining drill results from this year’s program are expected to be released through the first quarter next year.
Drilling has centred on defining high-grade areas, with the Adit zone showing particularly encouraging results near the surface. Early this month, Kodiak reported an intercept of 0.45% copper-equivalent over 139 metres from 21 metres depth, within a broader 327-metre interval.
September’s results included a standout interval of 0.76% copper-equivalent over 156 metres from 89 metres deep. One 13-metre section assayed 2.77% copper-equivalent due to a strong silver presence. Kodiak has extended the high-grade discovery in 2020 at Gate zone by 400 metres at Adit.
Best known for discovering Great Bear Resources’ Dixie project in Ontario’s Red Lake district, Taylor drew a parallel with Great Bear’s story. Toronto-based Kinross Gold (TSX: K; NYSE: KGC) bought the then pre-resource-stage project in February 2022 for C$1.8 billion in cash and shares.
“With Great Bear, our strategy was to maximize the discovery’s value by fully delineating the resource before making any big moves,” he said. “We’re following that same disciplined path at MPD, where each drill program builds on the last, revealing a district-scale copper-gold system that’s proving its long-term potential.”
He says Great Bear and MPD are similar in scale and the advantage of local infrastructure. Kodiak has cut costs by a third compared to remote projects.
“It’s a project that could move quickly once fully understood,” he said. “Having the roads, power and infrastructure already in place is a game-changer, making MPD economically viable over the long term.”
Kodiak’s major investors include Teck Resources (TSX: TECK.A, TECK.B; NYSE: TCK), which has a 8.4% stake. Institutional and family offices own about 40% of the company.
At C$0.485 apiece, Kodiak’s Toronto-traded shares are down 16% over the past 12 months having traded between C$0.40 and C$0.77. It has a market capitalization of C$36.1 million.
