Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Kutcho Copper has started work on a feasibility study on its namesake high-grade copper-zinc development project in northwestern BC. The company has hired CSA Global Consultants to lead the study preparation.
In the press release, Vince Sorace, Kutcho’s president and CEO, highlighted the rising copper price and noted how the developer is well-positioned to take advantage of this market, with the feasibility study scheduled for completion in the second quarter of 2021.
“Kutcho is a high margin, low capital project with significant upside potential; our objective in 2021 will be to continue to de-risk and advance the project towards a production decision.”
A 2017 pre-feasibility study for the asset defined a 12-year, 2,500-tonne-per-day underground operation producing an average of 33 million lb. copper and 46 million lb. zinc annually, in addition to gold and silver by-products. With unit operating costs pegged at 59¢ per lb. copper, net of by-product credits, and with initial capital costs of C$221 million, the after-tax net present value estimate for the project is C$265 million, at an 8% discount rate, with a 27.6% internal rate of return.
Last year, the company updated resources for Kutcho. The site features measured and indicated resources of 17.3 million tonnes grading 1.85% copper, 2.72% zinc, 0.49 g/t gold and 33.9 g/t silver and inferred resources of 10.7 million tonnes at 1.18% copper, 1.76% zinc, 0.26 g/t gold and 21.5 g/t silver.
The 171-sq.-km site includes existing ground access, as well as a camp and airstrip. Concentrates generated at the project would be shipped from the port at Stewart.
(This article first appeared in the Canadian Mining Journal)
