Resource World Magazine

J U N E / J U L Y 2 0 1 8 www.resourceworld.com 29 Kutcho Copper goes to feasibility VINCE SORACE, President and CEO, reported that Kutcho Copper Corp. [KC-TSXV; KCCFF-OTC] has chosen Ausenco Engineering Canada Inc. to lead the preparation of a feasibility study for the high-grade Kutcho copper-zinc project located 100 km east of the hamlet of Dease Lake, northern British Columbia. The mineral deposit hosts probable reserves of 10.4 million tonnes grading 2.01% copper and 2.92% CuEq. A 2017 pre-feasibility study determined an after-tax NPV of $265.2 million and an IRR of 27.6%. AISC (net of by-products) would be CDN $0.97/lb copper with an initial CAPEX of $220.7 million. In December 2017, Kutcho Copper, formerly Desert Star Resources, completed the acquisition of the Kutcho copper-zinc-silver-gold project from Capstone Mining Corp. [CS-TSX] for $28.8 million in cash and 4,646,892 shares as well as the closing of a CDN $20 million subordinated secured convertible term debt loan and a US $65 million Early Deposit Precious Metals Purchase Agreement with Wheaton Precious Metals Corp. [WPM-TSX, NYSE]. Since that time, Kutcho Copper has signed an Exploration Agreement and a Communication Agreement with the Tahltan First Nation Central Government with a view to work together in a spirit of partnership and cooperation to build a positive and mutually beneficial working relationship. Sorace stated, "With the field season fast approaching, the company has worked closely with Ausenco to assemble a team of mining and geotechnical engineering firms, environmental baseline experts and hydrology/hydrogeo - logical experts that will deliver an optimized feasibility study for the Kutcho Project. We are happy to be working with Ausenco who recently completed the construction of Atlantic Gold's Moose River Project [Nova Scotia] on time and on budget." Under the engineering lead of Ausenco, the feasibility study team consists of: Sim Geological Inc. for resource modeling, Holland & Holland for metallur- gical engineering and process design, Terrane Geoscience Inc. for geotechnical engineering, SRK Consulting for open pit and underground mine design, ERM Consultants Canada Inc./Rescan Tahltan Environmental Consultants for envi- ronmental baseline studies and permitting, Lorax Environmental for hydrology and hydrogeological modeling and OnSite Engineering Inc. for road design and engineering. Simon Cmrlec, President, Americas Ausenco, stated, "We are thrilled to be leading the feasibility study on this exciting high-grade copper-zinc proj - ect with Kutcho Copper Corp. We look forward to optimizing the value of the project and delivering the feasibility study by summer 2019, on time and on budget." Ausenco is currently engaged on a number of global projects with similar characteristics and opportunities to the Kutcho Copper Project. Kutcho Copper intends to advance the Kutcho Project through feasibility and permitting to a positive construction decision. In another development, Kutcho Copper has entered into an agreement to earn a 100% interest in the TCS property approximately 90 km from the Kutcho Project and 16 km from Dease Lake. Sorace said, "The TCS property covers prospective Kutcho Formation rocks with defined copper-zinc anomalies which have never been drill tested and complements the regional exploration work planned for the Kutcho project in 2018 and 2019." n COPPER

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