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Kutcho Copper's 2024 Annual Review and Outlook for 2025

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Kutcho Copper (TSXV: KC) (OTCQX: KCCFF) provided an update on its feasibility-stage copper-zinc project in British Columbia. The project's feasibility study demonstrates strong economics with after-tax NPV ranging from C$536M to C$839M at various copper prices (US$4.00-5.00/lb), with IRRs between 30.5% and 42.3%.

Recent optimization efforts have yielded significant improvements, including a $57 million reduction in initial capital through deferring underground operations, and enhanced metallurgical processes. The company is advancing mine closure details and has confirmed non-acid generating properties of overburden materials.

The project features existing infrastructure including a camp and airstrip, with planned exploration of multiple targets in 2025. Two key exploration areas - Esso West and Mother targets - will be tested with 4,100m of drilling. The Esso West target notably showed historical drilling results of 7.2m @ 2.0% Cu and 5.2% Zn.

Kutcho Copper (TSXV: KC) (OTCQX: KCCFF) ha fornito un aggiornamento sul suo progetto di rame-zinco in fase di fattibilità nella Columbia Britannica. Lo studio di fattibilità del progetto dimostra solidi indicatori economici, con un NPV post-imposta che varia da C$536 milioni a C$839 milioni a seconda dei prezzi del rame (US$4.00-5.00/lb), con IRR compresi tra il 30,5% e il 42,3%.

Recenti sforzi di ottimizzazione hanno portato a significativi miglioramenti, inclusa una riduzione di 57 milioni di dollari nei capitali iniziali attraverso il rinvio delle operazioni sotterranee e l'ottimizzazione dei processi metallurgici. L'azienda sta avanzando nei dettagli della chiusura della miniera e ha confermato che i materiali di copertura non generano acidi.

Il progetto presenta infrastrutture esistenti, tra cui un campo e una pista d'atterraggio, con esplorazioni pianificate di più obiettivi nel 2025. Due aree chiave di esplorazione - Esso West e i target Mother - verranno testati con 4.100 metri di perforazione. Il target Esso West ha mostrato risultati storici di perforazione di 7,2 m @ 2,0% Cu e 5,2% Zn.

Kutcho Copper (TSXV: KC) (OTCQX: KCCFF) proporcionó una actualización sobre su proyecto de cobre-zinc en etapa de viabilidad en Columbia Británica. El estudio de viabilidad del proyecto demuestra sólidos indicadores económicos, con un NPV después de impuestos que varía entre C$536 millones y C$839 millones a distintos precios del cobre (US$4.00-5.00/lb), con tasas internas de retorno (IRR) entre 30.5% y 42.3%.

Los recientes esfuerzos de optimización han generado mejoras significativas, incluida una reducción de 57 millones de dólares en el capital inicial mediante el aplazamiento de las operaciones subterráneas y el mejoramiento de los procesos metalúrgicos. La empresa está avanzando en los detalles del cierre de la mina y ha confirmado que los materiales de relleno no generan ácidos.

El proyecto cuenta con infraestructura existente, incluyendo un campamento y una pista de aterrizaje, con exploraciones planificadas para múltiples objetivos en 2025. Dos áreas clave de exploración - Esso West y el objetivo Mother - serán evaluadas con 4.100 m de perforación. El objetivo Esso West mostró notables resultados históricos de perforación de 7.2 m @ 2.0% Cu y 5.2% Zn.

Kutcho Copper (TSXV: KC) (OTCQX: KCCFF)는 브리티시컬럼비아의 구리-아연 프로젝트에 대한 타당성 단계 업데이트를 제공했습니다. 프로젝트의 타당성 연구는 포괄세 후 NPV가 다양한 구리 가격(US$4.00-5.00/lb)에 따라 C$536M에서 C$839M까지 달리고, IRR은 30.5%에서 42.3% 사이에 이르는 강력한 경제성을 보여줍니다.

최근 최적화 노력은 비약적인 개선을 가져왔으며, 초기 자본을 5700만 달러 절감하며 지하 운영을 연기하고, 메탈로지컬 프로세스를 개선했습니다. 이 회사는 광산 폐쇄 세부 사항을 진행 중이며, 덮개 재료의 비산성 특성을 확인했습니다.

이 프로젝트는 기존 기반 시설을 갖추고 있으며, 캠프와 비행장이 포함되어 있으며, 2025년 여러 대상의 탐사를 계획하고 있습니다. 두 개의 주요 탐사 지역 - Esso West와 Mother -는 4,100m의 시추로 테스트될 것입니다. Esso West 목표는 역사적인 시추 결과로 7.2m @ 2.0% Cu와 5.2% Zn를 보여주었습니다.

Kutcho Copper (TSXV: KC) (OTCQX: KCCFF) a fourni une mise à jour sur son projet de cuivre-zinc en phase de faisabilité en Colombie-Britannique. L'étude de faisabilité du projet démontre une solide rentabilité, avec un NPV après impôt allant de 536 millions CAD à 839 millions CAD selon les prix du cuivre (4,00-5,00 USD/lb), avec des TIR comprises entre 30,5 % et 42,3 %.

Les récents efforts d'optimisation ont permis d'apporter des améliorations significatives, notamment une réduction de 57 millions de dollars du capital initial grâce au report des opérations souterraines et à l'amélioration des processus métallurgiques. L'entreprise progresse dans les détails de la fermeture de la mine et a confirmé les propriétés non génératrices d'acide des matériaux de recouvrement.

Le projet dispose d'infrastructures existantes, y compris un camp et une piste d'atterrissage, avec des explorations prévues de plusieurs cibles en 2025. Deux zones clés d'exploration - Esso West et les cibles Mother - seront testées avec 4 100 m de forage. La cible Esso West a montré des résultats de forage historiques remarquables de 7,2 m @ 2,0 % Cu et 5,2 % Zn.

Kutcho Copper (TSXV: KC) (OTCQX: KCCFF) hat ein Update zu seinem Kupfer-Zink-Projekt in der Machbarkeitsphase in British Columbia gegeben. Die Machbarkeitsstudie des Projekts zeigt starke wirtschaftliche Kennzahlen mit einem nach Steuer NPV von C$536 Millionen bis C$839 Millionen je nach Kupferpreis (US$4.00-5.00/lb), mit IRRs zwischen 30,5% und 42,3%.

Aktuelle Optimierungsmaßnahmen haben erhebliche Verbesserungen erzielt, darunter eine Reduzierung der anfänglichen Investitionskosten um 57 Millionen Dollar durch das Verschieben der Untertagebetrieb sowie verbesserte metallurgische Prozesse. Das Unternehmen arbeitet an den Details zur Schließung der Mine und hat die nicht säurebildenden Eigenschaften der Überburdenmaterialien bestätigt.

Das Projekt verfügt über bestehende Infrastrukturen, darunter ein Camp und eine Piste, mit geplanten Erkundungen mehrerer Ziele im Jahr 2025. Zwei wichtige Erkundungsgebiete - Esso West und Mother - werden mit 4.100 m Bohrungen getestet. Das Ziel Esso West zeigte bemerkenswerte historische Bohrergebnisse von 7,2 m @ 2,0% Cu und 5,2% Zn.

Positive
  • Strong project economics with NPV ranging from C$536M to C$839M
  • $57M reduction in initial capital requirements through optimization
  • Strategic support from Wheaton Precious Metals via precious metals stream
  • Existing infrastructure reduces development costs
  • Positive metallurgical optimization results maintaining planned recoveries
Negative
  • Underground operations deferred to first year of operation
  • Additional testing required for rock ARD performance characteristics

Vancouver, British Columbia--(Newsfile Corp. - January 14, 2025) - Kutcho Copper Corp. (TSXV: KC) (OTCQX: KCCFF) ("Kutcho Copper" or the "Company") is pleased to provide a review of its feasibility stage, high-grade copper-zinc development project located in north-western British Columbia.

Vince Sorace, President & CEO of Kutcho Copper stated: "Kutcho Copper is uniquely positioned with a feasibility-stage, high-grade, low-cost copper-zinc development project located in a Tier 1 jurisdiction that has potential for significant exploration upside. With critical minerals in the global spotlight, we will continue to explore and expand on opportunities for the Kutcho project on our path towards a construction decision."

Corporate/Project highlights:

  • Feasibility study(2) showcasing a mine plan for a predominantly open-pit mining operation and a technically robust and capital-efficient project with a minimized footprint:
    • At US$4.00/lb for copper, an after-tax Net Present Value (NPV 7%) of C$536 million and an Internal Rate of Return of 30.5%:
    • At US$4.50/lb for copper, an after-tax Net Present Value (NPV 7%) of C$688 million and an Internal Rate of Return of 36.5%.
    • At US$5.00/lb for copper, an after-tax Net Present Value (NPV 7%) of C$839 million and an Internal Rate of Return of 42.3%.
  • Located in northwestern British Columbia, Canada, one of the safest mining jurisdictions globally with producing mines in the region including Brucejack (Newmont Mining) and Red Chris (Newmont/Imperial Metals) as well as several advanced projects.(1)
  • Strong financial support – Wheaton Precious Metals with an agreed precious metals stream in support of mine development and a strategic shareholding.
  • Existing infrastructure – on-site field camp and airstrip; 120 km of ground access to be upgraded to a haul road for concentrate transport; existing concentrate export facilities within 400 km on a paved highway.
  • The location has subdued terrain and relatively lower snowfall compared to mines and projects to the west, reducing construction and operating challenges.
  • Project designed to minimize, mitigate, and avoid environmental impacts, including minimizing greenhouse gas emissions, backfilling the open pit, avoidance of fish-bearing streams, and treatment of contact mine water, among others.
  • Defined Permitting Process – a transparent and prescribed British Columbia Environmental Assessment process, supportive First Nations, local stakeholders and Government.
  • Exploration upside potential – including the potential to convert existing inferred mineral resources to indicated, potential expansion of the deposit beyond the limits of the current mineral resource, a compelling target immediately to the west of the Esso deposit, and identified blue-sky greenfields/regional exploration potential(3) within Kutcho's mineral claims.

Significant Milestones

Since completion of the 2021 Feasibility Study ("FS"), Kutcho Copper has been attending to improvement recommendations and risk reduction studies documented in the FS. Significant milestones from its optimization program include:

  • Initial Capital Reduction

Kutcho Copper has completed an underground mining study to confirm that the underground mining portion of the mine plan can be deferred, compared to the FS plan, with almost no impact on NPV, IRR or payback. The new plan will have the underground operation commence in the first year of operation (as opposed to commencing at start of construction in the 2021 FS) and will operate at 930 tpd compared to the previous plan of 840 tpd. The benefit of this deferral would be to decrease the initial capital by approximately $57 million and to reduce operational startup complexity (note all data presented is based on the 2021 cost and price basis for fair comparison).

  • Metallurgical and Flotation Flowsheet Optimization and Improvements

Kutcho Copper, in partnership with PMC Laboratory (Maple Ridge, BC), are continuing to study optimization of the flotation flowsheet to enhance the economic efficiency of the feasibility flowsheet. The optimization is focussing on reducing both the number and overall quantity of reagents required, which not only has the potential to lower operating costs but also further reduces environmental management costs and risks through having less quantity of residual reagents in the recycled process water and lower cost to purchase and transport of reagents.

As we continue to finalize the cleaning circuit, preliminary results from the rougher flowsheet have already demonstrated recoveries on par with those outlined in the 2021 FS. This milestone marks a significant achievement in our strategy to optimize our mineral processing operations. We look forward to sharing more updates as we progress with the development of the cleaning circuit and move closer to realizing the full potential of our optimized flotation process.

  • Advancing Mine Closure Details

Kutcho Copper continues to advance and refine its understanding of the closure requirements for each of the materials expected to be produced at Kutcho. Comprehensive acid rock drainage ("ARD") testing of overburden materials recently confirmed that it is not potentially acid generating ("NPAG"), which simplifies infrastructure construction decisions. Further, confirmatory static testing of pit waste initiated in 2022 was concluded, helping to refine the mine materials placement schedule and adding more confidence to the materials management process. Two rock types were identified for additional humidity cell testing to conclude rock ARD performance characteristics for all planned material disturbance and this test work will conclude in 2025.

Exploration Potential

Alongside advances in engineering studies, the Kutcho Copper Project also hosts a number of compelling exploration targets generated from an initial round of remote sensing geophysical surveys and target reviews. An initial program is planned to (a) test two targets (Esso West and Mother) with 4,100 m of drilling and (b) collect soil and rock samples and other field geologic data on other, less advanced targets to better evaluate and prioritize their potential to host new deposits. Volcanogenic massive sulphide ("VMS") mineralizing systems like Kutcho commonly host multiple deposits, and Kutcho already hosts three – Main, Sumac and Esso.

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Figure 1: Location plan of targeting project phase areas and refined VMS target areas.

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Figure 2 Isometric view of the unconstrained inversion of the ZTEM data intersected with the interpreted mineral event horizon. A geologic section is included.

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Esso West Target

The Esso West target covers an area of 1,900 m strike by 500 m down dip and is defined by coincident ZTEM, VTEM, magnetic, and seismic anomalies that lie along strike and to the west of the high-grade Esso deposit. The target is bracketed by a total of five historic drillholes that intercepted a combination of (a) moderately to strongly sericite – pyrite altered quartz – crystal tuffs that correlate to the immediate hanging wall rocks to the Main, Sumac, and Esso deposits and (b) sericite – pyrite altered lapilli tuffs, which are indicative of the foot wall sequence below the three known deposits. However, none of these holes directly tested the Esso West target. In addition, a fence of historical drillholes that were testing for the west extension of Esso mineralization intersected the interpreted down dip eastern margin of the target and intersected semi-massive and massive sulphides in several holes, including 7.2m @ 2.0% Cu and 5.2% Zn in E094B3. Given that Esso is the highest grade of the three current deposits, the proximity of Esso West makes it a key focus of planned drill testing during 2025.

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Figure 3: Esso West Target Plan View

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Figure 4: Mother exploration target

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Mother Target

Constrained ZTEM modeling completed in 2024 has refined a drill target area of around 2000 x 180 m at depths of 0 to 240 m within the general unconstrained target area of 7.5 km of strike. There has been some drilling of the prospective horizon with indications of geologic indicators that suggest a vent could be within the target area. Two holes are planned in 2025 to gather information on trends in geologic potential.

Sumac Gap and Hamburger Targets

Constrained ZTEM modeling completed in 2024 continues to support positive prospectivity of the Sumac Gap and Hamburger areas. Neither target has been directly drill tested to date.

Bow, Josh Creek, Josh Creek South and Kris Targets

Target definition is concluding on the Bow target and will be announced when complete. Josh Creek, Josh Creek South and Kris Targets are pending further work.

Looking ahead into 2025:

Kutcho Copper intends to showcase the Project's upside potential through:

  • Advancing both near-resource and greenfields(3) exploration targets.
  • Evaluating and, if warranted, executing on a number of accretive and strategic opportunities.
  • Continuing to evaluate project opportunities identified in the Feasibility Study through detailed engineering and executing on, or incorporating, accretive opportunities.
  • Continuing to de-risk and advance the Project towards a production decision.

In addition, the Company announces that it has entered into a service agreement (the "Agreement") with Resource Stock Digest ("RSD") of Round Rock, Texas. Under the terms of the Agreement, among other things, RSD has agreed to provide certain promotional services to the Company in accordance with Policy 3.4 - Investor Relations, Promotional and Market-Making Activities of the TSX Venture Exchange (the "Exchange").

RSD has been engaged for a 2-month advertising and marketing program for a cash fee of US$25,000 payable upon receipt of approval of the Agreement by the Exchange. RSD conducts interviews with the Company and produces its own content that is distributed to RSD's subscriber base. RSD is owned and operated by Gerardo Del Real and Nick Hodge, both shareholders of the Company as at the date of the Agreement. RSD and Messrs. Del Real and Hodge are at arm's-length to the Company and have no relationship with the Company outside of this Agreement.

Qualified Persons

The technical or scientific information in this press release has been reviewed and approved by Andrew Sharp, P.Eng BC (Lic. No. 47907), FAusIMM, Chief Operating Officer for Kutcho Copper, who serves as a qualified person under the definition of National Instrument 43-101.

Mineral Exploration/Exploration Target Area(s): Exploration targets and/or Exploration zones and/or Exploration areas are speculative and there is no certainty that any future work or evaluation will lead to the definition of a mineral resource.

Historical Data: This news release includes historical information that has been reviewed by Kutcho's qualified person (QP). Kutcho's review of the historical records and information reasonably substantiate the validity of the information presented in this news release; however, Kutcho cannot directly verify the accuracy of the historical data, including (but not limited to) the procedures used for sample collection and analysis. Therefore, any conclusions or interpretations borne from use of this data should be considered too speculative to suggest that additional exploration will result in mineral resource delineation. Kutcho encourages readers to exercise appropriate caution when evaluating these data and/or results.

About Kutcho Copper

Kutcho Copper Corp. is a Canadian resource development company focused on expanding and developing the Kutcho high grade copper-zinc project in northern British Columbia. Committed to social responsibility and the highest environmental standards, the Company recently completed a feasibility study on the Kutcho project and is advancing permitting with the objective of getting to a positive construction decision.

Vince Sorace
President & CEO, Kutcho Copper Corp.

For further information regarding Kutcho Copper Corp., please email info@kutcho.ca or visit our website at www.kutcho.ca.

Technical Disclosure

The material scientific and technical information in respect of the Kutcho Project in this news release is, unless otherwise indicated, based upon information contained in the technical report titled "NI 43-101 Feasibility Study Technical Report for the Kutcho Copper Project, British Columbia, Canada" dated effective November 8, 2021 and issued December 22, 2021 (the "FS" or "2021 Feasibility Study"). The 2021 Feasibility Study was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the mining property disclosure rules specified in Subpart 1300 of Regulation S-K under the United States Securities Act of 1933 ("Subpart 1300") promulgated by the SEC. Accordingly, information concerning mineral deposits from the 2021 Feasibility Study set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.

Cautionary Note Regarding Forward-Looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain statements that may be deemed "forward-looking statements" with respect to the Company within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "advance", "de-risk", "execute", "incorporate", "accretive", "plans", "compelling", "believes", "intends", "potential", "value opportunities", "upside", variations of these words and similar expressions, or that events or conditions "will", "may", "could", "should" or "would" occur. Although Kutcho Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, statements and information related to the Feasibility Study; the funding, timing and results of planned exploration programs; the ability of the Company to upgrade inferred mineral resources to higher categories and, subsequently, to mineral reserves; the outcome of potential optimizations and opportunities identified in the Feasibility Study and subsequently; the Company's ability to raise sufficient capital to fund its obligations under its property agreements going forward, to maintain its mineral tenures and concessions in good standing, to explore and develop the Kutcho project and for general working capital purposes; changes in economic conditions or financial markets; the inherent hazards associates with mineral exploration and mining operations, future prices of copper and other metals, changes in general economic conditions, accuracy of mineral resource and reserve estimates, the ability of the Company to obtain the necessary permits and consents required to explore, drill and develop the Kutcho project and if obtained, to obtain such permits and consents in a timely fashion relative to the Company's plans and business objectives for the projects, including the environmental assessment process; the ability of the Company to conclude agreements with First Nations; the general ability of the Company to monetize its mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Company's operations, compliance with environmental laws and regulations, aboriginal title claims and rights to consultation and accommodation, dependence on key management personnel and general competition in the mining industry. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.


(1) Reference to nearby producing mines and projects is for information purposes only, and there are no assurances that the Kutcho Project will receive similar results or that it will become an operating mine.

(2) Based on the 2021 Feasibility Study (FS) and incorporation of the amended Wheaton Precious Metals streaming arrangement. The FS is intended to be read as a whole and sections should not be read or relied upon out of context. The information in this news release is subject to the assumptions, exclusions and qualifications contained in the FS. The FS and data shown in this press release includes no cost inflation or re-assessment of costs. The FS document does provide cost sensitivity information. See "Cautionary Note" at the end of this news release.

(3) The blue-sky greenfields and regional exploration potential are considered early-stage exploration projects which do not contain any mineral resources as defined by NI 43-101. There has been insufficient exploration to define a mineral resource for the targets disclosed. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237035

FAQ

What are the economic projections for Kutcho Copper's (KCCFF) project at different copper prices?

At US$4.00/lb Cu: NPV of C$536M (IRR 30.5%), at US$4.50/lb Cu: NPV of C$688M (IRR 36.5%), and at US$5.00/lb Cu: NPV of C$839M (IRR 42.3%).

How much initial capital reduction has Kutcho Copper (KCCFF) achieved through its optimization program?

Kutcho Copper achieved approximately $57 million in initial capital reduction by deferring underground operations to the first year of operation.

What are the key exploration targets for Kutcho Copper (KCCFF) in 2025?

The key exploration targets for 2025 are the Esso West and Mother targets, with 4,100m of drilling planned.

What historical drilling results were found at Kutcho Copper's (KCCFF) Esso West target?

Historical drilling at Esso West target intersected 7.2m @ 2.0% Cu and 5.2% Zn in hole E094B3.

What existing infrastructure does Kutcho Copper's (KCCFF) project have?

The project has an on-site field camp, airstrip, 120 km of ground access to be upgraded to a haul road, and concentrate export facilities within 400 km on a paved highway.

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