Project of the Week: MPD Copper-Gold Porphyry Project, Canada

Featured Image: Copper oxides in samples at MPD. (Photo: Kodiak Copper)

Kodiak Copper (TSXV: KDK, WKN:A2P2J9, OTC:KDKCF) are a base and precious metals exploration company with a portfolio of 100%-owned copper porphyry projects across Canada and the USA. Their most advanced project is the MPD copper-gold porphyry project which is located in South-Central British Columbia (Figure 1). Their other porphyry project is the Mohave copper-molybdenum-silver project in Arizona.

Figure 1. The location of Kodiak’s MPD project in the Quesnel Trough, BC.

This week I spoke to Claudia Tornquist (CEO, President & Director) and Knox Henderson (Investor Relations) about Kodiak’s MPD project where they began their Phase II diamond drill program in July this year[1]. Latest results of the program were released earlier this week[2] and report a high-grade intercept of 1.18% Cu, 1.01 g/t Au, and 4 g/t Ag over 45m within 515m of 0.41% Cu, 0.22 g/t Au, and 1.5 g/t Ag. MPD is a compilation of three contiguous properties, Man, Prime, and Dillard, which amount to an impressive  9,733ha. The property has seen sporadic historic exploration dating back to 1966 which includes 25,780m of diamond drilling covering an area of ~10km2. Although this may seem a treasure trove of data, historic drill holes rarely extended below 200m from surface and none of the 3 properties have been explored using modern methods. Until now that is.

MPD is located in one of BC’s most productive copper belts, the Quesnel Trough. It is in the company of world-class mines such as Highland Valley (Teck Resources), Mount Polley (Imperial Metals), Mount Milligan (Centerra Gold), and nearby Copper Mountain (Copper Mountain Mining Corp) where copper grades are 0.31% Cu, 0.34% Cu, 0.23% Cu, and 0.24% Cu respectively. We will come back to the significance of this later on.

The current drill program is being used to test The Gate Zone, a 1km-long copper-in-soil target and the focus of this year’s drill program. Results so far are more than encouraging (Figure 2). Drill Hole 5 intercepted a 515.8m mineralised interval at 0.41% Cu, 0.22 g/t Au, and 1.5 g/t Ag which includes the high-grade intercept described above. Drill hole 4 assayed 535.1m at 0.49% Cu, including 45.7m @ 1.41% Cu, 1.46 g/t Au, and 5.56 g/t Ag from 380m, and 96.7m @ 1% Cu, 0.86 g/t Au and 4.16 g/t Ag from 329m.

Figure 2. Illustration of the copper and gold grades assayed in drill holes 4 and 5. For high res. image to see the grades, please see their latest NR [2].
So, what are Kodiak actually exploring in MPD? It is interpreted that the area hosts the propylitic package of a major multi-centre porphyry system. The property is comprised of intensely altered and hydrothermally brecciated volcanic rock and diorite. Both downhole and at surface pervasive propylitic alteration speaks to the widespread productivity of the once active hydrothermal system. Further, all 9 of the drill holes completed of the 2020 program have intersected altered sulphide-bearing porphyritic host rock. Intersected ratios of ~1:1 Cu: Au, as well as a transition to potassic alteration, implies that Kodiak have already come across one centre of the system at The Gate Zone (Figure 3) where grades are higher and geological understanding can be gained to be applied as vectors across the property in search of further high grade centres.

Figure 3a (left). Selected intervals of core showing intense host-rock alteration, brecciations, sulphide mineralisation and replacements. Figure 3b (Right). Photos of diamond drill core where drilling intersected a high-grade copper-gold zone within the wider copper-gold mineralised envelope. The top right image is from Drill Hole 5 from which assays were reported on Monday[2].
True to their “science first” and systematic approach to exploration, Kodiak are planning to continue ‘low cost’ exploration alongside drilling to gain an in-depth understanding of the geology of their large area and delineate considered and thoughtful drill targets for the future. Such exploration activity might include an Induced Polarisation survey, geochemical vectoring, re-assay of historic core, and petrography.

The significance of Kodiak’s MPD project is apparent. With a predicted increase in demand for copper[3] as a result of the green revolution including the increasing demand for EVs, finding and producing the important metal is essential. Critically, global average copper grades are declining as are discoveries. In 2017 the average mined copper grade in Canada was 0.35% Cu. Kodiak have reported assay results so far which are analogous to other mines in the Quesnel Trough, and the nearby Copper Mountain Mine (0.24% Cu, 0.11 g/t Au). This puts MPD on the map as not just a globally important project, but as one essential for a greener future.

Further, the size and scale potential of the project is evident. Of the 9,733ha little has been explored but there is enough evidence to suggest that Kodiak are currently only scratching the surface. Widespread alteration, a multi-centre geological model, and an $8m investment equating to a 9.9% stake in the company by Teck Resources in September this year[5] all come together highlight the potential and excitement of Kodiak’s MPD project.

Esme

 

All information in the above article is sourced from the Kodiak Copper website and materials within as well as personal communications with Claudia Tornquist (CEO, President & Director) and Knox Henderson (Investor Relations).

Note that Kodiak Copper are formerly known as Dunnedin Ventures Inc.

Further Information & References

Kodiak: https://www.kodiakcoppercorp.com/

MPD: https://www.kodiakcoppercorp.com/projects/mpd/

MPD Webinar: https://vimeo.com/454839979

[1] - https://bit.ly/351dwME (Drill NR)

[2] - https://bit.ly/2ImFYiV (Latest drill results NR)

[3] - https://bit.ly/3ey3MfN (2020 Corporate Presentation)

[4] - https://bit.ly/2I3ahf7 (Drill Hole 4 results)

[5] - https://bit.ly/3ew89Z1 (Teck investment)