Kodiak Drills 282 m of 0.70% Copper and 0.49 g/t Gold (1.16% CuEq), Including 45.7 m of 1.41% Copper and 1.46 g/t Gold (2.75% CuEq)

Kodiak to Host a Webinar on Thursday, September 3rd @ 1pm PST/4pm EST

Vancouver, British Columbia--(Newsfile Corp. - September 3, 2020) - Kodiak Copper Corp. (TSXV: KDK) (the "Company" or "Kodiak") today reported the discovery of a significant high-grade copper-gold extension of the recently discovered Gate Zone at the Company's 100% owned MPD copper-gold porphyry project in southern British Columbia. The MPD project is accessible year-round from paved highways 5A and 97C.

Chris Taylor, Chairman of Kodiak said, "As compelling as our 2019 discovery of the Gate Zone was, it now appears we had only grazed the margins of a much stronger copper-gold zone which we have now successfully targeted. Our new results include discovery of a central high-grade copper-gold zone within the wider copper-gold mineralized envelope of the Gate Zone. These drill results are among the strongest that have been reported from this well-established copper mining district in southern British Columbia. Drilling is ongoing and we will be releasing additional results throughout the coming months."

Claudia Tornquist, President and CEO of Kodiak said, "While we are just beginning to unlock the untapped potential of the MPD project, we view this new discovery as transformative for the project, and by extension for Kodiak. Especially remarkable are the new high gold values, which we would have viewed as a successful stand-alone gold discovery in the absence of any copper. Given our 100% ownership of MPD, and its position adjacent to highways with year-round accessibility, we anticipate a very active remainder of 2020, and that 2021 will be our most exciting and productive year so far."

Highlights Include:

  • A significant high-grade copper-gold discovery has been made on a 75 metre step-out south of the "Gate Zone" discoverywhich was originally drilled in late 2019 and announced in January 2020.New results are from a higher-grade extension of the Gate Zone that is likely near a porphyry centre based on mineralization and alteration strength. Figure 1 and Figure 2.

  • A 282 metre section of strongly mineralized and altered drill core from drill hole MPD-20-004 (drilled to 785 metres and partially reported herein) was prioritised and rushed through assay, returning 0.70% copper, 0.49 g/t gold and 2.64 g/t silver (1.16% CuEq*) over 282 metres from 263 to 545 metres. Tables 1 and 2.

  • The central section of the MPD-20-004 interval included 1.41% copper, 1.46 g/t gold and 5.56 g/t silver (2.75% CuEq*) over 45.7 metres from 380.0 to 425.7 metres.

  • The gold content of the MPD-20-004 interval in grams per tonne (g/t) approximately matches the copper content expressed as a percent. This approximately 1:1 ratio of g/t gold to % copper is generally indicative of higher temperature porphyry mineralization proximal to a porphyry centre.

  • A wider envelope of copper mineralization (pyrite + chalcopyrite +/- bornite) was observed within MPD-20-004 over a total interval of 475 metres, from 255 to 730 metres depth. Assays are pending for the remainder of this drill hole. The strongest observed porphyry-style mineralization is from the MPD-20-004 interval reported in this release.

  • Two holes have been completed on this east-west drill section and a third is underway. Drill hole MPD-004 (partially reported herein) was drilled to 785 metres at a -65 angle and drill hole MPD-20-005 was completed to 739 metres at -71 degrees (results pending). Drill hole MPD-20-006 is currently being drilled at a -55 degree angle from this same setup. All drill holes are directed west and approximately perpendicular to the interpreted northerly strike of the mineralized zone.

  • Pending drill hole MPD-20-005 has intersected similar porphyry style sulphide mineralization as MPD-20-004. Figure 3

  • Copper-gold mineralization in recent drilling projects upward toward historic copper-in-soil anomalies seen at surface west and south of the Gate Zone. Figure 4

Table 1: Complete weighted assay intervals for MPD-20-001 and partial assays for MPD-20-004 (assays pending). MPD-20-001 was drilled from the first setup of 2020. MPD-20-004 was collared at a 75 metre step-out south of MPD-20-001 and targeted the same zone.

Hole IDFrom (m)To (m)Width**(m)% Cu Au g/tAg g/t%CuEq*
MPD-20-001152.0778.8626.80.190.060.760.25
Includes340.5616.3275.80.280.081.120.36
Includes340.5483.1142.60.340.101.350.45
Includes404.7483.178.50.390.121.710.52








MPD-20-004263545.0282.00.700.492.651.16
Includes305530.0225.00.800.582.921.34
Includes329482.0153.00.880.743.371.57
Includes329425.796.71.000.864.191.80
Includes380425.745.71.411.465.562.75

* Copper equivalent grades (%CuEq) are for comparative purposes only. Calculations are uncut and recovery is assumed to be 100% as no metallurgical data is available. The following metal prices were used to calculate copper equivalence: US$1800/oz Gold, US$19/oz Silver & US$2.90/lb Copper. The following equation was used to calculate copper equivalence: %CuEq = ($1800 x Au g/t ÷ 31.10 + $19.00 x Ag g/t ÷ 31.10 + $2.90 x % Cu ÷ 2204.62 x 100) ÷ ($2.90 ÷ 2204.62 x 100).
**Widths are downhole drilled core lengths. Drilling data to date is insufficient to determine true width of mineralization.

Additional New Drill Results:

  • New drill holes MPD-20-001, 002 and 003 were collared 190 metres east of the original 2019 Gate discovery setup and drilled as a "fan" westward. All holes successfully intersected the Gate Zone mineralization.

  • Drill hole MPD-20-001 is the only drill hole with complete assays to date. It intersected a central zone of 0.39% copper, 0.12 g/t gold and 1.71 g/t silver (0.52% CuEq*) over 78.5 metres within a broader zone of 0.34% copper, 0.10 g/t gold and 1.35 g/t silver (0.45% CuEq*) over 142.6 metres.

  • The total mineralized envelope in MPD-20-001 was 0.19% copper, 0.06 g/t gold and 0.76 g/t silver (0.25% CuEq*) over 626.8 metres from 152.0 to 778.8 metres.

A)

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Figure 1: A) Cross-section of drill holes from the second setup 75 metres south of the first, showing partial results from MPD-20-004 and MPD-20-005 (results pending). 

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B)

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B) Cross-section of drill holes from the first setup showing results from MPD-20-001 and MPD-20-002 and 003 (results pending).

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A)

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Figure 2: Examples of MPD-20-004 core: A) Strongly altered porphyry with semi-massive sulphide veining dominated by chalcopyrite at 330.5 metres. Core is from a 96.7 metre intercept reporting 1.00% Cu, 0.86 g/t Au and 4.19 g/t Ag from 329.0 to 425.7 metres.

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B)

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B) Strongly mineralized quartz veining with chalcopyrite at 418 metres. Core is from a 45.7 metre intercept reporting 1.41% Cu, 1.46 g/t Au and 5.56 g/t Ag from 380 to 425.7 metres. Images are of selected intervals and do not represent all mineralization on the property.

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Figure 3: Example of strongly altered siliceous breccia with semi-massive sulphide (chalcopyrite + pyrite) from the central mineralized zone of MPD-20-005 (approximately 405.2 metres). Assays from this hole are pending. Image is of a selected interval and does not represent all mineralization on the property.

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Table 2: Example of 3 metre assay intervals from the central, strongly mineralized section of MPD-20-004. The interval averages 1.41% copper, 1.46 g/t gold, and 5.56 g/t silver over 45.7 metres.

Hole IDFrom (m)To (m)Width**(m)% Cu Au g/tAg g/t%CuEq*
MPD-20-004380.0382.82.80.990.583.71.55
MPD-20-004382.8386.03.31.190.6741.83
MPD-20-004386.0389.03.02.541.396.93.86
MPD-20-004389.0392.03.02.641.8713.34.46
MPD-20-004392.0395.03.01.611.436.82.97
MPD-20-004395.0398.03.01.151.203.82.27
MPD-20-004398.0401.03.01.061.454.22.41
MPD-20-004401.0404.03.01.751.797.63.43
MPD-20-004404.0407.03.01.873.349.34.98
MPD-20-004407.0410.03.00.701.212.71.81
MPD-20-004410.0413.03.00.901.574.52.36
MPD-20-004413.0416.03.00.540.892.51.37
MPD-20-004416.0419.03.01.201.334.72.44
MPD-20-004419.0422.03.01.481.7953.14
MPD-20-004422.0423.01.00.870.972.31.77
MPD-20-004423.0425.72.71.701.675.53.26

 * Copper equivalent grades (%CuEq) are for comparative purposes only. Calculations are uncut and recovery is assumed to be 100% as no metallurgical data is available. The following metal prices were used to calculate copper equivalence: US$1800/oz Gold, US$19/oz Silver & US$2.90/lb Copper. The following equation was used to calculate copper equivalence: %CuEq = ($1800 x Au g/t ÷ 31.10+ $19.00 x Ag g/t ÷ 31.10 + $2.90 x % Cu ÷ 2204.62 x 100) ÷ ($2.90 ÷ 2204.62 x 100).
**Widths are downhole drilled core lengths. Drilling data to date is insufficient to determine true width of mineralization.

Gate Zone Drilling Summary

The Gate Zone was discovered by Kodiak in 2019 by drilling into bedrock beneath glacial till cover in an area where an approximately 1 kilometre long (north-south) by 300 metre wide (east-west) copper-in-soil target is present (Figure 4).

The 2020 Phase II drilling at the MPD property is ongoing. The program has completed five holes, with a sixth hole currently underway, resulting in 3,870 metres drilled to date (Table 3). Drilling has focussed on determining the extent of copper-gold mineralization around discovery hole MPD-19-003 by drilling "fans' of angled holes through the zone from two setups. Holes MPD-20-001 to 003 were collared from the first setup located 190 metes east of the 2019 discovery hole and drilled westward. In order to understand the orientation and continuity of copper at Gate, holes MPD-20-004 to 006 were collared from a second and separate setup located 75 metres south and drilled similarly to the west. All holes have intersected significant mineralization over substantial widths, with complete assays from MPD-20-001 and partial assays from MPD-20-004 reported herein. Mineralization occurs as chalcopyrite + pyrite in strongly altered porphyritic diorite (and volcanic equivalents), siliceous breccia and quartz veining. Intermittent bornite generally occurs below 500 metres depth.

The 2020 Phase II program at the Gate Zone has encountered mineralization and altered porphyritic host rocks that have all the hallmarks of a well-developed and prospective, alkalic porphyry system. Kodiak will continue drilling at Gate to further understand geological and structural controls for high grade copper-gold encountered to date. Kodiak is fully permitted and has a multi-year, area-based exploration permit for the MPD Project to late 2021.

Table 3: 2020 MPD Drill Collar Information to date - Gate Zone

Hole IDEasting
(UTM Z10)
Northing
(UTM Z10)
Elevation
(m)
Azimuth (degrees)DipEOH
(m)
Results Status
MPD-20-0016817475157001260270-60 778.76reported results
MPD-20-0026817475157001260270-66 836results pending
MPD-20-0036817475157001260270-50 731results pending








MPD-20-0046817035156251265270-65 785partial results
MPD-20-0056817035156251265270-71 739.25results pending








Total to date




3870.01

 

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Figure 4: Plan map of the Gate zone showing drill collars, traces and results of 2020 drilling to date. Background data is contoured historic copper-in soil data that shows a 300 metre wide copper anomaly related to and extending 1 kilometre south from the Gate Zone.

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Webinar

Kodiak will host a webinar to discuss the Company's recent results and future exploration plans. The webinar will take place on Thursday, September 3rd at 1pm PST/4pm EST. Management will be available to answer questions following the presentation.

To join the webinar, register from this link (also includes dial-in instructions):

https://my.6ix.com/l-1vh9mP

QA/QC Procedures

All core samples were sent to ALS Canada Ltd. (ALS) in North Vancouver, BC for preparation and analysis. ALS meets all requirements of International Standards ISO/IEC 17025:2005 and ISO 9001:2015 for analytical procedures. Samples were analyzed using ALS's Fire Assay Fusion method (Au-AA24) with an AA finish for gold; and by a 33-element four acid digest ICP-AES analysis (ME-ICP61) with additional analysis for Ore Grade Elements (ME-OG62) and Ore Grade Cu (Cu-OG62). In addition to ALS Laboratory quality assurance / quality control (QA/QC) protocols, Kodiak implements an internal QA/QC program that includes the insertion of sample blanks, duplicates and standards in the field.

Jeff Ward, P.Geo, Vice President Exploration and the Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this release. Kodiak believes historic results referenced herein to be from reliable sources using industry standards at the time. However, the Company has not independently verified, or cannot guarantee, the accuracy of this historic information.

For further information please contact Mr. Knox Henderson, Investor Relations, at 604-551-2360 or khenderson@kodiakcoppercorp.com.

On behalf of the Board of Directors
Kodiak Copper Corp.

Claudia Tornquist
President & CEO

About Kodiak Copper Corp.

Kodiak is focused on its 100% owned copper porphyry projects in Canada and the USA. The Company's most advanced asset is the MPD copper-gold porphyry project in the prolific Quesnel Trough in south-central British Columbia, Canada, where the Company made a discovery of high-grade mineralization in 2020. Kodiak also holds the Mohave copper-molybdenum-silver porphyry project in Arizona, USA, near the world-class Bagdad mine. Kodiak's porphyry projects have both been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.

The Company also holds the advanced-stage Kahuna diamond project in Nunavut, Canada. Kahuna hosts a high-grade, near surface inferred diamond resource and numerous kimberlite pipe targets.

Kodiak's founder and chairman is Chris Taylor who is well-known for his gold discovery success with Great Bear Resources. Kodiak is also part of the Discovery Group led by John Robins, one of the most successful mining entrepreneurs in Canada.

Neither 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.

Forward-Looking Statement (Safe Harbor Statement): This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the Company's exploration plans. Although the Company believes that the expectations and assumptions on which the forward looking statements are based are reasonable, undue reliance should not be placed on the forward looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with conditions in the equity financing markets, and assumptions and risks regarding receipt of regulatory and shareholder approvals.

Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise.

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