Kodiak Copper Corp. [KDK-TSXV] jumped 60% Thursday September 3 after the company reported the discovery of a significant high-grade copper-gold extension of the recently discovered Gate Zone at its 100%-owned MPD copper-gold porphyry project in southern British Columbia.
The company said a significant high-grade copper-gold discovery has been made on a 75-metre step out, south of the Gate Zone discovery which was originally drilled in late 2019 and announced in January, 2020.
“The 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,” the company said.
A 282-metre section of strongly mineralized and altered core from drill hole MPD-20-004 (drilled to 785 metres and partially reported in Thursday’s news release) was prioritized and rushed through assay. It returned 0.70% copper, 0.49 g/t gold, and 2.64 g/t silver (1.16% copper equivalent) over 282 metres from 263 to 545 metres.
Trading in shares of Kodiak, which recently changed its name from Dunnedin Ventures Inc., was halted September 2, 2020, ahead of the announcement. When trading resumed this morning, the shares rose 60% or 45 cents to $1.20 on volume of 2.25 million. The shares had previously traded in a 52-week range of 75 cents and 19 cents.
The MPD project covers a 97.3 km2 land package in south-central British Columbia and represents the consolidation of three properties (Man, Prime, Dillard) which had never been explored as a single project with modern techniques.
It is located in the Quesnel Trough, B.C.’s primary copper-producing belt, the one that hosts Teck Resources Ltd.’s [TECK.B-TSX; TECK.A-TSX; TECK-NYSE) Highland Valley mine, Imperial Metals Corp.’s [III-TSX] Mount Polley mine, and Centerra Gold Inc.’s [CG-TSX; CAGDF-OTC] Mount Milligan mine.
Kodiak said the MPD project’s Nicola Belt geology has similar characteristics to the neighbouring alkalic porphyry systems at the Copper Mountain mine to the south and New Gold Inc.’s [NGD-TSX, NYSE American] New Afton mine to the north.
MPD is adjacent to the highway and is accessible year-round via service roads.
In a July 13, 2020 news release, the company said it had launched a fully-funded Phase 11 drill program at MPD. It said the program would consist of 4,000 metres of diamond drilling designed to follow up on the recent Gate Zone discovery, and test an analogous high-priority target at the Dillard Zone.