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Kodiak Copper continues to have great success with the drill bit at their MPD copper-gold porphyry Project in BC

Copper is the ultimate green energy metal as it is used in just about everything you can think of related to solar, wind, EVs, EV charging, and ultimately electricity transmission. Copper really is essential to our modern living. Perhaps that is why Goldman Sachs (“GS”) calls copper ‘the new oil‘.

GS state: “Without serious advancements in carbon capture and storage technology in the coming years, the entire path to net zero emissions will have to come from abatement – electrification and renewable energy. As the most cost-effective conductive material, copper sits at the heart of capturing, storing and transporting these new sources of energy.”

Wood Mackenzie forecast a growing copper deficit from 2025 to 2030

Source: Kodiak Copper company presentation courtesy of Wood Mackenzie & Goldman Sachs

Now that we have established the key importance and huge demand wave ahead for copper the next thing to consider is what copper company to buy. Clearly, its copper project should be in a safe country and have the potential to grow the resource and grow production. Ideally, the Company would have more than one promising copper project and a low market cap to maximize upside if the company succeeds in its growth plans.

Today’s company has all of the above. Not one, but two, promising copper projects in North America.

Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF) (“Kodiak”) 100% owns the Man, Prime, Dillard (“MPD”) copper-gold porphyry project in British Columbia, Canada and the Mohave Copper-Molybdenum-Silver Porphyry Project in Arizona USA.

Kodiak’s projects are still in the exploration stage with drilling ongoing.

Man, Prime, Dillard (“MPD”) copper-gold porphyry Project

At the MPD Project, Kodiak plans to drill up to 25,000 metres in 2022 as well as complete 3D IP surveying and soil geochemical sampling. Kodiak is fully funded for the company’s 2022 exploration program.

In some very exciting news announced on September 29, 2022, the Company reported: “Kodiak drills 1.03% CuEq over 117 m, within 0.34% CuEq over 735.4 m at Gate Zone, and discovers new trend at Prime Zone.” The grades may just be average but the drill lengths are ‘exceptional’ and typical of huge copper porphyry discoveries. Kodiak President and CEO, Claudia Tornquist, stated: “The Gate Zone has delivered further impressive drill intercepts as we continue to increase the size of mineralized envelope which now extends to a kilometer in north-south direction and a depth of 900 metres…….This new mineralized trend crystalizes further size potential and validates our model of a large multi-centric porphyry system at MPD.”

The size of the MPD porphyry looks to be very large, obviously with further drilling required to gain further confirmation. For now, we know that the high-grade Gate Zone discovery at MPD shows significant size potential with mineralization over 1 km strike x 350m width x 900m depth. Added to this are the emerging Man and Dillard Zones, as well as the potential for more discoveries elsewhere on the 147 km2 property.

Next steps in 2022 at the MPD Project will include further drilling to test high priority targets in the Dillard area and the exploration program to continue evaluating additional copper-gold drill targets across the MPD property.

Grade shell image of the MPD Project showing mineralized zones and priority targets for further drilling

Source: Kodiak Copper company presentation

Kodiak Copper trades on a market cap of only C$55 million. The Board and management are top tier with a track record of success, especially Chairman Christopher Taylor with his success at Great Bear Resources Ltd. Kodiak Copper is well worth a look for those with some patience and seeking a high risk/high reward copper junior miner.




Copper, gold, pending drill results and money in the bank – Kodiak Copper has them all

It’s been a while since I’ve had a close look at the copper chart and, in my opinion, it doesn’t look too bad right now. Like almost everything, we’ve seen a significant price decline since April of this year, and despite a brief rally in late May, the commodity has since been taken to the woodshed and didn’t stop hemorrhaging until mid-July. Since then, it looks like copper may have put in a bottom at roughly US$3.20/lb and held that level again in late September. It is currently attempting to climb back above the 50 day moving average which would be a positive signal, but before I get too excited about copper I’d like to see it punch back above US$3.70/lb. From there it looks like it has limited overhead resistance until the US$4.10/lb threshold after which it could go for a run back to the US$4.70/lb range. But cresting US$4.10/lb probably needs a lot of positive economic news over the next few months. Regardless, it looks like we’ve got a decent support level at US$3.20/lb suggesting there could be more upside than downside from current levels.

Source: StockCharts.com

This begs the question of where to look if you want exposure to copper. The company with the most recent exciting news is probably Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF). The latest news regarding the Company’s most advanced asset, the 100% owned MPD copper-gold porphyry project in the prolific Quesnel Trough in south-central British Columbia, Canada, appears to be very encouraging. The 147 square kilometer MPD project has all the hallmarks of a large, multi-centered porphyry system. Kodiak has made the Gate Zone discovery of high-grade mineralization within a wide mineralized envelope, and MPD hosts several other targets with similar discovery potential.

Last week Kodiak announced the latest results for five drill holes from their fully funded 25,000 meter 2022 drill program, and there were some pretty interesting numbers.

Highlights include:

  • MPD-22-006 intersected 117 meters of 0.69% Cu, 0.46 g/t Au, and 2.22 g/t Ag (1.03% CuEq) within 735.4 meters of 0.24% Cu, 0.14 g/t Au and 0.71 g/t Ag (0.34% CuEq).
  • MPD-22-008 intersected 59.9 meters of 0.33% Cu, 0.25 g/t Au, and 1.77 g/t Ag (0.52% CuEq) within 585 meters of 0.18% Cu, 0.09 g/t Au and 0.71 g/t Ag (0.25% CuEq).
  • MPD-22-005 extended the Gate Zone mineralization to depth and intersected 190.2 meters of 0.19% Cu, 0.12 g/t Au, and 1.07 g/t Ag (0.29% CuEq) within 715.2 meters of 0.13% Cu, 0.07 g/t Au and 0.65 g/t Ag (0.19% CuEq).

All of this relates to the Gate Zone. Porphyry mineralization at Gate has been traced down to 900 m depth, across a width of 350 m (east-west) and over 1 km in length (north-south). In addition, the Company reported holes MPD-22-013 and MPD-22-017 which intersected a new mineralized trend northeast of, and adjacent to Gate called the Prime Zone. The new Prime Zone trend has been drilled down to 550 m depth, across 200 m width (east-west) and over 400 m length (north-south).

Source: Kodiak Copper Sept 29, 2022 Press Release

With over 700 m of mineralization, can you say bulk tonnage? Plus, I was looking at this and thinking to myself that I’ve seen some junior gold explorers with numbers that aren’t as good as just the gold components in these drill results. But perhaps that’s not what a company called Kodiak Copper wants me to fixate on. Instead, we’ll look at what catalysts lie ahead for the company over the next weeks and months.

Drilling for 2022 is on schedule and Kodiak has completed 33 holes totaling 21,300 meters as of September 26. Drilling has transitioned to testing high priority targets in the Dillard area and the program will continue evaluating additional copper-gold drill targets across the MPD property throughout the fall. A new 3D Induced Polarization (3D IP) geophysical survey is currently underway which will be completed this month, covering nine square kilometers and extending southward from the Gate Zone to the Man and Dillard target areas. The latter is important because the extension of the Gate Zone and delineation of the new Prime Zone confirm that recent 3D IP surveys are an effective tool for targeting host geology and discovering prospective porphyritic mineralization on the MPD Project.

Anyone who has read my articles in the past knows I’m always on the lookout for drill results. A previous corporate update stated that Kodiak had completed 29 holes totaling 19,150 meters as of September 9. This indicates that there are plenty of drill results still to come. Additionally, at the end of June Kodiak still had almost C$14 million in cash to continue unlocking the secrets of the MPD Property. With a market cap of C$30.5 million it would seem there is plenty of leverage to copper prices at Kodiak.




2022 looks set to be another big year for Kodiak Copper

Copper is considered by most analysts as the most essential and critical metal for the green revolution. This is because copper is required to conduct electricity in everything from electric vehicles (EVs), charging stations, solar panels, wind turbines, and so on. This means any companies that can develop a significant copper resource, especially in a safe country, stand to do very well.

Today’s company is steadily growing their copper-gold porphyry discovery in Canada and set to soon start its maiden drilling program at a second copper-gold porphyry project, this time in the USA.

Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF) (Kodiak) had an outstanding 2021 as they did plenty of the groundwork to grow a copper and gold resource, with a focus on a large drilling campaign at their Gate Zone discovery at the company’s MPD Project in British Columbia (BC), Canada. To date the best drill intercept has been 535m of 0.49% copper and 0.29 g/t gold (0.76% CuEq), showing the significant potential for a large copper-gold porphyry discovery. Another more recent result shows the potential to expand the mineralization strike length with 126m of 0.87% CuEq within 537m of the Gate Zone.

Kodiak has three projects:

  • The Man, Prime, Dillard (MPD) copper-gold porphyry project – 100% owned, 147km2 land package (includes the 2021 acquired Axe property) in a proven, mineral producing belt, in BC, Canada. The MPD Property has road access and is close to nearby power, towns, and other mines.
  • The Mohave Copper-Molybdenum-Silver Porphyry Project in Arizona, USA.
  • The Kahuna Diamond Project in Canada.

President & CEO, Claudia Tornquist, gives a great summary of Kodiak in 2021 stating in the Annual Investor Letter:

“The 2021 drill program was primarily focused on extending the Gate Zone discovery by systematically evaluating the associated copper-in-soil anomaly of approximately one kilometer in length. Drilling consistently delivered substantial high-grade intercepts within wide envelopes of lower grade mineralization, and over the year we increased the strike length of the Gate Zone by almost eight times. Mineralization has been intersected to date over 950 meters in length, down to a depth of 850 meters and across a width of 350 meters, dimensions typical of other large, multi-center copper porphyry deposits in British Columbia. The Gate Zone remains open in multiple directions, and we are excited to drill it further in 2022.”

Note: Emphasis by the author.

Potential to expand the Gate Zone, and a similar nearby potential mineralized zone

The Gate Zone is open at depth and to the sides. Recent conductive 3D IP anomalies traced to depth highlight potential extensions of Gate Zone mineralization along strike and down plunge to the south and southeast. A new one kilometre long parallel “look-alike” 3D IP response similar to the response of copper-gold mineralization drilled at Gate has been identified 600 meters to the southeast of the Gate Zone.

Conductivity drape from 3D IP survey at 300 m below surface at Gate Zone shows potential to expand the Gate Zone and find a second zone

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2022 plans for Kodiak

The 2022 drill program will be approximately 25,000 meters at multiple targets. These targets will include further drilling at the Gate Zone, new drilling at the Dillard area (2 kms from the Gate Zone), drilling along the 3km regional magnetic anomaly between the Gate and Man Zones, drill testing analogous targets elsewhere across the MPD Property, and drilling the newly acquired Axe claims which are contiguous and south of the MPD project area with further discovery potential.

The 3D model below incorporates a combination of historic drilling and Kodiak’s recent drilling results as of end 2021. It will be very exciting to see a similar model by end 2022 and 2023, and just how big the resource can potentially grow.

3D model of copper in historic drilling at Dillard & Man, and historic plus Kodiak drilling at Gate (the new neighboring Axe property is not yet included in the model)

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Also in 2022, Kodiak plans to commence a maiden drilling program at their Mohave copper porphyry project in Arizona, USA.

Closing remarks

Kodiak is already moving very fast at their MPD Project in BC, Canada. Drill results continue to be very positive, and a significant potential resource is growing with very real potential to expand the Gate zone and other targets (Man, Dillard, Axe) in 2022. Then there is the Mohave Project maiden drilling program in 2022.

Kodiak Copper trades on a market cap of only C$65 million and has enormous potential. Judging upon their 2021 exploration success at MPD, 2022 looks like being another great year. Stay tuned.




The compelling long-term case for copper, with an eye on Kodiak

Copper has had a pretty wild ride, so far, in 2021. Starting the year at just over US$3.50/lb, it quickly gained momentum with optimism over the “opening up” of trade based on the perception (at the time) that perhaps we had nipped Covid in the bud, and that the global economy would soon get back to some semblance of normal. This rallied the price of copper up to a high of US$4.37/lb in late February before the price consolidated in the US$4.00-US$4.20/lb range. The next rally was driven by the excitement around the green revolution or the electrification of everything. Every pundit and talking head on the business channels was talking about the growth rate of EVs, renewable energy, battery storage, etc., all of which would soon require a lot more copper than is being produced today. This charge upwards drove copper up to an intraday high of US$4.89/lb in early May, or roughly a 40% gain in just over 4 months. However, as the saying goes, often the cure for high prices is high prices, and that seems to have been the case for copper as the commodity appears to be in a bit of a downtrend at present.

The positive is that there appears to be solid support at roughly the US$4.00/lb threshold, and there hasn’t been a decisive break below the 200 day moving average. I also believe the long term case for copper is compelling. Whatever path we ultimately take to reduce our carbon footprint over the next years and decades is going to require a lot of copper. Will there be up and downs in the interim? For sure. The fallout from the Evergrande, property speculation, debacle in China could put a crimp in their economy, particularly in the building sector, but I don’t feel there will be a global contagion arising from that. In the long run there is a global political will to create a cleaner, greener future for the world, and that is going to make copper a “go to” commodity for a long time.

That’s my long-winded way of saying we should look at a copper stock today. Having grown up in the interior of B.C., one junior explorer I’ve been keeping an eye on is Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF). The Company’s most advanced asset is the MPD copper-gold porphyry project in the prolific Quesnel Trough in southern British Columbia, where in 2020 the Company made a high-grade discovery at the Gate Zone. Plans for 2021 include a fully funded 30,000 metre drill program including several target areas, as well as further geophysical and geochemical surveying, prospecting, and geotechnical studies. By early July, Kodiak had completed over 15 drill holes with results suggesting that the 1.2 kilometre long copper-in soil target in this area is underlain by a significant copper-gold-silver porphyry system. Highlights from the first 6 holes included an increase in the strike length of the Gate Zone from 125 metres to 800 metres, and a 242 metre intersect of 0.52% CuEq.

Unfortunately, the Company had to pause their drilling efforts in August due to wildfire risks, but ramped up activity at the end of August with two drill rigs. As of September 1st, 25 holes totaling 13,600 metres have been completed and the Gate Zone had been expanded further to 950 metres in length, 350 metres in width (east-west) and to a depth of 800 metres, being open in all directions. This is all pretty exciting, but the best part is that there’s lots more to come. Including drilling the high priority Dillard target which exhibits similar copper-in-soil anomalies, geophysical responses, and has shown encouraging historic drilling like the Gate Zone. Dillard will be drill-tested in Q4 as part of the 2021 program. And let’s not forget we’ve only seen results from the first 6 drill holes, leaving at least 19 still to come, the results from which should be available any day now.

It appears there should be fairly steady news flow out of Kodiak Copper for the rest of 2021. With 48.7 million shares outstanding the Company has a market cap of roughly $61 million based on yesterday’s close of $1.26. They have a fairly tight share structure so any positive news could give this stock a pretty good shot in the arm. Hopefully, exciting news is on its way.




Biden’s US$2T+ infrastructure plan should support strong copper demand and be a tailwind for Kodiak Copper

The US$2T+ Biden infrastructure plan announced today will be built on copper. The US$2T+ plan includes an additional US$400B of clean energy tax credits which will give US wind and solar energy a huge tailwind in the years ahead. Other parts of the plan support Electric Vehicles (EVs) and rebuilding infrastructure. All of which requires huge amounts of copper.

For example, BHP says that one wind turbine uses 4 tonnes of copper (video link). President Biden announced yesterday that the US will target to deploy 30 GW of offshore wind energy by 2030. This equates to roughly 3,000 wind turbines assuming an average of 10MW per turbine. 3,000 turbines mean 12,000 tonnes of copper (~26 million pounds) would be needed this decade just for new US offshore wind turbines. Now that is a huge amount of copper and potentially a lucrative business for copper miners given copper prices are now at ~US$4/lb.

Copper is on a bull run as the green energy boom takes off

Source

Copper producer’s stock prices are reflecting the higher copper prices from the past year. However, copper juniors that can grow their resource are not yet reflecting their full stock price potential. This means for investors with a 5-7 year time frame ‘successful’ copper juniors offer much greater reward, and of course greater risk. One junior with enormous upside potential is Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF) (‘Kodiak’).

Kodiak 100% own the MPD copper-gold porphyry property spread over their 9,733-hectare land package in British Columbia, Canada. I introduced Kodiak previously here, so today I will focus on their latest progress and next steps.

Kodiak’s latest drill results

On Feb. 8, 2021 Kodiak announced drill results from five further holes from their exploration program at their MPD copper-gold porphyry project. Following on from past great results with superb long copper-gold mineralization, Kodiak reported 213 m of 0.65% copper and 0.37 g/t Gold (1.00% CuEq) and 171 m of 0.62% Copper and 0.43 g/t Gold (1.03% CuEq), as well as other results.

Claudia Tornquist, President and CEO of Kodiak, stated: “Once again, the Gate Zone has yielded impressive copper-gold numbers over significant widths. With only a small number of holes drilled so far, we have already intersected the newly discovered high-grade zone at Gate and the surrounding larger mineralized envelope over significant dimensions. Over 90% of this kilometre-long target remains unexplored by Kodiak, with considerable discovery potential yet to be unlocked.”

The key to understand about these drill results is the massive interval lengths as is typical of porphyry systems. This typically allows them to be mined at scale, despite the grades not being as high as some other smaller or underground copper projects.

Kodiak Copper MPD Project – Gate Zone drilling results

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Next steps for Kodiak

Kodiak will continue exploring at MPD in 2021 with a fully funded, significantly larger program which includes up to 30,000 meters of drilling in several target areas, as well as further geophysical and geochemical surveying, prospecting and geotechnical studies.

Closing remarks

The green energy boom is only just beginning to take off now and is set to have a superb decade (green energy metals supercycle) as countries all around the world shift from fossil fuels to cleaner renewable energy in order to meet their emissions targets. China and Europe will continue to lead, but with Biden in power, the US will start a rapid catch-up beginning today with the US$2T+ US$400B infrastructure plan (assumes Congress passes it). Copper prices have been surging over the past 6 months as the market identifies the strong demand drivers and limited available new copper supply.

For investors looking for a potentially higher risk/higher reward copper play it is hard to go past Kodiak Copper. Management is top tier with a track record of success. Kodiak has enormous potential as they continue to explore both their copper-gold porphyry MPD Property as well as their two other promising projects (The Mohave Copper-Molybdenum-Silver Porphyry Project in Arizona USA and the Kahuna Diamond Project in Canada).

On a market cap of just C$59M for 3 quality exploration projects in safe locations, investors would be wise to take a look again at Kodiak Copper Corp..




Chris Thompson on Kodiak Copper’s high-grade porphyry drill results from its MPD copper-gold project in BC

Earlier this month, Kodiak Copper Corp. (TSXV: KDK) reported additional high-grade porphyry drill results from its MPD copper-gold project in southern British Columbia.

Results are being released from a nine-hole, 6,000+ metre summer drill program, primarily targeting the northern end of the 9,730-hectare (24,000-acre) property in an area called the Gate Zone.

On November 9, Kodiak released the results from drill hole MPD-20-005. It returned a mineralized interval of 515.8 metres of 0.41% copper, 0.22 g/t gold and 1.50 g/t silver from 223.5 metres down hole. This result included a high-grade interval of 45 metres of 1.18% copper, 1.01 g/t gold and 4.00 g/t silver (2.13% copper equivalent).

Claudia Tornquist, President and CEO of Kodiak commented, “This hole expands the central high-grade zone previously announced in hole MPD-20-004. Importantly, we are also starting to see significant size to the larger mineralized envelope, first identified in the near-surface by shallow historic drilling and extended down to a depth of over 800 metres by Kodiak.”

The Company also commented that the results were similar to hole MPD-20-004, originally reported in October, which assayed 535.1 metres of 0.49% copper, 0.29 g/t gold and 1.76 g/t silver (0.76% copper equivalent). This result included a high-grade interval of 45.7 metres of 1.41% copper, 1.46 g/t gold and 5.56 g/t silver (2.75% copper equivalent).

The drill results continue to define a mineralized zone and identify an area of higher copper and gold grades. See the figure below for the results and location of holes MPD-20-004 and MPD-20-005.

Final Summer Drill Results Pending and Fully Funded Through 2021

With a current backlog at the assay lab, results are still pending from 4 holes, including MPD-20-006, MPD-20-007 and MPD-20-009, which were drilled into the same Gate Zone. (See the figure below.)

In September, Kodiak completed a C$12.7 million financing, including a C$10.5 million strategic investment from Teck Resources (TSX: TECK.B) for a 9.9% interest in the Company.

Proceeds from the financing will be used to fund the Company’s exploration programs on both its copper porphyry exploration projects in British Columbia and Arizona into 2021, including 30,000 metres of drilling at the MPD project.

MPD Copper-Gold Porphyry Project

Kodiak’s principal project is MPD and it is located near producing mines in the Quesnel Trough in southern British Columbia. The project is accessible year-round with paved highways within a kilometre of the drill targets.

From previous exploration on the MPD project, over 100 historical drill holes defined the potential for a large copper-gold system with multiple centres, across 10 square kilometres of the property. However historical drilling focussed mainly on shallow mineralization, down to about 200 metres and current drilling by Kodiak extends the drilling depth down to 800 metres.

The discovery hole from 2019 (MPD-19-003) underlied a large copper-in-soil anomaly with over one kilometre of strike at the Gate Zone. With these current drill results, the Company now has minerialized core from the three known copper porphyry zones on the MPD Project but believe they have literally “only scratched the surface” as many of the project’s copper-in-soil anomalies remain untested.

Don’t Let the Grade and Depth Get You Down, it is the Size that Matters

After the recent drill results were released, Kodiak’s stock price corrected downward by almost 60% from its 52-week high.

However, investors need to understand that a porphyry can be a giant of a mineral deposit. Deposit sizes range from 100 million to 5 billion tonnes of ore with grades that are typically in the 0.2% to 1% copper range.

Virtually all significant copper mines in the Quesnel Trough consist of multiple porphyry centres and Kodiak has defined three copper porphyry zones but believe there are more to discover. The upcoming drill program with up to 30,000 metres could go a long way to proving up the project’s potential.

With grades of 0.41% and 0.49% copper over 500+ metres in the most recently drilled holes, the results compare well with the two other large-tonnage producing mines in the Quesnel Trough that average less than 0.30% copper:

  1. Copper Mountain Mining (TSX: CMMC)
    • Copper Mountain Mine: 190 km south of Kamloops, B.C.
    • 412.9 million tonnes at 0.24% copper, 0.11 g/t gold, 0.76 g/t silver (December 31, 2019 reserves)
  2. Teck Resources (TSX: TECK.B)
    • Highland Valley Mine: 75 km southwest of Kamloops, B.C.
    • 484.0 million tonnes at 0.31% copper (December 31, 2019 reserves)

Copper Demand Soon to Outstrip Supply

Copper’s forecasted supply and demand imbalance should work in Kodiak’s favour.

After hitting a 4-year low in March and in the midst of a global pandemic, the price of copper rebounded and is up over 50%, flirting near the highs of 2018.

Around the world, political pressure is calling for Green New Deals, whereby clean-generated electricity replaces fossil fuels to reduce pollution and fight climate change.

According market research, an electric vehicle requires 5-10 times more copper than a regular internal combustion engine and green electric energy from solar and wind needs 4-6 times more copper than energy generated from fossil fuels.

In addition, as fossil fuel power is replaced by wind and solar, the electrical infrastructure would need an overhaul, increasing the demand for copper further.

Finally, in various studies, copper exhibits antibacterial, antiviral and anti-fungal properties and, due to the recent pandemic, there could be a shift by manufacturers and governments from stainless steel to copper covered surfaces.

According to S&P Global Market Intelligence, copper demand from power projects, construction and electric vehicles will outstrip supply starting this year. The current forecasted shortfall is 299,000 tonnes of copper this year, rising to 489,000 tonnes in 2024.

Meanwhile, to fill the demand, the pipeline of copper development projects coming into production is low and may require higher copper prices to fuel more exploration and development interest.

The world is going to need more copper and Kodiak remains well positioned with location, cash, a strategic partner and a solid start with multiple mineralized zones to build upon.

Prophyry Example - Kodiak Gate Zone Drilling-2

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Kodiak Copper proves that what shareholders want is leadership, copper — and gold

On September 14 it was announced that Teck Resources has agreed to make a strategic investment of a 9.9% interest in Kodiak Copper (TSXV: KDK) (‘Kodiak’), at C$1.95 per share raising C$10.5m.

Add in drill results on September 3rd that included 282 m of 0.70% copper and 0.49 g/t gold (1.16% CuEq) at Kodiak’s advanced MPD copper-gold porphyry project in British Columbia, shareholders have responded positively. In fact, Kodiak Copper’s stock price has risen from C$0.50 on August 24th to C$2.80 as of September 28th for a 460% increase in the last month.

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Today I take a deeper look at Kodiak’s MPD porphyry project. As most resource investors know copper porphyry projects can be enormous in size and contain valuable by-products (gold, silver, molybdenum) which can make them economical even at lower grades than other projects.

MPD Copper-Gold Porphyry Project

The MPD Project is located in the prolific Quesnel Trough in southern British Columbia, Canada. Kodiak amalgamated 3 projects into one – Man, Prime, Dillard – hence the name MPD. The region is mining friendly with good access to infrastructure.

The MPD Project has road access and is close to infrastructure

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Previous drilling by Newmont Corporation and Rio Tinto was focused on depths up to 200 meters below the surface. Kodiak’s strategy is to use modern mining methods and to drill deeper. So far it is paying off. In November 2019, Kodiak (then known as Dunnedin Ventures) started its first drill campaign at MPD and discovered the Gate Zone, including several promising drill results that followed. The key was they were drilling deeper than before. The January 2020 announcement included the following:

  • “The new discovery underlies a large copper-in-soil anomaly with over one kilometre of strike at the ‘Prime’ area of the project. Over 100 historical drill holes containing copper and gold mineralization define a large, likely multi-centre porphyry system across 10 square kilometres of the MPD project.
  • The Gate Zone includes intervals of higher grade copper-gold within a broad lower grade interval, with mineralization present from near surface to a vertical depth of 800 metres, and remains open at depth.
  • Higher grade intervals include: 74.9 metres of 0.54% CuEq (0.43% copper and 0.11 g/t gold) from 297.0 metres to 371.9 metres. 102.0 metres of 0.68% CuEq (0.53% copper and 0.16 g/t gold) from 404.9 metres to 507.0 metres.
  • Broad moderate grade intervals include: 763.6 metres of 0.28% CuEq (0.21% copper and 0.07 g/t gold) from 52.3 metres to 816.0 metres (entire bedrock drill hole length). 340.7 metres of 0.42% CuEq (0.33% copper and 0.09 g/t gold) from 219.0 metres to 559.7 metres.”

Combining this with the September 2020 result of 282 m of 0.70% copper and 0.49 g/t gold (1.16% CuEq), with further assays results pending, and further drilling in 2020; you can start to see why investors (including mining giant Teck Resources) are getting excited.

Kodiak Copper’s MPD project historic drill results, strong discovery potential at depths below 200m

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Closing remarks

Kodiak Copper was founded by Chris Taylor who is well-known for his gold discovery success with Great Bear Resources, Kodiak is lead by President, CEO and Director Claudia Tornquist, the former General Manager at Rio Tinto. Kodiak is also part of the Discovery Group led by one of the most successful mining entrepreneurs in Canada John Robins and added to this, we now have Teck Resources (market cap US$7.4b) taking a 9.9% interest.

More assay results (drill hole MPD-20-005) are due out soon and then there will be further drill results in Q4, 2020. With a current market cap of C$102m means, Kodiak now has plenty of cash and plans to drill their US located Mohave porphyry project next.




Kodiak Copper sees its stock almost triple on drill results

Discovery viewed as “transformative”

Today I take a look at junior copper miner, Kodiak Copper (TSXV: KDK | OTC: KDKCF). Kodiak saw its stock price almost triple in the past week after announcing drill results, including 282 m of 0.70% Copper and 0.49 g/t Gold (1.16% CuEq) at their advanced MPD copper-gold porphyry project in British Columbia, Canada.

Kodiak Copper almost triples on a drill result last week

The copper price, currently at US$2.98/lb, has started to recover lately as global activity comes back from the initial shock of COVID-19. Looking further ahead, in the next 10 years there is a clear demand surge about to hit from the coming booms in electric vehicles and renewable energy.

From a supply perspective declining global copper grades and a lack of new projects means less copper output is expected. Higher copper prices will be needed to incentivize new copper projects.

Any copper companies that can bring a growing, low cost, production of new copper supply to market this decade should do very well.

Analysts are forecasting a future copper deficit to emerge in the 2020s

Source: Courtesy CRU Group

Copper demand vs. supply forecast

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The drill results

Kodiak announced on September 3, 2020 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, with a drill result of “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).”

Chris Taylor, Chairman of Kodiak commented that, “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.”

Claudia Tornquist, President and CEO of Kodiak, added they viewed “this new discovery as transformative for the project, and by extension for Kodiak, and pointed specifically to the “new high gold values, which we would have viewed as a successful stand-alone gold discovery in the absence of any copper.” She said that Kodiak anticipates “a very active remainder of 2020, and that 2021 will be our most exciting and productive year so far.”

Kodiak Copper’s projects

Kodiak is focused on its portfolio of 100% owned copper porphyry projects in Canada and the USA.

  • MPD Copper-Gold Porphyry Project in the prolific Quesnel Trough in southern British Columbia, Canada, where the Company made a discovery of high-grade mineralization in 2020 (as mentioned above).
  • Mohave Copper-Molybdenum-Silver Porphyry Project in Arizona, USA, near the world-class Bagdad Mine.
  • Kahuna Diamond Project in Nunavut, Canada, hosts a high-grade, near surface inferred diamond resource and numerous kimberlite pipe targets.

Note: Both of Kodiak’s porphyry projects have been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.

Kodiak Copper’s 3 projects location map

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Kodiak was founded by Chris Taylor who is well known for founding Great Bear Resources (TSXV: GBR) (Market cap C$897m), which made a highly significant gold discovery. Kodiak is also part of the Discovery Group of companies led by John Robins, one of the most successful mining entrepreneurs in Canada.

Closing remarks

Juniors that can find and grow good size copper resources will be handsomely rewarded, especially if their project is located in a safe jurisdiction. It is still very early days for Kodiak Copper as they continue to explore and work to develop a resource. Further drill results are expected before the end of the year.

As experienced resource investors know, porphyry projects are usually lower grade but large. What excited the market so much last week was that Chris Taylor may have again discovered something big in Canada. Given the market cap is still only C$65m, if the project can continue to progress and grow a significant resource this may only be the beginning for Kodiak Copper.