Shares in Canadian junior mining company Kodiak Copper (TSX-V:KDK) staged an impressive 122% rally after the company released the latest drill results from its MPD project. The drilling in the area called the Gate Zone originally showed the highest grade copper-gold intervals from this property and results from the second phase of the drill programme which started in mid-July and were released Friday discovered a significant high-grade copper-gold extension of Gate Zone.
A roughly 280 metre section of a strongly mineralized drill core returned 0.70% of copper, 0.49 g/t gold and 2.64 g/t silver.
The Armchair Trader originally flagged Kodiak Copper as an interesting opportunity on 23 April when shares were trading at CAD 0.24. They are currently priced at CAD 1.70.
The MPD site has been explored previously but not to the same extent as Kodiak is currently doing. Mining giants like Rio Tinto and Newmont have been active in the MPD previously, but while the data has been interesting, exploration has rarely gone beyond 200 metres. The current drilling has gone deeper, to 785 metres and apart from today’s results there will be further assays for the remainder of the current drill hole.
Kodiak Copper share price
Kodiak’s shares have been constrained in the range between CAD 0.19 and CAD 0.55 for most of the last 12 months and when The Armchair Trader had its first close look at the company on 23 April shares could be had for CAD 0.24. Since then Kodiak Copper stock has ascended to CAD 1.67, more than doubling in price.
Kodiak’s share price first started seriously perking up since late August after the company sold its Trapper project to Brixton Metals, another Canadian miner with headquarters in Vancouver.
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.”
MPD is located in Quesnel Trough, the same part of British Columbia’s major copper-producing belt as Teck Resource’s world-class Highland Valley Mine and Imperial Metals’ Mount Polley Mine.