We revisit Kodiak Copper TSXV:KDK this week, one of the best-performing mining stocks in our long term venture portfolio. Kodiak Copper is a junior copper explorer which is prospecting on the MPD property in Canada’s British Columbia. The miner has just announced that it has entered into a purchase agreement with Donald Rippon of Mineworks Ventures to acquire 100% in 11 claims that are adjacent to Kodiak’s existing MPD property.
The new property contains 7,800 hectares and will expand the MPD to 22,642 hectares. They are adjacent to the southeast of the original MPD project and Kodiak says they host prospective geology and structural trends that are “important to the known mineralisation at MPD.”
It is a significant development for existing shareholders in the company.
Claudia Tornquist, president of Kodiak Copper, said “Right from the start Kodiak has interpreted MPD as a large, multi-centred copper-gold porphyry system with district-scale potential and every step of our exploration work to date has confirmed this thesis. The addition of this claim package adds further strategic ground that complements our land holdings. The preparations for our 2023 exploration program at MPD are well advanced and I am looking forward to updating our shareholders soon with our plans for a large drill campaign on multiple targets.”
The deal is still subject to the approval of the TSX Venture Exchange along with other customary conditions. This includes 150,000 shares in Kodiak upon closure of the transaction, a 2% net smelter returns royalty on the property (of which 1% may be purchased by Kodiak for C$3m at any time), and a cash payment of C$5000.
So what is Kodiak Copper’s MPD?
MPD is a large land package located near several operating mines in the southern Quesnel Terrane, British Columbia’s primary copper-gold producing belt. It is situated between the communities of Merritt and Princeton, with year-round accessibility and excellent infrastructure nearby. Following Kodiak’s Gate Zone discovery in 2020, ongoing drill programs in 2021 and 2022 have significantly expanded the size and depth of known mineralization at the Gate Zone to one kilometre of strike length, 350 metres width and 900 metres depth.
Most of the copper-gold porphyry targets on the MPD property have yet to be drilled by Kodiak. The company said that the 2023 exploration program will prioritise drilling of these additional high-priority copper-gold porphyry targets across the property.
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Interesting Canadian copper prospect
Kodiak Copper remains a highly interesting copper prospect. We are aware from sources within the wider mining community that several larger miners have teams on the ground in Canada looking at potential new copper prospects. A premium is already being attached to large scale copper prospects.
Kodiak Copper reported in January on a 26,000m drill program which extended the MPD’s Prime zone mineralised envelope from bedrock surface to 780m depth. This confirmed continuity of mineralisation under both Kodiak’s Prime exploration zone and also its Gate zone area of focus. The company said the results demonstrate the potential to expand copper-gold mineralisation at depth and outward from Gate.
“These results provide further proof of the extensive mineralized envelope associated with the Gate/Prime porphyry system which continues to grow and show strong continuity of mineralization,” Tornquist said. “With copper prices rallying and long-term fundamental as strong as ever, there couldn’t be a better time to advance a copper porphyry project, particularly one located in a safe jurisdiction and an established mining district with existing infrastructure like Kodiak’s MPD project.”
