Western Keltic expands Kutcho Creek high-grade resource

Vancouver – The latest round of drilling on Western Keltic Mines’ (WKM-V) wholly owned Kutcho Creek copper-zinc project, located 100 km. east of Dease Lake, British Columbia, has succeeded in expanding the higher-grade resource at the deposit.

The company has completed its 41-hole drill program at the massive sulphide project and is seeing expansion of deposit boundaries. Assays have been received for the initial 22 holes and include:

• Hole WK04-01 A deep core hole on the Esso West zone intersected 2.6 metres (from 503.7 metres) grading 1.17% copper, 5.1% zinc and 11.4 grams silver per tonne, further downhole, an 11.1 metre section (from 510.7 metres) graded 3.25% copper, 4.72% zinc, 112 grams silver and 1.7 grams gold, including 5.3 metres of 3.72% copper, 8.73% zinc, 129 grams silver and 2.3 grams gold.
• Hole WK04-03 This hole on the main Kutcho deposit intersected 10.7 metres (from 64.6 metres) grading 2.8% copper,2.6% zinc, 65 grams silver per tonne and 0.47 grams gold per tonne;
• Hole WK04-05 A high-grade intercept from Kutcho delivered 8.3 metres (from 41 metres) assaying 5.34% copper, 5.94% zinc, 138.6 grams silver and 2.3 grams gold;
• Hole WK04-12 Another Kutcho hole that returned 17.9 metres (from 61.7 metres) averaging 2.52% copper, 2.33% zinc, 61 grams silver and 0.5 grams gold, the intercept represents about 80% of true thickness.

Keltic has been drilling large diameter (HQ) core at Kutcho to extract sufficient material for metallurgical testing. This year’s drilling at the main Kutcho massive sulphide deposit has covered a 1,200 by 270 metre area, delineating a higher-grade core having an average thickness of 8.6 metres.

The deeper, Esso West area drilling resulted in extension of the deposit both up and down dip, as well as towards the west.

The Kutcho Creek deposits were initially discovered by Sumac Mines, a subsidiary of Sumitomo Metal Mining, and Esso Minerals Canada in the late-1970s. Subsequent exploration into the 1980s, including a pre-feasibility study, outlined an indicated resource (not NI43-101 compliant) of 14.9 million tonnes grading 1.85% copper, 2.62% zinc, 31.6 grams silver and 0.37 grams gold in the main Kutcho deposit. The deeper Esso West deposit also has a historically outlined resource calculated at 1.5 million tonnes of 3.37% copper, 5.71% zinc, 63.4 grams silver and 0.54 grams gold.

The pre-feasibility study conducted in 1985 indicated a low internal rate of return (IRR) of 11.1%, below the requirement for development at the time. With present commodity prices and infrastructure economics factored into the project, Keltic is working on expanding the higher-grade portions of the deposit and developing an optimized open pit-underground development plan.

As of the latest figures, the company reports 21.9 million shares outstanding, giving a market capitalization of about $5.7 million at the present trading level of 26 per share.