VANCOUVER, BC / ACCESSWIRE / January 17, 2024 / Granite Creek Copper Ltd. (TSXV:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company“) is pleased to announce significantly increased recovery of copper from oxide material at its Carmacks Copper-Gold-Silver project (“Carmacks Project” or the “Project“) was achieved through metallurgical studies conducted by Kemetco Research Inc. from (“Kemetco“).
The Company’s 2023 Preliminary Economic Assessment (“2023 PEA”) for the Project identified the opportunity to significantly increase net present value (“NPV”) by improving oxide recovery. Metallurgical testing completed on the project in support of the 2023 PEA showed that while a copper recovery of over 93% could be achieved via a well-established froth flotation technique for sulphide ore, only 39.8% copper recovery from oxide ore was achieved using the same process (see Table 1 for summary of flotation results). The current test results show a total recovery of 88% for oxide material is possible, an increase of 48% over the PEA base case (Tables 1 and 2). These results will have a significant impact on the economics for the project as the PEA identified an additional $180 M of NPV5% value by increasing life of mine average recovery for copper from 64% to 77%. With sulfide recoveries of 93.7% identified in the PEA and combined oxide recoveries (initial flotation + leaching and precipitate) of 88% the potential recoveries for copper are well above the 77% target level highlighted in the 2023 PEA.
The current mine plan as outlined in the 2023 PEA contemplates processing material with a high oxide content of up to 80% oxide ore in the first five years of the mine life. During this time over 8.4 million tonnes of oxide material would be processed versus 2.88 million tonnes of sulphide material. An increase in recovery of oxide material for the first five years of mine life, as demonstrated in these test results, would have a potentially very significant impact on project economics.
Kemetco Research Inc. was retained to complete testing on tailings produced in previous metallurgical work to develop a process for treating material that will have passed through the mill and still have significant oxide copper minerals present (See Figure 1 for simplified flow sheet). This laboratory test program showcased the efficacy of copper recovery from Carmacks copper oxide flotation tailings through a low-concentration acid leach at ambient temperature and pressure followed by chemical precipitation of copper minerals. The precipitation of copper sulphide (“CuS”) from the resulting leachate was shown to be an effective method of fully recovering the leached copper from solution, yielding a very high-grade CuS precipitate that would be added to the copper concentrate further increasing the copper grade of the high-quality concentrates from the project. For reference the PEA estimated an average concentrate grade of 40% copper with significant gold and silver credits.
Figure 1: Simplified Flow Sheet
Results of this testing are outlined below:
Acid leaching was able to extract as much as 80% of the remnant copper present in a composite prepared from Carmacks copper oxide flotation tailings.
Copper in precipitates varied, but in most tests approached the theoretical grade of pure CuS which grades 66.5% Cu. High grades were obtained without pH adjustment.
This testing shows a total copper recovery from oxide material of 88% with Initial Flotation recovery of 39.8% + Leach and Precipitate recovery of 48% (80% of the remnant copper).
Adding Sodium hydrosulphide (“NaHS”) solution resulted in up to 100% precipitation of copper from leach solutions, offering a promising avenue for further refinement. Hydrogen sulphide gas was equally effective as a sulphide source for copper precipitation.
In all tests, the precipitation of CuS resulted in a drop in pH as free acid was regenerated as a by-product of the precipitation reaction, creating the potential to reuse/recycle the regenerated acid.
Table 1 Summary of flotation testing results and average values used in PEA.
Recovery %
Sample
Cu
Au
Ag
Sulphide Sample Flotation1
93.7
69.0
78.4
Oxide Sample Flotation2
39.8
57.5
37.4
Total Oxide Recovery (Initial Flotation + Leach and Precipitate)
88.0
N/A
N/A
PEA LOM Base Case3
64.0
58
60
PEA Target Case4
> 77
58
60
Sulphide flotation testing completed by SGS prior to PEA study see news release dated January 10, 2023.
Oxide flotation testing completed by SGS prior to PEA study see news release dated January 10, 2023.
Calculated LOM average recovery based on a regression curve dependant on oxide content.
Projected PEA target based on achieving a 20% increase in oxide recovery LOM.
Table 2 2023 – PEA Copper Recovery Sensitivity Table
Copper Recovery Sensitivity
PEA BASE
Target1
Pre-Tax NPV (5-10% Discount)
Overall recovery
51%
58%
64%
70%
77%
Sensitivity Range
80%
90%
100%
110%
120%
5%
$136.6M
$231.3M
$324.1M
$416.6M
$509.6M
6%
$122.2M
$209.4M
$269.6M
$383.8M
$471.0M
7%
$107.3M
$189.4M
$271.5M
$353.6M
$453.6M
8%
$93.8M
$171.1M
$248.4M
$325.8M
$403.1M
9%
$81.4M
$154.3M
$227.3M
$300.2M
$373.2M
10%
$70.1M
$139.0M
$207.8M
$276.7M
$345.6M
Based on a recovery of 93.7% for sulphide and 88% for oxide this would exceed the PEA LOM 77% target
About the Carmacks Deposit:
The road accessible Carmacks deposits hosts a NI 43-101 resource consisting of 36.2 Mt M&I, grading 1.07% CuEq 0.81% Cu, 0.31 g/t Au, 3.41 g/t Ag (see news release January 19, 2023). The deposit was the subject of a positive PEA released in January 2023 that envision a 9-year mine life based on a mill capable of processing 7,000 t/d of combined oxide and sulfide ore. The resources are contained within three conceptual open pits and are open for expansion.
Contained Copper in Measured and Indicated Resources
147 Pit 280 Mlbs copper in oxide 126 Mlbs copper in sulfide
2000 Pit 10.5 Mlbs copper in oxide 51.3 Mlbs copper in sulfide
1213 Pit 35.4 Mlbs copper in oxide 122.3 Mlbs copper in sulfide
Tim Johnson, President & CEO stated, “The 2023 PEA, a major milestone for the Company, identified several opportunities for the Project including increased recovery, resource expansion and additional mine and process optimisation. The unlocking of additional value through the improved oxide recovery that this testing represents, especially in the early years of mine life, has the potential to add significantly to the NPV of the project. These results could allow for re-evaluation of resources that didn’t make it into the mine plan due to lower grades or assumed recoveries. The process being developed by the company also has the possibility of being used in other parts of the Minto Copper belt where oxidized or partially oxidized (POX) copper ores have not been processed by other operators.”
Corporate Update
Granite Creek announces the appointment of Susan Henderson as Corporate Secretary. In this role, Ms. Henderson will play a crucial role in overseeing and managing corporate governance matters, ensuring compliance with regulatory requirements, and serving as a key liaison between the company and its stakeholders. She brings her extensive experience in the mining industry, making her well-suited to contribute to Granite Creek’s continued success. The board and executive team are confident in her ability to navigate the complex landscape of corporate governance and provide valuable insights.
Qualified Persons
Mr. Douglas Warkentin, P.Eng., a Qualified Person for the purposes of National Instrument 43-101, has reviewed and approved the technical disclosure related to metallurgical testing contained in this news release. Mr. Warkentin is a Senior Metallurgist with Kemetco Research and an advisor to the Company.
The NI 43-101 technical report entitled CARMACKS PROJECT PRELIMINARY ECONOMIC ASSESMENT (PEA) YUKON, CANADA, referenced in this news release is available on the company’s website as well as on SEDAR under the company’s profile.
2023 PEA: The Company cautions that the results of the PEA are preliminary in nature and do not include the calculation of mineral reserves as defined by NI 43-101. There is no certainty that the results of the PEA will be realized.
About Granite Creek Copper
Granite Creek Copper, a member of the Metallic Group of Companies, is a focused on the exploration and development of critical minerals projects in North America. The Company’s projects consist of its flagship 176 square kilometer Carmacks project in the Minto copper district of Canada’s Yukon Territory on trend with the high-grade Minto copper-gold mine and the advanced stage LS molybdenum project and the Star copper-nickel-PGM project, both located in central British Columbia. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Granite Creek Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Granite Creek Copper and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE / August 23, 2023 /Granite Creek Copper Ltd. (TSX.V:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company“) is pleased to announce the preliminary results of a metallurgical study designed to increase recovery of copper from oxide material at its Carmacks Copper-Gold-Silver project (“Carmacks Project” or the “Project“)
Kemetco Research Inc. (“Kemetco”) has been contracted to carry out an initial series of scoping tests to evaluate the potential for extraction and recovery of copper from unrecovered copper oxide minerals in Carmacks Project flotation tailings as referenced in the Company’s 2023 Preliminary Economic Assessment (“2023 PEA”) *. Testing involves the leaching of tailings from previous flotation testing of oxidised copper material to dissolve copper into solution and subsequently precipitate copper in a form that could be added to a concentrate being produced by sulphide flotation. The leaching portion of the test work has now been completed with up to 81% of the copper present in the test samples going into solution. The remaining project task, currently underway at Kemetco, is to complete a series of bench tests to evaluate methods for selective recovery of the leached copper from solution. The planned tests will focus on copper sulphide precipitation to target generation of a high-grade copper sulphide product that could potentially be combined with a copper flotation concentrate in an overall production flowsheet, resulting in significant potential increases to both overall copper recovery and the copper grade of the final concentrate product.
The 2023 PEA was based on an average recovery of copper, life of mine (“LOM“) of 64%, with up to 93.7% recovery of copper when processing sulfide material but only 39.8% when processing oxide material. The current mine plan as outlined in the 2023 PEA contemplates processing material with a high oxide content of up to 80% oxide ore in the first five years of the mine life during which time over 8.4 million tonnes of oxide material would be processed versus 2.88 million tonnes of sulphide material. Sensitivity analysis completed in the 2023 PEA identified over $180M of Net Present Value (“NPV“) to be gained from a combined sulphide-oxide recovery system by increasing the LOM recovery of copper by 20% from the current projected 64% to 77% total copper recovery.
The material used for the current test consists of tailings from flotation testing of oxide material, where 39.8% recovery of copper was achieved prior to the current leach testing. With up to 81% of the remaining copper going into solution an additional 48% recovery of copper in oxide is possible (81% of remaining 60.2% copper from original test sample) which would increase the total copper recovery of oxide material to over 80% (original 39.8% plus 48%). This could potentially provide a path to exceed the 20% increase in total LOM copper recovery opportunity, which was referenced in the 2023 PEA. While the current work is being conducted on the most representative material available, it should be noted that this work is preliminary in nature and has not yet been tested on a range of potential feed blends.
Tim Johnson, President & CEO stated, “The 2023 PEA, a major milestone for the Company, identified several opportunities for the Project including increased recovery, resource expansion and additional mine and process optimisation. The unlocking of additional value through the improved recovery that this testing represents, especially in the early years of mine life, has the potential to add significantly to the NPV of the project. These results could allow for re-evaluation of resources that didn’t make it into the mine plan due to lower grades or assumed recoveries. The process being developed by the company also has the possibility of being used in other parts of the Minto Copper belt where oxidised or partially oxidised (POX) copper ores have not been processed by other operators.”
Table 1 Summary of flotation testing results and average values used in PEA.
Granite Creek Copper Ltd., Tuesday, August 22, 2023, Press release picture
1. Sulphide flotation testing completed by SGS prior to PEA Study see news release dated January 10, 2023. 2. Oxide flotation testing completed by SGS prior to PEA study see news release dated January 10, 2023. 3. Calculated LOM average recovery based on a regression curve dependant on oxide content. 4. Projected target based on successful completion of current testing.
Table 2 2023 – PEA Copper Recovery Sensitivity Table
Granite Creek Copper Ltd., Tuesday, August 22, 2023, Press release picture
BCSC continuous disclosure review.
Following a recent review of Granite Creek’s continuous disclosure by the British Columbia Securities Commission, the Company provides the following corrections:
In a news release dated January 19, 2023, announcing the completion of the PEA, the Company stated, “The PEA indicates that the potential economic returns from the Project justify advancing to a feasibility study”. This statement could be construed that the Company is treating the PEA as a pre-feasibility level study, which is not the case. While the Company maintains that the PEA was positive, additional work will need to be done before a full feasibility study could be initiated. The Company also wishes to retract to word “robust” when describing the economics of the Project as this may be misleading to some readers. Granite Creek has also added the following cautionary language to materials that are disseminated to the public including the Company’s corporate presentation, fact sheet and website. “The Company cautions that the results of the PEA are preliminary in nature and do not include the calculation of mineral reserves as defined by NI 43-101. There is no certainty that the results of the PEA will be realized.” The Company encourages the reader to reference the NI 43-101 technical report entitled CARMACKS PROJECT PRELIMINARY ECONOMIC ASSESMENT (PEA) YUKON, CANADA, available on SEDAR and the Company’s website for further details on the Project.
Qualified Persons
Mr. Douglas Warkentin, P.Eng., a Qualified Person for the purposes of National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release. Mr. Warkentin is a Senior Metallurgist with Kemetco Research and an advisor to the Company.
About Granite Creek Copper
Granite Creek Copper, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the exploration and development of critical minerals projects in North America. The Company’s projects consist of its flagship 176 square kilometer Carmacks project in the Minto copper district of Canada’s Yukon Territory on trend with the high-grade Minto copper-gold mine and the advanced stage LS Molybdenum project and the Star copper-nickel-PGM project, both located in central British Columbia. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
* 2023 PEA: The Company cautions that the results of the PEA are preliminary in nature and do not include the calculation of mineral reserves as defined by NI 43-101. There is no certainty that the results of the PEA will be realized.
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Granite Creek Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Granite Creek Copper and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE / June 2, 2023 /Vancouver, B.C., Granite Creek Copper Ltd. (TSXV:GCX) (“Granite Creek” or the “Company“) is pleased to report that it has completed the non-brokered private placement financing (“Offering“) announced May 12, 2023, for total aggregate proceeds to the Company of $1,265,175.01 as follows:
10,853,333 units at a price of $0.06 per unit, with each unit consisting of one common share of the Company and one-half of one transferable warrant. Each full warrant allows the holder to purchase one common share of the Company at a price of $0.12 per share for thirty-six months (“Common Share Units”);
8,186,334 flow-through units at a price of $0.075 per unit, with each unit consisting of one flow-through share of the Company and one-half of one transferable flow-through warrant. Each full flow-through warrant allows the holder to purchase one flow-through share of the Company at a price of $0.15 per share for twenty-four months (“Flow-Through Units”).
The private placement was offered on a non-brokered basis and closing is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange. All shares and warrants issued will be subject to a statutory hold period of four months and one day from the closing of the Offering.
Proceeds will be used for exploration and development of the Company’s Carmacks Copper-Gold Project in Yukon, Canada, and for general working capital purposes. All of the gross proceeds from the issuance of the Flow-Through Shares and the flow-through shares comprising part of the Flow-Through Units will be used to incur Critical Mineral Exploration Expenses (“CMEE”). Such expenses will qualify as “flow-through mining expenditures” under the Income Tax Act (Canada) and will be renounced to the purchasers of such shares, with an effective date no later than December 31, 2023, in an aggregate amount no less than the proceeds raised from the issue of the Flow-Through Shares and the flow-through shares comprising part of the Flow-Through Units.
The Offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“), as insiders of the Company have subscribed for 1,000,000 Common Share Units and 350,000 Flow-Through Units in the Offering for a total consideration of $86,000. The Company relied on the exemptions in Section 5.5(b) – Issuer Not Listed on Specified Markets from the formal valuation requirements of MI 61-101 and relied on the exemption in Section 5.7(1)(a) – Fair Market Value Not More Than 25 Per Cent of Market Capitalization from the minority shareholder approval requirements of MI 61-101. The Company did not file a material change report at least 21 days before the expected closing date of the Offering, as the aforementioned insider participation had not been confirmed at that time and the Company wished to close the Offering as expeditiously as possible.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America.The Shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
Warrant Extension
The Company announces that it has applied for TSX Venture approval to extend the expiry date on certain warrants that were due to expire June 5 and June 11, 2023 (the “Warrants“). The Warrants, originally issued as part of a financing completed in June 2020 (see news release dated June 11, 2020), will, upon approval, have expiry dates of June 5 and June 11, 2024, respectively. All other terms of the warrants stay the same, with each warrant entitling the holder to acquire one common share at an exercise price of $0.075. If the common shares close at $0.15 or higher for 10 consecutive trading days, the Company may accelerate expiry of some or all of the warrants to the 30th day after notice to warrant holders.
About Granite Creek Copper
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the exploration and development of critical minerals projects in North America. The Company’s projects consist of its flagship PEA-stage Carmacks project in the Minto copper district of Canada’s Yukon Territory, the advanced stage LS Molybdenum project and the Star copper-nickel-PGM project, both located in central British Columbia. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE / May 12, 2023 / Granite Creek Copper Ltd. (TSX.V:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company“) announces a non-brokered private placement financing (the “Offering”) of up to $1,350,000 through the issuance of 20,000,000 common shares and 10,000,000 warrants as follows:
Up to 10,000,000 units at a price of $0.06 per unit, with each unit consisting of one common share of the Company and one-half of one transferable warrant, with each full warrant allowing the holder to purchase one common share of the Company at a price of $0.12 per share for thirty-six months (“Common Share Units”);
Up to 10,000,000 flow-through units at a price of $0.075 per unit, with each unit consisting of one flow-through share of the Company and one-half of one transferable flow-through warrant, with each full flow-through warrant allowing the holder to purchase one flow-through share of the Company at a price of $0.15 per share for twenty-four months (“Flow-Through Units”);
The Company also announces the completion of an initial tranche of the Offering after having received subscription agreements for 6,400,000 of the Common Share Units and 4,436,677 of the Flow-Through units for a total funds of $716,750. The Company continues to see interest in the remainder of the Offering and expects to close a second and final tranche soon.
The Offering is being conducted on a non-brokered basis and all shares and warrants issued will be subject to a statutory hold period of four months and one day from the closing of the Offering. The Company may pay finder’s fees on a portion of the Offering, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation. Closing of the Offering is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and the acceptance of the TSX Venture Exchange.
The proceeds from the Offering will be used for exploration and development of the Company’s Carmacks Copper-Gold Project in Yukon, Canada, and for general working capital purposes. All of the gross proceeds from the issuance of the Flow-Through Shares and the flow-through shares comprising part of the Flow Through Units will be used to incur Critical Mineral Exploration Expenses (“CMEE”), and will qualify as “flow-through mining expenditures” under the Income Tax Act (Canada), which will be renounced to the purchasers of such shares, with an effective date no later than December 31, 2023, in an aggregate amount no less than the proceeds raised from the issue of the Flow-Through Shares and the flow-through shares comprising part of the Flow Through Units.
The Offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), as insiders of the Company may subscribe for Common Share Units and/or Flow-Through Units in the Offering. The Company relied on the exemptions in Section 5.5(b) – Issuer Not Listed on Specified Markets from the formal valuation requirements of MI 61-101 and relied on the exemption in Section 5.7(1)(a) – Fair Market Value Not More Than 25 Per Cent of Market Capitalization from the minority shareholder approval requirements of MI 61-101. The Company did not file a material change report at least 21 days before the expected closing date of the Offering as the aforementioned insider participation had not been confirmed at that time and the Company wished to close the Offering as expeditiously as possible.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America.The Shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
About Granite Creek Copper
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the exploration and development of critical minerals projects in North America. The Company’s projects consist of its flagship 176 square kilometer Carmacks project in the Minto copper district of Canada’s Yukon Territory on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp., and the advanced stage LS Molybdenum project and the Star copper-nickel-PGM project, both located in central British Columbia. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Granite Creek Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Granite Creek Copper and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE /May 2, 2023 / Granite Creek Copper Ltd. (TSX.V:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company” is pleased to provide additional detail on the acquisition of a 100% interest in the Lucky Ship molybdenum project (“LS Project”) from two arm’s-length vendors (“Vendors“), (see news release dated March 22,2023). The LS Project is located within the traditional territory of the Wet’suwet’en First Nation in central British Columbia and is in a region with a long history of mining, including the Endako molybdenum mine, the Huckleberry copper-molybdenum mine, the Equity silver mine, and others. The project is accessible year-round along a well-developed network of forestry roads, with a high-capacity power line within 50 kilometres and paved highway and rail line access within 85 kilometres.
Under the terms of the option agreement, the Company can acquire a 100% interest in the LS Project for the following consideration:
1. Issue the Vendors 3,7500,000 common shares as follows:
500,000 shares within 10 days following TSXV approval;
750,000 shares on or before the 12 month anniversary of TSXV approval (“Year One”);
1,000,000 shares on or before the 24 month anniversary of TSXV approval (“Year Two”); and
1,500,000 shares on or before the 36 month anniversary of TSXV approval (“Year Three”).
Keep the LS Project in good standing by completing work, filing Portable Assessment Credit or paying cash in lieu thereof of: (i) a minimum number of work credits equal to two years’ assessment credit on or before the conclusion of Year One; (ii) a minimum number of work credits equal to two years’ assessment credit on or before the conclusion of Year Two; and (iii) a minimum number of work credits equal to four years’ assessment credit on or before the conclusion of Year Three (the “Work”).
On completion of the share issuances and the Work, if the total aggregate cash value of the share issuances totals less than $300,000, then the Company will make a cash payment to the Vendors equal to the difference between the aggregate cash value of the share issuances and $300,000.
On exercise of the option agreement, the Company will grant the Vendors from and after commercial production an aggregate 2.0% net smelter returns royalty on the LS Project(the “NSR Royalty”). The Company shall have the right at any time to purchase the first 1% of the NSR Royalty for $500,000 and the remaining 1% NSR Royalty for $1,000,000.
The acquisition of the LS Project is subject to approval by the TSX Venture exchange.
Option Grant
Granite Creek further announces it has granted 300,000 incentive stock options (the “Options”) to a Director of the Company. The Options are exercisable for up to five years, expiring on May 2, 2028, and each Option will allow the holder to purchase one common share of the Company at a price of C$0.08 per share.
About Granite Creek Copper
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the exploration and development of critical minerals projects in North America. The company’s projects consist of its flagship 176 square kilometer Carmacks project in the Minto copper district of Canada’s Yukon Territory on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp., the advance staged LS Molybdenum project and the copper-nickel-PGM Star project both located in central British Columbia. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Granite Creek Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Granite Creek Copper and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE / March 29, 2023 / Granite Creek Copper Ltd. (TSXV:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company“) is pleased to announce the appointments of Mr. Robert Sennott to the board of directors of the Company and of Mr. Peter Harris, P.Eng., to the Company’s advisory board as it embarks on the next stage of development of the Carmacks copper-gold-silver project in Yukon, Canada. François Lalonde will step down from the board of directors to focus on his leadership role at TSX Venture listed Stellar Africa Gold. Granite Creek wishes to thank François for his dedication and contributions to the board and wish him the best in all his future ventures.
Tim Johnson, President and CEO, stated, “We look forward to working closely with Rob Sennott and Peter Harris as we advance our promising critical mineral projects for copper and molybdenum toward development and production. It is an exciting time for the Company with the recent 43% expansion of the resource at Carmacks and a robust PEA released in January 2023 as well as the acquisition of the 90+ million-pound bulk mineable LS molybdenum resource in central British Columbia. We look forward to providing updates in the near future on the Company’s recently initiated process test work for improved oxide recovery at the Carmacks project and exciting exploration potential for resource expansion developed from our 2022 geophysical and geochemical surveys, proximal to the existing resources.”
Robert Sennott
Rob is a long-time investor, entrepreneur, philanthropist and film producer. He has been a long-time resource investor and is an investor and supporter of each of the three Metallic Group companies. Rob was the founder of Market Intelligence, a real estate information services company, that was acquired by Alleghany Corporation, which in turn was recently acquired by Berkshire Hathaway. He has served on the board of directors of First Community Bank and was a Beige Book respondent for the Federal Reserve Bank of Boston. Rob has also served on the board of a non-profit organization addressing poverty in rural communities, where he brought an entrepreneurial approach to fundraising. Rob’s success in business management and focus on building prosperous communities will be a great benefit to Granite Creek as it moves from exploration stage to developer.
Peter Harris
Peter is a mining engineer with over 40 years of global mining industry experience in project evaluation, development, mine construction and operations. Peter’s career is highlighted by prominent roles with Placer Dome (now Barrick Gold) as Senior Vice President of Project Development and President & CEO of Placer Dome South Africa. He also was part of the early formation of NovaGold Resources as Chief Operating Officer. Peter brings a deep understanding of what it takes to have a successful mining project having been involved in various stages of evaluation, development, construction and operation of over 20 mineral projects in his career in North and South America, Africa, Australia and Papua New Guinea. His experience ranges from high-grade underground operations to large scale open pit deposits of base & precious metals. He has a strong track record of leading corporate development teams in strategic acquisitions, financing as well as structuring of engineering initiatives to optimize costs and identify opportunities. A mine engineering graduate of the University of Newcastle-upon-Tyne with executive and board of director experience in mining and related industries, Peter also led the design and introduction of World Bank recognized employee programs for affected mine-workers related to major mine re-structuring and AIDS programs. Peter’s experience in all aspects of major project and mine development including working with communities will add tremendous value as the company advances to the next stages of development at our critical mineral projects.
About Granite Creek Copper
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the exploration and development of critical minerals projects in North America. The company’s projects consist of its flagship 176 square kilometer Carmacks project in the Minto copper district of Canada’s Yukon Territory on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp., the advance staged LS Molybdenum project and the copper-nickel-PGM Star project both located in central British Columbia. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE / March 23, 2023 / Granite Creek Copper Ltd. (TSX.V:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company“) is pleased to announce it has entered into an agreement to acquire a 100% interest in the Lucky Ship molybdenum property (“LS Molybdenum Project” or the “Project”) from two arms length vendors. Under the terms of the agreement the Company has the option to acquire a 100% interest in the Project by issuing 3,750,000 shares over a three-year period and completing exploration work equivalent to two years worth of assessment credit during the first two years of the agreement and four years worth of assessment credit in the third year of the agreement to maintain the mineral claims in good standing.
The LS Molybdenum Project is located within the traditional territory of the Wet’suwet’en First Nation in central British Columbia and is in a region with a long history of mining including the Endako molybdenum mine, Huckleberry copper-molybdenum mine, Equity silver mine and others (see Figure 1 map below). The Project is accessible year-round along a well-developed network of forestry roads, with a high-capacity powerline within 50 kilometers, and paved highway and rail line access within 85 kilometers.
Tim Johnson, President and CEO, stated, “The addition of the LS Molybdenum project to our portfolio of critical minerals fits our strategy of value creation in the critical minerals space in safe political jurisdictions, focused on projects that show district scale potential and are under-explored. The LS Molybdenum project is complementary to our flagship PEA-stage Carmacks copper-gold-silver project where we have expanded the resource by 43% since acquisition and recently delivered a robust PEA in January 2023, highlighting the potential at that high-grade copper-gold-silver project. While we remain focused on advancing and expanding Carmacks, we see an excellent opportunity for creating significant shareholder value with the LS Molybdenum project during a time with few advanced stage molybdenum projects in the global pipeline and recent molybdenum prices trading at multi-decade highs due to the scarcity of supply in the market.”
Mr. Johnson, continued, “Molybdenum is an important critical mineral identified in the Canadian Critical Minerals Strategy used to strengthen steel and with a wide variety of other technical uses in the green economy for high strength – low weight applications such as wind turbines, electric vehicle components, and solar panels. These uses are expected to drive the demand for molybdenum in the coming decades with the International Energy Agency estimating there will be at least a 2.9X growth in the demand for molybdenum by 2040 in clean energy technologies to achieve their Sustainable Development Scenario (SDS)1. Having a resource stage molybdenum asset in North America with potential to significantly grow puts Granite Creek in an excellent position to identify potential industrial partners in search of secure future supplies of molybdenum.”
1International Energy Agency website
About the LS Molybdenum Project
The LS Molybdenum project hosts a porphyry Mo deposit with a granite porphyry stock intruding a larger quartz-felspar porphyry stock in contact with older volcanic and sedimentary rocks. Mineralization occurs as a near-vertical ring of porphyry Mo style stockwork veining between 25 to 125 m in width around the margin of the interior granite porphyry stock. Mineralization remains open at depth with mineralization drilled to approximately 150 to 400 m in depth (see Figure 2 Cross section below). Porphyry Mo systems often have multiple porphyry centers and a number of additional targets remain to be tested.
The Project hosts a historical NI 43-101 molybdenum resource consisting of 65.66 million tonnes averaging 0.064% Mo containing 92.6 million pounds of Mo in the Indicated category with an additional 10.24 million tonnes averaging 0.054% Mo containing 12.2 million pounds Mo in the Inferred category. The Mineral Resource Estimate (“MRE”) was completed by A.C.A. Howe Int. Ltd with an effective date of May 1, 2008 and an amended date of June 30, 2008 to National Instrument 43-101 standards and is believed to be reliable. The resource was estimated using the inverse distance weighting (IDW2) interpolation technique, the search orientations and ranges of which were calculated through variographic analysis and consideration of the geological domain model. The Inferred and Indicated mineral resources were reported at a cut-off grade of 0.030% Mo. The full technical report entitled Technical Report on The Lucky Ship Molybdenum Project Morice Lake Area, Omineca Mining Division, British Columbia for Nanika Resources Inc. will be available on the Company’s website. It is currently available on SEDAR under the Goldbar Resource Incprofile (formerly Nanika Resources), filed July 2, 2008. The resource estimate was made public in a news release dated May 14, 2008 which is also available on SEDAR under the Goldbar profile.
The deposit was subject to a 2007 Preliminary Economic Assessment (“PEA”) completed by A.C.A. Howe Int. Ltd. The comprehensive PEA report has references to metallurgical recoveries, mineralization style, deposit geometry, proposed processing options and project sizing amongst others. The report, entitled Preliminary Economic Assessment of the Lucky Ship Molybdenum Project Morice Lake Area, Ominica Mining Division British Columbia for New Cantech Ventures Inc. is available on SEDAR under the Goldbar Resources Inc profile (formerly Nanika Resources), filed June 19, 2007.
The company cautions that it is not treating the PEA or the MRE as current mineral resources or reserves and the Company has not competed sufficient work to confirm either the MRE or the PEA. Any mention of the PEA or MRE are for reference only and the reports should not be relied on as current. For the company to treat the MRE as current additional work including, but not limited to, resampling, drilling and the implementation of the company’s own Quality Control and Quality Assurance (“QC/QA) program would need to be completed. The PEA would have to be updated in the context of current market conditions by an independent party to be considered current.
Figure 1. LS Molybdenum Project Location
Granite Creek Copper Ltd., Thursday, March 23, 2023, Press release picture
Figure 2 Geological Section
Granite Creek Copper Ltd., Thursday, March 23, 2023, Press release picture
Carmacks Project Oxide Material Testing Underway
As described in the Carmacks PEA technical report, the Company has identified the potential to add significant additional cash flow to the Carmacks project through processing of oxide tailings to increase total copper recovery. Recovery sensitivity from the PEA shows a potential additional $180M pre-tax net present value (“NPV”) based of a 20% increase in recovery rates, which could represent an approximate 55% increase to base case NPV. The work to test the leaching response from this oxide tailings material is currently underway, with results anticipated by mid-2023 with updates to follow.
Qualified Persons
Debbie James, P.Geo., an independent Qualified Person, in accordance with the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects has reviewed and approved the technical content of this news release. Ms. James has reviewed reports on the LS Molybdenum property, but has not made a site visit, and is relying on the work of prior qualified professionals.
About Granite Creek Copper
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the exploration and development of critical minerals projects in North America. The company’s projects consist of its flagship 176 square kilometer Carmacks project in the Minto copper district of Canada’s Yukon Territory on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp., the advance staged LS Molybdenum project and the copper-nickel-PGM Star project both located in central British Columbia. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Granite Creek Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Granite Creek Copper and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE / March 7, 2023 / Granite Creek Copper Ltd. (TSX.V:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company“) is pleased to announce that, further to its news release dated January 19, 2023, it has filed a National Instrument 43-101 technical report (the “Technical Report”) for the Carmacks project, located in the Yukon, Canada.
The report, entitled “NI 43-101 Technical Report on the Carmacks Project Preliminary Economic Assessment (PEA) Yukon, Canada”, has an effective date of January 19, 2023. The Technical Report was completed SGS Geological Services(“SGS”) and was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
The Technical Report is available under the Company’s profile at www.sedar.com and will also be available on the Company’s website at www.gcxcopper.com.
Qualified Persons
Allan Armitage, P.Geo., of SGS Geological Services, an independent Qualified Person, in accordance with the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects has reviewed and approved the technical content of this news release.
About Granite Creek Copper
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the 176 square kilometer Carmacks project in the Minto copper district of Canada’s Yukon Territory. The project is on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp., to the north, and features excellent access to infrastructure with the nearby paved Yukon Highway 2, along with grid power within 12 km. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE / February 23, 2023 / Granite Creek Copper Ltd. (TSX.V:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company“) is pleased to announce it will be participating in the inaugural Yukon Mining Alliance (“YMA”) Invest Yukon Core Shack to be held in the main Investors Exchange exhibit hall at the Prospectors and Developers Annual Convention (“PDAC”) in Toronto. The Invest Yukon Core Shack will be located at Booth #3314, adjacent to the main PDAC Core Shack and Granite Creek will be displaying core from its flagship Carmacks Copper-Gold-Silver project in Yukon, Canada from March 5 and 8th. The Company will also have a presence in the main Investors Exchange from March 5-8 and investors are invited to visit booth # IE3024 to meet the team in person.
Invest Canada North Reception
The Metallic Group of Companies is proud to be a sponsor of the 2023 Invest Canada North reception to be held March 6 in MTCC North Room 106 from 4pm – 7pm EST. Leaders from its members, Granite Creek Copper, Stillwater Critical Minerals and Metallic Minerals will be in attendance and the Group will have a display table where guests are invited to meet the team. For more information, visit here.
About Yukon Mining Alliance
Yukon Mining Alliance – the globally recognized Invest Yukon brand – is a strategic alliance of Yukon’s leaders in exploration and mining who, in partnership with the Government of Yukon, connect investors with Yukon’s competitive advantages through innovative capital attraction initiatives. For more information visit InvestYukon.ca.
Invest Canada North connects global investors with the competitive advantages and opportunities in Canada’s North, Yukon, Northwest Territories and Nunavut, at one of the world’s biggest annual mining conferences, the PDAC Convention. Our unique initiatives showcase each region, through keynote presentations, panels and special sessions, highlighting the leaders in exploration, development and production, as well as the mining ecosystem that is supported by significant geological potential, strong geopolitical stability and progressive Indigenous and community partnerships. Through our Invest Canada North mining portal catch up on the latest news in the north or dive into each region to discover your next great opportunity. To learn more visit https://investcanadanorth.ca.
About Granite Creek Copper
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the 176-square-kilometer Carmacks Project in the Minto Copper District of Canada’s Yukon Territory. The Project is on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp., to the north, and features excellent access to infrastructure with the nearby paved Yukon Highway 2, along with grid power within 12 km. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC / ACCESSWIRE / January 19, 2023 / Granite Creek Copper Ltd. (TSXV:GCX)(OTCQB:GCXXF) ( “Granite Creek” or the “Company” ) is pleased to report positive results from its Preliminary Economic Assessment (“PEA”) for the Carmacks Copper-Gold-Silver project (the “Project” or “Carmacks Project”), located in the Yukon, Canada’s Minto Copper District within the traditional territories of Little Salmon/Carmacks First Nation and Selkirk First Nation.
The PEA demonstrates attractive project economics with significant opportunities for additional mine life expansion, reinforcing the potential of the Minto Copper District to become a top-tier global copper district.
Granite Creek Copper will be hosting a live webinar to review the PEA results on January 24th , 2023, at 9:00am PT | 12:00PM ET. To register, click here .
PEA Highlights
Attractive project economics:
Base case metal prices of US$3.75/lb Cu, US$1,800/oz Au and US$22/oz Ag: Pre-tax NPV 5%of C$324 million and 36% IRR After-tax NPV 5%of C$230 million and 29% IRR
Case 1 metal prices of US$4.25/lb Cu, US$2,000/oz Au and US$25/oz Ag: Pre-tax NPV 5%of C$475 million and 48% IRR After-tax NPV 5%of C$330 million and 38% IRR
Mine life of nine years at 7,000 tonnes per day with clear exploration potential to extend mine life with four target areas within 1km of the current resource.
Capital cost of C$220m with payback of 2 years from commencement of production.
Head grade of 1.10% copper equivalent (“CuEq”) consisting of 0.90% Cu, 0.30 g/t Au and 3.5 g/t Ag.
Average cash operating costs of US$1.76/lb CuEq and all-in sustaining costs of US$2.57/lb CuEq.
Option for tailings treatment: PEA study identifies additional potential cash flow through processing of oxide tailings to increase total copper recovery. Recovery sensitivity shows an additional $180M pre-tax NPV based of a 20% increase in recovery rates.
The Company envisions developing the Carmacks Project into a low-carbon source of copper. A critical mineral, as defined by the Canadian government, copper is key to the transition to a zero-carbon economy through the electrification of transportation and other industries, and the development of renewable energy production. The 2023 PEA clearly demonstrates the viability of the Carmacks Deposit as a robust open pit sulphide and oxide copper-gold-silver project with significant potential upside from both resource expansion and secondary processing of oxide material to further improve oxide recoveries. The Project is to be powered by the Yukon’s electrical grid which uses primarily renewable electricity.
“The completion of the PEA is a major accomplishment that doesn’t just advance the Project beyond previous studies but completely re-envisions Carmacks as a high-grade, open pit copper, gold and silver producer with excellent expansion potential in a tier one jurisdiction”, commented Timothy Johnson, President and CEO. “The inclusion of sulphide alongside oxide ore, either as a blend or a straight sulphide feed, has resulted in significant upside on the Project, with further opportunities recognized in both processing and exploration.”
“Potential for near mine resource expansion is demonstrated in new volumetrically significant targets identified by comparison of the geophysical signatures of known mineralization with similar signatures of untested targets near the proposed pits “, continued Mr. Johnson. “These strong geophysical responses have a high correlation with copper sulphide minerals on the Project, giving us high confidence in these new targets, which are a priority for testing in upcoming drill campaigns.”
PEA Study Approach
The PEA contemplates open pit mining using a conventional truck and shovel operation in two separate pits. Mining targets the high-grade, near surface oxide material in the 147 pit, then transitions to target sulphide material in the 1213 pit followed by final mining of the deeper oxide and sulphide material in 147. Mined material would be delivered to a crushing and grinding circuit consisting of a primary crusher, SAG mill and ball mill. Both oxide copper ore and sulphide copper ore would be processed via a simplified flow sheet consisting of well-established flotation technology producing a high-quality copper-gold-silver concentrate. Oxide and sulphide ore would be blended and sequenced to provide optimal cash flow and to minimise the environmental footprint with mined-out pits or portions of pits being reclaimed as mining commences in the next area. Both conceptual pits lie within 2km of the proposed mill site.
Tailings from the flotation circuit would be filtered and water recirculated into the flotation circuit. This would improve water management and limit environmental impact, with final tailings placement on a lined dry stack tailings facility at site.
A high-grade, premium copper, gold and silver concentrate would be shipped via deep seaports in Skagway, Alaska or other nearby facilities. Treatment and refining charges terms are within standard market rates.
Average copper recovery during life of mine (“LOM’) is calculated to be 64% with approximately 2/3 of material processed being oxide ore and 1/3 being sulphide ore. Metallurgical studies returned 93% copper recovery when processing sulphide ore, 40% copper recovery while processing oxide ore and 82% when processing a 50:50 blend. Metallurgical work highlights the opportunity for further optimization of the Project through more detailed mine sequencing or discovery of near mine sulphide or that could be blended with ore from the 147 pit.
Table 1: PEA Key Parameters
Parameter
Unit
Base Case 1
Case 1
Metal Prices
Copper Price
US$/pound
$3.75
$4.25
Gold Price
US$/troy ounce
$1,800.00
$2,000
Silver Price
US/troy ounce
$22.00
$25
Average Recovery to Cu Concentrate 2
Copper Recovery
%
64%
Gold Recovery
%
58%
Silver Recovery
%
60%
Concentrate Grade
Copper
%
40%
Gold
g/t
11.0 g/t
Silver
g/t
134.4 g/t
Production Data
Resource Tonnes
21,270,518
Copper Equiv. Grade
1.10%
Daily Mill Throughput
Tonnes / day
7,000 t
7,000 t
Annual Processing Rate
Kilo tonnes/ year
2,495 kt
2,495 kt
LOM Strip ratio
Waste: Ore
4.6:1
4.6:1
Mine Life
Years
9 years
9 years
Average annual production
Copper EQ production 6
Million Pounds / year
33.9 M
Copper in concentrate
Million Pounds / year
27 M
Gold in copper concentrate
Troy ounces / year
12 385
Silver in copper concentrate
Troy ounces / year
151 584
Operating Costs (LOM avg) 2
Mining
C$/t mined
$3.16
Milling
C$/t processed
$18.30
G&A
C$/t processed
$4.93
All in Sustaining Costs 4,5
US$/lb CuEq
$2.57
Capital Costs
Initial Capital Cost
C$
C$220M
LOM Sustaining Capital Cost
C$
C$130M
Financial Analysis
Pre-Tax NPV 5%
C$
C$324M
C$475M
Pre-Tax IRR
%
36%
48%
After Tax NPV 5%
C$
C$228M
C$330M
After Tax IRR
%
29%
38%
Payback period 7
Years
2.0
1.5
Base case metal prices based on 36-month trailing average from January 15, 2022.
Recovery includes both oxide and sulphide ore and is based on mining 2/3 oxide and 1/3 sulphide LOM.
Total operating costs include mining, processing, tailings, surface infrastructures, transport, and G&A costs.
AISC includes cash operating costs, sustaining capital expenses to support the on-going operations, concentrate transport and treatment charges, royalties and closure and rehabilitation costs divided by copper equivalent pounds produced.
AISC is a non-IFRS financial performance measures with no standardized definition under IFRS. Refer to note at end of this news release.
The copper equivalent grade (CuEq) is determined by (total copper x US$3.75) + (total gold x US$1800) + (total silver x $22)/$3.75)/total resource tonnes.
Payback period is from commencement of mining.
Capital Cost
The PEA for the Project outlines an initial (pre-production) capital cost estimate of C$220 million and LOM sustaining capital costs of C$130 million, including overall closure costs of C$5 million. Initial capital costs include the construction of milling and processing facilities, lined dry stack tailings and lined waste rock facilities, on-site infrastructure of 15km of access road and facilities for water capture and treatment. Construction of a powerline (12.8 km, 138 kV) from an existing substation is placed under sustaining capital to allow for construction time of the power grid.
Table 2: Capex Estimates 1
Cost Element
Base Case
Mine Costs
C$25M
Processing
C$84M
Infrastructure
C$27.7M
Tailings
C$14.7M
EPCM and Indirect Costs
C$34.1M
Sub total Capex
C$185 M
Sustaining Capital
C$130.M
Contingency
C$35.0M
Reclamation and Closure
C$5.0M
1 All values stated are undiscounted.
Operating Costs
Operating costs estimates were developed using first principles methodology, vendor quotes received in Q3 2022, and productivities being derived from benchmarking and industry best practices. Over the LOM, the average operating cost for the Project is estimated at C$3.16/t mined and C$18.30/t processed. Tailings costs are included in processing costs.
The average cash operating costs over the LOM is US$1.76/lb CuEq and the average AISC is US$2.57 /lb CuEq.
Economic Analysis and Sensitivities
The PEA indicates that the potential economic returns from the Project justify advancing to a feasibility study.
The Project generates cumulative cash flow of C$371.2 million on an after-tax basis and C$505.8 million pre-tax at a base case of $3.75/lb Cu based on an average mill throughput of 7,000 t/day over the 9-year life of mine.
Table 3: Summary of Economic Analysis 1,2
Element
Base Case
Case 1
Metal Price Assumptions (US$) Copper, Gold Silver
$3.75, $1800, $22
$4.25, $2000, $25
Exchange Rate
0.75
0.75
Average annual cash flow
C$61.8M
C$76.9M
Payback Period
2.5 years
1.5 years
EBITDA
C$505.8M
C$710M
LOM Undiscounted Net Cash Flow After Tax
C$371.2M
C$505M
NPV (5% discount) After Tax
C$230.5M
C$328M
IRR After Tax
29%
38%
1 The analysis assumes that the Project is 100% equity financed (unlevered). 2 Appropriate deductions are applied to the concentrate produced, including treatment, refining, transport and insurance costs.
The PEA is significantly influenced by copper price assumptions. Using the Case 1 metal price scenario consists of near current prices of US$4.25/lb Cu, US$2000/oz Au and US$25/oz silver, the Project generates an after-tax Net Present Value (“NPV”) using an 5% discount rate of $328 million and an after-tax IRR of 38% with a payback period of 1.5 years from the commencement of production. (Table 3), Outlined below in Table 4 is a detailed sensitivity analysis across gold and copper prices with silver kept at $22/ounce. Table 5 below highlights additional sensitivities to foreign exchange, recovery, CAPEX and OPEX.
Table 4: Copper and Gold Metal Price Sensitivity Analysis NPV- Pre-Tax values in Million CDN$
The third conceptual pit, 2000S as identified in the Mineral Resource Estimate (“MRE), could be brought into the mine plan if sufficient additional resources were defined by drilling to offset pre-stripping costs.
Electrification of the mining fleet. Significant cost saving and reduction in greenhouse gas production may be possible through the sourcing of electric vs. diesel haul trucks for the Project. The PEA envisions using a contract mining fleet for the Project and preference will be given to suppliers that can provide either fully electric or hybrid equipment.
Further discovery. Exploration conducted in 2022 consisting of geophysics, trenching and soil sampling identified four areas proximal to the proposed mine plan that if successfully drilled could enable longer mine life beyond nine years or provide additional sulphide mill feed earlier in the mine’s life. Four targets on the Property require evaluation, all located within 1km of the current deposits. Two of the targets are located beneath the current resource and there is higher geological certainty that these may contain appreciable copper mineralization.
Zone 1213 shallow: Downward continuation of Zone 12 and 13. Estimated dimensions are 360m long, 15 – 40m wide, starting at approximately 65m below the current drilling.
Zone 12 deep: Downward continuation of Zone 12. Estimated from geophysics to be continuing for an additional 170m below current resource modelling. Approximated to be 580m long and 15-40m wide.
Gap Zone target: Geophysical anomaly that fits with current geological understanding of the fault offset between 147 and 2000S Zone. Estimated to be 500m long, up to 400m deep, and 30-50m wide.
Sourtoe target: Estimated from geophysics to be a lensoidal body of similar size to known deposits at 370m long x 370m deep with an estimated width of 15-50m. It has been lightly tested at surface by trenching and is weakly mineralized.
In addition, the Carmacks North target area is host to several mineralized zones that have the potential to add resources to the mine plan, all within 15 km of the proposed mill site.
Additional recovery through metallurgical improvements. The Company has retained Kemetco Laboratories to complete additional leaching and copper precipitating testing to evaluate the processing of tailings. The calculated grade of copper in tailings averages 0.32% with over 140 Mlbs of copper not recovered LOM. Recovery sensitivity show an additional $180M pretax NPV based of a 20% increase in recovery rates. Review of historical metallurgical testing has indicated that copper minerals present in oxidized material respond well to leaching. Once the copper is in solution the copper would be chemically precipitated to produce sulphide minerals that can be added back into the flotation cells.
Mineral Resources
The basis for the PEA uses an updated mineral resource estimate (“MRE”) for the Carmacks deposit (effective date March 30, 2022). The mine plan contemplates processing 62% of resources outlined in the MRE. The MRE includes inferred resources that are too speculative to have economic parameters applied to them. Resources are not reserves and there is no certainty that the resources outlined on the Project can be converted to reserves.
Table 6: Mineral Resource Estimates
CATEGORY
Cut -Off Cu (%)
Quantity (Mt)
Grade
Cu†
Au
Ag
Mo
CuEq
Total (%)
(g/t)
(g/t)
(%)
Total (%)
In Pit Oxide
Measured
0.30
11.361
0.96
0.40
4.11
0.006
1.30
Indicated
0.30
4.330
0.91
0.28
3.37
0.007
1.16
Measured &Indicated
0.30
15.691
0.94
0.36
3.91
0.006
1.26
Inferred
0.30
0.216
0.52
0.09
2.44
0.006
0.63
In Pit Sulphide
Measured
0.30
5.705
0.68
0.16
2.54
0.016
0.88
Indicated
0.30
13.486
0.72
0.19
2.83
0.013
0.93
Measured &Indicated
0.30
19.191
0.71
0.18
2.74
0.014
0.92
Inferred
0.30
1.675
0.51
0.13
2.24
0.020
0.70
Below Pit Sulphide
Measured
0.60
0.026
0.71
0.16
2.54
0.010
0.88
Indicated
0.60
1.341
0.82
0.19
2.88
0.012
1.03
Measured &Indicated
0.60
1.367
0.82
0.19
2.88
0.012
1.03
Inferred
0.60
0.967
0.77
0.17
2.48
0.012
0.96
Notes:
CIM (2014) definitions were followed for Mineral Resources.
The effective date of the Mineral Resources is March 30, 2022.
Mineral Resources are estimated using an exchange rate of US$0.75/C$1.00.
Mineral Resources are estimated using a long-term gold price of US$1,800/oz Au with a metallurgical gold recovery of 60%, and a long-term copper price of US$3.75/lb with a metallurgical copper recovery of 95% for sulphide material and 60% for oxide material.
Mineral Resources are estimated at a cut-off grade of 0.30 copper equivalent.
Bulk density of 2.83 t/m 3 was used for tonnage calculations.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Numbers may not add up due to rounding.
Mining
The overall mining operation is expected to consist of two open pits completed over three phases. Phase I contemplates development of the 147 zone with low strip ratio. Phase 2 contemplates the mining of 1213 zone with a slightly higher strip ratio. Phase 3 contemplates pushback on the 147 pit to a final LOM strip ratio of 4.6:1, resulting in a total of 9 years of operation, plus one year of pre-stripping. Following this mining period, a low-grade stockpile of 2Mt grading 0.18% Cu, 0.06 g/t Au and 0.8 g/t Ag may be reprocessed once mining operations cease. All waste and tailings will be disposed near the mining infrastructure.
The contract mining operation is planned to be a conventional truck and shovel open pit operation, moving approximately 118Mt of material over the 9-year life of mine. This would provide the floatation processing plant with 21.3Mt of ore at a rate of 7 000 tonnes per day.
Metallurgy and Processing
The processing facilities and saleable mineral products are fundamentally different from the beneficiation procedures that were contemplated in the 2006 Feasibility Study and updated in the 2017 PEA. The processing facilities currently being recommended for the Project would include a simplified flotation circuit, capable of processing three individual types of feed materials, oxide, sulphide, and blended ores, each of which would produce a high grade, premium concentrate.
Metallurgical testing both by Bureau Veritas in 2021 and by SGS Vancouver in preparation for the PEA study support the simplified flotation circuit. Flotation testing of individual oxide copper ores, sulphide copper ores as well as blended ores has been completed in this initial phase of the process investigation.
A test program including mineralogy and flotation was completed on samples from the Carmacks Project. The flotation test program included test work on sulphide, oxide, and blend ores.
The sulphide ore assayed 0.92% Cu, 0.67% S, and 0.24 g/t Au. Gold and copper head grades calculated from the flotation test assays agreed well with the direct head assays.
The oxide ore assayed, 0.60% Cu, 0.06% S, and 0.25-0.82 g/t Au, indicating that nugget gold may exist. However, the gold head grade calculated from the flotation tests was consistently between 0.20 g/t to 0.23 g/t with an average of 0.21 g/t.
Sulphide flotation recovered 93.7% of copper and 69.0% of gold at 42.7 % Cu and 7.7 g/t Au grade (Sulphide F4) while oxide flotation recovered 39.8% of copper and 57.5% of gold at 26.2% Cu and 13.6 g/t Au grade.
A 50/50 oxide/sulphide blend batch flotation program recovered 75.3% of copper and 65.7% of gold at 40.8 % Cu and 12.4 g/t Au grade (Blend F4).
Locked cycle flotation on blend sample recovered 82.0% of copper and 70.1% of gold at 40.1% Cu and 10.6 g/t Au grade (Blend LCT1).
Flotation optimization and an economical evaluation of the target copper grade versus recovery is recommended in future test work.
As mentioned above, the Company has commissioned additional test work to evaluate the potential for further recovery of copper from tailings when material in the mill contains a significant percentage of oxide material. Review of historical metallurgical testing has indicated that copper minerals present in oxidised material respond well to leaching. Once the copper is in solution the copper will be chemically precipitated to produce sulphide minerals that can be added back into the flotation cells.
Infrastructure
The Project lies along the Freegold Road, a Yukon government-maintained gravel road, currently being upgraded as part of the Yukon Resource Gateway Program. The road would ultimately lead to the near by Casino Project and other significant development projects in the area. A 12.8 km transmission line would be constructed to access the 138 kV Carmacks-Stewart transmission at McGregor Creek. Future studies will look at alternate routes for powerlines that could also benefit projects near the proposed Carmacks Project.
Next Steps
Additional Metallurgical work. In addition to the metallurgical work underway to assess further recovery from tailings work will be completed to optimise recoveries of both copper and precious metal. Additional studies will also be completed to identify any metallurgical variability between the two proposed mining areas to assist in further mine plan optimization through sequencing and blending of ore.
Exploration Drilling. Significant resource expansion potential exists within 1 km of the proposed pits. In addition to the new zones identified by 2022 geophysical and geochemical surveys, and trenching, many areas of both the 2000S and 12-13 zones remain open for expansion.
Geotechnical drilling on 1213 pit. In order to advance the Project towards feasibility geotechnical drilling will need to be completed on the proposed 1213 pit. Significant geotechnical drilling in the 147 area dating back to 2006 when a full feasibility study was completed on that portion of the Project will also be reviewed.
Baseline environmental studies. In preparation for advancing the Project towards feasibility existing environmental studies including ongoing water sampling programs will be reviewed and updated.
Continued community engagement. The Company is dedicated to working with communities effected by the Project including Little Salmon Carmacks First Nation and Selkirk First Nation to ensure that the Project advances in a respectful way with maximum benefit to the effected communities.
Technical Report and Qualified Persons
The PEA was prepared by SGS Geological Services. (“SGS”). with several individuals and departments within SGS contributing to sections of the study. William Van Breugel P.Eng., is the lead consultant for this study. SGS Geological Services is known globally as the expert in ore body modelling and resource/reserve evaluation with over 40 years and 1000 consulting projects of experience providing the mining industry with computer-assisted mineral resource estimation services using cutting edge geostatistical techniques. SGS bring the disciplines of geology, geostatistics, and mining engineering together to provide accurate and timely mineral project evaluation solutions.
As part of the larger SGS Natural Resources group, they draw upon their massive network of laboratories, metallurgists, process engineers and other professionals to help bring mineral projects to the next level.
Table 7: Qualified Person
Department
Area of Responsibility
Qualified Person
SGS
Mine Design
Johnny Canosa, P.Eng and William Van Breugel, P.Eng
Mine Infrastructure
Johnny Canosa, P.Eng
SGS Tucson
Metallurgy. Processing and process plant operating costs
Joseph Keane PE
SGS Tucson
Process plant and infrastructure capital costs
Joseph Keane PE
Financial analysis
William Van Breugel, P.Eng
Note: The Qualified Persons are independent as defined by Canadian Securities Administrators National Instrument 43-101 (“NI 43-101”) “Standards of Disclosure for Mineral Projects”. The Qualified Persons are not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the PEA.
The Company cautions that the results of the PEA are preliminary in nature and do not include the calculation of mineral reserves as defined by NI 43-101. There is no certainty that the results of the PEA will be realized.
A NI 43-101 technical report supporting the PEA will be filed on SEDAR within 45 days of this news release and will be available at that time on the Company’s website. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.
A presentation summarizing the Project’s PEA results is available on the Company’s website.
Qualified Persons
All scientific and technical data contained in this presentation relating to the PEA has been reviewed and approved by William Van Breugel P.Eng., a Qualified Person for the purposes of NI 43-101. All exploration data including exploration upside potential has been reviewed and approved by Debbie James P.Geo., for the purposes of NI 43-101 The Qualified Persons mentioned above have reviewed and approved their respective technical information contained in this news release.
About Granite Creek Copper
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the 176-square-kilometer Carmacks Project in the Minto Copper District of Canada’s Yukon Territory. The Project is on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp., to the north, and features excellent access to infrastructure with the nearby paved Yukon Highway 2, along with grid power within 12 km. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com .
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, potential economic estimates, capital costs, operating costs, potential cash flows, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. Although Granite Creek Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Granite Creek Copper and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
