Kodiak Copper Live Webinar: Proven Model Proving Results
I hosted a webinar with the CEO and Chairman of Kodiak to try to gain an understanding of Kodiak's geological model, what it has proven for them, and what it is proving about KDK's future potential.
tl;dr:
I sat down with CEO Claudia Tornquist and Chairman Chris Taylor to discuss Kodiak’s ongoing efforts to prove up their MPD project as a tier 1 copper porphyry discovery. This interview looks to place their many recent drill results within a larger context of what Kodiak has done, is doing, and wants to do. A discussion of Kodiak’s geological model provides viewers with the framework needed to understand what is happening “big picture”.
Below is a brief introduction to Kodiak and my thoughts on them, the interview itself, and a written summary of the interview with hyperlinked time stamps.
Index
Part 1: My Thoughts
Part 2: The Interview
Part 3: Written Summary
Part 1: My Thoughts
I recently had the opportunity to sit down with Claudia Tornquist and Chris Taylor from Kodiak Copper (KDK.V). Claudia and Chris did well explaining just what they are in the process of building at MPD and what the future holds from here. I enjoyed hearing straight from the source a discussion of their exploration model, its refinements, and how it continues to help them identify previously-unknown targets before. At the end, a series of insightful questions offered by investors contirbutes to the value of the event.
If you don’t know Kodiak, you should. Their location is world-class (southern BC, right off the highway), their team is world class (anyone heard of Great Bear Resources?), they’ve already got what looks to be billions of pounds of copper in the ground (pre-resource, as per Cormark) and you get the sense coming away from the interview that they’re just nicely getting started in terms of mastering their land package, even after some 75,000-odd meters drilled at this point. That’s what you get with a land package this large with this many targets. These bulk tonnage projects slowly approach and achieve a critical mass that transforms their value in the eyes of the market, and I get the sense Kodiak is slowly-but-surely reaching that tipping point.
I felt there was a lot of value in what we were hoping to achieve with this webinar. Sometimes it can be challenging to understand how all the different drill results from various news releases hang together in the larger, overall picture. Which drill holes have critically moved the story forward? Which assays correlate with anomalies? Where was there a pleasant surprise? What areas were eliminated?
Crucially for Kodiak and its investors, Kodiak’s exploration team has developed an exploration model that has proven remarkably effective at identifying drill targets with their pre-drill exploration process that turn into significant zones of Copper+ porphyry mineralization. That sort of consistent, high-reliability, exploration thesis that continues to produce results certainly bodes well for the future of Kodiak and MPD.
MPD is exactly the kind of project that attracts majors, and if Kodiak can achieve their goal of finding a high-grade target to strap to the start of the mine plan, this project will almost certainly catapult to the front of the line of global copper projects.
So, I hope you enjoy!
Part 2: The Interview
3. Written Summary
(Note that time stamps are hyperlinks to the webinar recording.)
03:00: Introduction to Jurisdictional Benefits of MPD
Claudia Tornquist discusses key aspects of the MPD project, highlighting its location in an existing mining district in southern British Columbia. She emphasizes the benefits of infrastructure and workforce proximity, showcasing a map and detailing the project's historical drilling.
Claudia underscores the historic drilling's shallow nature, prompting a change in approach. The team drilled deeper, resulting in the discovery of the gate zone. She provides details on the gate zone's development, including dimensions and grades achieved through extensive exploration.
Matthew emphasises the significance of a working geological model. He prompts Chris to elaborate on the exploration model underpinning Kodiak's work, asking for details on its construction and application.
07:21: Geological Model and Parallels
Chris Taylor explains his attraction to the MPD project, relating it to his experience with copper porphyries and the Quesnel Belt in British Columbia. He discusses the importance of large-scale structural breaks and presents images illustrating the controls on porphyry emplacement.
Chris provides a map of the MPD project, showing structural trends similar to those in the Andean copper porphyries. He emphasizes the clustering of porphyry centers along these trends and shares recent results from the West Zone. The discussion delves into the project's geological features and potential mineralization bodies.
12:00: Porphyry Discussion
Chris presents images comparing Andean stratovolcanic centers with Kodiak's project, highlighting the clustering of porphyry centers. He discusses the relevance of claims covering areas with ancient volcanic centers and presents Z TEM data indicating a deep-seated intrusion below the surface mineralization.
Chris Taylor highlights the significance of major structural intersections in Kodiak’s exploration models. These breaks in the crust play a crucial role in the development of volcanic centers, as seen in Copper Mountain, validating our approach. The porphyry model we use, though over 50 years old, remains reliable, showcasing concentric zones from outward pro-political alteration to potassium alteration near high-grade areas.
Matthew emphasizes the predictability of porphyry systems and the reliability of Kodiak’s exploration thesis. The exploration program this year involves drilling five new targets, expanding beyond the initial discovery at Gate. Claudia Tornquist, Kodiak's CEO, outlines the ongoing exploration efforts, covering the West Zone, Man, South, 15, 16, and Bayer targets.
17:00: Current Drilling Program
Claudia explains Kodiak’s extensive drilling program, approaching 20,000 meters, focuses on deeper exploration below historic drilling, and aims to reveal more high-grade zones and confirm the scale of the MPD system. The West Zone, with results showing mineralization over 650 meters, displays promising high grades and the discovery of a significant breccia zone.
Claudia elaborates on the West Zone's breccia discovery, highlighting its geological significance. Chris discusses the unexpected presence of high-energy breccias and their potential to enhance our understanding of the mineralization process. These discoveries contribute to our ability to predict better-grade zones.
Chris expresses excitement about the breccia discoveries, linking them to the explosive nature required for the formation of porphyry deposits. He emphasizes the importance of understanding the geology to predict where to drill for better grades, showcasing the potential of the MPD project.
25:00: Pursuing Further Discoveries
Chris Taylor discussed the West Zone drilling, highlighting its rock type and breccia signatures, indicating a potentially heavily mineralized system. Drawing parallels with Mount Polly's high-grade discovery transformation in 2005, he compared the Northeast Zone to the West Zone, emphasizing the latter's intact nature and size potential. Mentioned high-grade copper-gold material, showcasing the West Zone's strength in rock fragmentation and promising features.
Matthew expresses intrigue in Chris Taylor's evidence-based model, emphasizing the potential for a groundbreaking shift in the project's prospects. The conversation transitions to discussing recent positive results from the Man Zone, acknowledging the market's current demands for high-grade findings.
Claudia detailed the first two holes drilled at the Man Zone, highlighting mineralization from surface to 995 meters depth. Emphasized the proximity of the Man Zone to the Gate Zone and the significance of near-surface mineralization. Discussed the encouraging start at the Man Zone, presenting results with respectable grades.
Chris Taylor explained how the company targeted the Man Zone using geophysics and geological models. Emphasized the successful validation of their model, showcasing the coincident chargeability and resistivity at the Man Zone. Presented core samples, illustrating the mineralization and the potential of the area.
34:29: Upcoming Catalysts
Matthew steered the conversation towards future developments, specifically asking Claudia Tornquist about upcoming catalysts for investors. Claudia outlined the ongoing exploration program with numerous results pending, highlighting the mix of exciting discoveries and routine resource definition work. Explained the necessity of testing various targets on the property, including historically drilled areas like Ohio in the Southern part.
Claudia Tornquist outlined the upcoming plans for exploration, emphasizing the testing of new and existing targets. Mentioned the possibility of more targets emerging from geophysical and soil sampling work. Highlighted the need for infill drilling, especially in the Gate Zone, to explore deeper and near-surface mineralization. Expressed enthusiasm for future discoveries and potential.
39:00: Audience Q&A
Inquiries regarding the potential resource size. Quoted Cormark's estimate of 3 billion pounds of copper and asked Claudia Tornquist for insights. Claudia acknowledged the sizeable porphyry center in the Gate Zone but stated that reaching 10 billion pounds will require additional discoveries at other targets.
Claudia Tornquist clarified the company's stance on resource definition, stating that it's premature without exploring all targets. Acknowledged the Gate Zone's significant porphyry center and the ongoing efforts to demonstrate the project's scale and potential.
Chris Taylor addressed the question about the potential feeder zone or causative intrusion, stating that while interesting, it's not a top priority. Emphasized the importance of understanding the overall tonnage, grade distribution, and economically significant areas before exploring deeper targets.
43:00: Met Work, 1516, and Dillard Qs
Matthew asked about metallurgical work, recovery rates, and any concerns. Claudia Tornquist stated that no metallurgical work has been done yet, relying on the nearby Copper Mountain's recovery rates as reference. Chris Taylor added that there haven't been any red flags in the minerals found.
Chris Taylor discussed the 1516 target, noting its consistency with a porphyry center and the interesting molybdenum signature in soils. Mentioned plans for follow-up drilling to further explore the target.
Claudia Tornquist confirmed that Dillard remains on the exploration list but is currently lower in priority compared to other targets.
Closing Thoughts. Chris expressed his satisfaction in seeing familiar geological features at MPD, validating their original thesis. They highlighted the potential for more discoveries based on their geological understanding and the repetition of patterns observed in other porphyry deposits worldwide.
And that’s it! As always, if you’ve made it this far - thank you!
Till next time.
-Matthew from JRI
