Shares in Red Canyon Resources (CSE: REDC) increased by almost 15% or C$0.025 on Tuesday after confirming a copper-molybdenum discovery from drilling on its Kendal project in British Columbia.
The five hole, 2,562-metre program intersected significant mineralization in the northeastern portion of the Kendal alteration system, covering about 1 sq. km of a 2.5- by 1.5-km footprint.
Drilling consistently intersected altered and mineralized porphyritic rocks, marking this as the first confirmation of a porphyry system in the Kendal area, Red Canyon said. Initial results from the first hole, RCKD-24-001, showed continuous copper equivalent grading at 0.1% from surface down to 601.7 metres, including a 123-metre stretch grading at 0.16%.
The company’s chief geoscientist, Craig Hart, said the large-scale alteration footprint revealed in the drill core was an important metal way finder.
“The multi-generational veins and extensive mineralized system indicate a copper porphyry with a massive amount of fluid flow,” he said in a news release. “This gives us confidence in targeting a high-grade core.”
Red Canyon shares achieved an intra-day high of C$0.195, before settling at C$0.185 in afternoon trading. It has traded between C$0.17 and C$0.195 over the past 12 months. It has a market capitalization of C$8.5 million.
Hart said Red Canyon aims to find a higher-grade core within the Kendal system. There is evidence of remnant potassic zones and strong alteration with copper-molybdenum veins. The alteration is propylitic to inner-propylitic.
Chairman and CEO Wendell Zerb also hinted at the prospect of a large-scale discovery. “This program has only ‘scratched’ the surface. Every hole encountered strong alteration and multi-veined zones, signalling a robust system,” he said in the news release.
Red Canyon acquired the Kendal project in 2022 as part of its focus on copper porphyry systems within North America’s top copper districts.
Located 25 km northeast of Terrace, the project has access to established infrastructure, including road access, four intersecting highways, hydroelectric power, rail corridors, and a port facility 120 km west at Prince Rupert.
Red Canyon will analyze assays from the four remaining drill holes, which are expected by late December to early January.
