VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 10, 2014) - Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE:KCC) is pleased to provide an update on exploration activities at our wholly owned Bronze Fox project and acknowledge the recent amendment to Mongolia's mineral law.
Highlights
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New mineralization zone in volcanic sedimentary sequence named Shargal Tolgoi
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In total three holes completed, two ongoing, all returning sulfides and copper mineralization
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Shallow copper mineralization intersected, continuing to depth
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Assay results pending with geological and geophysical model and targets confirmed
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Gold potential advanced following first phase trenching and regional exploration
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Parliamentary approval to amendments of the 2006 Minerals Law
Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:
"Initial exploration activities this field season are very encouraging, supporting our strategy of testing large scale targets inline with known copper porphyry orebodies, including Oyu Tolgoi. The successful identification of at least broad visual lower grade copper mineralization in all drill holes, noting assay results are pending, and the favorable near surface expressions to date, has confirmed our geological model, expanded the copper porphyry potential at Bronze Fox in a significant and new mineralized copper zone, named Shargal Tolgoi, and is assisting vector to the interpreted high-grade and large tonnage potential.
We note the recent approval by the Mongolian Parliament of amendments to the existing Minerals Law, with full details not yet available. The Company will continue to inform the market of significant developments regarding ongoing exploration activities and the proposed resolution of the 106 license issue, of which two lower priority licenses adjacent to our flagship Bronze Fox license were impacted."
Please note the updated presentation available on our website providing a detailed overview of current exploration activities and targets (http://www.kincoracopper.com/investors/corporate-presentation).
Bronze Fox Drill Program Update
Drilling activities are focused on Sophie North, Dunlop Fox and the south-eastern section of the previously known West Kasulu prospect, newly named Shargal Tolgoi ("Yellowish Hill"). The three holes completed, two ongoing and both at Shargal Tolgoi, have all inserting sulfides and copper mineralization inline with Induced Polarization (IP) targets. Recently completed, and immediately planned, drilling is focused on zones of outcropping veins hosting favorable soil copper anomalies and/or mineralized previous drill results overlaying large-scale and strong IP chargeability highs with corresponding magnetic lows. Refer to Exhibits 1 and 2 for further details.
Of particular note is the newly identified Shargal Tolgoi target. This zone of mineralization is adjacent to a prominent regional fault to the south-east of previous drilling at West Kasulu, in the volcanic sedimentary sequence, rather than the intrusion and granodiorite at West Kasulu (illustrated in Exhibits 1 and 2). The three holes to date at this target, across a 400 by 400 meter zone, have returned promising shallow copper mineralization. Chalcopyrite and/or pyrite have been inserted at only 10-20 meters, noting all geophysical targets begin at less than 300 meters, continuing to depth.
The location, density and sequence of disseminated pyrite, fine pyrite veins and chalcopyrite quartz veins, and stockwork, with zones of hydrothermal alternation and breccia, drilled at the Shargal Tolgoi support our geological interpretation and vectoring towards interpreted potential high grade and tonnage mineralization. A similar strategy is to be shortly pursued at the Dunlop Fox prospect (previously known by Ivanhoe as East Fox).
The name Shargal Tolgoi ("Yellowish Hill"), derives from the yellowish color of the hills in this zone relative to the volcanic host rock, which is indicative of oxidized pyrite and iron. The zone has favorable at and near surface mineralization, with quartz vein outcropping and copper soil anomalies. Leached and intact chalcopyrite and/or pyrite have been inserted from only 10-20 meters down hole and continuing into large-scale and strong IP chargeability highs with corresponding magnetic lows at depth.
To view Exhibits 1, 2 and 3 please click on the following link: http://media3.marketwire.com/docs/KCC0710.pdf
About Kincora Copper Limited:
Kincora Copper Limited (the "Company" or "Kincora") is a junior resource company engaged in the acquisition, exploration and development of mineral properties with a focus on copper-gold projects in Mongolia. Our key asset is the wholly owned Bronze Fox copper-gold project that hosts a large and strategically located known mineralized footprint covering over 40km2 of a 223km2 license area, in southeast Mongolia along the Oyu Tolgoi copper belt. Kincora is the last remaining independent foreign listed copper exploration company in Mongolia.
Large scale porphyry deposits seldom occur in isolation with the South Gobi's geology and tectonic setting highly prospective for large size discoveries, being part of a well-recognized belt formed from middle to late Palaeozoic volcanic and sedimentary rocks that have been intruded by late Devonian and Carboniferous granitoids. Kincora's ambition is to be the leading copper-gold exploration and development company in this region.
The Bronze Fox license (15000X) is located approximately 250km from the Chinese border and within 140km of two large scale greenfield copper construction projects: Oyu Tolgoi, invested capital to date over US$7 billion, in Stage 1 production, and target production of up to 160,000t/day, owned by Rio Tinto, Turquoise Hill Resources minority shareholders and the Government of Mongolia ("GoM"); and, Tsagaan Suvarga, estimated capex of at least US$1 billion and target production of 40,000t/day, privately owned by MAK with project finance syndicated by the European Bank of Reconstruction and Development ("EBRD"). Other significant mines, including Erdenes Tavan Tolgoi and other coal mines, with associated infrastructure (including rail, power and water, the later all within 45kms) are under construction in this immediate region, which is one of the most rapidly developing mining centers anywhere in the globe despite being one of the last underexplored frontiers.
Kincora's objectives at Bronze Fox are to locate shallow and/or deep copper-gold porphyry deposits and ascertain the potential for shallow gold deposits with a view to the future development of open pit or underground mines. The copper porphyries are anticipated to be in the core of an intruded porphyry system, known as the Bronze Fox Intrusive Complex, with such a system confirmed by various independent consultant opinions with the focus being the delineation of economic orebodies, whereas the gold deposit potential are considered to be in the peripheral zones of a porphyry system.
Kincora completed one the most active copper exploration programs in Mongolia at Bronze Fox during 2013, on one of the most advanced and prospective projects with one of the youngest exploration licenses (noting the April 2010 moratorium on the issuance of new exploration licenses). The Company in November 2013 had a further two licenses adjacent to the Bronze Fox project, Tourmaline Hills (15075X) and North Fox (15076X), revoked as part of a total of 106-licenses following a criminal court case involving former Government officials. This resulted in a $6,952,000 write down in Kincora's September 2013 quarterly accounts. Kincora continues to lead the efforts of impacted previous licenses holders (11 foreign and 66 local groups) working with the Government to resolve the 106-license issue in a timely manner, which is in the interests of all stakeholders.
At the beginning of 2014, the Company completed an oversubscribed private placement to fund the 2014 field season, which has a number of similar characteristics to that undertaken by Ivanhoe Mines (now Turquoise Hill Resources) in 2001 and led to the "discovery hole" at Oyu Tolgoi. All required permits have been obtained with drilling recently resumed, for the first time since December 2012, at high priority copper porphyry targets, following other initial exploration activities that have already commenced.
More recently, Kincora has entered into an Exclusivity Agreement with a copper major granting exclusive rights to carry out due diligence with respect to a potential joint venture, earn-in, strategic alliance, equity investment or other transaction in respect to the Bronze Fox project. The Exclusivity Agreement contemplates various work programs being undertaken by the third party during a staged review period in order to advance toward a Potential Transaction, and maintain certain exclusive rights to such a Potential Transaction and access to the properties/dataroom. The Exclusivity Agreement does not impact or restrict Kincora's ability to undertake ongoing exploration activities or other customary corporate initiatives, such as private placements, securing additional licenses etc. Neither party is obligated to proceed with a Potential Transaction.
Kincora was formed in mid-2011 with its head office located in Vancouver, Canada, and regional office in Ulaanbaatar, Mongolia. The Company is a reporting issuer in Ontario, British Columbia and Alberta, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol KCC.
Qualified Person
The scientific and technical information in this news release was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and was reviewed, verified and compiled by Kincora's geological staff under the supervision of John Rickus, Chairman and Director of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101
