Kincora Announces Agreement For New Priority Drilling Porphyry Project
- Option and earn-in agreement for the Badrakh project in the Southern Gobi, Mongolia
- Two drill holes proposed this field season testing the potential for a preserved porphyry underlying a supergene cap
- Badrakh is a former high priority reconnaissance exploration project of Ivanhoe Mines Mongolia Inc. LLC ("IMMI")
- Mr. Munkhbat Ania, former Senior Vice President of IMMI and Oyu Tolgoi LLC, to remain an Advisor to the Badrakh project
- Agreement is consistent with existing project generation and exploration strategy supporting Kincora being the most active listed junior seeking to make the next major discovery in Mongolia
VANCOUVER, Nov. 11, 2019 /CNW/ - Kincora Copper Ltd. (the "Company", "Kincora") (TSXV:KCC) is pleased have entered a agreement with Temuulen Orshih LLC (the "Vendor"), which owns 100% of the Badrakh copper-gold porphyry project ("Badrakh" or the "Project").
Field geological mapping, soil and rock chip sampling, ground magnetics and induced polarization ("IP") has been undertaken, which underpinned a maiden shallow two hole drilling program this field season by the Vendor. This drilling intercepted a leached supergene cap hosted within an intrusion that displays phyllic and propylitic alteration, with chalcocite and chalcopyrite mineralisation.
Subject to final due diligence and permitting, and post reinterpretation of previous exploration results, further mapping and geophysical interpretation, Kincora proposes to complete two deeper holes this field season that will for the first time test the potential for a preserved and large scale copper-gold porphyry system, as well as for a nearer surface supergene cap.
Sam Spring, President and CEO, commented: "The agreement for Badrakh provides a path to control alongside a well credentialed vendor and partner, for a priority drill ready project underpinned by large scale porphyry targets which are favourably located to existing infrastructure and on the doorstep to China.
Funds from Kincora's project generation budget support drilling expected to shortly commence at Badrakh, following first phase activities concluding at our East Tsagaan Suvarga project. The agreement is inline with the Company's project generation strategy, leveraging our strong technical teams experience, systematic exploration approach and being the foremost listed group pursuing further counter-cyclical expansion opportunities in Mongolia.
An update for exploration activities at the Company's existing Bronze Fox and East Tsagaan Suvarga projects is expected shortly."
Background
The Badrakh copper-gold porphyry project covers 9912Ha and is located in Ulaanbadrakh soum, Dornogobi aimag, 550km from Ulaanbaatar but only 80km from Zamyn-Uud and rail border crossing with the People's Republic of China.
The exploration license, in year four of an up to 12-year term, is a former high priority reconnaissance exploration project of Ivanhoe Mines Mongolia Inc. LLC ("IMMI"), and was divested during the negotiation of the Investment Agreement that supported the development of Oyu Tolgoi.
Mr. Munkhbat Ania, a former Senior Vice President of IMMI and Oyu Tolgoi LLC, will remain an Advisor to the Badrakh project.
The licence area is located in the Enshoo island arc and Nuhetdavaa back arc/fore arc basin terranes (Badarch, 2002). The licence includes Permain, Carboniferous and Devonian volcanic and sedimentary rocks, Carboniferous and Triassic granodiorite and granitoids.
The center section of the license comprises unclassified volcanogeniic-sedimentary rocks intruded by granite to granodiorite. Most of the license area is covered by Cretaceous units and quaternary sediments, but noted silica caps, zones of brecciated quartz–baryte and a distinct phyllic east–west trending alteration zone are supportive that the erosion levels are at the top of a potential porphyry and/or epithermal high sulphidation overprint.
Due diligence field work by Kincora noted surface leaching with strong remanent hematite indicating an efficient leaching process as supported by the results of the first two shallow holed drilled by the vendor to a depth of 212 and 227 metres respectively intersecting a weak supergene cap.
Agreement
Kincora has entered an agreement with Temuulen Orshih LLC, a privately held Mongolian company that owns 100% of the Badrakh project, that subject to final due diligence and definitive documentation, supports binding commercial terms.
The Company has a staged path way to earn up to 80% shareholding interest in the project.
Key milestones include:
(a) |
Option period: Kincora will spend US$250,000 by 30 June 2020 to hold an option to earn-in to the Badrakh project; |
(b) |
Stage 1: Kincora will spend up to US$2,000,000 within a two year period (post the option period) to earn a 51% interest in the Badrakh project; |
(c) |
Stage 2: Kincora will spend up to US$4,000,000 within three years (post Stage 1) to earn a further 29% interest in the Badrakh project for total interest of 80%, with ownership increments of 14.5% for every US$2,000,00 in funding. |
At the Vendors election, up to 50% of the funding required to complete each of the Stage 1 and the Stage 2 may be met through the issuance of shares of Kincora to the Vendor, subject to customary approvals by the TSX Venture Exchange.
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 Peter Leaman, Senior Vice-President of Exploration of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101.
About Kincora Copper Limited (KCC – TSXV)
Kincora is the most active listed junior seeking to make the next major discovery in Mongolia.
Our technical team is credited with multiple discoveries of Tier 1 copper assets and in June 2019 the Company completed an oversubscribed $6.25m offering supporting our drilling and program generation strategy.
Forward-Looking Statements
Certain information regarding Kincora contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Kincora believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Kincora cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Kincora currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. Kincora does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
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.
SOURCE Kincora Copper Limited
Sam Spring, President and Chief Executive Officer, [email protected] or +61431 329 345
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