Artificial Intelligence Partner Drilling New Copper Targets at the Cundumbul Project Exploration alliance partner Earth AI has commenced its maiden drilling program at the Cundumbul Project A first phase program of up to
Artificial Intelligence Partner Drilling New
Copper Targets at the Cundumbul Project
Exploration alliance partner Earth AI has commenced its maiden drilling program at
the Cundumbul Project
A first phase program of up to
1800m
of diamond core drilling has been approved by the
Resource Regulator (NSW Government)
includes up to 3 holes at approximately
600m
per hole
Initial program is expected to run for 1-2 months and be solely funded by Earth AI
Earth AI's Artificial Intelligence and field based exploration has generated a pipeline of new
intrusion related copper targets in the central portion of the project
Initial program tests a 2.2km x
800m
zone of anomalous surface copper associated with a
zoned hydrothermal quartz breccia system (and open)
Field mapping, soil and rock chip sampling program is ongoing to test both north and
southern strike extensions, and open zones to the west and east, including higher grade
surface geochemical anomalies (up to 5.2% Cu)
The Cundumbul Project is located in the world-class Molong belt of the Macquarie Arc, 30km
south of the Boda-Kaiser discoveries (>15Moz AuEq resource) and 70km north of Cadia
(>90Moz AuEq endowment)
MELBOURNE, Australia
,
May 20, 2024
/CNW/ - Kincora Copper Limited (ASX: KCC) (TSXV: KCC)
(
Kincora
or the
Company
) is pleased to announce Exploration Alliance partner Earth AI Pty Ltd
(
Earth AI
) has commenced its maiden drilling program at the Cundumbul Project testing a number of
new copper targets.
Sam Spring
, President & CEO, commented:
"After multiple field based campaigns refining Earth AI's artificial intelligence model and
geological theses the commenced diamond drilling program is a exciting catalyst in our success
based exploration alliance and provides Kincora shareholders exposure to a fully funded, new
discovery focused opportunity.
Prior explorer activities and limited drilling has confirmed fertile porphyry systems in both the north
and south of Cundumbul located over 10km apart.
The initial new drill targets of this first phase program by Earth AI are associated with a newly
identified zoned mineralised hydrothermal quartz breccia system in the previously untested central
eastern portion of the project.
The hydrothermal quartz breccia system is open, already stretches over 1.8km, and the
commenced program seeks to provide initial guidance on the down-hole extent and grade as plans
are being advance to test further targets along strike."
Figure 1 (see PDF):
Cundumbul is located in the world-class Molong belt of the Macquarie
Arc, 30km south of Alkane's Boda-Kaiser porphyry project (>15Moz AuEq), 25km north of
Copper Hill (>3Moz AuEq resource) & 70km north of Cadia (>90Moz AuEq endowment)
Previous surface exploration and limited drilling has confirmed porphyry potential both in the north
and south of the Cundumbul project, located 10km apart
Figure 2 (see PDF):
Earth AI's Artificial Intelligence and field based exploration has generated
a pipeline of new intrusion related copper targets in the central portion of the project
Prior explorer activities and limited drilling has confirmed fertile porphyry systems in both the north
(the Andrew's prospect) and south (the Bell prospect) of Cundumbul located over 10km apart.
The Earth AI team have undertaken multiple phases of field work to build a greater understanding of
the Cundumbul project's geology and applying their proprietary approach for identifying and refining
targets via ground truthing AI and machine learning predictions – an summary of this included in
Figure 2.
Diamond drilling, utilising Earth AI's low cost Mobile Low Disturbance ("MLD") diamond rig, is now
underway to test their new geological thesis and targets that have been defined in the central portion
of the project. Multiple phases of mapping, petrographic studies, and, soil and rock chip analysis
have been completed and identified a pipeline of new targets.
The commenced initial drilling program seeks to a
750m
strike of anomalous surface copper
associated with a zoned hydrothermal quartz breccia system mapped along a 1.8km strike (and
open) within a 2.2km N-S x 800 W-E anomalous copper zone (and open).
A field mapping, soil and rock chip sampling program, and planning and permitting for a second
phase drill program, is ongoing to test both north and southern strike extensions, and open zones to
the west and east, including higher grade surface geochemical anomalies (including rock chips of
5.2% Cu, 3.2% and 1% Cu, and, up to 0.56g/t Au) – see Figure 2 for further details.
The "success based" Exploration Alliance between Kincora and Earth AI is unlike a "classic earn-in
and JV model", with Kincora retaining 100% project ownership and Earth AI gaining a royalty only
upon a new discovery (qualifying intercept).
Figure 3 (see PDF):
Earth AI's low cost Mobile Low Disturbance ("MLD") diamond rig in
operations at Cundumbul drilling hole ECU18D
About Earth AI
Earth AI is a private
San Francisco
(
USA
) headquartered company focused on reducing the cost and
improving the success rates of new critical mineral discoveries that has a vertically integrated metals
exploration approach to targeting, testing and verifying discoveries that are required for the electric
vehicle and renewable energy revolutions.
Earth AI has an in-house geological team, boots on the ground field assessment approach,
proprietary cloud computing and integrated geological AI review and machine learning process
supported by boots on the ground field assessment approach to identify, refine and de-risk targets
for new discovery drilling.
Earth AI utilises its low cost Mobile Low Disturbance diamond rig, and associated equipment, drill
testing targets and leveraging its NSW field based operations located in Young.
About the Earth AI Exploration Alliance
On
October 6
th
, 2022, Kincora announced a success-based Exploration Alliance Agreement
("Agreement") with Earth AI Pty Ltd ("Earth AI") to generate and drill test artificial intelligence and
machine-based learning targets at the Cundumbul Project ("Strategic Alliance").
The Strategic Alliance allows for a co-funding model, whereby Earth AI has day-to-day management
and control of exploration activities, is the lead funder of the project and will contribute up to
A$4.5m
of total exploration costs across the tenement over a two-year period, with the option to extend for a
further year. Subject to a qualifying drilling intersection (as defined in the Agreement) being
subsequently identified, Earth AI is entitled to a Net Smelter Royalty ("NSR") up to 3% in connection
to be agreed upon area surrounding the technical and/or commercial discovery ("Area of Interest").
The agreement does not affect the capital structure of the Company or ownership in the project, with
Kincora consolidating 100% project ownership in
December 2023
. Rights of first refusal customary
for such an ownership and Exploration Alliance structure are in place.
Kincora is under no obligation to explore, develop or mine the Cundumbul Project during the period of
the Exploration Alliance. However, upon Earth AI successfully drilling a Qualifying Drilling Intersection
and having carried out a minimum of 1,500 metres of diamond drilling, whereafter the second
anniversary of the Royalty Trigger Date if no mineral resource has been defined and the annual
exploration expenditure in the Area of Interest falls below
US$250,000
, Earth AI will have the option
to assume operational control and buy all of the Royalty Tenements that overlap with the Area of
Interest under the Royalty Deed, for a cash purchase price equal to
US$1,000,000
plus a 2% net
smelter.
For further details and technical disclosures please refer to the
October 6
th
, 2022
"Alliance with
Artificial Intelligence Explorer for Cundumbul project"
,
May 2
nd
, 2023
"Earth AI Commences Field
Work at Cundumbul Project"
and Kincora's quarterly financial reports (including MD&A) releases for
further details.
About the Cundumbul Project
The Cundumbul Project is located in the central Molong volcanic belt of the Macquarie Arc in Central
West NSW. The project is approximately 30km south of Alkane's Northern Molong Porphyry Project
(NMPP) that includes the Boda-Kaiser deposits (resources >15Moz AuEq), 25km north of Copper
Hill (>3Moz AuEq resource) and 70km north of Cadia (>90Moz AuEq endowment).
Exploration efforts at the Cundumbul project were last lead by Mitsubishi Materials Corporation
during an earn-in period (concluded 2015). Previous exploration has included mapping, soil sampling,
rock chip sampling, induced polarisation ("IP"), gravity and magnetic geophysical surveying, with
more limited follow up auger, RC and diamond drilling.
Mineralised monzonitic intrusions have been identified at both the Bells and Andrews prospects, in
the north and south respectively of the Cundumbul project, located over 10km apart.
The Cundumbul Project includes one single license covering 34.6km
2
(EL6661) was secured initially
by Kincora in the
March 2020
agreement with RareX Limited ("REE" on the ASX) and in
December
2023
Kincora increased its ownership to 100%.
Further details on the Cundumbul Project is available from the Independent Technical Report
included in the Company's ASX initial public offering prospectus, with additional information on
Kincora's portfolio in NSW and exploration strategy also available on the Company's website:
https://kincoracopper.com
This announcement has been authorised for release by the Board of Kincora Copper Limited
(ARBN 645 457 763)
Disclaimer and Previously Reported Information
The scientific and technical information this announcement is extracted from reports lodged as
market announcements referred to above, quarterly reports and available on the Company's website
www.kincoracopper.com
.The Company confirms that it is not aware of any new information that
materially affects the information included in the original market announcement and that all material
assumptions and technical parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed.
Qualified Person
The scientific and technical information in this announcement 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 staff under the supervision of
Peter Leaman
(M.Sc. Mineral Exploration,
FAusIMM), Senior Vice-President of Exploration of Kincora, and
John Holliday
(BSc Hons, BEc,
member of the Australian Institute of Geoscientists), Non-Executive Director and Chairman of
Kincora's Technical Committee, who are Qualified Persons for the purpose of NI 43-101.
JORC Competent Person Statement
Information in this announcement that relates to Exploration Results, Mineral Resources or Ore
Reserves are those that have been previously reported (with the original release referred to in this
announcement), in the case of Mineral Resources or Ore Reserves the material assumptions and
technical parameters underpinning the estimates have not materially changed, and have been
reviewed and approved by
Paul Cromie
, who is a Competent Person under the definition established
by JORC and has sufficient experience which is relevant to the style of mineralization and type of
deposit under consideration and to the activity being undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'.
John Holliday
and
Peter Leaman
consents to the inclusion in this
report of the matters based on his information in the form and context in which it appears. The
review and verification process for the information disclosed herein for the Trundle, Fairholme,
Nyngan, Nevertire and Condobolin projects have included the receipt of all material exploration data,
results and sampling procedures of previous operators and review of such information by Kincora's
geological staff using standard verification procedures.
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) or the Australian Securities Exchange
accepts responsibility for the adequacy or accuracy of this release.
SOURCE
Kincora Copper Limited
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/May2024/20/c5888.html
%SEDAR: 00003952E
For further information:
Sam Spring, President and Chief Executive Officer,
[email protected] or +61431 329 345; Executive office: 400 - 837 West Hastings
Street, Vancouver, BC V6C 3N6, Canada, Tel: 1.604.283.1722, Fax: 1.888.241.5996; Subsidiary
office Australia: Vista Australia, Level 4, 100 Albert Road, South Melbourne, Victoria 3205
CO: Kincora Copper Limited
CNW 05:45e 20-MAY-24