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
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.
Figure 1: Location of the Badrakh project in the Southern Gobi, Mongolia (CNW Group/Kincora
Copper Limited)
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
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For further information:
Sam Spring, President and Chief Executive Officer,
[email protected] or +61431 329 345
CO: Kincora Copper Limited
CNW 05:00e 11-NOV-19