Kincora Copper: Second Major Earn-In Secured with AngloGold Ashanti Amended Agreement: Kincora Copper and AngloGold Ashanti sign a major amendment to their Earn-in and Joint Venture Agreement ("Agreement") for a second joint venture in the Northern
Kincora Copper: Second Major Earn-In
Secured with AngloGold Ashanti
Amended Agreement:
Kincora Copper and AngloGold Ashanti sign a major amendment to their
Earn-in and Joint Venture Agreement ("Agreement") for a second joint venture in the Northern
Junee-Narromine Belt of the Macquarie Arc supporting total expenditures of up to
$100 million
Key Highlights:
Multiple-phase, multiple-year agreement covering the Nyngan South, Nevertire South and
Mulla projects
Stage 1: AngloGold Ashanti may earn a 70% interest by spending $25 million
Stage 2: Option to increase to 80% with additional funding and/or studies
The Agreement for two separate joint ventures cover a
continuous strike greater than a
100km's and five projects
Kincora remains the operator, receiving a 10% management fee
Accelerated Drilling Plans:
Expansion to ongoing drilling at the Nyngan project and a new drilling
program to commence at the Nevertire and Nevertire South projects
Strong Funding Model:
Over $110 million of potential asset level funding has been secured;
further large-scale partnerships are under active negotiation
Kincora remains on track to achieve its ambition for third-party management fees to support
a self funding financing model
Melbourne, Australia--(Newsfile Corp. - April 14, 2025) - Kincora Copper Limited (TSXV: KCC) (ASX:
KCC) ("KCC", "Kincora" or the "Company") is pleased to announce the execution of a major
amendment to its existing agreement with a wholly owned subsidiary of AngloGold Ashanti plc
("AngloGold Ashanti"). The Agreement opens the way for more extensive exploration in the Northern
Junee-Narromine Belt ("NJNB") of the Macquarie Arc, Central West NSW, Australia. The NJNB is a
globally significant exploration opportunity offering new district scale porphyry potential.
First phase drilling at the Nyngan project is ongoing with activities initiated for initial drilling at the highly
prospective Nevertire and Nevertire South projects, known for their geological similarities to major
deposits like Cadia-Ridgeway.
John Holliday, Technical Committee chair, and Peter Leaman, VP of Exploration, commented:
"We are very pleased to broaden our partnership with AngloGold Ashanti. It comes as we continue
to progress our ongoing exploration program at the Nyngan project, with a ground gravity survey
and hole twelve of the scout drilling program recently completed.
In the wake of this second earn-in our drilling plans have been materially expanded at Nevertire
and Nevertire South, and now cover three projects. However, and more importantly, we are well
positioned to systematically and aggressively advance a new district scale portfolio of five projects
covering over 2350km
2
.
The contiguous five projects cover a strike of greater than 100km, more than twice that of the
emerging Vicuña district in the Central Andes, which is also an extension to a known world-class
porphyry belt. The revised agreement is structured in a manner which supports Kincora
shareholders being carried potentially to the equivalent stage of four pre-development recent
discoveries in Vicuña that have a current valuation of over $10 billion.
AngloGold Ashanti is a successful greenfield explorer and while we are only now ramping up our
exploration activities with them, they have already invested over $14 million in the NJNB. We are
both very excited about the targets being drilled across the first three Kincora projects in 2025.
While Kincora has now unlocked over $110 million of potential partner funding we see ample
scope to further significantly grow this figure. The Company is advancing discussions for further
large-scale partner agreements and is on track to achieve its ambition for third party management
fees to provide a self-funding financing exploration model."
Figure 1: The Macquarie Arc is a proven Tier 1 terrane and Australia's foremost copper
porphyry belt hosting a number of world-class mines
The Northern Junee-Narromine Belt (NJNB) is a largely untested extension of the Macquarie Arc situated under the post-mineral cover
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2305/248376_kincoraimg1.jpg
Project generator funding model
Kincora's asset level partner model for its wholly owned large scale exploration stage porphyry projects,
commonly referred to a project generator model in the North American markets, has now unlocked over
$110 million of potential partner funding for eight earlier stage and/or non-core porphyry projects
1
.
Existing partners include:
AngloGold Ashanti
(NYSE: AU) is the world's fourth largest gold miner by production and is
partner for the NJNB project portfolio (including five projects across two joint venture
arrangements)
1(a)
;
Fleet Space Technologies Pty Ltd
("Fleet Space", private) is one of Australia's fastest growing
companies and is widely recognised as Australia's leading space exploration company. Fleet
Space recently raised $150m in a Series D financing. It is Kincora's partner for the Wongarbon
project and recently completed its maiden integrated Ambient Noise Tomography and gravity
geophysical survey at the Nyngan project
1(b,c)
;
Earth AI Pty Ltd
("Earth AI", private), an Artificial Intelligence and Machine Learning explorer.
Earth AI recently raised $20m in a Series B financing and is partner for the Cundumbul project
1(d)
;
and,
Orbminco Limited
(formerly Woomera Mining) is a Mongolian focused explorer and is partner for
the Bronze Fox project
1(e)
.
Kincora is the current operator of the NJNB project portfolio with AngloGold Ashanti and receives a 10%
management fee of expenditure.
Discussions are ongoing for further agreements for the Company's remaining four (and generally
significantly more advanced and/or proximal to existing world-class mines) porphyry projects in NSW,
including Fairholme, Jemalong, Trundle and Nyngan West.
The Company plans to retain its Condobolin project, which hosts the historical Condobolin high grade
open cut gold and base metals mining field situated within trucking distance to the Mineral Hill mine
(which has capacity for, and is seeking, third party ore) and within the southern section of the emerging
Cobar Superbasin. The timeline and capital needs to significantly add value and advance the
Condobolin project is materially less than the Company's porphyry projects.
Kincora's ambition is to be the operator for exploration budgets of over $10 million per annum for the
porphyry portfolio providing sufficient project management fees for the Company to be self funding
(covering corporate costs and maintenance of remaining wholly owned projects) and have partnerships
with a diversified portfolio of industry leading producers/explorers.
Nyngan, Nevertire and Nevertire South Programs
A major amendment to the original Earn-in and Joint Venture agreement with AngloGold Ashanti now
includes the Nyngan South, Nevertire South and Mulla projects, which are adjacent to the Nyngan and
Nevertire projects (the latter two included in the original May 2024 agreement) and streamlines
exploration across a continuous strike that exceeds a 100km's.
Initial scout drilling activities at the Nyngan project commenced late last year and are ongoing. To date,
twelve holes in total have been complete in partnership with AngloGold Ashanti, and follows encouraging
results for the first six holes completed in 4Q'2024
2
.
Looking ahead, a recently completed ground gravity survey covering over 400km
2
has identified a
number of new potential targets for drilling. Interpretations and discussions for potential follow up drilling
are now underway with AngloGold Ashanti as the scout drilling program continues. Various coincident
magnetic and new gravity anomalies have been identified at both the wider
South West
and
Ace of
Spades
Targets.
A Stage 2 follow up phase of step out drilling is proposed post completion of the scout drilling program.
Under the amended agreement, planned exploration activities have been expanded to support a first
phase drilling program at both the Nevertire and Nevertire South projects with unimpeded access across
the consolidated ~8 x 12km Nevertire Magmatic Complex ("NMC").
Prior explorer drilling at the southern section of the NMC has returned anomalous copper-gold
mineralisation, favourable fertility defined by green rock analysis, geochemical zonation and alteration
suggestive of an outer porphyry system setting with age dates confirming a highly prospective Phase 4
Macquarie Arc intrusive complex (at approximately 220m depth down hole).
Having secured three prior explorer drill holes at the NMC from the Cadia mine site, a review by
Kincora's technical director John Holliday supports Newcrest prior interpretation that "
drilling has
identified lithologies, alteration and veining consistent with a setting similar to the Cadia-Ridgeway
and Goonumbla porphyry Cu-Au deposits"
3
.
John is a foremost figure on Macquarie Arc porphyry systems having been a principal originator,
discoverer and site manager for the Tier 1 Cadia gold-copper porphyry and the Marsden copper gold
porphyry deposits.
A priority for the upcoming drilling program is an initial follow up program to prior Newcrest hole
ACDNY006 which returned a very encouraging intersection of anomalous copper mineralisation (from
basement to end of hole), veining and magnetite alteration situated in a high volcanic-hosted level
3
.
Prior Newcrest drilling supports Kincora's view of the planned walk up drill targets within the Nevertire
South project underpinning the most advanced and geologically prospective porphyry project within the
NJNB district.
A planned drilling program seeks to step out from hole ACDNY006 to discover or create a vectoring
pattern to a possible deposit and also test open extensions to the NMC - see Figure 2.
The drilling programs at the Nyngan, Nevertire and Nevertire South projects are expected to run into the
third quarter of 2025, providing a steady stream of news flow and management fees to the Company.
Key terms of the Earn-in and Joint Venture Agreement
The key terms of the amended agreement with AngloGold Ashanti Australia Limited, a wholly owned
subsidiary of AngloGold Ashanti plc, covering the Nyngan South (Exploration Licence 9708), Nevertire
South (Exploration Licence 9710) and Mulla (Exploration License 9320) projects ("New Tenements"),
are in addition to the arrangement in respect of the original May 2024 agreement for the Nyngan
(Exploration Licence 8929) and Nevertire (Exploration Licence 8960) projects and, in summary,
comprise:
AngloGold may earn a 70% initial interest in the New Tenement by incurring $25 million in total
expenditure on exploration in the initial earn-in period of up to seven years upon which a joint
venture would be formed (Phase I). This includes a minimum expenditure of $2 million within the
first two years (Minimum Obligation). AngloGold is permitted to withdraw from the Agreement after
satisfying the Minimum Obligation or payment of any shortfall.
AngloGold can then earn an additional 10% interest in the New Tenements (for a total interest of
80%) by completing a Pre-Feasibility Study (PFS) or by funding a further $25m of expenditure over
an additional three years (Phase II).
Kincora will initially operate and conduct all exploration activities as directed by an Exploration
Management Committee that will comprise two members from each party, and be entitled to a
10% management fee.
The amended agreement is otherwise on terms that are customary for similar agreements and
includes the agreed principal terms of the proposed joint venture agreement that will apply if
AngloGold earns an interest in the NJNB tenements.
All expenditure timelines under the Agreement can be accelerated.
The amendments to the existing agreement are conditional on Ministerial consent being obtained
within six months.
Refer to the May 28, 205 release
"AngloGold Ashanti to earn-in to the NJNB Project"
for details for the
original Earn-in and Joint Venture Agreement for the Nyngan and Nevertire projects.
About the NJNB Project Portfolio
The Macquarie Arc is Australia's premier porphyry copper-gold province being a hotspot for recent
corporate activity, with over $16 billion of M&A for producing assets and over $385m of exploration earn-
in/joint ventures, and exploration success, including two greater than 10Moz gold equivalent
discoveries/resource expansions
4
.
Despite regional magnetics effectively mapping the Macquarie Arc volcanic belts, due to the post
mineral cover there has been very limited prior drilling of the extensions of both the Junee-Narromine and
Molong volcanic belts relative to the southern more outcropping sections. These more mature southern
exploration regions host over 160Moz gold equivalent inventory
5
and a number of world-class mines
(Cadia, Cowal and Northparkes).
Kincora's portfolio and the wider NJNB offers new district-scale discovery potential with spatial and
temporal settings, coupled with magnetics, gravity and new Ambient Noise Tomography (ANT) surveys,
supportive of large-scale targets analogous to porphyry deposits located in the southern section of the
Arc. AngloGold Ashanti has secured Earn-in and Joint Venture Agreements with both Kincora and
Inflection Resources (Inflection, market capitalisation C$33.7 million, >4x Kincora's
6
) covering
~10,000km
2
within the NJNB with over A$14 million investment to date
7
. In the last month AngloGold
Ashanti has moved to Phase II of its earn-in agreement with Inflection designating a total of four projects
to continue earning into (including two projects adjacent to Kincora's Nyngan project)
8
- see Figure 2.
The most recent notable example of a new globally significant emerging porphyry district is the Vicuña
district, which is also an extension of a renowned world-class porphyry belt. Vicuña is an extension of the
central Andean belts in Argentina on the border of Chile and situated at over 4000m altitude.
Within this district NGEx Resources Inc in 2009 held three early-stage exploration projects and at the
time had a market capitalisation of approximately C$40 million
9
. These same projects are all still at a
pre-development phase but have yielded in four large-scale discoveries currently valued at over $10
billion
10
.
Kincora was an early mover into the Northern Junee-Narromine Belt, securing a district scale portfolio of
the interpreted most prospective and shallow to moderate covered part of the northwards extension of
the Macquarie Arc under post mineral cover.
This portfolio now covers a strike twice the length of the
Vicuña district and included in earn-in and agreements with AngloGold Ashanti.
The NJNB is virgin exploration territory and offers new district-scale discovery potential with spatial and
temporal settings, coupled with regional magnetics and gravity, supportive of large-scale intrusive
complexes and targets analogous to porphyry deposits located in the southern and more mature
sections of the Macquarie Arc.
Figure 2: First phase drilling activities at Kincora's Nyngan project are ongoing with activities
initiated for initial drilling at the highly prospective Nevertire and Nevertire South projects
In the last month, AngloGold Ashanti has moved to Phase II of its earn-in agreement with Inflection Resources (market capitalisation >C$33 million)
designating a total of four projects to continue earning into (including two adjacent to Kincora's Nyngan and Nyngan South licenses) and formed a
second earn-in and joint venture agreement with Kincora
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2305/248376_kincoraimg2.jpg
About AngloGold
AngloGold Ashanti plc (NYSE: AU) (market capitalization ~US$21.6 billion) is the world's fourth largest
gold miner by production with projects and exploration activities across nine countries on four continents.
AngloGold pursues value-creating opportunities, where it can leverage their existing assets,
shareholdings, skills and experience.
AngloGold has a track record of successful exploration with its greenfields and brownfields exploration
programmes seeking to support sustainability and growth of its business. AngloGold's greenfield
exploration strategy aims to discover large, high-value Mineral Resources that will eventually lead to the
development of new gold mines.
For more information please visit AngloGold's website at
www.anglogoldashanti.com
.
About Kincora
Kincora Copper is an active explorer and project generator focused on world-class copper-gold
discoveries.
Kincora's portfolio includes district scale landholdings and scale-able drill ready targets in both Australia
and Mongolia's leading porphyry belts, the Macquarie Arc and Southern Gobi, respectively, and the
historical Condobolin mining field in the southern section of the Cobar superbasin NSW.
For more information please visit Kincora's website at
www.kincoracopper.com
.
This announcement has been authorised for release by the Board of Kincora Copper Limited
(ARBN 645 457 763)
For further information please contact:
Sam Spring, President and Chief Executive Officer
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
References:
(1)
Over $110 million of potential partner funding for eight earlier stage and/or non-core projects includes:
(a) In addition to the terms announced in this release, the original up to A$50m earn-in & JV agreement with AngloGold Ashanti for the Nyngan &
Nevertire projects: refer May 28, 2024 release "
AngloGold Ashanti to earn-in to the NJNB Project"
(estimated budget to end of Dec 2024
>$1.5m, incl. 2707m drilling, Kincora currently the project manager receiving a 10% fee of expenditure). For more information on AngloGold
Ashanti please visit their website at
www.anglogoldashanti.com
(b) Fleet Space Technologies (which in December 2024 raised $150m in a Series D financing) partnership under R&D Grant for geophysical
surveys at Nyngan: refer Jul 25, 2024 release "
ANT and Gravity Geophysical Surveys at the Nyngan Project"
(est. budget $500k). For more
information on Fleet Space please visit their website at
https://www.fleetspace.com
(c) Fleet Space partnership for the Wongarbon project: refer Oct 16, 2024 release
"Kincora announces Strategic Investment & Expanded
Partnership with Fleet Space"
(Fleet Space is to conduct ANT & gravity surveys with the right to fund >2000m of drilling for an earn-in/JV. Est.
budget for ANT & gravity surveys $600k, follow up drilling >$0.5m)
(d) Exploration Alliance partner Earth AI (which in January 2025 raised US$20m in a Series B financing) drilling commenced at the Cundumbul
project: refer May 20, 2024 release
"Artificial Intelligence Partner Drilling New Copper Targets at the Cundumbul Project"
(Earth AI has the
right to right to spend up to $4.5m at Cundumbul and earn an NSR upon a "qualifying interval".
Estimated budget to date >$750k, incl. 5 completed
holes for >2500m with a VTEM geophysical survey recently completed and analysis ongoing).
(e) Woomera Mining (now Orbminco Ltd) agreement for Kincora's Mongolian assets:
refer Aug 12, 2024 release "
Kincora secures funded,
successful and motivated partner for Mongolian assets
" & Orbminco release Jan 14, 2025 "
Drilling Results for Bronze Fox Copper-Gold
Project
", incl. drilling results & technical details/disclaimers (Orbminco has the right to spend US$4m for a 80% interest in the Mongolian
subsidiaries with Kincora free carry also to FID or a cash payment + NSR acquisition right for 100% interest. Orbminco consideration shares to
Kincora $450k. Estimated budget >C$960k to Dec 31, 2024 incl. 2516m of drilling (& ex-planned conversion of the western exploration to a mining
license and 2025 field work/drilling).
(2)
Refer to Kincora's exploration update press release Feb 13, 2025, "
Encouraging results expands Kincora Copper and AngloGold Ashanti's First
Drilling Program"
(3)
Newcrest Mining annual reports (public access) for former license EL6337, available on DIGS via MinView
(
https://minview.geoscience.nsw.gov.au
).
(4)
Ocean Blue Equities Oct 8, 2024 initiation research report on Waratah Minerals with the addition of Newmont's earn-in and joint venture
agreements with Koonenberry Gold for the:
(a) Junee porphyry project ($23.9m of expenditure to date, ex the Jan 2025 drilling with Koonenberry Gold carried until commercial production);
and,
(b) Fairholme porphyry project (Koonenberry carried until $15m of exploration expenditure, with $1.14m spent to date, ex the Jan 2025 drilling
program).
(5)
MinEx Consulting report for Kincora.
(6)
Market capitalisation of Inflection Resources as at Apr 11, 2025 following Apr 1, 2025 issuance of shares to AngloGold Ashanti
(
https://inflectionresources.com/inflection-resources-completes-share-issuance-to-anglogold-ashanti/
).
(7)
Includes AngloGold Ashanti funded exploration with Kincora and Inflection as at Dec 31, 2024, including Phase 1 and Phase 2 expenditures with
Inflection (refer to the Mar 3, 2025 "
MD&A"
for the quarter ended Dec 2024).
(8)
Refer to Inflection Resources' Mar 25, 2025 release
"AngloGold Ashanti Designates Four Inflection Resources Projects for Phase II of
Exploration Earn-in Agreement"
.
(9)
NGEx Minerals valuation 2009 when it owned the projects included in
(3)
. Refer to NGEx's presentation July 2024 for further details.
(10)
"
>$10 billion market value
": includes values for Filo Corp & Josemaria based on the Jul 29, 2024 transaction values from Lundin Mining & BHP
(see public market releases, "
Lundin Mining and BHP to Acquire Filo and Form a 50/50 Joint Venture to Progress the Filo del Sol and Josemaria
Projects
") and Apr 11, 2025 market capitalisation of NGEx Minerals.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/248376