KCC.V · 2020-01-30 12:00:00

Kincora grows a district scale landholding in the Lachlan Fold Belt

Mergers & Acquisitions

Kincora grows a district scale landholding in

the Lachlan Fold Belt

VANCOUVER

Jan. 30, 2020

/CNW/ - Kincora Copper Ltd. (the "Company", "Kincora") (TSXV:

KCC) is pleased to provide an update on its expansion activities in the Lachlan Fold Belt ("LFB"),

Australia's

leading porphyry region.

Highlights

Following the granting of the Nyngan project (762 km

), Kincora will significantly grow its

landholding to 1,732 km

through 2 transactions:

Kincora has a second direct application in progress, for 382 km

, to the south-east of the

Nyngan project, at Nevertire

Kincora has entered into a binding agreement with RareX Resources Limited ("RareX")

which provides for a controlling interest in a portfolio of 6 advanced to early stage copper-

gold exploration projects that have demonstrated mineralisation and strategic appeal,

including the brownfield Trundle project

The addition of the Nevertire project and RareX portfolio supports a district scale land package

and industry leading proposition of copper-gold targets

LFB lends itself to a complementary exploration approach and scale of targets to ongoing

activities in the Southern Gobi,

Mongolia

Sam Spring

, President & CEO, commented:

"The Company's expansion activities in the Lachlan

Fold Belt ("LFB") provide an extremely attractive entry over an extensive license portfolio with

proven strategic investor appeal.

Our team has demonstrated Tier 1 exploration success in the region and believe the expanded

portfolio supports excellent potential for new higher-grade porphyry and skarn copper-gold

discoveries in a number of proven mineralized systems. The Company remains favourably funded

to pursue this.

The Trundle project, secured as part of the RareX transaction, is a high priority for immediate

exploration. Trundle has extensive mineralization adjacent to new untested targets in a brownfield

environment next to

Australia's

second largest porphyry system and operation".

Chairman

Cameron McRae

, noted, "The Kincora team are focused on opportunities where we

have a competitive advantage, funding will be focussed on high impact, value add programs,

underpinned by targets with strong indications for world-class scale potential.

Access to the

New South Wales

government facilities, and geological and historical exploration

records, has expedited the process of building our position in the belt.

With

John Holliday's

experience, Kincora had focussed on the LFB prior to the recent high quality

discovery by Alkane Resources at Boda. Alongside the expansion activities at both Cadia and

Northparkes, the Boda discovery indicates the considerable value of any new commercial porphyry

discovery at moderate depths in this region. The impact of the Alkane discovery also provides

compelling peer group valuations with other exploration juniors active in the region."

Nevertire license application

Following Kincora's successful direct application for its Nyngan project (previously announced

November 21

, 2019), covering 762 km

, an application for a second large new exploration license

has been made directly to the NSW State for the Nevertire project, covering 382 km

The Nevertire and Nyngan projects consolidate what is interpreted to be the most prospective and

shallow to moderate cover of the commonly accepted extension of the Junee-Narromine Belt of the

Macquarie Arc.

The region was previously the focus of St Barbara Ltd's Big Gold Lachlan Project-Marra Joint Group

project that covered various separate license areas across an 80km strike. St Barbara interpreted

"the area to contain the largest volcano-intrusive centre of the Ordovician-Early Silurian Macquarie

Arc, which to the south hosts the Northparkes and

Cadia Valley

mines."

Similarly to the Nyngan tenement, encouraging regional exploration results have been inadequately

followed up at the Nevertire project. Drilling by past explorers on the southern portion of the

Nevertire Magnetic Complex has provided geological, petrological and lithogeochemical information

to strongly suggest that the Paleozoic basement rocks are Macquarie Arc. The most northern hole,

approximately 1.5km south along magnetic trend from the Nevertire project, reached basement at

234 metres (EOH 318.4). ACDNY006 returned anomalous mineralization and intense propylitic

alteration, including 82 metres (from 236) @ 280 ppm Cu and 0.06 g/t Au, including 2 metres (from

304) @ 769 ppm Cu and 0.2 g/t Au.

Newcrest also undertook limited historical drilling on the southern extension of the Nevertire Magnetic

Complex and reported "

drilling has identified lithologies, alteration and veining consistent with a

setting similar to the Cadia-Ridgeway and Goonumbla porphyry Cu-Au deposits. Alteration is

largely propylitic (chlorite-epidote-magnetite), although higher temperature (K feldspar +/-

hematite) phases are also present. All elements are indicative of a potential porphyry Cu-Au

system."

The mineralization hosted on adjacent and nearby properties is not necessarily indicative of

mineralization hosted on the Company's property.

RareX transaction

Kincora has entered into a binding Memorandum of Understanding ("MoU") and made a non-

refundable option payment of

$25,000

to RareX Limited ("RareX") providing the exclusive right to

acquire a 65% interest in 6 mineral leases covering 587 km

in the Lachlan Fold Belt ("LFB").

RareX is listed on the Australian Securities Exchange ("ASX") with the ticker "REE", formerly known

as Sagon Resources and Clancy Exploration Limited. RareX is now focused on the development of

its Cummins Range rare earths project in

Western Australia

The 6 tenements include advanced to early stage exploration projects and porphyry targets located

in the key volcanic belts of the Macquarie Arc that have attracted considerable interest from industry

groups. This portfolio has previously resulted in asset level deals from High Powered Exploration Inc.

("HPX"), Kaizen Discovery ("Kaizen"), Mitsubishi Materials Corporation ("Mitsubishi") and Ramelius

Resources Ltd. ("Ramelius").

All previous counterparties withdrew within a 6-month period at the bottom of the previously

commodity price cycle. No drilling or follow up exploration of note has taken place since their

withdrawal.

Kincora believes there are largely untested targets that were identified by Typhoon geophysical

surveys undertaken by HPX and Kaizen at the Trundle and Fairholme projects respectively.

Generation of additional targets is also expected with:

advancements in modern exploration techniques;

increased acceptance of a deeper horizon for copper-gold porphyry exploration, particularly in

the LFB following Alkane's recent discovery at Boda; and,

expansion of first quartile cost operations at both Northparkes and Cadia at such target depth

profiles.

Summary table of RareX's portfolio included in the MoU

Project

Trundle

Cundumbul

Fairholme

Condobolin

Jemalong

License(s) - EL

8222

6661

6552 & 6915

7748

8502

Size (Km

)

167.0

69.3

169.2

89.1

91.5

Previous partner

HPX

Mitsubishi

Kaizen

Ramelius

Volcanic belt

Junee-Narromine

Molong

Junee-Narromine

Holes by depth profile

# Holes

(Metres drilled)

0-25 metres

1359

317

(15,260m)

(18m)

(373m)

(2,670m)

(0m)

25-50 metres

683

117

(23,656m)

(34m)

(2,197m)

(4,446m)

(42m)

50-100 metres

358

(6,364m)

(260m)

(27,791m)

(2,735m)

(811m)

100 to max depth

206

(15,866m)

(532m)

(32,408m)

(2,705m)

(6,848m)

Max depth

589.4m

118m

799.5m

250m

183.2m

Total # Holes

2,208

641

487

Total Metres drilled

61,146m

844m

62,768m

12,556m

7,701m

The MoU provides Kincora a 6-week period to complete due diligence, customary regulatory

approvals and definitive agreements, the key commercial terms from the binding MoU are:

issuing 14,950,000 common shares at a deemed price of

$0.065

per share of Kincora upon

closing, subject to a voluntary 12-month lock-up, resulting in RareX becoming a 9.9%

shareholder.

Payment of

$150,000

in cash to RareX upon closing as follows:

$100,000

in cash consideration; and,

$50,000

in cash as reimbursement to RareX for outstanding holding costs and license

renewals.

Kincora acquiring a 65% interest in the respective licenses, becoming operator and sole funder

of all further exploration until a positive scoping study or preliminary economic assessment

("PEA"). Upon completion of the PEA, Kincora and RareX will form a joint venture with standard

funding and dilution requirements and right of first refusal on transfers.

Kincora is committed to maintain the full licence portfolio in good standing for a period of 12-

months and RareX shall have the right to retain a 100% ownership in any licence that Kincora

may elect to drop or to not renew, for no consideration.

The agreement is subject to customary regulatory approvals, such as the TSX Venture

Exchange.

All licenses are considered prospective for

Cadia Valley

and/or Northparkes style copper-gold

porphyry deposits. The Trundle project is of immediate interest and will be a priority for the

exploration program.

A systematic review and ranking of targets at other licenses will also be undertaken across the full

license portfolio, noting the Cundumbul license is located 20km south of the Boda discovery of

Alkane Resources with previous exploration indicative of a proximal copper-gold porphyry

environment.

Kincora's review of the Trundle project and RareX portfolio benefits from knowledge and previous

exploration success in the belt from Technical Committee chairman and board member

John Holliday

being a principal discoverer and site manager of the Cadia and

Marsden

porphyry Tier 1 gold-

copper deposits in this belt, formerly Chief Geoscientist of Newcrest Mining Limited and is still based

in the region.

The Company's review and due diligence of the Trundle project has also benefitted from access to

extensive prior exploration records and data, including prior drill core, with both

John Holliday

and

Barry de Wet (Kincora's consultant geophysics) having previously worked on the Trundle project.

The Trundle project

The Trundle project is located 30km west of the China Molybdenum Company (CMOC) operated

Northparkes copper-gold mine, which has a total endowment (past production and current

resources) of over 20Moz Au-equivalent

. CMOC acquired an 80% interest in Northparkes from Rio

Tinto in

July 2013

for

US$820 million

(Sumitomo retaining a 20% minority interest) and has since

undertaken a material expansion of production and extension of mine life.

Trundle hosts the inferred westerly rift of the Northparkes Igneous Complex with extensive evidence

of porphyry and skarn-style copper-gold mineralisation associated with Ordovician intrusive centres

similar to the Northparkes and

Cadia Valley

deposits and mines.

Sealed and unsealed roads traverse most of the license area, which hosts the town of Trundle.

Surface geological mapping, geochemistry, magnetic, gravity and Induced Polarisation ("IP")

coverage, coupled with structural and basement interpretations have been positive, indicative of

multiple levels and phases of a large mineralised system supporting the excellent potential for blind

preserved higher-grade porphyry and/or skarn gold and copper deposits.

Past drilling has been extensive with the completion of 2208 holes for 61,146 metres but the use of

modern exploration techniques, and deeper drilling to basement and target depth has been

inadequate.

Only 7.5% of all holes have been drilled to deeper than 50 meters with just 11 holes (0.5% of holes

drilled) beyond 300 metres (for 5,393 metres). Only one hole (in 2015) has been drilled since the

most recent deeper penetrating ground geophysical survey.

At the Trundle Park prospect mineralized intercepts are associated with magnetite skarn, similar in

style to the Big Cadia skarn that is peripheral to the Cadia porphyry copper-gold deposits.

Significant intercepts at the Trundle Park prospect include:

60m

@ o.54g/t Au from

56m

@ 0.88g/t Au, 0.35% Cu from

34m

, including:

@ 20g/t Au, 6.97% Cu and 81g/t Ag from

64m

39m

@ 0.55 g/t Au, 0.14% Cu from surface

35m

@ 0.55 g/t Au, 0.25% Cu from

12m

51m

@ 0.58 g/t Au, 0.14% Cu from

33m

58m

@ o.44 g/t Au, 0.17% Cu from

22m

, including:

@ 1.19g/t Au and 0.41% Cu from

28m

HPX deployed its proprietary deeper penetrating Typhoon Induced Polarisation and Electro

Magnetic geophysical ("Typhoon") system to the Trundle project to assist with its strategy to explore

beyond the previous search space, to a vertical depth of over 1000 metres, assist defining the

deeper source of the near surface copper-gold anomalism and vectoring to the richer potassic core

of the porphyry system.

The Typhoon survey covered 38km

covering a prospective zone of magnetic anomalies and copper-

gold mineralisation extending across a 12.5km long prospective corridor from the Trundle Park area

in the south to north of the Mordialloc prospect. Multiple broad, anomalous deep-seated

chargeability zones were identified at Mordialloc, Mordialloc NE and Trundle Park, within a total of

23 IP targets ranked. However only one hole was subsequently drilled testing any of these targets.

The Mordialloc prospect contains low-grade porphyry quartz-sulfide veins overprinted by phyllic

alteration adjacent to porphyrtic monzonite stock, and has a history of small-scale mining from the

early 1900's when shafts were developed on quartz chalcopyrite vein breccias.

A deeper diamond drill hole (CTD006, drilled in 2008) on the periphery of the subsequently defined

chargeability high outer shell intersected 48 metres @ 0.15% Cu, 0.12g/t Au and 41ppm Mo from

478 metres in a quartz monzonite porphyry. CTD006 ended in mineralisation with the grade profile

improving as the hole approached the IP shell.

See Figures

7 and 8.

A second deeper hole (TERCD001) returned anomalous copper and gold but is interpreted to have

drilled between the main subsequently defined chargeability anomalies.

November 2015

, approximately 2 km to the NE from any prior deep drilling, HPX drilled one hole

(TRACD001) into the Mordialloc NE target identified by the Typhoon survey. The hole intersected a

10 metre wide sulfide-bearing porphyritic monzonite dyke which intruded several carbonate-rich

stratigraphic horizons to form a garnet-rich calc-silicate skarn and silicate hornfels with vein

controlled and patchy sulfide mineralisation, dominated by pyrite, lesser chalcopyrite and some fine

visible molybdenite.

References:

Newcrest Mining Ltd, Dec'12 open file report "

Woolartha, Nyngan report for the period ending

Nov'08

St Barbara Ltd,

August 2012

open file report "

Nyngan JV annual report for the period ending

June 2012

Anglogold Ashanti Australia Limited, Jul'14 open file report for EL7751*

See RareX (then Clancy Exploration) ASX release dated 25 Jun'10 for further details

See RareX (then Clancy Exploration) ASX release dated 9 Mar'10 for further details

See RareX (then Clancy Exploration) ASX release dated 28 Feb'11 for further details

* publically available from the DiGS Geological Survey of NSW

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

, B.Sc (Hons) Geology,

FAusIMM, Senior Vice-President of Exploration of Kincora Copper, who is the Qualified Person for

the purpose of NI 43-101.

The review and verification process for the information disclosed herein on the RareX projects has

included the receipt of all material exploration data, results and sampling procedures of previous

operators under a confidentiality agreement and review of such information by Kincora's geological

staff using standard verification procedures.

About Kincora Copper Limited (KCC – TSXV)

Kincora is an active junior seeking to make a major discovery in

Mongolia

, the Lachlan Fold Belt in

Australia

and other prospective complementary jurisdictions.

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 an aggressive 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

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/January2020/30/c8167.html

%SEDAR: 00003952E

For further information:

Sam Spring, President and Chief Executive Officer,

[email protected] or +61431 329 345

CO: Kincora Copper Limited

CNW 06:00e 30-JAN-20

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