Kincora provides corporate update •
www.kincoracopper.com [email protected]
Kincora provides
corporate update
•
Vancouver, BC — September 29th, 2020
Kincora Copper Ltd. (the “Company”, “Kincora”) (TSXV:KCC) is pleased to provide a corporate
update for release to market including:
• Corporate presentation
• Shareholder letter
For further information:
Sam Spring, President and Chief Executive Officer
[email protected] or +61431 329 345
www.kincoracopper.com [email protected]
Corporate strategy update
September 29th, 2020
Dear shareholders,
At Kincora Copper our focus is world-class copper-gold porphyry discoveries with a near term
ambition to become the clear leading listed pure play porphyry explorer in Australia’s foremost
porphyry belt.
Kincora has a strategic and district scale position in the key belts of the Macquarie Arc, within
the Lachlan Fold Belt, in Central West NSW.
In August 2020, the Company completed an oversubscribed $5.33 million equity raising. We
welcome our new shareholders to the register and thank existing shareholders for their
continued support.
The primary use of funds is significantly expanding the ongoing drilling program at our flagship
Trundle copper-gold porphyry project from 6 holes to potentially over 20 as well as better
understanding the potential of the near surface skarn system. We are also preparing for an IPO
on the ASX and progressing work on our 7 additional licences in NSW.
The Company has assembled an industry leading technical team. This team has made multiple
Tier 1 copper discoveries with a unique knowledge and a competitive advantage in the
Macquarie Arc – indeed, our technical director, John Holliday, is the foremost porphyry figure
in this region. Our board and management have “skin in the game” equity ownership and are
backed by a strong institutional and family office shareholder base.
The Macquarie Arc is a world-class gold-copper porphyry belt hosting an estimated >100Moz
gold and >24Mt copper endowment1. It is Australia’s foremost porphyry belt, serviced by
favourable existing infrastructure and a clear Tier 1 jurisdiction. As summarised by Richard
Schodde, a globally recognised minerals economist, “as an economic geologist … NSW,
Lachlan Fold Belt, for copper and gold, is the place to be”2.
Notable flagship projects in this region include:
• the multiple deposits that form the Cadia gold-copper porphyry mine (Australia’s
largest gold mine and cornerstone asset for Newcrest Mining);
• the multiple deposits that form the Northparkes copper-gold porphyry mine (bought by
China Molybdenum Co Ltd from Rio Tinto and recent focus of a US$550 million
streaming transaction with Triple Flag);
• the Cowal epithermal gold deposits (the cornerstone mine for Evolution Mining); and,
• the Sunrise battery materials complex development project (flagship project of
CleanTeQ).
www.kincoracopper.com [email protected]
Despite this region’s long mining history and mineral endowment, there is still excellent
potential for further globally significant discoveries and resource growth.
Alkane Resource’s recent gold-copper discovery at its Boda porphyry project is testament to
that (including 97 metres at 3.97g/t gold and 1.52% copper from 768 metres), as indeed was
Kincora’s first hole at our Trundle porphyry project (51 metres at 1.17g/t gold and 0.54% copper
from only 39 metres). Brownfield exploration at Northparkes and Cowal has also significantly
expanded resources and reserves, mine life and support ongoing expansion activities.
Within the region relatively limited exploration and deeper drilling has taken place. NSW as a
State is the second largest gold producer in Australia, despite receiving only a tenth of the
exploration expenditure of Western Australia3 and the renaissance in the Victorian goldfields.
There has been significant improvement in modern exploration techniques, new regional
datasets and understanding of the mineral systems in the Lachlan Fold Belt, assisting us to
capitalise on prior explorer activities and drilling, which often failed to recognize the nature of,
and/or systematically test, the exploration target.
Within Kincora’s portfolio we have four priority target areas that are being refocussed on from
the old thinking, with a willingness to drill to the depths required to test our concepts (both
shallow and deep).
• Trundle - the predominate high-grade copper-gold deposits in the Macquarie Arc and
at Northparkes are pipe like, “finger” or “pencil” porphyries that are vertically extensive
but horizontally discrete. Despite over 60,000 metres of prior explorer drilling, only 11
holes have previously been drilled to depths and in a manner that might test the
potential for such a target at Trundle. This is not withstanding confirmed extensive near
surface mineralisation across greater than a 10km2 strike and Trundle being within a
brownfield environment to Northparkes. There has only been one prior explorer hole
since a very favourable industry leading geophysical survey by HPX (CEO Robert
Friedland) that generated 17 new anomalies and further supported vertically extensive
porphyry targets extending to depth.
• Fairholme - despite being 10-20km on strike to the five structurally controlled gold
deposits that comprised the Cowal mine (targeted mineral endowment of 15Moz gold4),
few of the over 62,000 metres of prior exploring drilling has been focused on testing the
potential for Fairholme to host near surface epithermal deposits, similar to that at
Cowal. Instead prior explorer efforts and drilling has focused on trying to find a deeper
“finger” or “pencil” porphyry(s). Since the last exploration at Fairholme resources have
increased from 3.4Moz to 9Moz gold at Cowal, with its gold endowment far outshining
the copper porphyry potential.
• Nyngan and Nevertire - despite these two projects being located in potentially the
largest intrusive centre of the Macquarie Arc, and near favourable early stage explorer
activities, Kincora was able to peg 1,144km2 of tenure over the most prospective
undercover sections of the Arc. Since Kincora’s entry there has been a considerable land
grab by majors and juniors alike in this region.
www.kincoracopper.com [email protected]
Kincora’s exploration concepts with the Nyngan/Nevertire region and proposed drilling plans
have been rewarded by the NSW Government who recently awarded the Company a
cooperative funding grant to financially assist drilling two copper-gold porphyry targets at our
Nyngan project.
High priority drilling continues at our flagship Trundle project - situated in the same minerals
complex as Northparkes (Australia’s second largest porphyry mine). This is the only brownfield
porphyry project held by a listed junior in the Macquarie Arc.
Kincora is advancing the understanding of near surface skarn system at Trundle, to understand
the potential for a near term open pit development project. Work advancing the Company’s
earlier stage licenses and project pipeline across the belt (7 additional licenses) is now
accelerating, including Nyngan and Fairholme.
The recent oversubscribed raise was the first step in achieving a listing on the Australian
Securities Exchange (“ASX”), which we feel is the natural market given the focus of our
exploration activities and location of the team.
In Mongolia, we have been the foremost foreign group pursuing counter-cyclical exploration
and expansion opportunities, undertaking an aggressive modern systematic exploration
approach, and undertaking new project generation. We have recently gained a mining license
for a key portion of our large copper-gold porphyry discovery at the Bronze Fox project. We are
reviewing ways to involve partners in taking Bronze Fox and the Mongolian portfolio forward.
In all aspects of the business, we retain our focus on operating safely with a special focus on
being COVID-19-safe, and engaging with stakeholders.
Kincora’s team is persistent and systematically working hard to confirm the next globally
significant porphyry discovery and maximise significant value for our shareholders. We look
forward to providing further progress updates.
Sincerely,
Sam Spring Cameron McRae
President & CEO Chairman
Kincora Copper Ltd.
References
1 Bespoke Mar’20 request by Richard Schodde from MinEx Consulting for Kincora Copper.
2 “The Assay” video interview Apri’20 with Richard Schodde and John Holliday - available at https://www.theassay.com/the-assay-
tv/the-assay-tv-richard-schodde-john-holliday-kincora-copper/?dm_t=0,0,0,0,0
3 RIU Resurgence Conference, September 15th 2020, Dr Chris Yeats - Executive Director Geological Survey of NSW
4 Evolution Mining Investor Webinar, September 2020
Available on the Kincora website: www.kincoracopper.com/about-us/corporate-strategy
Focus on
large scale
porphyry
discoveries
September 2020Pink-red altered monzonite cut by quartz vein with chalcopyrite
Hole TRDD006, Mordialloc target at the Trundle project, Central West NSW, Australia
Location, Team, Targets
2
The views expressed in this presentation are based on information derived from Kincora Copper Ltd’s (“Kincora”) own internal and publicly available sources that have not be independently verified.
This presentation contains certain forward-looking information and statements which may not be based on fact, including without limitation, statements regarding the Company’s expectations in respect of its future financial
position, business strategy, future exploration and production, mineral resource potential, exploration drilling, permitting, access to capital and events or developments that the Company expects to take place in the future. All
statements, other than statements of historical facts, are forward-looking information and statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”,
“will” and similar expressions identify forward-looking information and statements.
In addition to the forward-looking information and statements noted above, this presentation includes those that relate to: the expected results of exploration activities; the estimation of mineral resources; the ability to identify
new mineral resources and convert mineral resources into mineral reserves; ability to raise additional capital and complete future financings; capital expenditures and costs, including forecasted costs; the ability of the
Company to comply with environmental, safety and other regulatory requirements; future prices of base metals; and the ability of the Company to obtain all necessary approvals and permits in connection with the development
of its projects.
Such forward-looking information and statements are based upon a number of estimates and assumptions that, while considered reas onable by the Company as of the date of such information and statements, are inherently
subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could c ause actual results to differ materially from those projected in the forward-looking information
and statements. Such factors include, but are not limited to, fluctuations in the price of copper and other commodities, the inability of the Company to raise sufficient monies to carry out its business plan, changes in
government legislation, taxation, controls, regulations and political or economic developments in Mongolia, the accuracy of the Company’s current estimates of mineral resources and mineral grades, the accuracy of the
geology of the Company’s projects, risks associated with mining or development activities, including the ability to procure equipment and supplies, including, without limitation, drill rigs, and the speculative nature of exploration
and development, including the risk of obtaining necessary licenses and permits. Many of these uncertainties and contingencies can affect the Company’s actual performance and could cause actual performance to differ
materially from that expressed or implied in any forward-looking information and statements made by, or on behalf of, the Company. Readers are cautioned that forward-looking information and statements are not guarantees
of future performance. There can be no assurance that such information and statements will prove to be accurate and actual resu lts and future events could differ materially from those presented in such information and
statements. Forward-looking information and statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information and
statements. Such risks include, but are not limited to, the volatility of the price of copper, uncertainty of mineral resour ces, exploration potential, mineral grades and mineral recovery estimates, delays in exploration and
development plans, insufficient capital to complete development and exploration plans, risks inherent with mineral acquisitions, delays in obtaining government approvals or permits, financing of additional capital requirements,
commercial viability of mineral deposits, cost of exploration and development programs, risks associated with competition in the mining industry, risks associated with the ability to retain key executives and personnel, title
disputes and other claims, changes in governmental and environmental regulation that results in increased costs, cost of environ mental expenditures and potential environmental liabilities, accidents or labour disputes.
Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information and statements.
The Company disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information, future events or otherwise, except to the extent required by
applicable laws.
The scientific and technical information in this presentation was prepared in accordance with the standards of the Canadian I nstitute 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.
All pricing and information in this presentation is at the close of business September 25th, 2020 and is in C$, unless otherwise stated.
3
Corporate update
Slide #
Investment Opportunity………………………………………………………………………………………………………… 4
Location ………………………………………………………………………………………………………………………………….. 6
Peers ……………………………………………………………………………………………………………………………………….. 15
Team ………………………………………………………………………………………………………………………………………… 19
Trundle project ………………………………………………………………………………………………………………………. 23
Mongolia …………………………………………………………………………………………………………………………………. 35
Why Kincora ………………………………………………………………………………………...………………………………... 38
Appendix …………………………………………………………………………………………………………………………………. 39
• Letter to shareholders: www.kincoracopper.com/about-us/corporate-strategy (September 29th, 2020)
4
Emerging as a leading pure play
porphyry explorer in Australia's
foremost copper-gold belt.”
Investment opportunity
“
“Excellent potential for new
higher-grade porphyry and
skarn, copper and gold
discoveries within a
brownfield environment
to Northparkes
“
Location: Strategic position in Australia’s world-class, gold rich porphyry belt
Team: Exceptional track record of Tier 1 discoveries, knowledge of the belts we
operate in, with “skin in the game” equity ownership
Targets: Drilling the only brownfield project (Trundle) held by a listed junior in
Australia’s foremost porphyry belt, with district scale project pipeline
− Significantly expanded drilling program at Trundle with positive initial results:
− Grade: First hole returned 51m @ 1.17 g/t gold & 0.54% copper from 39m,
including 20.5m @ 1.94 g/t gold & 1.18% copper from 57.6m
− Scale: Positive results at multiple targets across ~10km N-S strike
− Near surface potential: independent review for skarn exploration target
− Planning for target testing drilling at the Fairholme project (analogous to
world-class Cowal gold deposits) and Nyngan porphyry project