Kincora reports on engagement of consultant
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Kincora reports on engagement of
consultant
Vancouver, BC — August 27 th, 2018 – KINCORA ANNOUNCES NEW HIGH -GRADE
TARGETS AT BRONZE FOX
Kincora Copper Ltd. is outlining recent extensive exploration activities at its wholly owned
Bronze Fox project and planned activities for the remainder of the current field season. The focus
of these activities is multiple new target zones proposed for drilling at, or on the margin of, the
western licence relating to the western zone or southwestern periphery of the West Kasulu target
and Bronze Fox intrusive complex (BFIC), where Kincora previously has had only one field
season of unimpeded drilling activities.
Previous drilling at the western zone of the West Kasulu exploration target, across a key regional
fault, inadequately tested only 260 metres of a greater-than-one-kilometre strike. Three of the
four holes drilled by Kincora returned higher-grade mineralization, within broader lower grade,
including hole F62 which intersected 13 metres of 1.15 per cent copper or 1.41 per cent copper-
equivalent within 794 metres at 0.40 per cent CuEq.
SJ Geophysics Ltd. has been contracted to complete a series of DC resistivity and induced
polarization survey lines to further refine the identified high-grade targets before drilling this
field season. The SJ survey will extend detailed coverage to the west and is expected to be
completed in September, advancing a newly identified southerly western target zone and a
second interpreted intrusive complex where surface exploration has yielded encouraging results.
Sam Spring, president and chief executive officer of Kincora, commented: "When last drilling the
western zone of West Kasulu, Kincora had a $40-[million] to $50-million market capitalization,
attracted NDAs with 14 industry players, an offer for the company and separate period of
exclusivity. There have only been two field seasons of unencumbered drilling at the Bronze Fox
project, one by Ivanhoe (2006) and the other by Kincora (2012). Our understanding of the project
has been significantly advanced since this time, with Kincora, post the IBEX merger, also now
holding the dominant position in the rest of the Oyu Tolgoi-Tsagaan Suvarga copper belt."
Senior vice-president of exploration Peter Leaman stated: "Earlier this year we announced a
large-scale copper-gold exploration target. More important than this tonnage was the improved
geological understanding, including the identification of a key regional fault and change in
lithology that bisects the West Kasulu mineralized system at Bronze Fox.
"Our team has relogged 24,000 metres of drill core and a full reinterpretation of previous
geophysics has been undertaken by specialist consultant Barry de Wet. West Kasulu is already
one of the largest copper-gold systems in Mongolia and with only modest drilling. Recent
activities have identified a number of high-priority drill targets to the west where previous
exploration was impeded by access issues."
Upon completion of the geophysical review and proposed SJ survey, Mr. de Wet stated: "A
number of significant scale and very attractive coincident geophysical anomalies have been
identified at Bronze Fox, particularly in the western zone of West Kasulu that complements
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limited drilling and warrants priority follow-up. There is an extremely large mineralized system
that remains underexplored at Bronze Fox, the main target zones to the west of previous drilling.
"The Bronze Fox project is one that was previous excluded by Ivanhoe from the joint venture I
was involved with at BHP. Successful drilling of the outlined targets is likely to attract the
attention of further industry players."
Background to the Bronze Fox project
The Bronze Fox project has an extensive mineralized footprint of over 40 square kilometres
within the Bronze Fox intrusive complex (BFIC) and also covering 15 square km at the western
neighbouring Tourmaline Hills intrusive complex (THIC). These were supported by only two
unencumbered drilling exploration field seasons (one by Ivanhoe Mines and one by Kincora)
within the current two-licence portfolio that hosts the full BFIC.
The BFIC includes a western-central portion where 76 holes were drilled for 24,139 metres across
a 1.4 km by 2.4 km zone at a prospect named by Kincora as West Kasulu (known as Bronze Fox by
Ivanhoe Mines, which undertook drilling in 2006).
Since the last drilling at the West Kasulu prospect in 2012 by Kincora, which included only four
holes in the now defined western exploration target zone and covered a six-month period, there
have been the following key exploration activities:
• Higher-resolution and deeper-penetrating Search contractor induced polarization (IP)
survey (noting access at the time restricted just to the eastern licence);
• Initial lithogeochemical/petrographic studies (Prof. Tony Crawford);
• Mining Associates block model and review (better understanding of faults/lithology and
tonnage/grade with an independent exploration target announced);
• Detailed relogging of core from drilling at West Kasulu (initially 8,000 m by a copper
major under exclusivity, then the full 24,000 m reviewed and relogged by Kincora);
• Further mapping and a maiden pan concentration survey on the full western licence;
• A full geophysical review by Mr. de Wet;
• Drill targets refined by new technical team.
The review of the West Kasulu prospect by Mining Associates announced earlier in the year (refer
to the Jan. 25, 2018, press release) supported an exploration target of:
• 416 million tonnes to 428 million tonnes grading 0.26 per cent to 0.30 per cent copper for
up to 2,437 million pounds of copper and 840,000 ounces gold, ranking as one of the
largest potential in situ copper-gold systems in Mongolia and with only modest drilling.
The underexplored and open on strike western zone included 141 million tonnes for 890
million pounds of copper and 250,000 ounces gold;
• The potential quantity and grade ranges are conceptual in nature and based on nearest
neighbour and ordinary krige estimates. There has been insufficient exploration to define
a mineral resource and it is uncertain if further exploration will result in the target being
delineated as a mineral resource.
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More important than the large-scale exploration target, the Mining Associates review included an
independent block model that advanced the understanding of the mineralized system at West
Kasulu, which is bisected by a key regional fault within the western-central portion of the BFIC.
Since the Mining Associates review, 24,000 metres of drill core at West Kasulu have been
reviewed and relogged by Kincora, benefiting from the 8,000 metres previously relogged by a
copper major under a period of exclusivity (when the western licence was still under dispute).
This relogging exercise also upgraded the geological dataset's quality to be sufficient for National
Instrument 43-101 purposes.
Previous geophysics was excluded from the scope of the Mining Associates review. With the
improved geological knowledge, relogging of core and further surface geology, Mr. de Wet has
undertaken a detailed geophysical review. This included a full reinterpretation of the Search IP
survey, which was completed the year preceding the last drilling at West Kasulu.
Resulting chargeability and conductivity interpretations correlate well with previous drilling
results, the Mining Associates block model and identified faults, and various magnetic and gravity
surveys. In particular, different lithologies are clearly illustrated by conductivity, with
significantly more favourable chargeability profiles inadequately tested in the western sections of
the system.
Demagnetization (with clear large intrusion extending to depth) is also coincident with these
higher chargeability zones on the western zone of fault, both immediately on strike from the
Mining Associates block model, where 260 metres of a greater than one km strike was drill tested,
as well as a potentially significantly larger and newly understood southerly western zone.
New high-grade infill and extension drill targets within the western zone of the West Kasulu
exploration target zone and a newly identified southerly western target zone have been refined.
These include looking to test the central portion of the interpreted target on a section of the
aforementioned hole F62.
The previously intersected higher-grade zone in hole F62 corresponds to a coincident moderate
chargeability and smaller magnetic low zone, which projects to the south of the Tov fault with
strengthening chargeability resolution and thickening coincident magnetic low. This latter zone
offers significant strike potential with F62 previously intersecting the interpreted periphery of the
main target zone, which remains open to the west.
Success confirming the updated geophysical coincident chargeability high/magnetic low model
and strike to the south of the fault with favourable grade would significantly and positively
upgrade immediate target area (both tonnage and grade) and its strike potential to the west.
A similar detailed systematic approach has been undertaken at the other high-priority high-grade
drill targets proposed for drilling this field season.
A series of six north-south lines will be undertaken by the SJ survey, for 33.4 line kilometres,
ahead of the proposed drill program. The survey will provide more detailed IP coverage to the
west of the previous Search survey (which at the time was restricted due to access issues to the
western licence). The SJ survey will provide coverage across a second intrusive complex where
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first phase pan concentration survey results, coupled with previous geophysics, have refined a
coincident area for follow-up mapping and soil sampling.
SJ is a Canadian specialist geophysical group, also engaged to undertake a more detailed 3-D
survey at Kincora's wholly owned East Tsagaan Suvarga project and was selected following a
detailed review process with specifications of both projects' targets.
Notes
The potential quantity and grade are conceptual in nature, and based on nearest neighbour and
ordinary krige estimates within an interpreted 0.2-per-cent-Cu grade shell based on 81 drill holes
spaced approximately 200 by 200 m within the West Kasulu prospect within the western-central
portion of the Bronze Fox intrusive complex. The drill spacing is too broad to define grade
continuity, but does illustrate geological continuity. No assumptions regarding eventual economic
extraction have been applied. The potential quantity and grade are conceptual in nature, there
has been insufficient exploration to define a mineral resource, and it is uncertain if further
exploration will result in the target being delineated as a mineral resource.
F62 -- 13 m of 1.15 per cent Cu (or 1.41 per cent CuEq) from 595 m, within 37 m grading 0.83 per
cent copper and 0.14 g/t gold (1.01 per cent CuEq) from 573 m, within 391 m at 0.50 per cent
CuEq (0.41 per cent copper and 0.08 g/t gold) and 794 m at 0.40 per cent CuEq. The copper
equivalent calculation represents an estimate for the total value for each metal, multiplied by the
conversion factor, summed and expressed in equivalent copper percentage based on spot prices
($3.11/pound Cu, $1,279/ounce Au and $7.1/pound molybdenum). Grades have not been
adjusted for metallurgical or refining recoveries, and the copper equivalent grades are of an
exploration nature only and intended for summarizing grade. The copper equivalent calculation
is intended as an indicative value only.
About Kincora Copper Ltd.
Kincora is a junior resource company engaged in the acquisition, exploration and development of
mineral properties, with a focus on Tier 1 copper-gold projects in Mongolia.
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 and was reviewed, verified and compiled by Kincora's geological staff under
the supervision of Peter Leaman (MSc, mineral exploration, FAusIMM), senior vice-president of
exploration of Kincora Copper, who is the qualified person for the purpose of NI 43-101.
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
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About Kincora
Kincora is a junior resource company engaged in the acquisition, exploration and development of mineral
properties, with a focus on Tier 1 copper-gold projects in Mongolia. For further information:
www.kincoracopper.com.
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.