Large copper-gold porphyry target quantified at Bronze Fox
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
Large copper-gold porphyry target
quantified at Bronze Fox
• A review of the West Kasulu prospect at Bronze Fox by Mining Associates supports an
exploration target of:
o 416 Mt to 428 Mt grading 0.26% to 0.30% copper for up to 2,437Mlb of copper
and 0.84Moz gold, ranking as one of the largest potential in-situ copper-gold
systems in Mongolia and with only modest drilling.
o The potential quantity and grade ranges are conceptual in nature and based on
nearest neighbour and ordinary krige estimates1. 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.
• Targets and drilling recommended within the highest grade portion of the system
• Technical workshop will review the systematic advancement of Kincora’s 1437km2
exploration portfolio and progress plans for 2018 activities including at Bronze Fox
Vancouver, BC— January 25th, 2018
Kincora Copper Ltd. (the “Company”, “Kincora”) (TSXV:KCC) is pleased to announce the findings
of the Mining Associates Limited (“Mining Associates”) review of its wholly owned Bronze Fox
copper-gold porphyry project in the Southern Gobi, Mongolia (scope of the review and
background on the Bronze Fox project provided in the November 21st, 2017 press release).
The Mining Associates review has provided an independent block model supporting a large-scale
copper-gold porphyry exploration target. The system is bisected by a key regional fault at the
West Kasulu prospect that lies within the western central portion of the Bronze Fox Intrusive
Complex (“BFIC”), which has important implications to exploration going forward as the most
prospective zones of the porphyry system have had limited previous exploration and drilling
(Figures 3 & 4).
Sam Spring, President & CEO, commented: “The review has assisted to quantify Kincora’s large
tonnage system at Bronze Fox, which has surprised on the upside to expectations, providing
parameters for future exploration and steps required for a potential NI 43-101 defined resource.
Two zones have been identified within West Kasulu, bisected by a regional fault, with particular
encouragement provided by the most prospective parts of the porphyry system having
effectively been sterilized to Kincora due to access, which is now resolved. Previous drilling by
Kincora into this now better understood western zone is limited to only 4 holes for 2,170 metres
during 2012, with 3 of those holes providing higher grade intersections, including F62 which
returned 37 metres at 1.01% CuEq within a broader intersection2.
New drill targets have been recommended and further analysis is ongoing to support potential
additional targets. Kincora’s next technical workshop is scheduled for next week and will look to
determine the next steps at Bronze Fox as well as advance the rest of the Company’s projects
located within its dominant position in the Southern Gobi Devonian copper belt.”
With access to the whole Bronze Fox project restored and the recent improvement in the copper
price, Mining Associates considers scope for Kincora to follow a similar strategy to that being
pursued by Xanadu Mines at its advanced Kharmagtai porphyry project, where Mining Associates
previously provided a similar exploration target and review.
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
Figure 1: The review supports West Kasulu being large-scale copper-gold porphyry
Exploration Target
Source: Mining Associates and Company data
Figure 2: Bronze Fox, and its two intrusions, in the wider Southern Gobi copper belt
Background
The Bronze Fox project has an extensive mineralized footprint of over 40km2 within the Bronze
Fox Intrusive Complex (“BFIC”) and also covering 15km2 at the 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 two-license
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, who undertook drilling in 2006) – refer Figure 3. Within this zone broad low
grade copper-gold mineralization commonly with localized higher grades was encountered along
a 1.3 km strike length. Mineralisation extends from surface to a maximum vertical depth of 1,280
m (hole F62, drilled by Kincora in 2012), with two apparent zones intersected by a central NNE
regional fault (the “Tov” fault) with potentially higher grade mineralisation hosted in a younger
monzonite located to the NW (28 holes for 6,012 m, including only 4 holes for 2,170 metres
drilled during 2012 by Kincora) and a better defined bulk lower grade system to the SE within a
granodiorite with apparent NW-SE trending cross faulting (53 holes for 18,841 m) – refer to
Figures 4 and 5.
Project Stage Mt Cu,
%
Au,
g/t
Mo,
%
416 0.26 0.06 0.003
- - - -
428 0.30 0.07 0.004
1
2 Contained Metal CuEq Mt - Copper Equivalent (CuEq) calculation assumptions per Note 2 on page 6 of this press release
Exploration Target1
Exploration target range (per the Mining Associates review) - 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.
West Kasulu -
Target Range Exploration
CuEq
Grade
Contained Metal
CuEq Mt 2 Date Cut-off
grade
Holes
included
Metres
included
0.30 1.3
- -
0.35 1.5
Contained Metal CuEq Mt - Copper Equivalent (CuEq) calculation assumptions per Note 2 on page 6 of this press release
Exploration Target1
Exploration target range (per the Mining Associates review) - 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.
2018 0.20 76 24,139
Mandakh
Soum
⌃
Focus of Mining
Associates review
Tourmaline Hills
Intrusive
Complex
Bronze Fox
Intrusive
Complex
Rio Tinto
Drilling
30km
Kharmagtai
Intrusive
Complex
Alagbayan
Massif
Oyu Tolgoi mineralised
trend
Shivee Tolgoi
mineralised
trend
Tsagaan
Suvarga
Massif
Argalant
Central West Ulgii
Ulgii Khud
massif
Red Well
Kincora camp
⌃
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Legend
Soum centres
Kincora camp
Bronze Fox
East TS
Kincora camp
⌃
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Legend
Bayan Tal
2017 drilling
Xanadu Mines
Drilling
Ikh Shankh
Drilling
Kincora licenses
Kincora camp
⌃
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Legend
Kincora camp
⌃
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Legend
Confirmed Devonian Stratigraphy
Kincora camp
⌃
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Kincora licenses
Interpreted key structures
Interpreted Devonian Belt
Mineral Resource and Ore Reserves
Mineralised Cu-Au occurrence
Confirmed Devonian stratigraphy
Legend
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
Figure 3: Mineralisation at the central western portion of the BFIC extends across the
license boundary at the West Kasulu prospect with exploration previously impacted by
access
Despite more encouraging grades (with Mo zonation) in holes F57, F85 and F62 (the latter
including 37 meters at over 1% copper equivalent2), indicating a more potentially favourable
preservation level in the porphyry setting, the NW monzonite zone has had limited exploration,
with 4 holes for 2,170 metres by Kincora in 2012 and 24 holes for 3,841 metres by previous
tenement holders.
Kincora consolidated the ownership of the West Kasulu prospect in early 2012 and completed
only one field season of exploration before being impacted by the 106-license dispute (where the
western license was revoked – see license boundary in Figures 3 & 4) and depressed copper
prices, and then completing the IBEX transaction. The Mining Associates review has provided
improved geological interpretation of the West Kasulu prospect with recommendations for follow
up exploration including proposed drilling targets.
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
Figure 4: Encouragement is provided by the most prospective parts of the interpreted
porphyry system having limited historical exploration and drilling
Plan view of mineralisation >0.2% Cu envelope: Green - Western zone exploration target, Blue: Eastern zone target,
noting the 15000X and 17977X license boundary and only one field season of unencumbered exploration by Kincora
Source: Mining Associates Pty Ltd - West Kasulu Prospect, Exploration Target for further Exploration Work Report
Figure 5: The Mining Associate review has clearly illustrated two separate mineralized
zones within the West Kasulu prospect, intersected by a dominant regional fault, with
significantly improved geological understanding and parameters for future exploration
Interpreted Geology –West Kasulu Prospect
Source: Mining Associates Pty Ltd - West Kasulu Prospect, Exploration Target for further Exploration Work Report
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
The exploration target is supported by a 3D block model generated by nearest neighbour and
ordinary kriging methods supporting a tonnage exploration target range of 416 Mt to 428 Mt,
grading 0.26% to 0.30% copper for up to 2,437Mlb of copper and 0.84Moz gold1 (Figure 1). This
estimate of the mineralized system is conceptual in nature and shows the potential tonnage and
grade, but currently with insufficient exploration to define a mineral resource, noting modest
drilling relative to the more advanced copper porphyry exploration and development projects in
Mongolia (refer Figures 6 & 7). It is uncertain if further exploration will result in the target being
delineated as a mineral resource.
Figure 6: Notable Mongolian copper porphyry systems
Source: Company and industry data
Mineralized system Current
Stage Mt Cu,
%
Au,
g/t
Mo,
%
OT, Hugo Dummet Construction 976 1.61 0.38 0.003
OT, Heruga Studies
OT, Oyut OP (ex mined) Mining 1,092 0.43 0.27 0.006
OT, Oyut UG Studies 107 0.35 0.61 0.003
Tsagaan Suvarga (Primary) Construction 291 0.55 0.02
Kharmagtai Exploration 46 0.42 0.51
OT, Hugo Dummet Construction 1,835 0.79 0.18 0.005
OT, Heruga Studies 1,816 0.39 0.37 0.011
OT, Oyut OP (ex mined) Mining 389 0.29 0.16 0.004
OT, Oyut UG Studies 159 0.39 0.32 0.003
Tsagaan Suvarga (Primary) Construction 15 0.33 0.01
Kharmagtai Exploration 157 0.32 0.28
Holes and metres drilled 5
OT, Hugo Dummet Construction
OT, Heruga Studies
OT, Oyut OP (ex mined) Mining
OT, Oyut UG Studies
Tsagaan Suvarga Construction
Kharmagtai Exploration
1 Reported Measured & Indicated Mineral Resources as report to respective code (JORC or NI 43-101)
2 Reported Inferred Mineral Resources as report to respective code (JORC or NI 43-101)
3 Cut-off grade - CuEq per respective technical report (otherwise stated as Cu %)
4 Reported at 0.3% CuEq cut off within pit shells & cut-off 0.5% CuEq applied to underground
5 Reported total holes and metres drilled
Holes included Metres included
745
136
441,456
148,889
921
Measured & Indicated 1
Inferred 2
282
265
54,764
108,130
326,510
CuEq
Grade Date Cut-off
grade
1.87 2015 0.37 3
2015
0.61 2015 0.22 3
0.73 2015 0.37 3
0.60 2009 0.20
0.73 2015 0.3 & 0.5 4
0.93 2015 0.37 3
0.65 2015 0.37 3
0.40 2015 0.22 3
0.59 2015 0.37 3
0.36 2009 0.20
0.49 2015 0.3 & 0.5 4
Reported Measured & Indicated Mineral Resources as report to respective code (JORC or NI 43-101)
Reported Inferred Mineral Resources as report to respective code (JORC or NI 43-101)
Cut-off grade - CuEq per respective technical report (otherwise stated as Cu %)
Reported at 0.3% CuEq cut off within pit shells & cut-off 0.5% CuEq applied to underground
Metres included
441,456
148,889
Measured & Indicated 1
Inferred 2
54,764
108,130
326,510
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
Figure 7: Overview of the carboniferous Cu-Au exploration projects in the Southern Gobi
Source: Mining Associates, Company and industry data (pricing at COB January 12th, 2018)
Notes:
1 The potential quantity and grade is conceptual in nature, and based on nearest neighbour
and ordinary krige estimates within an interpreted 0.2% Cu grade shell based on 81 drill
holes spaced approximately 200 x 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 is 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.
2 F62 – 37m grading 0.83% copper and 0.14g/t gold (1.01% CuEq) from 573m, within 391m
@ 0.50% CuEq (0.41% copper and 0.08g/t gold) and 794m at 0.40% CuEq.
The Copper Equivalent (CuEq) 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 (Cu $3.11/lb, Au $1279/oz and Mo $7.1/lb).
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.
Kharmagtai
Intrusive
Complex
(KIC)
Bronze
Fox
Bronze Fox
Intrusive
Complex
(BFIC)
Tourmaline
Hills Intrusive
Complex
1,280m
500m
Central Western BFIC Cross Section
1,500m
Explorat.Stage
Strike
Depth (up to)
Drilling @ Target
stage
Drilling @
Resource stage
Target / Res.
Drilling total
Mineralized AoI
License Size
Operator
% Interest
Ticker
Market Cap
KIC
Post-Resource
1.8km
1km
N/A . .
.…………….
108,130m …….. …
203Mt
>1 60,000m .
25km2
66.5km2
Xanadu
74.2%
XAM.AU
A$167m
Southern Gobi Carboniferous Cu-Au systems
S th Gobi Carboniferous Cu-Au exploration projects
>0.8%
0.5% – 0.8%
0.3% – 0.5%
0.1% – 0.3%
<= 0.1%
Legend – Cu % only
BFRC001
BFRC007
F57
BFD019
F74
Mandakh
Soum
BFIC
Pre-Resource
1.5km
1.3km
24,139m. .
.
N/A …. …
416-438Mt……
<5 0,000m
40km2
223km2
Kincora
100%
KCC.CN
C$16m
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
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.
For further information, please contact:
Sam Spring, President and Chief Executive Officer
[email protected] or +61431 329 345
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 (M.Sc. Mineral Exploration, FAusIM),
Senior Vice-President of Exploration of Kincora Copper, who is the Qualified Person for the purpose of
NI 43-101.
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.