800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
Kincora advances Red Well prospect, adjacent to Rio Tinto drilling
- Ground magnetic and gravity surveys commenced at Red Well license
- License adjacent to target drilled this field season by Rio Tinto
- Reported copper anomalies on the margin of the Red Well license with a historic Induced Polarization target within central outcrop zone and confirmed fertile geochemical signature
- Recent private placement with the European Bank for Reconstruction and Development strengthens balance sheet to accelerate ongoing exploration activities
Vancouver, BC— October 17th, 2017 Kincora Copper Ltd. (the “Company”, “Kincora”) (TSXV:KCC) is pleased to announced that ground magnetic and gravity surveys have commenced at the wholly owned Red Well license. The Red Well license is located approximately 40km north of the Oyu Tolgoi concentrate plant and immediately to the north of Rio Tinto drilling activities on a Turquoise Hill Resources license (XV- 19315), the latter being the first regional drilling by any major group since 2012. Limited previous exploration across the immediate Red Well region has identified outcropping volcanic rocks with localized malachite staining. The volcanics continue into both the eastern and western sections of the license. At the eastern margin of the license a historic rock chip sample returned 2% copper, 0.25g/t gold, 1.5g/t silver, 0.25% arsenic and zinc, 0.08% lead, 0.002% molybdenum and bismuth, with further copper and other anomalies identified to the immediate west. Historic airborne magnetic data suggests that the cover sequence to the north of the outcrop in the central third of the license is shallow, with a historic regional Induced Polarization (“IP”) target across the central portion of the license.
Sam Spring, President & CEO, commented: “The immediate and general regional setting of Red Well is considered to be highly prospective. Capital constrained field activities since securing the license last year have provided encouraging geological indications with positive fertility results, sodic-calcic alteration, with smears of malachite within volcanics located in the central portion of the license. Recent drilling activities by Rio Tinto based on geophysical targets on the license immediately adjacent to the south along the general NNE arc transverse trend from Oyu Tolgoi also provides encouragement.
Ongoing ground magnetic and gravity surveys are expected to advance our interpretation of Red Well and refine target generation for follow up exploration.
The recent direct private placement with EBRD has further strengthened our balance sheet supporting an acceleration of exploration activities. First phase drilling and initial follow up geophysics has already be completed at Devonian target #1, East Tsagaan Suvarga, and drilling is ongoing at our second target, Bayan Tal.
These activities support the first modern systematic Tier 1 copper porphyry drill testing and district scale reconnaissance exploration program in the Devonian copper belt with current geophysics are advancing Red Well as target 3, with plans currently refining targets 4 and 5 within the dominant ground position we hold across the Oyu Tolgoi-Tsagaan Suvarga Devonian belt.”
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
Figure 1: Location and summary of Kincora’s current exploration activities
Red Well background
On February 29th 2016, Kincora announced that it had been granted a new exploration license named Ulaan Khudag (Red Well) by the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), following the eastern section of the country only being opened up for only 6 months in 2H’15 following a 5 year moratorium for issuing new exploration licenses.
The southern edge of the Red Well license is located as close as 15km along the trend of the Oyu Tolgoi and Shivee Tolgoi mineralized systems. It is located approximately 40km north of the OT project mill and is adjacent to a Turquoise Hill Resources license (XV- 19315) which Rio Tinto has drilled in mid-2107 This is the first regional drilling by either major group since 2012. Infrastructure to and around the license is very favorable, with a phone tower on the license and located 35km northwest from the Khanbogd soum (the local province center).
Stage 2
5000m Target #1 East TS ⌃ F62: 800m @ >0.40% Cu Eq, incl 37m @ >1% Cu Eq Tourmaline Hills Intrusive Complex Bronze Fox Intrusive Complex Rio Tinto Drilling Bayan Tal Ulgii Red Well Bronze Fox Kharmagtai Xanadu Mines Tourmaline Hills Oyu Tolgoi (“OT”)1 Rio Tinto/TRQ/Entrée Resources East TS Tsagaan Suvarga (“TS”) MAK/EBRD NE OT trend Shuteen 30 km ⌃ Ikh Shankh private XV-19315 TRQ/Rio Tinto Target #2 Bayan Tal Geophysics 13 holes for 3145m Current Activities Potential 2017 drill targets for 6 different groups Legend Select newly issued licenses, increasing exploration & expansion activities of incumbant2 Potential 2017 drill targets for 6 different groups Legend Select newly issued licenses, increasing exploration & expansion activities of incumbant2 KCC.TSXV Ta r g e t s : Tw o d r i l l r e a d y a n a l o g i e s t o the existing two large scale mines in belt •First comparable stratigraphy to OT since OT •2016 activities highlighted previous exploration (2011/12) was on margin of intrusive/target area still with good grade East TS “Brownfield” TS style target
- TS >US$1b project Bayan Tal “Oyu T olgoi” style target
- OT >US$14b project Bayan T al - last results: 18m @ 0.66% CuEq 18m @ 0.75% CuEq GMAG feature Tsagaan Suvarga ⌃ F62: 800m @ >0.40% Cu Eq, incl 37m @ >1% Cu Eq Tourmaline Hills Intrusive Complex Bronze Fox Intrusive Complex 2 phase drilling + infill geophysics Red Well Rio Tinto Drilling Up to 8,000m •Severn Sukhait open pit, oxide resources & exploration targets on Northern structural corridor within Western margin: 307Mt @ 0.54% Cu 2 phase drilling + infill geophysics 30 km East Tsagaan Suvarga Up to 8,000m •East TS: Northern structural corridor on Eastern margin of intrusive with comparable geochemistry/fertility/age to Northern corridor on the Western margin Legend Stage 2 5000m Geophysics 6 holes for 2850m Current Activities KCC.TSXV Ta r g e t s : Tw o d r i l l r e a d y a n a l o g i e s t o the existing two large scale mines in belt •First comparable stratigraphy to OT since OT •2016 activities highlighted previous exploration (2011/12) was on margin of intrusive/target area still with good grade East TS “Brownfield” TS style target
- TS >US$1b project Bayan Tal “Oyu T olgoi” style target
- OT >US$14b project Bayan T al - last results: 18m @ 0.66% CuEq 18m @ 0.75% CuEq GMAG feature Tsagaan Suvarga ⌃ F62: 800m @ >0.40% Cu Eq, incl 37m @ >1% Cu Eq Tourmaline Hills Intrusive Complex Bronze Fox Intrusive Complex 2 phase drilling + infill geophysics Red Well Rio Tinto Drilling Up to 8,000m •Severn Sukhait open pit, oxide resources & exploration targets on Northern structural corridor within Western margin: 307Mt @ 0.54% Cu 2 phase drilling + infill geophysics 30 km East Tsagaan Suvarga Up to 8,000m •East TS: Northern structural corridor on Eastern margin of intrusive with comparable geochemistry/fertility/age to Northern corridor on the Western margin Legend Oyu Tolgoi Tsagaan Suvarga Target #3 Red Well Red Well
800–1199 West Hastings Street, Vancouver, BC V6E 3T5 Phone +1 604 283 1722 Fax +1 888 241 5996
Figure 2: Infrastructure to and around Red Well is very favorable, with the central outcrop region only 40km from the OT processing plant and the license is immediately to the north of Rio Tinto drilling activities on a Turquoise Hill Resources license (XV- 19315), the latter being the first regional drilling by any major group since 2012
Figure 3: Red Well is located as close as 15km along trend from the Oyu Tolgoi and Shivee Tolgoi mineralized systems Modified from the Turquoise Hill Resources’ litho-structural and tectonic map (Aug’15 presentation)
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, 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.