VANCOUVER, June 8, 2017 /CNW/ - Kincora Copper Limited (the "Company", "Kincora") (TSXV:KCC) is pleased to announce the recent issuance by the Mineral Resources, Petroleum Authority of Mongolia ("MRPAM") of a new copper-gold exploration license adjoining one of our existing and large scale priority exploration licenses that hosts the Bayan Tal Igneous Complex ("BTIC").
Limited previous exploration at the Bayan Tal target on the Khuren Tsav license returned favourable copper-gold widths and grades on or near to the distal southern outcropping margin of an interpreted large-scale target at shallow to moderate cover with the first comparable Devonian age stratigraphy and conglomerate to Oyu Tolgoi ("OT"), since OT. Previous results include 18m @ 0.75% Cu Eq (trench) and 18m 0.66% Cu Eq in drill hole IBEX006.
The new Shavagtai license is the second Kincora has secured via the direct application system since the new ground in the eastern section of the country was opened up in the second half of 2015 following a 5-year moratorium for issuing new exploration licenses. Other larger-scale and longer-term explorers in the belt have also been successful securing new ground in this belt and are now resuming exploration activities (refer to Figure-2 in the Appendix to this press release). As stated by Minister of Mining and Heavy Industry, Dashdorj Tsedev, at PDAC earlier this year, it is proposed that total land available for exploration in Mongolia will be increased from the current 9.6% to 20.9%.
Sam Spring, President and CEO commented, "It is pleasing to see our portfolio increase around the mineralized Bayan Tal target which is one of the most advanced and prospective untested intrusive complex's in the Oyu Tolgoi-Tsagaan Suvarga Devonian copper belt.
The new license, in addition to the issuance of our Red Well license last year (noting drilling activities currently ongoing on an adjacent license by large scale incumbent), further demonstrates Kincora's ability to pick up prospective exploration land in Mongolia. Our regional exploration across the belt, expansive proprietary database, existing network, unique Technical Committee credited multiple Tier 1 copper discoveries, and year round Southern Gobi camp provides a competitive advantage for new project generation.
Discussions remain ongoing for more advanced and/or strategically important new opportunities to provide further scale and continue our counter-cyclical expansion and exploration strategy. There has been a noticeable increase in activities in the belt, with increasing exploration and drilling activities, incumbents expanding land holdings and new entrants undertaking due diligence.
Post the IBEX transaction being completed late last year further additions of strategic land and divestments of less prospective licenses will be part of Kincora's ongoing strategy and has become possible since favourable changes to the Mongolian mining sector's legislative environment. Following recent exploration activities, 103 km2 of unprospective ground has been voluntarily relinquished as we undertake the first modern systematic Tier 1 drill testing and district scale reconnaissance exploration program the world-class, under-explored Southern Gobi Devonian copper gold belt."
Exhibit-1. License portfolio update: The new Shavagtai license is adjacent to the Bayan Tal target located on the Khuren Tsav license, with part relinquishment of existing the Amtgain Toirom,14876 license, post systematic exploration
Figure-2. Increasing exploration and expansion activities in the belt
Figure-3. Kincora has been issued a new exploration license adjoining one of its flagship
exploration targets, located almost half way between the Oyu Tolgoi and Tsagaan Suvarga
porphyry systems in a similarly interpreted favorable intersection of arc parallel and transverse
structures. Such a structural setting is common for most large-scale porphyry deposits globally,
also noting periodicity to the location of most deposits in the more mature porphyry belts.
Figure-4. Infrastructure to and around the newly issued Sagebrush license (in Blue) is very
favorable, within 80km from the OT processing plant, 50km of the Khanbogd soum center and
our “White Pearl” camp, in one of the fastest growing mining and infrastructure development
regions in the world.
Background
Kincora is pleased to announce that its wholly owned subsidiary Golden Grouse Ibex LLC has been granted a new exploration license by the Mineral Resources, Petroleum Authority of Mongolia ("MRPAM", previously known as the Mineral Resources Authority of Mongolia, "MRAM") that covers 20km2, named "Shavagtai" (Sagebrush), and is located adjacent to its existing Khuren Tsav, 14396 license (403km2).
The issuance of the Shavagtai license with full 12 year term follows Kincora in February 2016 securing the "Ulaan khudag" (Red Well) license, located as close as 15km along trend from the Oyu Tolgoi and Shivee Tolgoi mineralized systems (the former which extends a known 26km's) at the Oyu Tolgoi project, and the eastern section of the country only being opened up in the second half of 2015 following a 5 year moratorium for issuing new exploration licenses.
As part of a standard procedure going forward for all licenses, our Technical Committee has reviewed the Amtgain Toirom, 14876 license to ensure it fits within our exploration parameters and following recent activities, on this licenses and across the belt, including last years extensive ground magnetics survey and historical Induced Polarisation ("IP"), 103km2 of the original 162km2 license has been voluntarily relinquished as Kincora advances its wholly owned and dominant land position in the belt up the value curve.
Further details on this license are included on the Kincora website as an Appendix to this press release: http://kincoracopper.com/research-reports
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.
