May 28 2014
Kincora Copper Limited (the "Company", "Kincora") is pleased to announce drilling activities have commenced at high priority copper porphyry targets, following initial exploration activities having already resumed at Bronze Fox.
The 2014 field season programme has been designed, and is funded, to primarily advance and test a number of large scale copper porphyry targets focused at the West Kasulu, Sophie North and Leca Pass prospects situated around the Bronze Fox Intrusive Complex ("BFIC"). The BFIC is located on our wholly owned 15000X exploration license and does not cross into any neighboring licenses. A detailed exploration review, including initial designed drill holes, has taken place by senior executive management during recent weeks in Ulaanbaatar following various ground truthing site visits and integration of known geology and geophysics.
Drilling activities will focus on areas of known mineralization that remain largely untested with subsequent Induced Polarization ("IP"), alternation and/or fertility analysis assisting vector to areas of potential high grade mineralization. Such targets include the last hole drilled in December 2012, F72, which returned localized copper of +4% on the periphery of a then untested IP chargeability high and in the western region, approximately 1km along strike, of previous drilling at the West Kasulu prospect.
Kincora is pleased to also announce the appointment of Henry Tebar as Principal Geologist as well as the addition of a number of high quality local geologists to our existing team. Henry has extensive copper and base metals exploration experience in various emerging and frontier countries, with proven porphyry orebody discovery experience. Henry is familiar with Bronze Fox via his previous role as President and Chief Geologist of the Trafigura Origo Joint Venture in Mongolia, has extensive knowledge of various regional opportunities and has an existing working relationship with Kincora's Director of Exploration, Yawen Cao.
Following a detailed tendering process, Kincora has signed Major Drilling LLC as its drilling contractor. Major Drilling is widely regarded as the leading drilling contractor in Mongolia in terms of experience, team and safety with current excess capacity in-country. Two UDR1500 Multi-Purpose and one 685 Schramm Reverse Circulation (RC) rigs have been mobilized with the team from Oyu Tolgoi, to Bronze Fox, with RC pre-collars planned before diamond drilling at most copper porphyry targets.
Trenching activities have also commenced at the Happy Geo prospect following promising recent surface sample results and corresponding integrated geophysical analysis. Further details on the Happy Geo prospect are provided on the following page.
Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:
"The last quarter has been a busy period for the Company setting the foundation for an exciting stage with exploration and drilling activities recently commencing. Kincora has a unique mix of experienced geologists, drillers, senior management and is exploring one of the most advanced and prospective copper projects in Mongolia, as we look to replicated a similar programme to that successfully executed in 2001 by the then Ivanhoe Mines (now Turquoise Hill Resources) which led to the "discovery hole" at Oyu Tolgoi.
The primary focus remains large-scale copper porphyry targets that have been actively advanced in the last 18 months since we last drilled at Bronze Fox, where we previously returned very promising results. Furthermore, the gold potential across the project is being pursued, noting that approximately a third of all holes previously drilled at Bronze Fox have returned intervals of at least 1g/t gold, with activities focused on the Happy Geo prospect where no previous drilling has taken place, consistent high grade surfaces have been returned with favourable corresponding geophysics. Other corporate initiatives to add shareholder value are being advanced following the private placement."
The Company will continue to inform the market of its exploration progress.
Happy Geo
The Happy Geo prospect is a 2x7 km structurally controlled east-west corridor in the southern half of Bronze Fox. Previous exploration work has identified outcropping gold veins (from rock chip grab and soil grid sampling), cutting a folded and faulted Upper Carboniferous clastic sequence and this region is to the south of a large fault which separates the more advanced copper porphyry targets to the north. Two zones of sub-outcrop, both with at least a 1-1.5km strike, have been identified at Happy Geo with favorable rock chip samples. The prospect registers both high chargeability and low resistivity signatures at relatively shallow depths. In particular, the area (1km2) to the northeast corner of Happy Geo called Altan Undes (or Golden Root) has consistently returned highly anomalous gold values (from 0.3 up to 91.6g/t Au, averaging 8.6-20.2g/t Au) from grab samples, including coincident Au and As soil anomalies.
Following the very high and large chargeability anomalies identified by the Search 3D IP survey in 2013 and 2D IP undertaken in 2012, a further 68 rock samples were collected from various alteration zones focused around the Happy Geo prospect earlier in the year. Plus Minerals' short wave infra-red (SWIR) spectrometer analysis of the 68 recent samples confirmed zones of argillic, sericitic and silicification alteration with pyrite coincident with the IP chargeability anomalies. The SWIR analysis indicates alteration maybe related to an underlying porphyry system but further analysis is ongoing to confirm this and explore its potential for a near surface shear-gold orebody(s).
Kincora geologists recently also concluded a further orientation survey at Happy Geo, which confirmed the reported high gold tenor here (from 0.01 up to 20.2g/t Au, averaging 5.1-10.1 g/t Au). Follow-up detailed mapping and trenching is ongoing, initially focusing on a 550 m strip of the exposed shear zone at Altan Undes with a focus on at or near surface gold potential.
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 John Rickus, Chairman and Director of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101.
Source: http://www.kincoracopper.com