Kincora Announces 2012 Exploration Review and Corporate Update VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/19/13 -- Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE:KCC) announces updated exploration results, a review of the 2012 field season activities for the Bronze Fox project and provides a corporate update. Exploration activities in late 2012 focused on determining the potential for higher grade copper-gold porphyry mineralisation at depth and near surface oxides at the West Kasulu prospect and drilling two previously untested geophysics anomalies at Bronze Fox. These activities looked to consolidate promising drilling results earlier in year and recent 3D Induced Polarisation ('IP') analysis. The results of the 2012 exploration programme continue to demonstrate that the Bronze Fox project hosts a large area of lower grade copper and gold mineralisation, open at depth and in every direction with high-grade intersections and new targets continuing to be generated. Following further zones of broad mineralisation being encountered and drilling at one of the aforementioned geophysics targets extending the West Kasulu prospect's potential strike significantly, the Company is investigating the potential use of follow up geophysics and deeper IP analysis at its advanced exploration target zones to assist in identifying additional targets. Commenting on today's announcement, John Rickus, President and CEO of Kincora, said: "Our review of the 2012 exploration season reiterates our belief that Kincora's wholly owned and flagship Bronze Fox project is prospective for both bulk lower grade and deeper higher grade copper mineralisation. Following the successful C$4.6 million private placement late last year drilling activities increased from two to three rigs and ran until the week before Christmas. All core work programmes were completed including: step out drilling around Hole F62 at West Kasulu; advancing key infill drilling and initial metallurgical analysis for a potential oxide development project, also intersecting further shallow porphyry mineralisation (eg 8 metres at almost 1% CuEq); and, drilling a number of untested anomaly targets. Large zones of lower grade mineralisation, both oxide material at surface and sulphides at depth, were returned. While not intersecting economic mineralisation this drilling, and that of two previously untested anomalies, warrant follow up activities and illustrates the Company's systematically exploration of its large regional landholding, the majority of which has experienced limited previous exploration. The recent private placement provides Kincora a number of options and flexibility to resume optimal exploration activities in 2013. The Company continues to monitor yet unsubstantiated local Mongolian media speculation regarding two licenses held by Kincora, the proposed draft Minerals Law, up coming Mongolian Presidential election, and the global markets for exploration juniors. While impacted by these aforementioned factors, we continue to access various other commercial opportunities and discussions with potential strategic investors regarding technical and financial synergies." Summary of key work programmes Between October and December 2012, a further 4,885m of diamond drilling was completed with 1,473m being shallow holes testing oxide mineralisation around the West Kasulu target. This resulted in a total of 15,809m being drilled for the year across 40 holes (previous year 12,435m across 23 holes). Of the 17,051 total samples, 16,547 results have been received to date. Summary of key findings of the 2012 exploration review: -- Deeper sulphide mineralisation at West Kasulu - Three holes completed in late 2012 aimed at testing and extending the area around the promising drill Hole F62 (announced September 5th, 2012) in the Bronze Fox license. These holes have encountered broad lower grade mineralisation with limited higher grade zones which does not supported the potential for a substantial deep economic copper resource in the immediate area. Mineralisation remains open to the southwest with promising mineralisation encountered on the neighboring license (in license 15075) and also possibly to northeast based on geophysics which stretch's about 4kms in length. Further details are provided below. -- Previously untested anomaly extends West Kasulu strike potential 2km - Hole F72, the last of the year, supports geophysical analysis that mineralisation encountered at the West Kasulu prospect continues into a new zone up to 2km to the east. While only partial assay results have been returned, with most mineralisation broad lower grade copper, and with highest grade of 4.06% Cu and 0.19g/t Au, F72 reconciles to the geophysics target profile, adding substance to further IP analysis and supporting a substantial target zone of over 2kms between F72 and West Kasulu. F72 also suggests that the larger West Kasulu system could be linked with the Leca Pass target, with existing high grade mineralisation identified in some strong alteration zones indicating further high grade resource potential. -- Further shallow porphyry mineralisation at West Kasulu - A number of mineralised porphyry dykes were intersected at shallow depths as hole extensions in the late 2012 oxide drilling programme, including 8 metres at almost 1% CuEq (Hole F82 from 168 metres). These dykes are from several metres to over 10 metres, with porphyritic texture and generally associated with further porphyry breccia with over 5-10% of sulfides (most are chalcopyrite). The assay results returned indicate these porphyries are generally with about 0.5% Cu and 0.2 to greater than 1g/t Au. These intersections further confirm the copper-gold porphyry potential in the West Kasulu area. -- Analysis of potential oxide development project continued - An infill programme of 10 shallow holes for around 100-200 metre depth was completed in the West Kasulu oxide target zone in the last quarter of 2012. Results have not increased the potential oxide resources and removed the potential for an economic sulphide resource. Further metallurgical analysis is required and desktop reviews and initial discussions for the availability and sources of water and acid have been progressed. A decision to move to pre-feasibility studies is not expected until mid 2013 subject to favourable infill drilling, metallurgical test and desktop reviews. -- Follow up geophysics and deep IP: To date IP and other geophysical techniques have penetrated to no more than 400m below the surface in limited areas predominately across only the Bronze Fox license. The rationale for assessing the potential use of further and deeper IP analysis is to provide cost effective and detailed information to greater depths than 400m (to potentially over 1,500m) and/or across the majority of Kincora's landholding. Given the recent technical success of Holes F70 and F72 testing previous "blind" targets, with little surface expressions of mineralisation, and Kincora's extensive drilling below 400m (deepest hold to date being 1,360m) further IP across the licenses and to greater depth is expected to improve target generation particularly given the recent success of such techniques at other large scale copper porphyry targets (including Oyu Tolgoi) and ability to reconcile existing drilling data to such geophysics. Other high priority areas within Kincora's three licenses, such as Happy Geo and Tourmaline Hills, are still grass root targets. -- 35 holes of the 40 drilled in 2012 hit copper and/or gold mineralisation and 13 holes of these contain intersections of greater than 1g/t Au with the highest intersection hitting gold grade of 7.77g/t. A total of 21 holes have intersections of greater than 0.5% Cu, with 8 holes containing intersections of greater than 1% Cu, and the highest intersection returning 4.06% Cu in Hole F72, approximately 2km east of West Kasulu. The results of the 2012 exploration programme continue to demonstrate that the Bronze Fox project hosts a large area of lower grade copper and gold mineralisation, open at depth and in every direction with high-grade intersections and new targets continuing to be generated. A summary of detailed 2012 assay results is available on the Kincora website (http://www.kincoracopper.com/bronze-fox- project/technical-reports/2012 assay result summary). Further details following receipt of the 2012 assay results: West Kasulu deeper porphyry prospect - Located towards the eastern boundary of the Bronze Fox license step out drilling to Hole F62 aimed at testing the extent of mineralisation and returned further zones of board but predominately lower grade mineralisation. Hole F62 included 661m at 0.35% Cu, 0.01% Mo and 0.08g/t Au (0.44% CuEq) from 399-1,060m, with 37m at 0.8% Cu (1.07% CuEq) between 573- 610m. Of the 1,360 metres drilled (the deepest hole at the project) over 1,000 metres graded at least 0.40% CuEq with the significant width of higher-grade mineralisation supporting the potential for a deep high grade porphyry deposit. -- Hole F64: 600m to the east of F62, was drilled to 1,228m and intersected disseminated chalcopyrite of a lower grade to F62 and returned a strong argillic alteration zone. The main mineralised zones included: 440-467m @ 0.31% Cu; 481-523m @ 0.33% Cu; 595-733m @ 0.29% Cu Eq and at 827-828m 4.39g/t Au. -- Hole F68: drilled 300m the south east of F62, intersected low grade copper mineralisation and the hole has been stopped at 1,359m. Low grade Cu-Au mineralisation, generally 0.1-0.2% Cu, was encountered in most of the hole with occasional small intervals of greater than 1% Cu. The main mineralisation zones include: 312-484m @ 0.25%; 603-625m @ 0.30%; 754-784m @ 0.25%; and, 984-1007m @ 0.28% of CuEq. -- Hole F85: 250m west of F62, ended at 1,067m and although intersecting chalcopyrite did not return any notable higher grade zones. Lower grade mineralisation started at around 400m to the end of the hole with grades of 0.1 to 0.2% Cu. These three holes drilled in late 2012 have encountered broad lower grade mineralisation with limited higher grade zones which does not supported the potential for a substantial deep economic copper resource in the immediate area that could warrant a potential block cave mining operation. As part of the late 2012 oxide drilling programme a number of mineralised porphyry dykes were intersected at shallow depths as hole extensions. In Holes F82 and F92 broad areas of oxide and sulphide mineralisation were encountered with the mineralised dykes intersected ranging from several metres to over 10 metres, with porphyrytic texture and generally associated with further porphyry breccia with over 5-10% of sulfides (most are chalcopyrite). -- Hole F82: returned a total of 297.2 metres at 0.20% CuEq from surface including sulphide mineralisation of 38 metres at 0.42% CuEq (from 153 metres) associated with a 8 metre dyke which graded almost 1% CuEq. -- Hole F92: returned a total of 151.5 metres at 0.26% CuEq from surface including higher oxide mineralisation of 6 metres at 0.55% CuEq from 15 metres mineralisation. The assay results returned indicate these porphyries are generally with about 0.5% Cu and 0.2 to greater than 1g/t Au. These intersections further confirm the copper-gold porphyry potential near surface in the West Kasulu area. To view Photo 1, please visit the following link: http://media3.marketwire.com/docs/kcc219-Pic1.pdf. Other holes of note, not previously announced since Kincora's last exploration update (September 5th, 2012), include: -- Hole F52: includes, 60m from 20m of 0.3% CuEq; 101m @ 0.35% CuEq (233- 334m), and 59m @ 0.38% CuEq (358-417m). The hole collapsed at a depth of 496.5m in an argillic zone. -- Hole F55: the most western hole at West Kasulu returned intervals of higher grade mineralisation at shallow depths: 1m of 3.55g/t Au at 92- 93m; 1m of 1.41g/t of Au at 103-104m; and, 26m of 0.46% CuEq with bornite between 116-140m. -- Hole F56: the hole was lost at a depth of 66m as it could not a penetrate argillic zone with low grade Cu mineralisation of 0.22% CuEq intersected from surface to the end of the hole. -- Hole F57: includes 63m from 218m of 0.35% CuEq and 87m of 0.26% CuEq (307-394m). -- Hole F58: the east extension of West Kasulu. The hole was lost at a depth of 290.9m in a chorite zone. The hole returned 100-300ppm Cu with intervals of 0.15% to 0.27% Cu. The hole did not reach the designed depth of targeting mineralisation zone. The Cu anomaly possibly indicates a Cu mineralisation system geochemistry anomaly halo. -- Hole F60: depth 301.4m hole lost in argillic zone. The hole encountered low grade mineralisation of 0.17% CuEq from surface to a depth of 301.4m where it was lost in a argillic zone. Within this there were various high grade one metre intervals including 0.54% Cu and 0.15g/t Au (from 10m); and 1.1g/t Au and 0.29% Cu (from 61m). At the West Kasulu prospect mineralisation remains open to the south west with promising mineralisation encountered Hole F55 (in license 15075) and also possibly to northeast based on geophysics which stretching about 4kms in length and the recent results of Hole F72. Refer to Figure 1. Testing of identified anomalies and targets - Via early stage exploration and regional M&A, Kincora has increased its priority exploration targets from four in 2011, to ten. During 2012, exploration activities aimed at systematically prioritizing, testing and realizing the potential of these targets. In late 2012 two previously untested geophysics anomalies at Bronze Fox, which where identified from first phase 3D IP earlier in the year, were drilled. Whilst not encountering economic mineralisation both holes were a technical success, returning significant alteration warranting further exploration activities. -- Hole F72: the last of 2012, was drilled to 840m and targeted a combination of low magnetic, high IP chargeability and low resistivity anomaly near Hole F58 which is with over 200m of Cu anomaly and locally with greater than 0.2% Cu and up to 0.88g/t Au mineralisation and extensive of propylitic and argillic alteration. F72 is located approximately 2kms north west of F62. Only part assay returns have been received to date with low grade copper mineralisation encountered from near surface. Ass ay results to date include: 141-296m @ 0.14% CuEq (including 185-239m @ 0.23% CuEq), with localized areas of higher grade zones (of up to 4.06% Cu). The mineralisation encountered appears more pervasive alteration which is slightly different from West Kasulu where higher grade zones which are generally associated from vein systems. Assay results for a second deeper zone of visual low grade copper and moly mineralisation from F72 are not yet available. To view Photo 2, please visit the following link: http://media3.marketwire.com/docs/kcc219-Pic2.pdf. -- Hole F70: A deep hole, was drilled to explore the South East corner of the Bronze Fox license where there is a substantial geophysical anomaly. F70 commenced in younger Cretaceous rocks until 185m and then in andesites, tuffs with breccias until the end of the hole at 767m. The target was 11km east south east from West Kasulu and while only intersecting Cu and Au anomalies and extensive propylitic alteration and breccia zones in the sulphides intersected in the south east anomaly indicate there is a potentially large scale target for deeper copper sulphide mineralisation. -- Sophie North target: One hole was drilled into this target in 2012 targeting a gold anomaly identified from trenching and soil sampling. Hole F66 intersected low grade Au and Cu. -- Dunlop Fox target: One hole was drilled into this target in 2012 testing the extension of small high grade gold and copper mineralisation at depth. Unfortunately Hole 54 was lost before reaching the target depth. Potential oxide development project - An infill programme of 10 shallow holes for 1,473 metres was completed in the West Kasulu oxide target zone in the last quarter of 2012 to provide the required density to update preliminary resource models. As previously mentioned, a number of these holes were continued into the underlying sulphides. The assay results have not increased the potential oxide resource's scale and removed the potential for an economic sulphide resource beneath the oxides despite intersecting a number of mineralised porphyry dykes. In parallel with the exploration work metallurgical analysis has been ongoing. The findings from column leach tests on two bulk samples from material approaching the mixed sulphide oxide boundary support suitable copper recoveries with acid consumption identified as a key risk for a potential development project. Further bottle roll tests, to better understand the potential to lower and optimize acid consumption relative to copper recoveries, are planned as is the potential testing of a third bulk sample from material thought to be more representative of the broader West Kasulu oxides resource which is expected to have higher copper recoveries than the previously tested transitional material. Desktop reviews and initial discussions for the availability and sources of water and acid have been progressed. A further small scale infill drilling programme and additional metallurgical analysis is contemplate which if favourable would help a decision to move to pre-feasibility studies. Golden Grouse licenses activities and update - As announced on February 8th, 2013, a yet unsubstantiated local Mongolian media report alleges 107 licenses previously issued by Mineral Resources Authority of Mongolia ("MRAM") to unrelated parties are in violation of Mongolia's laws and that these licenses could be repatriated by the State, with compensation expected to be paid prior to any license(s) being cancelled. Included in the 107 licenses listed are two licenses held by Kincora's wholly owned subsidiary, Golden Grouse LLC ("GG"), a company purchased in April'12 from Temujin Mining Corp ("Temujin"). To the best of our knowledge the GG licenses are currently in good standing. Only in 3Q'12 was this confirmed by MRAM when Kincora was granted the first three year extension of the nine year exploration term. The two GG licenses adjoin Kincora's flagship Bronze Fox project and host the Tourmaline Hills and North Fox earlier stage exploration targets which are lower priority targets for Kincora. The Company's core Bronze Fox project containing the majority of the primary exploration targets (and whose exploration results have been discussed at length in this exploration review), is held by a separate wholly owned subsidiary to GG and has not in any way been associated with the above-noted case. Despite our efforts neither the Company nor GG have been able to determine if the allegations included in the local media report are in any way accurate with no official statement from the court nor correspondence from a Mongolian government authority, including MRAM, yet available. Neither Kincora, Temujin nor any of their employees have been associated with any wrongdoing. A summary of exploration activities undertaken by Kincora since the acquisition of GG includes: -- North Fox - Geological mapping over the north licence (15076X) was completed during October and November. 174kms were mapped at 1:50,000 scale. A small zone of Cu and Au mineralisation associated with magnetite-quartz-tourmaline veins and breccia has been identified. The purpose of this work was to meet the minimum tenement expenditure requirement and also to gather basic geological information, which was previously lacking for the license. -- Tourmaline Hills - Within the western license (15075X), 9 of the 16 holes drilled this year have returned intervals of greater than 1g/t Au, up to 7.7g/t Au and with up to 75g/t Ag locally in the mineralisation zone, often with elevated copper values. One new mineralisation zone appears in the west of Tourmaline Hill (F81 zone with an accumulated 4m @ an average of 2.84g/t Au and up to 75g/t Ag locally) that has an IP signature of about 1.5km strike length remain to be tested. Corporate and Financing update As announced on November 29th, 2012, Kincora closed the second and final tranche of a private placement raising a gross proceeds of C$4,631,775 million. Subsequently approval from the TSX Venture Exchange ("TSXV") has been granted for an institutional group becoming an insider with the $538,906.50 of the gross proceeds of the Offering, forming part of a $1,994,700 subscription for Quantum Partners LP was released from escrow in early 2013. Kincora's cash balance at January 31st, 2013 was approximately C$3m. The recent private placement provides Kincora a number of options and flexibility to resume optimal exploration activities in 2013 with approval of the upcoming field season's budget expected at the next board meeting. The Company continues to monitor yet unsubstantiated local Mongolian media speculation regarding two licenses held by Kincora, the proposed draft Minerals Law, up coming Mongolian Presidential election and the global markets for exploration juniors. Whilst impacted by these aforementioned factors, we continue to access various other commercial opportunities with advanced exploration and/or development projects in the immediate region and have discussions with potential strategic investors regarding technical and financial synergies. Kincora is attending the PDAC International Convention Trade Show & Investors Exchange, Mining Investment Show from March 3rd -6th, 2013, at booth 2903, including Mongolia@PDAC Investment conference on March 5th. A summary of detailed 2012 assay results is available on the Kincora website (http://www.kincoracopper.com/bronze-fox-project/technical-re ports/2012assay result summary). To view Figures 1-4, please visit the following link: http://media3.marketwire.com/docs/kcc219_Fig1-4.pdf. Qualified Person The new drilling results in this news release and on Kincora's website and the other scientific and technical information in this news release were prepared in accordance with the standards of the Canadian Institute of Mining, M etallurgy and Petroleum and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and were reviewed, verified and compiled by Kincora's geological staff under the supervision of John Rickus, President & CEO of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101. About Kincora Copper Limited Kincora Copper Limited is a mining exploration and development company based in Vancouver and listed on the TSX Venture Exchange that was formed in mid 2011. Kincora's ambition is to be the leading listed independent copper exploration and development company in the highly prospective and proven Oyu Tolgoi South Gobi porphyry copper belt in southeast Mongolia. The Company is currently exploring its wholly owned Bronze Fox, Tourmaline Hills and North Fox projects which host an extremely large and strategically located mineralised footprint covering over 40km2. The projects are situated only 250km from the Chinese border and within 140km of two large scale greenfield copper construction projects: Oyu Tolgoi, invested capital to date approximately US$6 billion and target production of 160,000t/ day; and, Tsagaan Suvarga, estimated capex US$1b and target production of 40,000t/ day. Other significant mines and associated infrastructure are being developed in this immediate region. 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. Contacts: Kincora Copper Limited Sam Spring VP Corporate Development +61431 329 345 email@example.com www.kincoracopper.com
Kincora Announces 2012 Exploration Review and Corporate Update
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