Kincora Announces 2012 Exploration Review and Corporate Update

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
sam.spring@kincoracopper.com
www.kincoracopper.com