Drilling and exploration activities at the Bronze Fox project will continue with funds from the first tranche of a private placement of 44.1 million shares by Kincora Copper. The company aims to raise Can$4.6 million through the placement which will assist with its ambition to become the leading listed independent copper exploration and development company in the Oyu Tolgoi South Gobi porphyry copper belt in southeast Mongolia.
The issuance of shares has triggered a pro rata right of participation granted to certain shareholders of the Temujin Mining Corporation and Kincora will include any subscriptions received from Temujin shareholders in a proposed secondary closing.
Kincora is currently exploring its wholly-owned Bronze Fox, Tourmaline Hills and North Fox projects which host an extremely large and strategically located mineralized footprint covering over 40sqkm. The projects are 250km from the Chinese border and within 140km of two large-scale greenfield copper construction projects - the US$6 billion Oyu Tolgoi and the US$1 billion Tsagaan Suvarga.
Kincora’s president John Rickus says, “Funds from the placement will largely be directed towards our ongoing exploration activities at Bronze Fox which currently includes two drill rigs focused around the West Kasulu advanced exploration prospect.
“Our present attention is focused on gaining a better understanding of the prospect’s immediate potential for deeper higher grade porphyry and near surface oxide mineralization. Our drilling program also aims to test at least one priority anomaly target by year end that has been identified by our systematic approach to exploring our significant but largely under explored landholding.”
While the company's core commodity focus remains copper exploration, a number of early stage drilling results and rock chip samples supports the potential for primary gold mineralization at both Bronze Fox and Tourmaline Hills.
Highlights of the recent drilling at West Kasulu prospect include 9 metres averaging 0.37% copper and 0.97 grams/tonne gold and 661 metres @ 0.35% copper, 0.01% molybdenum and 0.08 grams/tonne gold. Additional core assay results have been returned from three holes at the Tourmaline Hills deposit, confirming both gold and copper intersections. Best results include 3 metres averaging 1.09 grams/tonne gold including 1 metre of 2.22 grams/tonne gold and 6 metres averaging 0.85% copper with 0.1 grams/tonne gold.