Kincora Copper is advancing its hold on a prospective copper-gold region in southeast Mongolia, with the acquisition of a Mongolian company which holds mining and exploration licences adjoining its Bronze Fox project.
Kincora has employed Canadian merchant bank Forbes & Manhattan to acquire all of the issued and outstanding shares of Golden Grouse LLC from private company Temujin Mining, which holds the Manlai licences.
The Manlai licences are in an area of known porphyry copper deposits, immediately to the west and north of Kincora’s Buyant licence, which takes in its Bronze Fox project. They are within the same geological group as the giant Oyu Tolgoi copper-gold mine, as well as the Bronze Fox and Tourmaline Hills prospects. The southern licence takes in almost 25,000 hectares about 480km south of Ulaanbaatar, while the northern Manlai licence covers 15,200 hectares about 460km south of the capital.
“This transaction suits the company’s strategic goals and will add a significant tenement to our prospect pool of promising targets,” says Kincora president Igor Kovarsky. “On closing of the acquisition, our tenement will encompass two of Ivanhoe’s former high priority prospects, Bronze Fox and Tourmaline Hills.”
A drilling program completed in November 2011 returned high grade copper and gold intersections at the West Kasulu and Sophie North deposits at Bronze Fox, including a high copper grade of 8.11% and gold grade of 1.5 grams/tonne over 1 metre within a 106 metre intersection, and gold anomalies from 36 metres to 342 metres, with 10 x 1 metre intervals intersected hosting between 0.1 grams/tonne gold and 0.44 grams/tonne gold.
A systematic rock ship sampling program of the historical Soviet trenches and a soil sampling program with a 200 metre grid of the whole licence area are under way, with the program aiming to screen the potential for gold mineralization outside the current concentration areas.
Kincora also plans to carry out a high resolution ground magnetic survey to map structure and alterations associated with magnetite destruction, and also to highlight any magnetic intrusions, especially within the covered terrain of the licence area.
Completion of the acquisition remains subject to the completion of a satisfactory due diligence review by Forbes & Manhattan and Kincora, as well as regulatory approvals.