Kincora Copper has identified a number of large-scale, high priority follow-up targets at its Bronze Fox licence in Mongolia. The company says these are near surface targets and merit further drilling.
The targets have been advanced and refined as the result of a recently completed Induced Polarization (IP) study covering 48.96sqkm and other geological work.
An independent consultant review of Bronze Fox’s regional setting encountered hydrothermal copper activity and identified exploration targets. This followed a recent site visit with positive initial findings.
Kincora’s president and chief executive Sam Spring says, “Preliminary results of the recently completed IP (geophysical) program coupled with internal and independent interpretation of geology provides a number of exciting and high priority follow-up targets, particularly nearer surface, which we expect warrant drilling.
“Further analysis and integration of various activities completed in the current and previous field seasons are ongoing but initial findings have confirmed Bronze Fox’s strategic location in a proven but underexplored productive porphyry copper belt and enhanced our understanding of its favourable regional setting, extensive copper-gold system(s), and advanced both nearer surface and potentially higher grade target areas.
“Construction of the Tsagaan Suvarga project, and associated infrastructure, continues within 40km of Bronze Fox and initial production from Oyu Tolgoi, 140km away along strike, is ramping up with discussions for financing of the underground development ongoing.”
He says the aim of Kincora’s field season was to responsibly add value at the asset level while remaining comfortably funded into 2014 by both refining exploration data and specifying target generation of large-scale, potentially world-class size, porphyry copper-gold targets. “This has been accomplished as Kincora completed one of the most active copper exploration programs in Mongolia during 2013, on one of the most advanced and prospective projects with the benefit of having one of the youngest exploration licences.”
Sam Spring says that on October 3, 83% of Mongolia’s Parliament voted to approve a new law on investment that is intended to introduce a stable tax and legislative environment, and will not distinguish between foreign or domestic investors. While full details of the new law are not yet available it is proposed to come into effect on November 1 and is expected to repeal the Strategic Entities Foreign Investment Law, which was enacted in May 2012 and restricted investments in strategic sectors, including mining, by requiring government, or even parliamentary, approval for certain transactions.
He says the Investment Law is the first of a number of proposed legislative initiatives driven by the recent decline of Foreign Direct Investment and private sector activity in Mongolia. “One of the key goals of the new law is to provide a stable and favourable investment environment through two mechanisms. Firstly, four key taxes (corporate income tax, customs duty, VAT and mining royalties) will be stabilized for a defined period of time, 5 to 15 years, depending on the value and location of the investment with a certificate to be issued to both domestic and international investors. Secondly, to safeguard the key principles of the new Investment Law a vote of at least two-thirds of the members of Parliament is required for any amendments to be made in the future. The Investment Law retains an approval process for certain state-owned foreign entity transactions.”
Kincora also continues to look to take steps to reduce cash outflows with further overhead/administrative cost savings realized, additional steps taken and other measures planned. Uncertainty concerning its Golden Grouse licences of Tourmaline Hills and North Fox, continues and is being closely monitored.