Kincora Copper’s 2014 field work has identified a number of new targets at the Bronze Fox Copper-Gold Project but nothing economic as yet. As with previous field seasons the 2014 activities returned extensive low-grade copper and localized higher-grade porphyry occurrences at various targets.
The 2014 work at copper porphyry targets included drilling of 11 holes for 9611 metres at three prospects. All targets drilled remain open, with further trenching and scout drilling programs having been outlined that are supported by the systematic approach and prospective results to date.
With gold exploration, Kincora completed 1461 metres of trenching and two holes for 474 metres at two prospects. For the first time this work advanced the standalone gold potential at Bronze Fox with promising results.
The second last drill hole of the year at Sophie North returned a wide zone of lower grade gold mineralization hosted in a breccia zone within the diorite, which could extend to surface, returning 47 metres of >0.1 grams/tonne gold, including 7 metres @ 1.56 grams/tonne and 5.85 grams/tonne at 145 metres. The gold mineralization is commonly with associated copper mineralization, with approximately 0.1 to 0.3% of copper, and up to 0.75% copper.
Kincora’s CEO Sam Spring says in 2015 surface exploration activities, including trenching, further geophysics, mapping and geochem, are proposed at the Sophie North, Happy Geo, Dunlop Fox, Hulan, and the SE Area prospects to systematically advance identified targets. This will be funded from existing cash reserves.
“Follow-up drilling targets have been identified at the Leca Pass, Shargal Tolgoi and West Kasulu prospects that are planned subject to favourable resolution of our former Golden Grouse licences, impacted by the 106-licence dispute, and market conditions.”
Sam Spring says that the company will not explore any further on the Golden Grouse gold licences, which are to the west of Bronze Fox, until the dispute with the Mongolian government over tenure is resolved.
In this regard Kincora has agreed with MRAM costs relating to the former licences held by its wholly-owned Golden Grouse subsidiary. These direct costs will form a threshold price, the starting point for the competitive tender process expected to be held on January 9, 2015, with a potential second and final tender on February 9, if needed, to reissue the revoked licences.
It is specified in the competitive selection that if such a former license holder participates in the tender process but does not win and regain the license(s), its expenses incurred (the agreed threshold price) will be paid, or reimbursed as cash compensation by the successful bidder, with the licence being granted with a full term of tenure (ie up to 12 years) either to the former licence holder or successful third party bidder.
To date 23 impacted licences for an estimated cumulative US$2.49 million of expenditure have been retendered, with 11 licences returned to the former holders, three remaining property of the State following no bids, four acquired by third parties and five having a second and final tender on January 9.
A total of 18 licences are proposed to be tendered on January 9 and Kincora notes that this batch of tenders, the third relating to the previously revoked 106-licences, is the first to include licences with significant previous expenditure and follows the recent change in Mongolian Prime Minister and subsequent formation of an unprecedented super coalition government.
Recently appointed Prime Minister Ch Saikhanbileg has repeatedly acknowledged the impact of the 106-licence dispute as a factor negatively impacting investor confidence and the economy, with MRAM to present to the newly formed Cabinet progress relating to the dispute and issuance of new exploration licences following respective legislation being approved the first week of July.
Sam Spring says, “Uncertainty and the revocation of our Golden Grouse licences, as part of the 106, have significantly impacted Kincora and general investor confidence towards Mongolia for almost two years, and we welcome this important step forward to conclude our dispute in an equitable manner.”