Following due process and as specified in the competitive selection process, Kincora Copper has regained the two licences held by its wholly-owned Golden Grouse subsidiary that were revoked as part of the 106-licence dispute. The licences are as new and have a full 12-year term.
The two Golden Grouse licences were originally acquired in April 2012 by Kincora and are adjacent to the company’s more advanced Bronze Fox project.
The Western licence in particular has a favourable structural setting and from previous surface exploration and shallow drilling is considered prospective for structurally controlled and/or epithermal high grade gold and also copper, the later convincingly confirmed with a fertile porphyry setting.
The Western licence hosts the Khunguut (copper-gold – extension of West Kasulu prospect on the Bronze Fox licence), Tourmaline Hills (gold-silver and gold-copper), West Fox (gold) and Southwest (gold) prospects.
Exploration activities in the one field season Kincora had unimpeded access to the Golden Grouse licences focused on drilling at West Kasulu on the western neighbouring margin of the Bronze Fox licence and its continuation into the Western licence at Khunguut, with 15 holes also drilled at the Tourmaline Hills gold prospect.
In all, 16 holes for 6742 metres were drilled on the Western licence by Kincora, with 23 and 24 holes historically drilled by Temujin Mining and Ivanhoe Mines respectively and a total of 33 trenches, before the licence was revoked with no drilling at the West Kasulu prospect in 2014.
Kincora’s president and CEO Sam Spring says, “Uncertainty and the revocation of our Golden Grouse licences have significantly impacted Kincora and general investor confidence towards Mongolia for over two years. We welcome this resolution in the most equitable and timely manner available to us, taking into consideration the interests of our shareholders and avoiding the courts. Regaining the returned Western licence is particularly significant given its strategic importance, common geology with our Bronze Fox licence, prospective previous results and favourable structural setting.
“The 106-licence dispute has materially impeded Kincora’s exploration efforts, including at Bronze Fox, and our corporate discussions and strategy. Following its conclusion we again have unimpeded control of our corporate strategy and are actively seeking potential options to now enhance shareholder value, both in Mongolia and elsewhere.
“I would like to thank our Mongolian team for their considerable effort and persistence, and all those who have contributed to our lobby, to see this issue gain the attention it has and bring it to conclusion in the quickest possible timeline.”
Minter Ellison, a leading full service international law firm with a permanent office and physical presence on the ground in Ulaanbaatar since 2012 advised Kincora in this matter. According to resident managing partner Elisabeth Ellis: “Security of tenure and due legal process are fundamental cornerstones for continued foreign investment and private sector business activities in Mongolia. The return of Kincora’s licences sends the message that the Mongolian Government recognizes this, as well as the importance of transparency in its dealings with participants in the mining sector. This is timely and welcome news for foreign investors with assets in Mongolia and those considering an investment in the country.”