Kincora Copper’s Mongolian subsidiary Golden Grouse LLC has secured a new licence in southern Mongolia that is associated with an outcropping copper-gold porphyry system. The Ulaan Khudag (Red Well) licence is as close as 15km along the mineralized trend from the Oyu Tolgoi project.
An identified contact zone continues to the eastern and western sections of the licence, the margin just to the east returning a previous 2% copper and 0.25 grams/tonne gold sample with anomalous values also to the west.
The licence, which covers 3955 hectares, was granted by the Mineral Resources Authority of Mongolia (MRAM) after the eastern section of the country was opened up in the second half of 2015 following a 5-year moratorium for issuing new exploration licences.
The outcropping zone at Red Well, in the central third area of the licence, is 40km north of the existing plant at Oyu Tolgoi. Infrastructure to and around the area is very favourable due to being 35km northwest from the Khanbogd soum, one of the country’s province centres.
Most recent field season activities focused on advancing and de-risking two copper-gold open pit targets, one on the recently returned Western (Tourmaline Hills) licence and the other on the Eastern (Bronze Fox) licence, where previous drilling intersected promising copper and gold mineralization. Surface geology and geophysics are favourable but these targets have not been sufficiently tested and remain open. Next steps, subject to board approval, are proposed to include trenching, then drilling for finger porphyry targets.
Kincora’s president and CEO Sam Spring says, “The company continues to seek to advance our existing prospects in a capital responsible manner, further expand our Mongolian footprint and aggressively pursue more advanced opportunities in other jurisdictions where we feel we have a competitive advantage to create shareholder value.
“The 2015 field season activities have supported two interesting nearer surface targets that warrant testing on the margins of the Bronze Fox Intrusive Complex, both of which have limited but promising drilling results and are attractive scale target areas.
“Our new Ulaan Khudag licence has a very favourable address from a geological and infrastructure perspective on trend from Oyu Tolgoi, associated with a copper system which despite limited exploration has potentially ore copper values, with outlined programs designed to cost effectively better understand the potential for a nearer surface copper porphyry target(s). The licence has a full term of up to 12 years and is an attractive addition to our portfolio with very low capital requirement, again highlighting Mongolia’s status of one of the last proven but underexplored copper frontiers and on China’s doorstep.
“As part of our systematic approach to exploration, Kincora has dropped the Northern licence, which was returned to us last year, and is in advanced discussions regarding prospective Mongolian and other opportunities.”
The company continues to closely control its cash expenditure and align its board/executive management to shareholders where possible. It has recently further reduced board and executive management cash remuneration by approximately 40% with an increase in script-based compensation.