The Mineral Resources, Petroleum Authority of Mongolia (MRPAM) has issued Kincora Copper’s Mongolian subsidiary Golden Grouse Ibex LLC a new copper-gold exploration licence, which adjoins one of its existing and large-scale priority exploration licences hosting the Bayan Tal Igneous Complex (BTIC).
Limited previous exploration at the Bayan Tal target on the Khuren Tsav licence returned favourable copper-gold widths and grades on or near to the distal southern outcropping margin of an interpreted large-scale target at shallow to moderate cover. It is the first comparable Devonian age stratigraphy and conglomerate to Oyu Tolgoi (OT), since OT.
Previous results include 18 metres @ 0.75% copper equivalent in a trench and 18 metres @ 0.66% copper equivalent in a drill hole.
The new 20sqkm Shavagtai (Sagebrush) licence is the second Kincora has secured via the direct application system since the new ground in 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.
Other larger-scale and longer-term explorers in the belt have also been successful securing new ground in this belt and are now resuming exploration activities.
As stated by the country’s Minister of Mining and Heavy Industry, Dashdorj Tsedev, at PDAC earlier this year, it is proposed that total land available for exploration in Mongolia will be increased from the current 9.6% to 20.9%.
Kincora’s president and CEO Sam Spring said, “It is pleasing to see our portfolio increase around the mineralised Bayan Tal target which is one of the most advanced and prospective untested intrusive complexes in the Oyu Tolgoi-Tsagaan Suvarga Devonian copper belt.
“The new licence, in addition to the issuance of our Red Well licence last year, further demonstrates Kincora’s ability to pick up prospective exploration land in Mongolia. Our regional exploration across the belt, expansive proprietary database, existing network, unique Technical Committee credited multiple Tier 1 copper discoveries, and year-round Southern Gobi camp provides a competitive advantage for new project generation.
“Discussions remain ongoing for more advanced and/or strategically important new opportunities to provide further scale and continue our counter-cyclical expansion and exploration strategy. There has been a noticeable increase in activities in the belt, with increasing exploration and drilling activities, incumbents expanding land holdings and new entrants undertaking due diligence.
“Post the IBEX transaction being completed late last year further additions of strategic land and divestments of less prospective licences will be part of Kincora’s ongoing strategy and has become possible since favourable changes to the Mongolian mining sector’s legislative environment.
“Following recent exploration activities, 103sqkm of unprospective ground has been voluntarily relinquished as we undertake the first modern systematic Tier 1 drill testing and district scale reconnaissance exploration program the world-class, under-explored Southern Gobi Devonian copper gold belt.”