Kincora Copper has completed phase one drilling of porphyry copper targets at the East Tsagaan Suvarga (TS) prospect in Mongolia’s South Gobi region and has commenced drilling at the Bayan Tal prospect. The maiden East TS program comprised 13 holes with six intersecting the interpreted Devonian quartz monzodiorite of the Tsagaan Suvarga Intrusive Complex (TSIC) at potential open cut depths.
Visual interpretation has deemed the drilling program at East TS a ‘technical success’ having intersected a felsic intrusive at or around target depth and providing geological information to design the next stage geophysical programs and interpretation.
Kincora’s vice president of exploration Peter Leaman was at site overseeing activities and said, “The first phase drilling program consisting of reverse circulation and percussion pre-collars with diamond tails totalling 3145 metres has been completed at East TS and been successful, in line with our expectations for the program.
“Phase one was designed to primarily test various ground magnetic targets and provide an improved geological knowledge of our interpretations of the region. The program successfully intersected interpreted Devonian age monzodiorite in six drill holes with further understanding of the outcrop in the general target zone refined.
“A broad area of monzodiorite and various structural corridors has been outlined over which ground infill magnetic and gravity survey shave commenced in order to refine zones for more detailed induced polarisation surveys and specific target testing of mineralisation in a fully funded second phase drilling program.
“The monzodiorite is the dominant intrusive rock type hosting Tsagaan Suvarga porphyry copper mineralisation, and potential is also emerging to host to a large tonnage and higher grade Hugo Dummett or Heruga equivalent system within the TSIC which may have been preserved with materially better grades than the Serven Sukhait open pit on the western margin of the complex. We are looking to advance this latter new concept as well as the potential for the original analogue for another Serven Sukhait open pit deposit on the eastern margin of the TSIC.
“The successful exploration efforts at East TS provide a template for which we are looking to systematically replicate across the rest of our commanding portfolio in the world-class Oyu Tolgoi-Tsagaan Suvarga Devonian copper belt,” he said.
Meantime, the company has closed a second tranche non-brokered private placement to raise C$1.4 million. The placement follows closing of a first tranche on August 22, with total gross funds raised being C$5.92 million.
The placement was made to the European Bank for Reconstruction and Development (EBRD), which now owns 6.16% of Kincora.
Kincora’s president and CEO Sam Spring says, “Following an extensive due diligence process we are delighted to have EBRD as a new shareholder. The bank is a significant investor in some of Mongolia’s largest mining projects and has provided finance to assist the development of the two existing economic copper projects in the Devonian belt.
“EBRD’s investment is testament to the growing belief that Kincora holds some of the most exciting exploration assets along one of the last great underexplored copper belts.
“In the last two months, Kincora has attracted two new significant investors who are well known in the industry and now also sit alongside HPX with a shareholding of approximately 6%. This second tranche strengthens our balance sheet to accelerate ongoing exploration activities, and with the fund raising process now concluded operational news flow is set to accelerate.”