Kincora Completes IP Programme and Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA, Oct 23, 2013 (Menafn - Marketwired via COMTEX) --Kincora Copper Limited (the "Company", "Kincora") is pleased to provide an update on recent operational and corporateactivities:

--Large scale, high priority copper porphyry targets advanced and refined
following recently completed Induced Polarisation ("IP") survey,
covering 48.96km2, and other field season activities at flagship Bronze
Fox license
--Independent consultant review of the Bronze Fox's regional setting,
encountered hydrothermal copper activity and exploration targets ongoing
following recent site visit with positive initial findings
--Mongolian Parliament approves new Investment Law aimed at encouraging
foreign direct investment and private sector activities
--Uncertainty concerning Golden Grouse licenses, Tourmaline Hills and
North Fox, continues and is being closely monitored
--Director on-market acquisition of shares continues
--Further overhead/administrative cost savings realised, additional steps
taken and other measures planned

Commenting on today's announcement, Sam Spring, President and CEO ofKincora, said:
"Preliminary results of the recently completed IP (geophysical)programme coupled with internal and independent interpretation ofgeology provides a number of exciting and high priority follow uptargets, particularly nearer surface, which we expect warrantdrilling. Further analysis and integration of various activitiescompleted in the current and previous field seasons are ongoing butinitial findings have confirmed Bronze Fox's strategic location in aproven but underexplored productive porphyry copper belt and enhancedour understanding of its favourable regional setting, extensivecopper-gold system(s), and advanced both nearer surface andpotentially higher grade target areas. Construction of the TsagaanSuvarga project, and associated infrastructure, continues within 40kmof Bronze Fox and initial production from Oyu Tolgoi, 140km awayalong strike, is ramping up with discussions for financing of theunderground development ongoing.
The aim of our field season was to responsibly add value at the assetlevel while remaining comfortably funded into 2014 by both refiningexploration data and specifying target generation of large scale,potentially world-class size, porphyry copper-gold targets. This hasbeen accomplished as Kincora completed one of the most active copperexploration programmes in Mongolia during 2013, on one of the mostadvanced and prospective projects with the benefit of having one ofthe youngest exploration licenses. I would like to thank ouremployees and contractors for their recent hard work and look forwardto providing a further update once final results are to hand."
Exploration update
The recently completed Induced Polarisation ("IP") programme utilizedthe Search Exploration system with preliminary analysis bothconfirming previous, and generating new, large scale high prioritycopper porphyry targets on the Company's flagship Bronze Fox license(15000X). The programme not only penetrated to a greater target depththan previously experienced but also covered a number of untestedareas. In total 35 blocks, 238 transmitting and 476 receiving linekilometers respectively were completed covering a 48.96km2 area alongthe central prospects of the Bronze Fox license with no accidents orinjuries - refer Figure 1.
The success of similar IP programmes at Oyu Tolgoi and the technicalsuccesses experience by Kincora in late 2012 with drilling results attwo undercover new targets (with no supporting existing geology)reconciling to the geophysics targets, adds significant substance tothe IP analysis. Bronze Fox continues to be one of the more advancedcopper exploration projects in the highly prospective South Gobiregion, offering large scale potential supported by known widespreadlower grade copper mineralisation, and localized higher grades, withone of the youngest aged exploration licenses. Previous geochemical,geological mapping and alteration studies coupled with groundmagnetics, shallower IP programmes and drilling results, includingintersected mineralised copper porphyry and porphyry dykes, definedthe scope of the recently completed programmes.
Other field season activities have included geological and alterationmapping, and Infra-Red ("IR") spectrum analysis, the latter completedwith TerraSpec by consultant Plus Mineral, across various selectedtarget areas - refer Figure 5. Additional petrographic andlithogeochemcial analysis is ongoing following a recent site visitfrom Professor Tony Crawford. Initial findings regarding Bronze Fox'sregional setting, encountered hydrothermal copper activity andexploration targets have been positive.
Analysis and integration of various activities completed in thecurrent field season and previous work are ongoing, particularlygiven the ability to reconcile both recent and historical geophysicalanalysis against existing drilling data and recent advancements ininternal and independent understanding and interpretation of geology.Key focus areas of continuing analysis include the Sophie Northprospect (discussed further below highlighted in Figures 2 and 3), alarge conductive zone around the Happy Geo prospect with a discretehigh chargeability anomaly to the south of Happy Geo and furthergeophysical interpretation of anomalies relative to previous drillingand alteration zone mineralogy at the West Kasulu and Leca Passprospects which have also identified further targets with are not yetdrill tested - refer Figures 2 and 3.
Additional geological and IP results are expected in approximatelyone month's time which will assist advancing the current workingmodel of the extensive hydrothermal copper activity encountered atBronze Fox and prioritize follow up drill targets. The ongoinginversion modeling indicates potential world-class size porphyrycopper-gold target(s), often supported by positive known geology,which are expected to be drill tested in the 2014 field season.
It is worth noting that the historic drilling illustrated in the 2013preliminary analysis of IP survey results in Figure 2 has notpenetrated to the target depth of the geophysical anomalies. Mostholes have been drilled to approx. 300m depth (maximum hole depth isless than 500m), relative to most targets from the 2013 programmecommencing at 400-500m.
Of particular note are initial inversions that have defined aclassical circular chargeability high, with a resistivity low almostin the core of the latter, just offset to the west at the SophieNorth prospect, which extends into Buchanan Heights. The geophysicalprofile supports previous drilling results which returned anomalouscopper and gold mineralisation near the IP target zone which coupledwith an potential outcropping tonalite porphyry with unidirectionalsolidification textures (USTs) just further south, supports that theupper mineralized parts of the porphyry intrusions may have beenpreserved in a relatively unexplored area directly to the north ofthe West Kasulu prospect in shallower trending region. Followingpositive preliminary analyses of anomalies identified at Sophie Northand Buchanan Heights as part of the 2013 programme an additional fourblocks to the north were completed and preliminary analysis is notyet available. Recent geophysical and geological developments supportthis target being a drill ready, large-scale, high prioritycopper-gold porphyry target.
The preliminary data processing and inversion for the whole surveymay is expected to take a few weeks with detailed processing (3Dmodel) and interpretations expected in approximately one month'stime.
New Mongolia Investment law
On October 3rd, 2013, 83% of Mongolia's Parliament members voted toapprove a new law on investment ("Investment Law"), that is intendedto introduce a stable tax and legislative environment, and will notdistinguish between foreign or domestic investors. While full detailsof the new law are not yet available it is proposed to come intoeffect on November 1st, and is expected to repeal the StrategicEntities Foreign Investment Law ("SEFIL"), which was enacted in May2012 and restricted investments in strategic sectors, includingmining, by requiring government, or even parliamentary, approval forcertain transactions.
The Investment Law is the first of a number of proposed legislativeinitiatives driven by the recent decline of Foreign Direct Investment("FDI") and private sector activity in Mongolia. One of the key goalsof the new law is to provide a stable and favourable investmentenvironment through two mechanisms. Firstly, four key taxes(corporate income tax, customs duty, VAT and mining royalties) willbe stabilized for a defined period of time, 5 to 15 years, dependingon the value and location of the investment with a certificate to beissued to both domestic and international investors. Secondly, tosafeguard the key principles of the new Investment Law a vote of atleast two-thirds of the members of Parliament is required for anyamendments to be made in the future. The Investment Law retains anapproval process for certain state-owned foreign entity transactions.
Director on-market acquisition of shares continues with further cashcost reduction realised
The Company continues to look to take measures to reduce cashoutflows and provide flexibility regarding future commitments. Acomprehensive review of executive and non-executive remuneration hasrecently been completed using comparables of both similar size TSXVand companies with Mongolian asset class exposure. Kincora is wellbelow average on General & Administrative cash costs ("G&A") withinour peer group with one of the more favourable Exploration andDevelopment ratios to G&A.
As previously announced on May 10th, 2013, Kincora adopted aremuneration policy for director's fees such that there is acommitment for the on-market acquisition of shares, which remains inplace with all directors participating in the programme. Refer toSEDI for further details ( Additional measures areexpected to be taken to further promote the alignment of interestsbetween management, directors and shareholders to reflect currentmarket conditions.
The Company's cash balance as at the end of September, 2013 wasapproximately 1.39m supporting activities comfortably into 2014 withthe management continuing to focus on further reducing G&A cashoutflows as evidenced by recent significant reductions in bothVancouver and Mongolian office costs. Discussions with potentialstrategic investors regarding technical and financial synergiesremain ongoing.
Golden Grouse license update
Uncertainty concerning the Company's wholly owned Tourmaline Hills(15075X) and North Fox (15076X) licenses due to criminal legalproceedings against former Government officials, impacting a total of106 mineral licenses, continues to be closely monitored. Kincoraacquired these licenses as part of the Golden Grouse transaction inApril 2012 and are lower priority exploration targets relative to theCompany's flagship Bronze Fox license (15000X). There is nosuggestion that these licenses were originally issued as a result ofany criminal wrongdoing.
Kincora paid 5m in script for the two licenses, incurredapproximately 71,000 in legal costs relating to the acquisition andhave spent approximately 1.85m in exploration costs since. Theacquisition of the licenses followed full detailed due diligence,with the licenses confirmed to be in good standing by the MineralResource Authority of Mongolia (MRAM), with exploration costsincurred following approval of the proposed exploration programswhich have been subsequently accepted, annual license fees incurredand licenses extended by MRAM.
A recent series of criminal court cases relating to a number ofex-MRAM high-ranking officials (D.Batkhuyag, the former head of theMRAM and L.Davaatsogt, the former head of Geology, mining andcadastre department) has brought into question the legal rights andinterests for the owners of 106 exploration licenses. MRAM is theappropriate implementing Government agency for the mining and mineralindustry.
It is estimated 11 foreign and 67 local groups are the owners of the106 licenses. At present, 24 companies holding 31 licenses of theabove suspended 106 licenses are actively seeking direct dialog anddiscussions with appropriate government authorities. These 31 speciallicenses were issued before approval of the President's decree to banissuance of new licenses for Mineral Resources dated April 20th,2010.
It is estimated that for only 31 of the 106 licenses, that aboutUS19m has been invested and a further US36m investment planned(from only 17 of the 24 companies). The 106 licenses cover a landmassapproximately six times larger in surface area than active MiningLicenses in Mongolia. The recent previous peak number of employeesand contractors employed by groups impacted by the license issue was743 and these groups have only employed a peak number of 333 thisyear.
Consultations with key third neighbor governments have been ongoingand continue as the affected license holder's work with theGovernment of Mongolia on resolving this situation. The MongolianNational Mining Association ("MNMA") is also assisting wherepossible.
There is no definitive timeline available for final resolutionrelating to the 106 mineral licenses, which would be a ruling outsideof the criminal courts jurisdiction in an administrative matter, andwould support liability for damages caused by government officialsunder the Civil Code of Mongolia if the rights of existing licensesholders were negatively impacted. Kincora continues to activelyseeking direct dialogue and discussions with appropriate governmentauthorities, and will continue to inform the market of any materialdevelopments.
Qualified Person
The scientific and technical information in this news release wasprepared in accordance with the standards of the Canadian Instituteof Mining, Metallurgy and Petroleum and National Instrument 43-101 -Standards of Disclosure for Mineral Projects ("NI 43-101") and wasreviewed, verified and compiled by Kincora's geological staff underthe supervision of John Rickus, Chairman and Director of KincoraCopper, who is the Qualified Person for the purpose of NI 43-101.
About Kincora Copper Limited
Kincora Copper Limited is a junior resource company engaged in theacquisition, exploration and development of mineral properties with afocus on copper/gold projects in Mongolia.
Kincora's ambition is to be the leading listed independent copperexploration and development company in the highly prospective andproven Oyu Tolgoi South Gobi porphyry copper belt in southeastMongolia. The Company is currently exploring its wholly owned BronzeFox, Tourmaline Hills and North Fox projects which host an extremelylarge and strategically located mineralised footprint covering over40km2.
The projects are situated only 250km from the Chinese border andwithin 140km of two large scale greenfield copper constructionprojects: Oyu Tolgoi, invested capital to date approximately US6.6billion and target production of up to 160,000t/ day; and, TsagaanSuvarga, estimated capex US1b and target production of 40,000t/ day.Other significant mines and associated infrastructure are beingdeveloped in this immediate region.
The Company is listed on the TSX Venture Exchange, was formed in mid2011, with its head office located in Vancouver, Canada, and aregional office in Ulaanbaatar, Mongolia.
Figures are available at the following address:
Neither the TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.

Sam Spring, President and Chief Executive Officer
61431 329 345

Kincora Copper Limited

SOURCE: Kincora Copper Limited


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