VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 6, 2014) - Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE:KCC) is pleased to provide an update on results from field season activities at the flagship Bronze Fox license completed in the final quarter of 2013:
- Independent and internal reviews of Induced Polarisation ("IP") survey results highlight a number of new high priority large, potentially world-class size, copper-gold porphyry targets, often with supporting geology. Encountered mineralisation (including significant localised areas of higher grade) coincidence with lower priority IP chargeability highs, coupled with the success of similar IP programmes at Oyu Tolgoi and the technical successes experienced by Kincora in late 2012, supports IP being an effective exploration tool when integrated with proper geological information and interpretation.
- Independent consultant review of the Bronze Fox's regional setting and encountered hydrothermal copper activity confirms fertile signatures for porphyry mineralisation at multiple prospects, sharing the same arc with Oyu Tolgoi and a similar geochemical footprint to other major porphyry deposits. Unidirectional solidification textures ("UST") and intrusive rocks support some recent IP generated high priority follow up targets.
- Analysis and integration of various geological and geophysical activities completed in the current and previous field seasons are nearing completion with potential significant bulk tonnage targets being refined. Most large scale IP targets remain untested including a 7km long anomaly zone in central Bronze Fox, a 2km circular anomaly in northern area and a large conductive region with high chargeability and high gold rock chip samples to the south.
Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:
"Recently received results from two independent consultants, one relating to IP (geophysical) and the other lithogeochemcial and petrographic analysis, have been particularly promising and warrant a specific update ahead of our internal integration, interpretation and target identification which we expect to be completed shortly.
In the last quarter Kincora completed one of the most active copper exploration programmes in Mongolia during 2013, on one of the most advanced and prospective projects with the benefit of having one of the youngest exploration licenses. The recently completed field season activities have helped technically advance the Bronze Fox project, highlighting that most large scale IP targets remain untested, but importantly the 2013 programme has assisted to "explain" previous results and lead to a reinterpretation of some target zones and existing geological and geophysical information. A number of analogies between the current stage of exploration and results at Bronze Fox and Oyu Tolgoi in 2000/01 pre the "discovery hole" have emerged.
Coupled with positive exploration results the Company continues to look to take additional measures to add shareholder value and assist in our ambition to become the leading listed independent copper exploration and development company in the highly prospective and proven Oyu Tolgoi South Gobi porphyry copper belt."
As previously announced in our October 23rd press release, the 2013 IP programme has confirmed previous, and generated new, large scale high priority copper porphyry targets on the Company's flagship Bronze Fox license (15000X). The IP programme penetrated to a greater target depth than previously experienced but also covered a number of untested areas providing significant new information to previous known geology/drilling results.
In summary, the 2013 IP programme has been successful in defining and refining exploration targets with the following characteristics:
- Large size: 7km long anomaly zone in central Bronze Fox (stretching from West Kasulu to Leca Pass-Dunlop Fox), a 2km circular anomaly in northern area (across Sophie North and Buchanan Heights) and a large conductive region with high chargeability and high gold rock chip samples to the south (in the Happy Geo prospect). Refer to Figures 1 to 3 for further details.
- Style: both "Oyu Tolgoi" long strike style and South American style circular anomalies identified.
- High anomaly level readings.
- Lithogeochemcial and petrographic analysis, with other existing geological data, often supports the geophysical results and targeted anomalies identified from the 2013 IP programme.
Independent and internal interpretation of the 2013 "Search" system IP programme has highlighted several as yet undrilled and/or insufficiently tested anomalies in the areas called Sophie North/Buchanan Heights, Leca Pass, Dunlop Fox, Happy Geo with the main anomalies at West Kasulu also untested. The majority of historic drill holes have not penetrated to the target depth of the IP high priority targets. Broad lower grade mineralization, with localized areas of higher grade (eg drill holes F62 & 72), generally near surface, reconcile to lower priority IP chargeability highs with the main large-scale anomalies not yet drill tested. The most successful historical drill hole F62, which intersected +800m of 0.4% CuEq (incl. 37m @ 1.07% CuEq), could indicate a large-scale porphyry system but did not enter the nearest IP anomaly.
The 2013 IP results coupled with the success of similar IP programmes at Oyu Tolgoi and the technical successes experienced by Kincora in late 2012, supports IP being an effective exploration tool when integrated with proper geological information and interpretation. Results from the 2013 field season provide critical additional data and analysis to refine and prioritize target generation and has explained, and also led to a reinterpretation of, a number of previous results.
Of particular note are preliminary IP results that have defined a classical circular chargeability high, with a resistivity low almost in the core of the latter, at the Sophie North prospect. The geophysical profile supports previous drilling results which returned anomalous copper and gold mineralization near the IP target zone which coupled with an outcropping tonalite porphyry with unidirectional solidification textures (USTs) just further south, supports that the upper mineralized parts of the porphyry intrusions may have been preserved in a relatively unexplored area directly to the north of the main drilling zone at the West Kasulu prospect.
Lithogeochemcial and Petrographic analysis
Following a recent site visit from Professor Tony Crawford various samples and lithogeochemcial and petrographic analysis has been completed with final findings and recommendations being positive.
A lithogeochemical fertility discrimination exercise has shown convincingly that the intrusive rocks across the Bronze Fox Igneous Complex have fertile signatures, encouraging further exploration. The presence of porphyry copper-style quartz-chalcopyrite veining over considerable depth intervals experienced in late 2012 in at least the West Kasulu prospect supports the 'fertile' discrimination outcome for Bronze Fox, and indicates that rocks further afield, for example Leca Pass and Sophie North, share the same fertile signature and thus mineralization potential.
The encountered geochemical footprint matches other major porphyry deposits. Rocks sampled at surface from close to the newly identified Sophie North IP anomaly often show well developed porphyritic textures, rather than equigranular medium-grained textures such as those at West Kasulu, suggesting this area may represent a higher level of the Bronze Fox Igneous Complex.
Internal integration and interpretation
Analysis and integration of various activities completed in the current field season and previous work are ongoing, particularly given the ability to reconcile both recent and historical geophysical analysis against existing drilling data and recent advancements in internal and independent understanding and interpretation of geology. Key focus areas of continuing analysis include the Sophie North prospect, a large conductive zone around the Happy Geo prospect with a discrete high chargeability anomaly to the south of Happy Geo and further geophysical interpretation of anomalies relative to previous drilling and alteration zone mineralogy at the West Kasulu and Leca Pass prospects which have also identified further targets with are not yet drill tested.
The working model of the extensive hydrothermal copper activity encountered at Bronze Fox is currently being integrated and refined with a focus on high priority follow up drill targets that offer significant bulk tonnage potential, which are expected to be drill tested in the 2014 field season.
To view Figures 1-3, please visit the following link: http://media3.marketwire.com/docs/920382i.pdf
For further details please refer to our current corporate presentation:
The scientific and technical information in this news release was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and was reviewed, verified and compiled by Kincora's geological staff under the supervision of John Rickus, Chairman and Director of Kincora Copper, 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 the acquisition, exploration and development of mineral properties with a focus on copper/gold projects in Mongolia.
Kincora's ambition is to be the leading listed independent copper exploration and development company in the highly prospective and proven Oyu Tolgoi South Gobi porphyry copper belt in southeast Mongolia. The Company is exploring it's wholly owned Bronze Fox project which hosts an extremely large and strategically located mineralized footprint covering over 40km2 within a 223km2 licenses area. Analysis has confirmed a fertile arc for porphyry style deposits with extensive lower grade copper-gold mineralization, with localized areas of higher grade, intersected in many drill holes over the last three years, and localized higher grade, across a 7km strike (open).
Kincora recently completed one the most active copper exploration programmes in Mongolia during 2013, on one of the most advanced and prospective projects with one of the youngest exploration licenses. Results of the Induced Polarization ("IP") geophysical programme coupled with internal and independent interpretation of geology and drilling results provides a number of high priority large, potentially world-class size, copper-gold porphyry targets.
The Bronze Fox project is situated only 250km from the Chinese border and ~140km along Oyu Tolgoi mineralization structural corridor and ~40km from Tsagaan Suvarga (with potential cross cutting faulting). The immediate region is one of the most rapidly developing mining centres anywhere in the globe despite being one of the last underexplored frontiers and a productive copper porphyry belt.
Oyu Tolgoi ("OT"), has invested capital to date +US$7bn with current production of 100,000t/day of ore ramping up to potentially 160,000t/day. Tsagaan Suvarga, with an estimated capex of US$1bn and a target production of 40,000t/day, with OT, is one of two greenfield construction projects that are expected to enter initial production within a 3-year construction period, a proximity unlikely to be achieved within a comparable region anywhere else in the world in the near-medium term. Porphyry deposits seldom occur in isolation with the South Gobi's geology and tectonic setting highly prospective for large size discoveries. With the long drilling intersections of copper and gold mineralization across an extensive strike (and open), and locally with smaller higher copper grade in the drill holes, the Bronze Fox project has emerged with bulk tonnage OT style porphyry potential.
The aim of the 2013 field season was to add value at the asset level while remaining comfortably funded by both refining existing exploration data and specifying target generation of large scale, potentially world-class size, porphyry copper-gold targets. Cash balance of C$1.65m (30th Sep'13) supports at least minimum expenditure requirements for 2014. Efforts to recover Golden Grouse licenses, Tourmaline Hills and North Fox, following recent revocation, as part of a total of 106 licenses, have commenced.
The Company is listed on the TSX Venture Exchange, was formed in mid 2011, with its head office located in Vancouver, Canada, and a regional office in Ulaanbaatar, Mongolia.
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.