Kincora Copper acquires outstanding 25% of Bronze Fox and provides exploration update
- Kincora acquires outstanding 25% of Kincora Group Limited in exchange for 20% of Kincora Copper shares.
- Diamond drilling in 2011 has extended copper mineralization 4km east of West Kasulu zone.
- Three rigs are currently on site and operating. Plan for 12,000m to be drilled by year end.
- Hole F39 has intersected chalcopyrite and pyrite mineralization from 500m depth and has now stopped at 985.1m.
- Duchintav Khojgor to join the Kincora Copper Board of Directors.
Vancouver Canada- August 30, 2011 – Kincora Copper Limited (TSX.V: KCC) (the “Company” or “Kincora Copper”)
The Company is pleased to announce that it has reached an agreement (the “Sale Agreement”) with Mr. Duchintav Khojgor, the owner of the 25% interest in Kincora Group Limited not otherwise held by Kincora Copper, whereby Mr. Khojgor will sell his interest to the Company in exchange for 27,666,366 common shares of the Company, which shares will represent 20% of the then issued shares and outstanding shares of the Company. Concurrent with the closing of the Sale Agreement Mr. Khojgor will be appointed to the board of directors of the Company.
Completion of the Sale Agreement remains subject to acceptance of the TSX Venture Exchange.
Kincora Group Limited is a BVI company, the principal asset of which is the Bronze Fox copper/gold project in Mongolia (the “Bronze Fox Project”). Following closing of the Sale Agreement Kincora Group Limited will be owned as to 100% by Kincora Copper.
Kincora Copper is also pleased to announce an Exploration Update for the Bronze Fox project, which occupies 223.23sq km of land 140km north east of Oyu Tolgoi on the same metallogenic belt.
The Company has completed 7,155m of diamond drilling within the central part of the license covering an area of 30 sq km since April 2011. This has extended the potential zone of copper mineralization east to a distance of over 4km with the mineralization remaining open in all directions. 11 of the 13 holes intersected continuous low grade copper mineralization from surface which also contained high grade intervals.
- In West Kasulu copper mineralization extends to more than 900m in depth.
- One drill hole (F39) was drilled in Leca Pass 4km to the east of West Kasulu intersecting over 150m of copper mineralization in diorite porphyry. This new copper mineralization sits in a high IP chargeability anomaly zone stretching a length of about 6km.
- All drill holes in West Kasulu and Leca Pass intersected copper mineralization
- 6 holes were drilled in Buchanan Heights and Sophie North with 5 holes intersecting gold and copper mineralization with those areas indicating a gold resource potential.
- A third drill rig has been added to the exploration program to accelerate the drill out of an increasingly large mineralization area.
- During April and May, geological mapping and vector IP surveys over the license area were completed simultaneously with the drilling program. 3 new geophysical high anomaly areas have been identified
- The geological team on-site has now been expanded to five, which will allow additional work extending over the whole license area. This includes two senior geologists, experienced in exploration work on porphyry copper and various types of gold and iron deposits and three junior geologists who are enthusiastically tackling the regional work.
Stephen Fabian, Kincora Copper’s President & CEO comments “We are extremely pleased to have Duchintav Khojgor show his confidence in the Company and elect to convert his 25% direct interest in Bronze Fox into a stake in Kincora Copper. We are also very excited by the results of the drilling which indicates that Bronze Fox has the potential to contain a large area of copper mineralization as well at the potential for a significant gold resource. With the addition of the third drill rig we expect to complete more than 12,000 m of drilling before the end of the year”
John Rickus, a director of Kincora Copper, is the Qualified Person who prepared this information that forms the basis for the scientific and technical information contained in this news release.
For further information contact:
Kincora Copper Limited
Stephen Fabian, President & CEO
Tel: +33 6493 10649
First Canadian Capital Markets
Tel: +1 416 742 5600
Toll free: 1 866 580 8891
Neither the TSX Venture Exchange not its Regulatory 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.
About Kincora Copper:
Kincora Copper Limited is a mining exploration and development company focused on copper/gold deposits in Mongolia. Its key asset is the Bronze Fox copper-gold deposit located in southeast Mongolia along the Oyu Tolgoi copper belt. The Bronze Fox Project is located approximately 140km to the northeast of the world-class Oyu-Tolgoi copper/gold project and is 250 kilometers from the Chinese border.
Photo: F39, 666.7m
Photo: F39, 656.7m, HQ core
Bronze Fox Camp Site
Hole F39 Drilling ahead
Bronze Fox vector IP survey results and project locations