News

Kincora Copper announces extensive copper mineralization zones

October 18, 2011

Key highlights

  • All the holes drilled in West Kasulu and Leca Pass, and some of the holes in Buchanan Heights and Sophie North this year intersected extensive copper and/or gold mineralization
  • In the last six months 10,035m of diamond (core) drilling has been completed with drill holes containing mineralization up to 5km apart. Mineralization covers a very large area of more than 35km²
  • The drill holes in West Kasulu and Leca Pass contain extensive copper mineralization with high grade intersections. This highlights that the license has the potential to host a high grade resource
  • A number of the drill holes were open at depth, with one drill hole containing over 750m of consistent copper mineralization, locally with up to 0.9% Mo, and ending in a mineralization zone
  • Work to date has focused on c.13% of the license area, and further exploration work is planned for the extended property in 2012
  • Three new geophysical high anomaly areas were identified in April and May. Recent new rock chip sample assay results include returned samples of up to 93g/t Au indicating further gold potential outside of the current focused work area
  • The Company is fully funded with cash of C$6.0m reported as at the end of September 2011

Vancouver, Canada – October 18, 2011 – Kincora Copper Limited (TSX.V: KCC) (the “Company” or “Kincora”) is pleased to announce an Exploration Update for the Bronze Fox project, which occupies 223km2 of land 140km northeast of the world class Oyu Tolgoi project, on the same metallogenic belt.

Exploration Update

  • The Company has completed 10,035m of diamond (core) drilling within the central part of the mineral license covering an area of 30km2 since 2nd April 2011. The Company drilled a total of 18 holes this year, at a depth of up to 985 meters below the ground level, with mineralization open at depth. Since last year a total of 41 holes have been drilled for a total of 15,435m.
  • Drilling of 3 additional holes is underway, adding 1,500-2,000m to the total meters drilled.
  • In West Kasulu, 5 holes have been drilled this year and all of the holes intersected copper and copper/gold mineralization of porphyry style. The significant holes include:
  • F27 intersected some small intervals of over 1g/t of Au (up to 2.48g/t Au) and also 30-40m of copper mineralization intervals
  • F28 had over 750m of consistent copper mineralization, locally with higher Mo mineralization zones up to 0.9% Mo, and ending in a mineralization zone.
  • F29 mineralization started from the surface; the hole ended in a very strong argillic alteration zone with disseminated pyrite and minor chalcopyrite which is possibly related to a porphyry mineralization system. Above 326m a total of 209m of copper mineralization was intersected and locally up to 2.26g/t Au grades were encountered.
  • In hole F31 at a depth of around 550m, a porphyry dyke was intersected with some porphyry xenoliths containing over 5% of chalcopyrite. Part of the assay results were received, indicating this porphyry dyke contains 0.4-0.7% Cu with up to 0.63g/t of associated Au.
  • From the south of West Kasulu and Leca Pass a high IP chargeability anomaly stretches for over 6km. Two holes have recently been drilled at the east part of this IP anomaly in Leca Pass, both intersecting copper mineralization. These are currently awaiting lab assay results
  • 6 holes were drilled in the Buchanan Heights and Sophie North targets for initial scout drill testing of a potential gold target zone. 4 holes intersected hydrothermal related pyrite and arsenopyrite veins. Assay results showed 1g/t to 4.2g/t Au at some intervals, indicating the potential of this belt to host gold mineralization.
  • The plan is for 12,000m to be drilled by the end of the current field season
  • A regional green-field exploration program was conducted outside of the current target area, due to the lack of any previous work. A vector IP survey and a geological mapping program on a 1:50,000 scale was completed over an area of 200km2. A 19.6 line kilometer of DDIP survey was conducted to follow up on the Vector IP anomalies. As a result three new IP chargeability anomaly areas were identified for follow up.
  • Recent new rock chip sample assay results indicate further gold potential outside of the current target area.

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.

Summary diamond drilling results¹
 

Hole(2)

Location

From(m)

To(m)

Interval(m)

Cu(%) average

Au(g/t) average

CuEq(%) average

BFD004

D. Fox

12

14

2

 0.35

 0.07

 0.40

 

 

30

32

2

 0.49

 0.40

 0.81

BFD005

D. Fox

106

108

2

 0.04

 0.78

 0.62

 

 

118

124

6

 0.51

 0.15

 0.62

 

 

208

216

8

 0.30

 0.13

 0.41

BFD006

D. Fox

12

50

38

 0.27

 0.53

 0.68

including

 

26

48

22

 0.29

 0.84

 0.95

including

 

26

30

4

 0.43

 3.87

 3.50

BFD007

W.Kasulu

0

44

44

 0.25

 0.07

 0.30

 

 

106

364

258

 0.31

 0.17

 0.44

               

 

114

154

40

 0.37

 0.79

 0.96

BFD011

W. Kasulu

0

118

118

 0.23

 0.08

 0.30

  including

 

18

58

40

 0.36

 0.15

 0.47

  including

 

32

50

18

 0.47

 0.22

 0.64

BFD019

W. Kasulu

10

98.3

88.3

 0.16

 0.07

 0.24

including

 

42

64

22

 0.21

 0.07

 0.35

 

 

154

156

2

 0.96

 0.16

 1.10

 

 

188

194

6

 0.40

 0.50

 0.83

BFD021

W. Kasulu

1.5

96

94.5

 0.27

 0.18

 0.41

including

 

26

58

32

 0.30

 0.20

 0.45

 

 

80

82

2

 0.39

 1.29

 1.35

 

 

90

92

2

 0.41

 1.01

 1.16

 

 

168

192

24

 0.28

 0.13

 0.38

 

 

310

384

74

 0.25

 0.03

 0.28

BFD023

W.Kasulu

9.2

359.2

352

 0.27

 0.11

 0.35

  including

 

66

210

144

 0.32

 0.20

 0.47

including

 

106

156

50

 0.45

 0.39

 0.76

BFD024

W. Kasulu

134

157.8

23.8

 0.40

 0.07

 0.45

including

 

140

154

14

 0.50

 0.08

 0.55

 

 

179.4

499

319.6

 0.29

 0.04

 0.32

F9

B. Heights

90

91

1

 0.37

 0.74

 1.02

F12

W. Kasulu

57

118.45

61.45

 0.22

 0.13

 0.32

  including

 

57

77.2

20.2

 0.26

 0.15

 0.37

F13

W. Kasulu

140

143

3

 0.45

 0.11

 0.53

 

 

199

200

1

 0.09

 0.78

 0.67

F20

W. Kasulu

186

226

40

 0.26

 0.28

 0.45

including

 

213

221

8

 0.39

 0.79

 0.91

F21

W. Kasulu

8

27

19

 0.26

 0.30

 0.50

  including

 

16

23

7

 0.25

 0.56

 0.63

F27

W.Kasulu

141

171

30

 0.26

 0.16

 0.40

including

 

153

161

8

 0.39

 0.45

 0.70

 

 

268

315

47

 0.26

 0.05

 0.31

 

 

429

431

2

 0.06

 2.04

 1.60

F28

W.Kasulu

2

750

748

 0.18

 0.04

 0.23

including

 

239

249

10

 0.33

 0.07

 0.39

 

 

305.5

315

9.5

 0.40

 0.06

 0.83(3)

F29

W.Kasulu

0

109

109

 0.20

 0.03

 0.24

 

 

226

326

100

 0.20

 0.08

 0.27

 

 

416

424

8

 0.23

 0.16

 0.35

F31(4)

W. Kasulu

555

565

10

 0.52

 0.18

 0.66

F32

B. Heights

138

139

1

 0.01

 1.19

 0.90

 

 

200

201

1

 0.18

 2.13

 1.77

 

 

334

335

1

 0.08

 0.82

 0.69

F33(4)

B. Heights

54

55

1

 

 1.12

 

 

 

67

68

1

 

 1.34

 

 

 

201

202

1

 0.30

 0.55

 0.78

 

 

226

227

1

 >1

 4.20

 

 

 

244

245

1

 0.21

 0.45

 0.55

 

 

300

301

1

 0.48

 2.01

 1.98

Note:

  1. Quality assurance: All of the core samples were assayed by Actlabs, an internationally recognized laboratory. (http://www.actlabs.com/page.aspx?menu=60&app=206&cat1=495&tp=2&lk=no) All the samples were assayed with 50 gram fire assay for Au, and ICP assay for Cu, Mo, Ag, Zn, etc covering a total of 36 elements. Au fire assays were done by ActLabs in Ulaanbaatar and ICP assays were done at ActLabs in Canada.  5% of standards, 3% of blanks, and 1% of duplicates were used for assay quality control. The Company has a formal sample analysis service contract with ActLabs for the 2011 drill holes. For the 2010 drill holes, the core samples were assayed at the SGS Mongolian laboratory. Whilst no standards were used, barren core samples were used as blanks. For the earlier BFD drill holes Kincora does not have any record of the QA/QC procedures.
  2. BFD denominated holes were drilled by Ivanhoe Mines, F holes drilled by Kincora
  3. 0.95% Mo within 305.5m to 306m
  4. Results only partially received from the laboratories

F28 - 741.70m
 
F28 - 741.70m

F42 - 612.5m
 
F42 - 612.5m

Contact details:

Igor Kovarsky, President and CEO
+1 604 689-2599

First Canadian Capital Corp
Eric Balog
Tel: +1 416 742 5600
   

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 km from the Chinese border.