Condobolin

The Condobolin Base Metal District (“CBMD”) has a substantial mining history as a high grade gold and base metals field (lead, zinc and copper, as well as silver). The CBMD was historically the focus of 25 informal open pit operations (peak late 1800’s-early 1900’s), with mining impacted by the water table (generally 70-90 metre depth) and exploration by the weathering profile (generally 30 metre depth). Limited modern exploration has taken place despite significant new discoveries in the Cobar Superbasin within similar settings and utilising modern, quick and cost effective district scale airborne geophysics.

The project is located approximately 40km south from the mill at the Mineral Hill precious and base metals restart operation, and north of the Condobolin town (which is the primary source of employees to Mineral Hill).

Kincora has recently consolidated a 100% ownership and the interpreted near surface potential associated within the CBMD, total project size 207.4km² across two adjacent licenses, and in 2023 completed a maiden drilling program, testing new geological concepts and targets at the Meritilga, Phoenix and Tilga prospects.

Three single scout drill holes completed by Kincora in 2023 at each prospect has identified the presence of shallow level (near surface) gold and gold-silver-base metals in basement rocks. The program sought to confirm new geological concepts and has indicated the along strike potential across an open 2.7km northeast-trending strike with demonstrated potential for higher grade precious metals tenor, including most recent assay results of up to 9.1 g/t gold and 530 g/t silver.  Following the successful first phase Kincora drill program, exploration plans and drilling permits are in place to test the Meritilga and Piebald prospects, with consideration to also undertake airborne geophysics across the full project and the expectation of further targets being generated below shallow post mineral cover.

The first and northeastern diamond hole CDDH001 at the Meritilga prospect intersected near surface gold and silver observed to be with multiple laminated and colloform banded quartz-sulphide veins and also in breccia zones with quartz-sulphides, with the mineralising system open further to the north, northeast and along strike towards the southwest.

To the southwest, gold, silver and base metals (copper, lead and zinc) were intersected in chips from reverse circulation hole CDRC002 at the Phoenix prospect, with the prospect area open towards the southwest, north and the northeast. This is a very significant mineralising precious-base metal system, with further potential to test and expand the scale of this system along strike.

Highlights

Meritilga prospect – assay results for diamond hole CDDH001:

• 110m @ 0.28 g/t gold and 8.73 g/t silver from 10m, including:
  • 9m @ 1.28 g/t gold and 78.8 g/t silver from 39m, including: 1m @ 9.1 g/t gold and 530 g/t silver from 46m, and;
  • 14m @ 0.87 g/t gold and 3.3 g/t silver from 78m, including 1m @ 8.3 g/t gold and 9.0 g/t silver from 87m

Phoenix prospect – assay results for reverse circulation hole CDRC002:

• 13m @ 0.8 g/t gold, 5.1 g/t silver, 0.13 % lead and 0.23% zinc from 70m, including 2m @ 3.6 g/t gold, 18.1 g/t silver, 0.33% copper, 0.47% lead and 0.63% zinc from 79m

Tilga prospect – assay results for reverse circulation hole CDRC001:

• 9m @ 0.21 g/t gold from surface, including 1m @ 0.61 g/t gold from surface.

Figure: Shallow level gold-silver-base metal targets confirmed

Maiden Kincora scout drilling program completed at the Condobolin project

Mineralisation within the CMBD is hosted in colloform banded quartz veins and shear zones within meta-sedimentary units, inferred to be the Ordovician Girilambone Group. The quartz veins are associated with pyrite, arsenopyrite, chalcopyrite, sphalerite, galena, silver and gold.

The mineralisation is inferred to have been emplaced syn- to post-thrusting and is also associated with multiple pulses of mineralisation. The source of the mineralisation is interpreted to be magmatic and potentially related to vertically extensive and reduced intrusive systems, typical of other Cobar Superbasin mineral systems.

Kincora’s maiden drilling program sought to test new geological concepts for the controls of mineralisation at three existing high-grade gold-base metal targets; the Meritilga; Phoenix; and, Tilga prospects – see Figure 14 – testing several NW-SE trending mineralised intervals that appear to be structurally controlled and also similar to the regional NW trending lineaments defined by magnetics. These NW trends are also evident in soil and rock chip sampling geochemistry and had not been adequately drill tested previously (Figure 1).

The three prospects are located within a 2km radius of each other, and the 2023 programs results, combined with further targets across the project, support the concept of a potential hub and spoke development scenario.

 

High grade, near surface gold drill targets have been identified for follow up in addition to a district scale geophysical program across the full Condobolin Base Metal District.

 

Prospect by Prospect discussion

A single diamond drill hole during this maiden program provided geological observations of the precious and base metal mineral assemblage stages associated with veins and breccias, through hole CDDH001 at the Meritilga prospect. From surface to the end of hole, CDDH001 intersected a sequence of light-grey foliated phyllite (originally fine grained sandstone/siltstone/shale) cut by several generations of veins, comprising early quartz veins and cut by later quartz-sulphide veins and breccias. Commencing from early to late development, the following stages of veining and brecciation are interpreted from the observed drill cores in hole CDHD001:

• Quartz veins with pyrite (+/- arsenopyrite) have high grades of gold and silver, noting the that highest silver grade to date drilled by Kincora was observed with this mineral assemblage, comprising: 1m @ 9 g/t gold and 530 g/t silver, from 46m (Table 3 and Photo 1).
• Brecciated intervals (fault zones) cutting the phyllite contain gold, silver and copper associated with a matrix fill containing pyrite-arsenopyrite-chalcopyrite-quartz, with an example occurring at 78m (Photo 2).
• A subsequent and cross-cutting laminated quartz-iron carbonate-pyrite vein stage with high gold and silver grades occurs from 87m (Photo 3).
• Late banded (colloform textured) quartz veins cut all earlier generations of veining and brecciation with sulphides. Some high silver with lesser gold grades and associated base metals were noted from this vein stage at 46m and 63m depth (Photos 4 and 5).

Anomalous gold was intersected from surface in hole CDRC001 at Tilga prospect, hosted by phyllite, with 9m @ 0.21 g/t gold from surface, including 1m @ 0.61 g/t gold from surface.

At Phoenix prospect, gold, silver and base metals were identified in phyllite at shallow depths down hole in CDRC002 with 13m @ 0.8 g/t gold, 5.1 g/t silver, 0.13 % lead and 0.23% zinc from 70m, including 2m @ 3.6 g/t gold, 18.1 g/t silver, 0.33% copper, 0.47% lead and 0.63% zinc from 79m, with further reverse circulation drilling planed along a NE-SW trending strike.