- Ground magnetic and gravity surveys commenced at Red Well license
- License adjacent to target drilled this field season by Rio Tinto
- Reported copper anomalies on the margin of the Red Well license with a historic Induced Polarization target within central outcrop zone and confirmed fertile geochemical signature
- Recent private placement with the European Bank for Reconstruction and Development strengthens balance sheet to accelerate ongoing exploration activities
VANCOUVER, Oct. 17, 2017 – Kincora Copper Ltd. (the “Company”, “Kincora”) (TSXV:KCC) is pleased to announced that ground magnetic and gravity surveys have commenced at the wholly owned Red Well license. The Red Well license is located approximately 40km north of the Oyu Tolgoi concentrate plant and immediately to the north of Rio Tinto drilling activities on a Turquoise Hill Resources license (XV- 19315), the latter being the first regional drilling by any major group since 2012.
Limited previous exploration across the immediate Red Well region has identified outcropping volcanic rocks with localized malachite staining. The volcanics continue into both the eastern and western sections of the license. At the eastern margin of the license a historic rock chip sample returned 2% copper, 0.25g/t gold, 1.5g/t silver, 0.25% arsenic and zinc, 0.08% lead, 0.002% molybdenum and bismuth, with further copper and other anomalies identified to the immediate west. Historic airborne magnetic data suggests that the cover sequence to the north of the outcrop in the central third of the license is shallow, with a historic regional Induced Polarization (“IP”) target across the central portion of the license.
Sam Spring, President & CEO, commented: “The immediate and general regional setting of Red Well is considered to be highly prospective. Capital constrained field activities since securing the license last year have provided encouraging geological indications with positive fertility results, sodic-calcic alteration, with smears of malachite within volcanics located in the central portion of the license. Recent drilling activities by Rio Tinto based on geophysical targets on the license immediately adjacent to the south along the general NNE arc transverse trend from Oyu Tolgoi also provides encouragement.
Ongoing ground magnetic and gravity surveys are expected to advance our interpretation of Red Well and refine target generation for follow up exploration.
The recent direct private placement with EBRD has further strengthened our balance sheet supporting an acceleration of exploration activities. First phase drilling and initial follow up geophysics has already be completed at Devonian target #1, East Tsagaan Suvarga, and drilling is ongoing at our second target, Bayan Tal.
These activities support the first modern systematic Tier 1 copper porphyry drill testing and district scale reconnaissance exploration program in the Devonian copper belt with current geophysics are advancing Red Well as target 3, with plans currently refining targets 4 and 5 within the dominant ground position we hold across the Oyu Tolgoi-Tsagaan Suvarga Devonian belt.”
Red Well background
On February 29th 2016, Kincora announced that it had been granted a new exploration license named Ulaan Khudag (Red Well) by the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), following the eastern section of the country only being opened up for only 6 months in 2H’15 following a 5 year moratorium for issuing new exploration licenses.
The southern edge of the Red Well license is located as close as 15km along the trend of the Oyu Tolgoi and Shivee Tolgoi mineralized systems. It is located approximately 40km north of the OT project mill and is adjacent to a Turquoise Hill Resources license (XV- 19315) which Rio Tinto has drilled in mid-2107 This is the first regional drilling by either major group since 2012.
Infrastructure to and around the license is very favorable, with a phone tower on the license and located 35km northwest from the Khanbogd soum (the local province center).
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 Peter Leaman, Senior Vice-President of Exploration of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101.