Southern Gobi, Mongolia portfolio

 

Kincora has undertaken the first modern district scale exploration across the world-class Southern Gobi copper-gold porphyry belt and retains a 100% interest in one of the largest land positions in the belt.

The Company’s Mongolian portfolio assets include the Bronze Fox mining license (the eastern license of the Bronze Fox project) and Tourmaline Hills exploration license (the western license of the Bronze Fox project), the White Pearl field camp and one of (if not) the largest project generation databases for Mongolia.

On July 26^th, 2022, the Company noted the maiden inferred Mineral Resource Estimate (“MRE”) and updated exploration target for the West Kasulu prospect reported under the JORC code¹ by Resilience Mining Mongolia Limited (“Resilience”). The parameters for the MRE and updated exploration target were inline with Resilience’s strategy for a near term, modest scale oxide development project and shallow brownfield drilling at the Bronze Fox Intrusive Complex, coupled with near surface (open pit) greenfield targets at the West Kasulu and Shuteen North Intrusive Complexes.

The majority of the MRE and exploration target are situated within the existing Bronze Fox mining licence with the balance being on the adjoining Tourmaline Hills exploration licence (collectively the Bronze Fox project).

West Kasulu prospect is open on strike and at depth, hosted within a small portion and less prospective section of the much larger mineralised Bronze Fox Intrusive Complex, which is one of three so far identified near surface and under explored intrusive complexes at the wider Bronze Fox project.

In late 2022, Kincora terminated the Joint Venture Agreement with Resilience to retain a 100% and unrestricted interest in our Mongolian license portfolio and subsidiaries.

In June 2023, Kincora advised that following the receipt of several unsolicited enquiries that the Company had commencement an externally led strategic review process, with support from Cerberus Advisory, for the Mongolian asset and license portfolio with the view of maximising shareholder value and streamlining focus toward the core NSW project portfolio.

The externally led review successfully concluded resulting in a confidential and incomplete offer that included the receipt of a non-refundable deposit. That proposed transaction has not proceeded, however the divestment process is ongoing and further announcements will be made as and when material developments are made.

Field season activities, completed in 4Q’2023, included mapping, soil and rock chip sampling, meeting expenditure and community requirements, and capital efficiently advancing four porphyry copper deposit targets and one epithermal gold target, including at a newly identified and regionally significant intrusive complex (Shuteen North).

Kincora has designed a high impact and value add program for the 2024 field season including a drilling program seeking to confirm a new down-hole discovery at the Shuteen North Intrusive Complex (which is one of the three existing known porphyry systems at the wider Bronze Fox project) which is interpreted to potentially be associated with and be the causative source for the massive Shuteen lithocap.  The lihtocap was a key element in the Oyu Tolgoi discovery, with Shuteen much larger so the Shuteen North Intrusive Complex and porphyry system targets are highly anticipated and prospective.

Discussions with potential investors and the ongoing strategic review continues.