VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 9, 2014) - Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE:KCC) is pleased to announce that it has concluded its exploration review following integration of this years results and analysis with previous geological and geophysical programs, and determined a number of proposed follow up programs at Bronze Fox in the 2015 field season.
- Copper porphyry targets: In 2014 drilling, including eleven holes for 9611 metres at three prospects, returned extensive low-grade copper and localized higher-grade porphyry occurrences with mineralization returned in each hole. All targets drilled remain open, with further trenching and scout drilling programs having been outlined that are supported by the systematic approach and prospective results to date.
- Gold exploration: 1461 metres of trenching and two holes for 474 metres at two prospects for the first time advanced the standalone gold potential at Bronze Fox with promising results. A new gold zone, including localized higher and broad lower grade zones, was returned in the second last hole for the year at Sophie North with further exploration planned.
- Funded base case 2015 field season: In 2015 surface exploration activities, including trenching, further geophysics, mapping and geochem, are proposed at the Sophie North, Happy Geo, Dunlop Fox, Hulan, and the SE Area prospects to systematically advance identified targets and is funded from existing cash reserves. Follow up drilling targets have been identified at the Leca Pass, Shargal Tolgoi and West Kasulu prospects that are planned subject to favourable resolution of our former Golden Grouse licenses, impacted by the 106-license dispute, and market conditions.
- Former Golden Grouse licenses: An exploration program has been outlined should Kincora be successful regaining our western licence, adjacent to Bronze Fox, focusing on both copper porphyries and gold targets. The Company previous incurred a ~$7 million impairment relating to the revocation of these licenses.
Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:
"As with previous field seasons, this years activities returned extensive copper mineralization at various targets without yet defining mineralisation that could be considered economic. One of the last holes of the year returned favourable gold mineralization in a new zone at Sophie North. A number of targets remain open and prospective for both copper and gold throughout the Bronze Fox license with further systematic surface exploration expected in 2015, a plan for which has been defined and supported by existing cash reserves, and drilling.
The Company has made the decision not to undertake any further drilling activities until resolution of our former Golden Grouse licenses, impacted by the 106-license dispute. Discussions with strategic groups and various corporate opportunities continue, albeit impacted by the 106-license dispute, recent instability and lack of implementation of legislation aimed at stimulating the mining sector in Mongolia. Kincora's license package continues to merit extensive explorations with various campaigns budgeted for in 2015, subject to market conditions and resolution the 106-license dispute, but underpinned by our existing cash position."
Background
Drilling activities were focused on Sophie North (one hole targeting copper porphyry and other a gold target), Leca Pass and the south-eastern section of the previously known West Kasulu prospect, renamed Shargal Tolgoi/"Yellowish Hill" (the later, two deeper copper porphyry targets) and areas of known mineralization that remained largely untested with favourable Induced Polarization ("IP") and magnetics. Refer to Exhibit 1 for a high level summary, noting all prospects and targets remain open.
Results this season, as per previous, illustrate that geophysics (IP and magnetics) are an effective tool for identifying the target areas and prospective mineralized systems (outside of these zones little mineralization is returned) but once within the system understanding the geology is critical to assist vector to and locate high-grade mineral zone(s) (via drilling result, alteration, veining, structure interpretation based on the core orientation, etc.).
All holes drilled 2014 returned at least low-grade copper mineralization with some zones of promising alternation and higher grade. In regards to gold exploration, trenching activities were pursued at both Happy Geo and Sophie North. The second last drill hole of the year returned a wide zone of lower grade gold mineralisation hosted in a breccia zone within the diorite, which could extend to surface, returning 47 metres of >0.1g/t Au, including 7 metres of 1.56g/t Au and 5.85g/t Au at 145 metres at Sophie North. The gold mineralization is commonly with associated copper mineralization, with approximately 0.1 to 0.3% of copper, and up to 0.75% Cu.
As at the end of September, Kincora's cash and cash equivalents was $2.57m, following a favourable foreign exchange rate translation and actual drilling/camp costs relative to budget, with over 10,000 metres of drilling and 1461 meters of trenching completed during the 2014 field season.
Qualified Person
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 John Rickus, Chairman and Director of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101.
Neither the TSX Venture Exchange nor its Regulation 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.
To view Exhibit 1 please click on the following link: http://media3.marketwire.com/docs/983324.pdf