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Kincora update on East TS exploration with drilling commenced at Bayan Tal

V.KCC

Canada NewsWire

  • Phase 1 drilling at East Tsagaan Suvarga ("East TS") completed for 3145 metres and 13 holes, with soil sampling analysis and initial follow up geophysics ongoing;

  • Drilling has been successful intersecting the Tsagaan Suvarga Intrusive Complex ("TSIC") at potential open cut depths and supporting a preserved down fault block(s);

  • Phase 1 drilling has started at the Bayan Tal target for approx. 2850 metres and 6 holes, with historic drilling on the margin returning 18 metres @ 0.66% Cu Eq

VANCOUVER, Oct. 12, 2017 /CNW/ - Kincora Copper Ltd. (the "Company", "Kincora") (TSXV:KCC) is pleased to announce first phase drilling of  porphyry copper targets has recently been completed at our East TS target and has now commenced at our Bayan Tal target in the Southern Gobi, Mongolia.

The maiden drill program at the East TS target comprised 3145 metres for 13 holes, with 6 holes intersecting the interpreted Devonian quartz monzodiorite of the TSIC, refer Exhibit 4. Visual interpretation has deemed the drilling program at East TS a "technical success" having intersected a felsic intrusive at or around target depth and providing geological information to design the next stage geophysical programs and interpretation.

Having been at site overseeing activities at the East Tsagaan Suvarga target, Peter Leaman, Senior Vice-President of Exploration, commented:

"The first phase drilling program consisting of reverse circulation and percussion pre-collars with diamond tails totaling 3145 meters has been completed at the East TS target and been successful, inline with our expectations for the program.

Phase one was designed to primarily test various ground magnetic targets and provide an improved geological knowledge of our interpretations of the region. The program successfully intersected interpreted Devonian age monzodiorite in 6 drill holes with further understanding of the outcrop in the general target zone refined. A broad area of monzodiorite and various structural corridors has been outlined over which ground infill magnetic and gravity surveys have commenced in order to refine zones for more detailed induced polarization surveys and specific target testing of mineralization in a fully funded second phase drilling program.

The monzodiorite is the dominant intrusive rock type hosting Tsagaan Suvarga porphyry copper mineralization, and potential is also emerging to host to a large tonnage and higher grade Hugo Dummett or Heruga equivalent system within the TSIC which may have been preserved with materially better grades than the Serven Sukhait open pit on the western margin of the Complex. We are looking to advance this latter new concept as well as the potential for the original analogue for another Serven Sukhait open pit deposit on the eastern margin of the TSIC.

The successful exploration efforts at East TS provide a template for which we are looking to systematically replicate across the rest of our commanding portfolio in the world-class Oyu Tolgoi-Tsagaan Suvarga Devonian copper belt".

A 100 x 100 metre soil sampling across select areas has been completed with infill mapping of outcrop. Infill ground magnetic and maiden gravity surveys are nearing completion and will assist in refining our interpretations with constraints provided from better knowledge of surface and down-hole geology from exploration efforts over the last couple of months. The recently commenced geophysical programs and more detailed Induced Polarization ("IP") surveys layered with the first phase drilling results are expected to provide vectors to support testing multiple specific targets in the fully funded 5000m second phase drill program.

The visual inspection of core, XRF samples of soil samples, and stratigraphy inferred by fossils supports the East TS target being analogous to the Devonian age Serven Sukhait open pit (307Mt @ 0.54% Cu resource). Further encouragement is provided from both surface mapping and drilling that has intersected interpreted lower Carboniferous cover above the Devonian TSIC, which coupled with improved interpretations of key structural and fault features supports the concept of a potentially preserved Devonian complex. The latter would be an analogue for East TS and potentially hosting a preserved high grade Hugo or Heruga orebody as at Oyu Tolgoi, a materially larger scale exploration prize.

Interpreted results for the first phase drilling program (including traditional assay results, age dating, fertility and green rock analysis), ongoing and proposed geophysical programs, and their integrated interpretations and follow up programs for the next stage of systematic target testing will be provided following Kincora's next Technical Workshop.

Background on the Bayan Tal Igneous Complex ("BTIC")

The BTIC sits almost half way between the Oyu Tolgoi and Tsagaan Suvarga Devonian porphyry systems in a similarly interpreted favourable intersection of arc parallel and oblique structures. Such a structural setting is common for most large-scale porphyry deposits globally.

Age dating of a conglomerate in the BTIC has confirmed a Devonian age, supporting the potential for "Oyu Tolgoi type" concealed mineralization. The conglomerate is a key indicative marker at OT and is stratigraphically located above the high-grade mineralisation. The BTIC is the only other confirmed significantly untested complex of Devonian age and similar stratigraphy to OT known to date in the Southern Mongolia Arc.

Limited exploration to date including drilling has returned copper-gold mineralization (up to 18m @ 0.66% Cu Eq and 18m @ 0.75% Cu Eq) on the margin of a large target under shallow to moderate cover.

A two-drill rig program has recently commenced at our wholly owned Bayan Tal license. Outcropping mineralization and systematic exploration integrating geology and geophysics has refined multiple potential drill targets that are the focus of the ongoing first phase 2850 metre, hole 6 drill program.

The Devonian age, gold rich Oyu Tolgoi copper porphyry system in the southeast of the Southern Mongolian Arc is a Tier 1 asset, being the largest high-grade group of Paleozoic porphyry deposits known in the world, which coupled with the underexplored Tsagaan Suvarga Devonian porphyry system encourages exploration in this underexplored district.

About Kincora
Kincora is a junior resource company engaged in the acquisition, exploration and development of mineral properties, with a focus on Tier 1 copper-gold projects in Mongolia. For further information: www.kincoracopper.com.

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 Peter Leaman, Senior Vice-President of Exploration 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.

SOURCE Kincora Copper Limited

View original content: http://www.newswire.ca/en/releases/archive/October2017/12/c8245.html

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