It represents the largest drilling for discovery program this field season in the country, which borders China and Russia and is home to the giant Oyu Tolgoi mine, expected to produce 450,000 tonnes of copper annually.
"The recently closed oversubscribed equity raising supports up to 18,000 metres of drilling, ongoing project generation activities and a pipeline of news flow over the next 12 months," said Sam Spring, CEO at Kincora. "This confirms Kincora as the most active foreign listed junior seeking to make the next Tier 1 discovery in Mongolia."
The company boss said the program would initially be focused on two large and independent new targets within Bronze Fox, which are known mineralized zones but have not been drilled since 2012.
Drilling will then shift to three earlier stage but potentially larger targets at the group's brownfield East Tsagaan Suvarga project.
Bronze Fox covers a large footprint of over 40 sq km and was ooriginally a highly regarded Ivanhoe Mines project - one of four (including Oyu Tolgoi and Kharmagtai) that was not included in the BHP joint venture between 2006-2009.
Ivanhoe did drill in 2006 but exploration was impacted during the period of the Windfall Profits Tax and initial negotiations to support the development of Oyu Tolgoi.
Kincora consolidated the ownership of Bronze Fox project in 2012 and completed only one field season of unencumbered exploration and drilling before being impacted by the 106-license dispute, where the western license of the now two adjacent Bronze Fox project licenses was revoked, which effectively sterilized exploration.
Mining Associates started an independent review of Bronze Fox in 2017 and came up with a block model, which supported a large-scale copper-gold porphyry target, which surpassed expectations.
It showed a potential target range of between 416 Mt (million tonnes) and 428 Mt, grading 0.26% to 0.30% copper for up to 2,437Mlb (million pounds) of copper and 0.84Moz (million ounces) gold. Of course, this is conceptual in nature and currently there is insufficient exploration to define a mineral resource.
Focus of activity
Currently, the focus for drilling is at the West Kasulu target, which will be followed shortly at the Western Trend target. It all represents the first drilling program within what's called the BFIC (Bronze Fox Intrusive Complex) since 2012.A budget of up to $2.2 million is expected to support a multiple phase drilling program for up to 8,100 metres at Bronze Fox, and potential maiden resource definition and mining license conversions, Kincora said.
Then, drilling for up to 6,200 metres at East Tsagaan Suvarga, testing three target zones, is expected to start once first phase drilling of the 2019 program at Bronze Fox is completed.
Meanwhile, project generation and earlier stage project pipeline exploration at the property continues. Kincora says it's the foremost international group pursuing countercyclical expansion opportunities in Mongolia.
In a statement yesterday, Kincora also said amid the oversubscribed private placement raising C$6.25 million, it received the requisite disinterested shareholder approvals, allowing it to complete the cornerstone investments from two large institutional natural resource investors - namely LASSMF (LIM Asia Special Situations Master Fund) and Century Development.
Approximately 60% of the offering was anchored by these two institutional investors, and associated groups, which will account for over 40% of Kincora's share capital, it said.
Shares in KIncora today in Toronto rose over 5% to $0.095.
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