Kincora Copper says EBRD backing for nearby mine is big boost
Release date- 17102012 - Kincora Copper's (CVE: KCC) Bronze Fox copper project in Mongolia has been boosted by the European Bank for Reconstruction and Development's backing for a nearby project, it said.
The EBRD has arranged US$350 mln in direct and syndicated loans for the Tsagaan Suvarga copper mine on the Oyu Tolgoi south Gobi porphyry copper belt in southeast Mongolia. Privately owned, Tsagaan Suvarga is only 40km along trend from Bronze Fox.
The investment by EBRD is its largest investment in Mongolia to date and included a commitment to develop new enterprises in the immediate region. Sam Spring, head of corporate development at Kincora, said the EBRD's move was positive for a number of reasons.
These included reducing the region's infrastructure hurdles; providing a blue print for potential mine development; highlighting the prospectivity of the immediate region; enhancing the potential for regional commercial agreements. It also illustrated the current appetite for mining investment into Mongolia, particularly copper, he added.
With the addition of Tsagaan Suvarga, there will be two huge copper mines under construction within 140 km of Bronze Fox: Oyu Tolgoi, with target production of 160,000t/ day and Tsagaan Suvarga with target production of 40,000t/ day.
Kincora has secured a strategic landholding in this area with mineralization identified over 40 sq km.
The Tsagaan Suvarga project, meanwhile, provides a blue print for potential mine development, particularly as it faces very similar infrastructure related barriers to initial production, Spring said.
'Tsagaan Suvarga is a significant scale project investing considerable capital into the immediate region (powerline, roads, water, small airstrip, rail loader at Sainshand which is 220km east etc). In order to increase sustainability of the Tsagaan Suvarga project and support linkages, owner MAK and the EBRD are providing joint grants to support the development of small private businesses in the mine's surroundings.
The investment from EBRD and ongoing development of the Tsagaan Suvarga copper mine highlights again the prospectively of the region around Bronze Fox, Spring added. This also includes Xanadu's Amgalent and Argelant Uul licences all within 40km, Shuteen immediately south and Rio Tinto's/Ivanhoe's OT and Khamagtai projects 140km and 100km south west and west away respectively.
Recent drilling at Bronze Fox has provided the best indication to date of the potential for a deep high grade porphyry deposit. Of the 1,360 metres drilled, the deepest hole at the project over 1,000 metres graded +0.40% CuEq, which coupled with the extensive near surface oxide and other sulphide intersections highlights a possibly very large, multi-phase mineralization at Bronze Fox.
'After a significant amount of uncertainty pre and post the June Mongolian election the dust is finally settling with the proposed Action Plan the first formally documented set of policies from the recently formed Democratic Party lead coalition government.'
The proposed policy platform is supportive of foreign investment, accommodating to the mining industry and generally provides a very positive foundation for progressive reform particularly in light of recent negative headlines, he added. Subsequent to the Action Plan, parliament has proposal to issue up to US$5 bln of bonds to finance major projects such as rail, road and power.
Proactive Investors facilitate the largest global investor network across 4 continents in 4 languages. With a team of analysts journalists & professional investors Proactive produce independent coverage on 1000's of companies across every sector for private investors, private client brokers, fund managers and international investor communities.
Contact:
Tel: +44 (0)1202 770386
Email: action@proactiveinvestors.com
[Editorial queries for this story should be sent to newswire@enpublishing.co.uk]
((Comments on this story may be sent to info@enpublishing.co.uk))
The EBRD has arranged US$350 mln in direct and syndicated loans for the Tsagaan Suvarga copper mine on the Oyu Tolgoi south Gobi porphyry copper belt in southeast Mongolia. Privately owned, Tsagaan Suvarga is only 40km along trend from Bronze Fox.
The investment by EBRD is its largest investment in Mongolia to date and included a commitment to develop new enterprises in the immediate region. Sam Spring, head of corporate development at Kincora, said the EBRD's move was positive for a number of reasons.
These included reducing the region's infrastructure hurdles; providing a blue print for potential mine development; highlighting the prospectivity of the immediate region; enhancing the potential for regional commercial agreements. It also illustrated the current appetite for mining investment into Mongolia, particularly copper, he added.
With the addition of Tsagaan Suvarga, there will be two huge copper mines under construction within 140 km of Bronze Fox: Oyu Tolgoi, with target production of 160,000t/ day and Tsagaan Suvarga with target production of 40,000t/ day.
Kincora has secured a strategic landholding in this area with mineralization identified over 40 sq km.
The Tsagaan Suvarga project, meanwhile, provides a blue print for potential mine development, particularly as it faces very similar infrastructure related barriers to initial production, Spring said.
'Tsagaan Suvarga is a significant scale project investing considerable capital into the immediate region (powerline, roads, water, small airstrip, rail loader at Sainshand which is 220km east etc). In order to increase sustainability of the Tsagaan Suvarga project and support linkages, owner MAK and the EBRD are providing joint grants to support the development of small private businesses in the mine's surroundings.
The investment from EBRD and ongoing development of the Tsagaan Suvarga copper mine highlights again the prospectively of the region around Bronze Fox, Spring added. This also includes Xanadu's Amgalent and Argelant Uul licences all within 40km, Shuteen immediately south and Rio Tinto's/Ivanhoe's OT and Khamagtai projects 140km and 100km south west and west away respectively.
Recent drilling at Bronze Fox has provided the best indication to date of the potential for a deep high grade porphyry deposit. Of the 1,360 metres drilled, the deepest hole at the project over 1,000 metres graded +0.40% CuEq, which coupled with the extensive near surface oxide and other sulphide intersections highlights a possibly very large, multi-phase mineralization at Bronze Fox.
'After a significant amount of uncertainty pre and post the June Mongolian election the dust is finally settling with the proposed Action Plan the first formally documented set of policies from the recently formed Democratic Party lead coalition government.'
The proposed policy platform is supportive of foreign investment, accommodating to the mining industry and generally provides a very positive foundation for progressive reform particularly in light of recent negative headlines, he added. Subsequent to the Action Plan, parliament has proposal to issue up to US$5 bln of bonds to finance major projects such as rail, road and power.
Proactive Investors facilitate the largest global investor network across 4 continents in 4 languages. With a team of analysts journalists & professional investors Proactive produce independent coverage on 1000's of companies across every sector for private investors, private client brokers, fund managers and international investor communities.
Contact:
Tel: +44 (0)1202 770386
Email: action@proactiveinvestors.com
[Editorial queries for this story should be sent to newswire@enpublishing.co.uk]
((Comments on this story may be sent to info@enpublishing.co.uk))
Comments
Post a Comment