Tuesday, April 8, 2014

Kincora Copper set for "drilling to discover", says Resource Capital

Drilling at Kincora Copper's (CVE:KCC) flagship Bronze Fox licence is likely to kick off in May this year, says Mongolia-based broker ResCap, which rates the stock a 'speculative buy'.

The firm recently announced the successful closing of an oversubscribed placing - the first tranche of which totalled C$4.6 mln which will be used for drilling targets during this year's field season.

Analyst Eric Zurrin said he understood field season activities would most likely begin within the month with drilling at the flagship Bronze Fox licences in May 2014, with first assay results expected in the summer.

Bronze Fox has a a mineral footpring covering a known 40 sq km area with extensive lowgrade copper and gold and some areas of higher grade copper.

Meanwhile, last year, the Tourmaline Hills licence and the North Fox, owned by Kincora's subsidiary Golden Grouse, and adjacent to Bronze Fox, were included in a list of 106 licences that were revoked. Management is currently in talks with the Ministry of Mining regarding resolving the issue.

"Management has worked diligently over the winter months as part of a wider lobbying effort to regain its two licences adjacent to Bronze Fox involved in the 106 licence issue. The Mongolian Parliament resumes this week and we understand that a win-win resolution of the 106 licences, and other positive Mineral Law reform, is a priority for the Spring season of Parliament," highlighted Zurrin.

He also noted that Kincora was the "last independent Mongolian copper vehicle" and a partnership with a larger group could be a possibility for the firm in the future.

"Timing and price of a partnership, if any, would be critical and Kincora is in favourable position being in control of its own destiny following the oversubscribed financing," he said.

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