Kincora Copper gives Bronze Fox update, which Ocean Equities calls "very impressive"
Kincora Copper (CVE:KCC) Tuesday announced an exploration update at its Bronze Fox project in Mongolia, as it named Igor Kovarsky as president and CEO.
The copper and gold explorer said that in the last six months, 10,035 metres of diamond drilling has been completed with drill holes containing mineralization up to 5 kilometres apart. Mineralization covers a very large area of more than 35 square kilometres.
Kincora said that a number of the drill holes at Bronze Fox were open at depth, with one drill hole containing over 750 metres of consistent copper mineralization, locally with up to 0.9% molybdenum, and ending in a mineralization zone.
All the holes drilled in West Kasulu and Leca Pass, and some of the holes in Buchanan Heights and Sophie North this year intersected extensive copper and/or gold mineralization, highlighting the license has the potential to host a high grade resource, the company said.
To date, work has focused on around 13 percent of the license area, and further exploration work is planned for the extended property in 2012.
Kincora identified three new geophysical high anomaly areas in April and May. Recent new rock chip sample assay results include returned samples of up to 93 grams per tonne (g/t) gold, indicating further gold potential outside of the current focused work area.
The company also said that it was fully funded with cash of $6 million at the end of September. The Bronze Fox project occupies 223 square kilometres of land 140 kilometres northeast of the Oyu Tolgoi project, on the same metallogenic belt.
Ivanhoe Mines (TSE:IVN)(NASDAQ:IVN) and Rio Tinto (NYSE:RIO)(LON:RIO) are developing Oyu Tolgoi and recently fended off an attempt by the Mongolian government to increase its stake in the project at the expense of the two mining firms.
In a recent reserach note, Ocean Equities analyst Sam Spring wrote that the Bronze Fox land package is independently considered as one of the most advanced and highly prospective natural resource projects in Mongolia due to previous exploration activities undertaken by local prospectors, the Soviet Union, Mongolian geologists and Ivanhoe.
Bronze Fox is in a favourable location for project development, along the Chinese border and within proximity to existing rail, water and power, in an emerging mineralized belt - the highly prospective Gurvansayhan island arc terrance which hosts the Oyu-Tolgoi copper project.
Separately, Kincora said that Igor Kovarsky has replaced Stephen Fabian, who will remain as the chairman. Kovarsky has over 30 years of experience in the construction and mineral sectors, managing exploration, engineering, development and mining operations in a number of large projects.
He worked with Centerra Gold (TSE:CG) and its predecessor Cameco Gold since 1992, in which he served in various roles including director and VP of government affairs and business development for Centerra's subsidiaries in Kyrgyzstan, Mongolia and its head office in Toronto. Simultaneously, he acted as president of Centerra Gold Mongolia.
Most recently, Kovarsky worked at Kola Mining (CVE:KM) as president and CEO, leading the strategy of development of the cornerstone Souker Nickel Project in Russia.
Kincora Copper's chairman, Stephen Fabian, said: "I am particularly pleased that someone with the calibre and experience of Igor has agreed to join us at Kincora. His vast experience in all stages of mining from exploration through to the development of large mining projects in Mongolia will be invaluable for the Kincora Copper."
The company said that drilling of three additional holes is underway, adding 1,500 to 2,000 metres to the total meters drilled at Bronze Fox. The plan is for 12,000 metres to be drilled by the end of the current field season, Kincora said.
In the Ocean Equities reserach note, analyst Sam Spring said that Kincora is one of only a handful of listed plays offering pure play exposure to copper-gold exploration in Mongolia and owning a 100% interest at the asset level. The Ocean Equities report didn't specify its rating or target price for Kincora.
Ocean's Spring said that the current activities of Kincora are akin to "defining and starting to put together the pieces of what appears to be a very large jigsaw puzzle" with various known mineralized targets already identified on a small section of the tenement.
Spring added that initial progress has been "very impressive". Current drilling and planned soil sampling from historic trenches around the "gap" zone at the West Kasulu target has the potential to pull together and define a conceptual lower grade, near surface resource which could support a "starter" open pit development project, Spring said.
The Ocean Equities analyst also noted he didn't expect this year's drilling program to define a maiden NI 43-101 compliant resource, as he expects further drilling is likely necessary early in 2012. Spring said the company has already "very successfully" advanced four key elements of its strategy.
It has consolidated and increased its presence in highly prospective and advanced exploration targets in Mongolia, now owning 100% of Bronze Fox and being in advanced discussions regarding a number of other potential targets.
Moreover, surface and drilling at depth to date has further indicated prospective alteration and suggests there has most likely been a large multi-phase copper and copper-gold-molly mineralization event at Bronze Fox.
Greenfield exploration at the asset has also been advanced with follow-up drilling in 2012 most likely defining potential maiden resources at the West Kasulu and other targets, and scout testing a number of other high priority targets, Spring concluded.
Tuesday afternoon, Kincora shares were flat at 38 cents but are up 31% for the year to date.
The copper and gold explorer said that in the last six months, 10,035 metres of diamond drilling has been completed with drill holes containing mineralization up to 5 kilometres apart. Mineralization covers a very large area of more than 35 square kilometres.
Kincora said that a number of the drill holes at Bronze Fox were open at depth, with one drill hole containing over 750 metres of consistent copper mineralization, locally with up to 0.9% molybdenum, and ending in a mineralization zone.
All the holes drilled in West Kasulu and Leca Pass, and some of the holes in Buchanan Heights and Sophie North this year intersected extensive copper and/or gold mineralization, highlighting the license has the potential to host a high grade resource, the company said.
To date, work has focused on around 13 percent of the license area, and further exploration work is planned for the extended property in 2012.
Kincora identified three new geophysical high anomaly areas in April and May. Recent new rock chip sample assay results include returned samples of up to 93 grams per tonne (g/t) gold, indicating further gold potential outside of the current focused work area.
The company also said that it was fully funded with cash of $6 million at the end of September. The Bronze Fox project occupies 223 square kilometres of land 140 kilometres northeast of the Oyu Tolgoi project, on the same metallogenic belt.
Ivanhoe Mines (TSE:IVN)(NASDAQ:IVN) and Rio Tinto (NYSE:RIO)(LON:RIO) are developing Oyu Tolgoi and recently fended off an attempt by the Mongolian government to increase its stake in the project at the expense of the two mining firms.
In a recent reserach note, Ocean Equities analyst Sam Spring wrote that the Bronze Fox land package is independently considered as one of the most advanced and highly prospective natural resource projects in Mongolia due to previous exploration activities undertaken by local prospectors, the Soviet Union, Mongolian geologists and Ivanhoe.
Bronze Fox is in a favourable location for project development, along the Chinese border and within proximity to existing rail, water and power, in an emerging mineralized belt - the highly prospective Gurvansayhan island arc terrance which hosts the Oyu-Tolgoi copper project.
Separately, Kincora said that Igor Kovarsky has replaced Stephen Fabian, who will remain as the chairman. Kovarsky has over 30 years of experience in the construction and mineral sectors, managing exploration, engineering, development and mining operations in a number of large projects.
He worked with Centerra Gold (TSE:CG) and its predecessor Cameco Gold since 1992, in which he served in various roles including director and VP of government affairs and business development for Centerra's subsidiaries in Kyrgyzstan, Mongolia and its head office in Toronto. Simultaneously, he acted as president of Centerra Gold Mongolia.
Most recently, Kovarsky worked at Kola Mining (CVE:KM) as president and CEO, leading the strategy of development of the cornerstone Souker Nickel Project in Russia.
Kincora Copper's chairman, Stephen Fabian, said: "I am particularly pleased that someone with the calibre and experience of Igor has agreed to join us at Kincora. His vast experience in all stages of mining from exploration through to the development of large mining projects in Mongolia will be invaluable for the Kincora Copper."
The company said that drilling of three additional holes is underway, adding 1,500 to 2,000 metres to the total meters drilled at Bronze Fox. The plan is for 12,000 metres to be drilled by the end of the current field season, Kincora said.
In the Ocean Equities reserach note, analyst Sam Spring said that Kincora is one of only a handful of listed plays offering pure play exposure to copper-gold exploration in Mongolia and owning a 100% interest at the asset level. The Ocean Equities report didn't specify its rating or target price for Kincora.
Ocean's Spring said that the current activities of Kincora are akin to "defining and starting to put together the pieces of what appears to be a very large jigsaw puzzle" with various known mineralized targets already identified on a small section of the tenement.
Spring added that initial progress has been "very impressive". Current drilling and planned soil sampling from historic trenches around the "gap" zone at the West Kasulu target has the potential to pull together and define a conceptual lower grade, near surface resource which could support a "starter" open pit development project, Spring said.
The Ocean Equities analyst also noted he didn't expect this year's drilling program to define a maiden NI 43-101 compliant resource, as he expects further drilling is likely necessary early in 2012. Spring said the company has already "very successfully" advanced four key elements of its strategy.
It has consolidated and increased its presence in highly prospective and advanced exploration targets in Mongolia, now owning 100% of Bronze Fox and being in advanced discussions regarding a number of other potential targets.
Moreover, surface and drilling at depth to date has further indicated prospective alteration and suggests there has most likely been a large multi-phase copper and copper-gold-molly mineralization event at Bronze Fox.
Greenfield exploration at the asset has also been advanced with follow-up drilling in 2012 most likely defining potential maiden resources at the West Kasulu and other targets, and scout testing a number of other high priority targets, Spring concluded.
Tuesday afternoon, Kincora shares were flat at 38 cents but are up 31% for the year to date.
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