Kincora Copper’s latest Induced Polarization (IP) program has identified a number of targets at its Bronze Fox project. The company says that although results are only preliminary, the program and additional desktop work have indicated a number of high priority, potential world-class size, copper porphyry targets offering significant resource potential in the project area.
These targets will shortly be refined to specific drill targets. Kincora recently completed one the most active copper exploration programs in Mongolia during 2013, on one of the most advanced and prospective projects with one of the youngest exploration licences.
There are a number of analogies between the current stage of exploration and results at the Bronze Fox project and at Oyu Tolgoi in 2000-01 pre ‘discovery hole’. The Hugo West discovery at Oyu Tolgoi highlights the prospectivity of the OT trend and belt.
The Canadian-listed company says discussions with potential strategic investors regarding technical and financial synergies remain ongoing. Due to the current economic downturn further overhead/administrative cost savings have been realized and additional steps taken to preserve the company’s finances.
The company had a cash balance at the end of September of Can$1.65 million with net working capital of Can$1.46 million, which will support at least minimum expenditure requirements on Bronze Fox in 2014.
Kincora’s efforts to recover its licences at Golden Grouse, Tourmaline Hills and North Fox continue following the recent revocation by the Mongolian Government. These licences were among 106 licences revoked across the resource-rich country following a criminal action involving former government officials.
These efforts include a Can$7 million write down in Kincora’s September quarter accounts. Kincora’s losses for the nine months to September, therefore, were Can$8.62 million.
The company’s president and CEO Sam Spring says although the Mongolian Parliament has approved a new Investment Law and is proposing further measures to revive FDI and sustainable growth, various private sector uncertainties and third party legal actions regarding security of tenure have emerged, creating further global angst about the future of Mongolia’s mining industry.