Kincora’s dominate position between and on strike from the two existing copper mines in the Southern Gobi is within only several hundred kilometers from the border with China, the largest consumer of copper in the world.
The region is sparsely populated, generally flat open desert, enjoys existing and rapidly improving infrastructure, is not at altitude and is within trucking distance to China – a favorable location for exploration and mine development.
Our portfolio covers 10 existing licenses, 2 further applications and covers over >1560km2. It is a strategic landholding including the majority of prospective copper belt offering the highest potential for further Tier 1 discoveries in the proven but under explored copper belt, which includes Rio Tinto’s largest global expansion project. Existing large incumbents are actively expanding portfolio and/or ramping up exploration within this Devonian copper belt.
The Devonian copper belts’ existing copper mines include two large scale greenfield copper construction projects: Oyu Tolgoi, invested capital to date over US$7 billion, in Stage 1 open pit production and target production of up to 160,000t/day, owned by Rio Tinto, Turquoise Hill Resources minority shareholders and the Government of Mongolia (“GoM”); and, Tsagaan Suvarga, estimated capex of at least US$1 billion and target production of 40,000t/day from its open pit, privately owned by MAK with project finance syndicated by the European Bank of Reconstruction and Development (“EBRD”).
Ahead of formal notice to proceed with the recommencement of underground development of Oyu Tolgoi, in Dec’15 the largest project financing of its kind in the metals and mining industry was secured for up to US$6 billion to fund underground construction. The financing was sourced from a syndicate of international financial institutions and export credit agencies representing the governments of Canada, the United States and Australia, along with 15 commercial banks.
Initial exports from Oyu Tolgoi’s open pit in less than four years from final investment agreements, three years of production with an excellent safety record and the syndication of the underground project financing assists demonstrate the attractiveness of Mongolia as a place to do business and invest.
Other significant mines, including the world class Erdenes Tavan Tolgoi mine and other coal mines, with associated infrastructure (including rail, power and water) are proposed or under construction in this general region, which is one of the most rapidly developing mining centers anywhere in the globe despite being one of the last under-explored frontiers. Xanadu Mines’ (c.A$100m market cap) flagship Kharmagtai copper-gold exploration project sits in close proximity outside of the interpreted Devonian belt where they continue to explore for a fourth mineralized system to support it advancing from exploration to development.
With the IBEX transaction, Kincora how operates the winterized “White Pearl” camp, located within 300 metres of recently installed power lines. The southern licenses are located within the Oyu Tolgoi aquifer.
Link to: Location overview presentation
Last updated February 6th, 2017