MACQUARIE ARC BELT

MACQUARIE ARC BELT OVERVIEW

The Macquarie Arc is Australia’s foremost porphyry district and located in the Lachlan Fold Belt, a world-class porphyry belt hosting an endowment of over 100Moz gold and over 24Mt copper.1

As summarised by Richard Schodde, a globally recognised minerals economist, “as an economic geologist … NSW, Lachlan Fold Belt, for copper and gold, is the place to be”2.

Key projects include:

  • Cadia gold-copper porphyries (>50Moz Au & >9.5Mt Cu1), the company maker for Newcrest Mining and its ongoing cash cow
  • Northparkes copper-gold porphyries (5.5Moz Au & 4.5Mt Cu1), acquired from Rio Tinto by CMOC (China Molybdenum Co Ltd)  
  • Cowal epithermal gold (>12Moz Au1), the cornerstone mine of Evolution Mining
  • The recent Boda gold-copper porphyry discovery by Alkane Resources (including 97m @ 3.97g/t Au, 1.50% Cu)

The central west of NSW is an agricultural, mining, infrastructure and rail hub, enjoying excellent existing infrastructure and mining culture. NSW as a State is second largest gold producer in Australia despite receiving only a tenth of the exploration expenditure of that in Western Australia3 and the renaissance in the Victorian goldfields.

While enjoying a mining history for well over a hundred years, less than 8% of gold/base metal drill holes in the region are greater than 150 metres depth and only 2.6% drilled deeper than 300 metres.

This is despite the core high grade and mineralized systems of the four key projects listed having little or no, at or near surface higher-grade mineralization.

There has been significant improvement in modern exploration techniques, new regional datasets and understanding of the mineral systems in the Lachlan Fold Belt, assisting many of the current exploration players capitalise on prior explorer activities and drilling which often failed to recognize the nature of, and/or systematically test, the exploration target.

Recent discoveries and expansions in the region have stimulated significant activities – key developments of note include:

  • Boda gold-copper porphyry discovery and resource drilling results at the Tomingely Gold Operations by Alkane Resources (Macquarie Arc)
  • Kincora’s first hole at the Trundle gold-copper project within the same intrusive complex as Northparkes (Macquarie Arc)
  • Hume prospect “McPhillamy’s style” gold discovery at the Cullarin project by Sky Metals
  • Large mining expansions for Cadia, Cowal and Northparkes (Macquarie Arc)
  • Proof of concept for undercover exploration and economics (Macquarie Arc)

1   Bespoke Mar’20 request by Richard Schodde from MinEx Consulting for Kincora Copper

Reported on a pre-mined resource basis & LFB with 335 deposits (> Minor size, >10kt Cu, >10k Au).

NSW state with gold and copper deposits (492) over State Magnetics survey (TMI RTP).

There is considered excellent potential for new globally world-class discoveries and underground mines in the Macquarie Arc.

2  “The Assay” video interview Apri’20 with Richard Schodde and John Holliday - available here

3 RIU Resurgence Conference, September 15th 2020, Dr Chris Yeats - Executive Director Geological Survey of NSW

This is illustrated by the recent discovery from Alkane Resources at its Boda porphyry project, and the significant expansion activities currently taking place at Newcrest’s cornerstone asset, Cadia, and also the Northparkes and Cowal mines.

Like most globally significant mineral provinces, the major deposits sit within key geological units and mineralized systems.

In the Lachlan Fold Belt, for gold rich copper porphyries, this is the Macquarie Arc, of which there are two key belts:

  • Molong Belt
    • Cadia gold-copper porphyries (>50Moz Au & >9.5Mt Cu1)
    • Boda gold-copper discovery
  • Junee-Norromine Belt
    • Northparkes copper-gold porphyries (5.5 Moz Au & 4.5 Mt Cu1)
    • Cowal epithermal gold (>12 Moz Au1)
    • Alkane’s Tomingley gold operation

1   Source: Total mineral endowment, MinEx Consulting for Kincora Copper March 2020

While a lot of previous exploration has been done in this region, by Newcrest and others, the limited drilling depth of previous efforts, previous exploration methods/techniques, predominate focus for just open pit depth discoveries and certain underexplored areas on the

Macquarie Arc are still open and have excellent potential for new discoveries.

The Boda discovery, like the Ridgeway Cadia discovery, is an example of this, being in the Macquarie Arc, on one of the key belts (the Molong Volcanic belt), with previous mineralization at or near surface open at depth, deserving to be drilled and ultimately leading to the discovery of significant higher-grade systems.

The predominate high-grade copper-gold porphyry deposits in the Macquarie Arc are pipe like, “finger” or “pencil” porphyries that are vertically extensive but horizontally discrete. This general setting needs significant consideration in order to adopt an appropriate systematic and cost effective exploration approach.

The Cowal gold project hosts a cluster of structurally controlled, low to intermediate sulphidation epithermal, quartz-carbonate-base metal-gold deposits is located on the western edge of Lake Cowal, in the southern section of the Junee-Norromine Belt. Five main deposits/mineralised blocks have been delineated, spaced at ~1 km intervals within the 7.5 x 2 km, north-south oriented 'Gold Corridor'.

This project is Evolution Mining’s flagship project, acquired from Barrick. At the September 2020, investor day, Evolution stated a targeted mineral endowment of 15Moz of gold and production of 350,000oz/pa gold.

Investors should pay very close attention to who are real explorers with real projects in this region given the amount of juniors promoting nearology or even nearerology to Cadia, Cowal or Northparkes. If your not in the right belt and rocks, it just doesn’t matter if are close to any of these deposits.

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KEY DEPOSITS AND RECENT ACTIVITIES IN THE BELT

The first significant exploration result by Alkane at the Boda porphyry discovery in September last year, plus a new gold discovery by Sky Metals, has seen the Lachlan Fold Belt become a hotspot for exploration.

There has been:

  • A large amount of public market capital raised and investment in exploration taking place,
  • there has been a frenzy of corporate activities, and,
  • there has been a very large land grab for tenure (by juniors through to majors alike).

According to internationally recognized mineral economist Richard Schodde, the Lachlan Fold Belt is the latest hot spot for global exploration.

“As an economic geologist you have to do that trade off between where can you find a good orebody and where can you make money and feel safe at night … New South Wales, the Lachlan Fold Belt, for copper and gold is the place to be” - Richard Schodde, MinEx Consulting (April 2020 interview - Click Here)

Within this region there has been a very significant recent land grab, with over a 25% increase in tenure since last September, from juniors and majors alike.

Within the belt there are four major mining and exploration regions:

  • Cadia: landholding dominated by Newcrest Mining and a private group, Gold & Copper, undertaking target testing drilling both in two joint ventures with Fortescue and in their own right.
  • Cowal: landholding dominated by Evolution Mining, with the only other group having a position of note being Kincora with its two projects (Fairholme and Jemalong).
  • Northparkes: landholding dominated by China Molybdenum Co Ltd (CMOC), and Kincora (Trundle) and Fortescue.
  • Boda: Alkane holding the most immediate known prospects around Boda, with various juniors surrounding including Alice Queen and Magmatic.

Fortescue and Inflection Resources’ have been the most aggressive groups securing new ground directly from the State.

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KINCORA’S ENTRY INTO THE MACQUARIE ARC

Following medium term exploration successes, re-rating of valuations for various exploration juniors and increased investment capital being allocated in multiple prospective undercover mineral belts in Australia, the Kincora Technical Committee in mid 2019 undertook a review of potential opportunities to expand and diversify the Company’s project pipeline outside of Mongolia for prospective world-class discoveries.

The review sought to leverage existing experience and exploration successes in Australia, opportunities pursuing a complementary systematic exploration approach as deployed in Mongolia. It also provides a broadening of Kincora’s jurisdictional profile and addresses investor’s concerns we search in the most attractive jurisdictions.

The review focused on various mineral provinces that host a proven world-class deposit(s), are prospective for further undercover discoveries and included undertaking an appraisal of depth/nature of cover, exploration maturity and competition status.

Certain provinces were downgraded due to competition, such as the Paterson, the latter driven by Rio Tinto’s Winu discovery and Newcrest’s successes with Greatland Gold’s Havieron project, and others often a combination of various factors, for example the Gawler Carton due to depth of cover, mature level of exploration, access to licenses and degree of competition.

The Lachlan Fold Belt screened technically and commercially well with a number of projects and opportunities identified and reviewed. Kincora’s entry into the Macquarie Arc, the key porphyry regions within the Lachlan Fold Belt and the most foremost porphyry region in Australia, was assisted by having a unique knowledge and a competitive advantage in the region. This is driven by the Company’s technical director, John Holliday, being the foremost porphyry figure in this region and our consultant geophysicists’, Barry de Wet, prior and recent experience in the region (as chief geophysicist for BHP, HPX and Kaizen Discovery).

Exploration in NSW, and in particular the Lachlan Fold Belt where considerable exploration and regional studies have taken place, is greatly assisted by public access to previous groups activities, assisting project reviews and accelerating the lead-time to drilling. 

Kincora identified the copper-gold Nyngan porphyry project as a priority for application directly from the NSW Government. The Nyngan project was selected based on the ability to secure a large license area, its stratigraphic-structural setting and right rocks, including previous mineralisation from limited drilling to basement, favourable fertility analysis and age.

Following Kincora’s successful direct application for its Nyngan project (announced November 21st, 2019 - Click Here), covering 762 km2, an application for a second large new exploration license has been made directly to the NSW State for the Nevertire project, covering 382 km2 (announced January 30st, 2020 - Click Here).

The Nevertire and Nyngan projects consolidate what is interpreted to be the most prospective and shallow to moderate cover of the commonly accepted extension of the Junee-Narromine Belt of the Macquarie Arc.

The region was previously the focus of St Barbara Ltd’s Big Gold Lachlan Project-Marra Joint Group project that covered various separate license areas across an 80km strike. St Barbara interpreted “the area to contain the largest volcano-intrusive centre of the Ordovician-Early Silurian Macquarie Arc, which to the south hosts the Northparkes and Cadia Valley mines.” 1

This is an area that recently has attracted significant interest with majors and juniors alike pegging ground around Kincora’s Nyngan and Nevertire ground with a greater than 35% increase of tenure in the northern Junee-Narromine region.

Kincora’s exploration concepts with the Nyngan/Nevertire region and proposed drilling plans has been rewarded by the NSW Government who have awarded the Company a cooperative funding grant to financially assist drilling two copper-gold porphyry targets at our Nyngan project (announced September 14th, 2020 – Click Here)

The 2020 New Frontiers Co-Operative Drilling Grants program is the third such program by the NSW Government1.

Under the two-year program a total of A$2 million is available to reimburse half of direct drilling costs with a maximum grant to any individual project of A$200,000.

The program is managed by the Geological Survey of NSW and is part of the NSW Mineral Strategy commitment to promote investment in mineral exploration. Applications were encouraged to apply for drilling projects in relatively untested and prospective regions, to test new geological ideas and/or in areas where the target is under cover.

For further information on exploration and mining in NSW please refer to the following link: Click Here

A replay of the “Exploring in NSW” webinar (September 7th), and keynote presentation from Richard Schodde are available at:

Webinar: Click Here to Watch

Presentation: Click Here to Open

Kincora is delighted to be participating at the NSW “Mines and Money 5@5 Event” as part of the upcoming 2020 IMARC Online Conference.

1          NSW Government, Division of Resources and Geoscience, November 1, 2019 press release - Click Here

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KINCORA’S PROJECT PIPELINE

The core focus of the Company is systematically advancing our district scale and strategic project pipeline in the key belts of the Macquarie Arc of the LFB in NSW.

Exploration plans in the upcoming 12-months (March 2021) include:

  1. Expanding ongoing exploration drilling activities at the Trundle Project within the westerly rifted-off section of the Northparkes Igneous Complex (which already hosts 5.5Moz gold and 4.5Mt copper at the Northparkes mine1);
  2. Target test drilling at the Fairholme Project at six gold targets, the only ground held by a junior on the Cowal block on strike of the world-class Cowal mine (which already hosts greater than 12Moz gold and porphyries1) on the southern Junee-Narromine belt;
  3. Drilling two copper gold porphyry targets at the Nyngan Project located in the northern Junee-Narromine belt;
  4. Advancing our earlier stage project pipeline; and,
  5. Evaluating further project generation and corporate opportunities.

Delivery on the presented strategy is expected to support Kincora’s ambition of being the leading pure play porphyry explorer in Australia’s foremost porphyry belt.

Summary of Kincora’s project pipeline

Summary of Kincora’s project pipeline

* Joint Venture with RareX Limited

1 Bespoke Mar’20 request by Richard Schodde from MinEx Consulting for Kincora Copper.

a) Trundle Project: The only brownfield porphyry project held by a listed junior in the Macquarie Arc, within 30km from the Northparkes mill (LHS)

b) Fairholme Project: On strike less than 15km to the five structurally controlled gold deposits and mill that comprised the Cowal mine (RHS)

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THE TRUNDLE PROJECT

THE TRUNDLE PROJECT
Target Porphyry related copper gold.
Size 167km2 (one single license).
Location 420km west of Sydney and 61 north-west of Parkes in Central West NSW. Brownfield setting within the Northparkes Igneous Complex (existing endowment 5.5Moz gold and 4.5Mt copper) less than 30km of the Northparkes mill and 5 economic deposits.
New Concept Previous explorer drilling has generally been too shallow, falling to adequately follow up previously encouraging geochemistry and geophysics, and the potential for the skarn mineral system has not been adequately evaluated.

Background:

The predominate high-grade copper gold deposits in the Macquarie Arc and at the Northparkes mine are pipe like, “finger” or “pencil” porphyries that are vertically extensive but horizontally discrete. Northparkes is Australia’s second largest porphyry mine, hosting 5 gold rich porphyry deposits within an approximate 2.5 x 4.5km zone, with the core of these systems located predominately at moderate depths.

The Trundle Project is located less than 30km from the mill at Northparkes within the westerly rift separated part of the Northparkes Igneous Complex. Northparkes is operated by China Molybdenum Company Limited (CMOC) who acquired an 80% interest in the project from Rio Tinto in July 2013 for US$820 million (Sumitomo retaining a 20% minority interest) and has since undertaken a material expansion of production and extension of mine life. In July 2020, Triple Flag Precious Metals Corporation paid US$550 million to secure streaming rights over certain gold and silver production from Northparkes.

The porphyry intrusion and associated skarn system setting intersected at  Trundle is a common geological setting of many large porphyry systems (eg Cadia, Grasberg, Ok Tedi etc). Within the Macquarie Arc, the Big and Little Cadia skarns at Cadia have produced an estimated 140,000t of high-grade copper (5-7%) and greater than 1.5Mt iron ore, and were important to the discovery of multiple adjacent causative intrusions and deposits that make up the largest porphyry system and gold mine in Australia.

Despite 61,146 metres of prior explorer drilling completed at Trundle, only 11 holes (0.5% of holes drilled) have previously been to depths (greater than 250 metres) and in a manner that might test the potential for such a target at the Trundle Project. This is not withstanding confirmed extensive near surface copper and gold mineralization across greater than a 10km2 north-south strike length and coincident magnetic responses, encouragement at moderate depths from this limited prior deeper drilling and Trundle being located within a brownfield environment to Northparkes.

At the Trundle Project there has only been one prior explorer hole completed following a favourable Typhoon geophysical survey by High Powered Exploration (HPX, led by chairman and CEO Robert Friedland). The Typhoon geophysical system is proprietary and was developed to penetrate deeper than traditional equivalent systems, and in Kincora’s view is industry leading for this system of mineralization. HPX generated 17 new Induced Polarisation (“IP”) anomalies, many of which in Kincora’s view are further supported geologically by vertically extensive porphyry targets extending to moderate depths.

Exploration strategy and initial results:

Kincora’s concept is that prior exploration efforts have not been adequately tailored using geochemistry (surface and historic down-hole), combined with deeper IP survey results, modern magnetics and integrated geology and geophysics to systematically rank prospects technically and then explore and test for copper gold mineralized systems at Trundle. Specifically, prior explorer efforts to depths greater than 250m from surface to follow shallow vectors within the skarn mineralised systems within the Northparkes Igneous Complex at Trundle have been inadequate.

A key use of funds of the Offering involves a strategy to accelerate the ongoing drilling and exploration activities at the Trundle Park and Mordialloc targets, plus advancing other prospect areas which have complementary but insufficiently tested geochemistry and geophysics targets with the aim to find: (a) near surface copper gold skarn resources overlying or adjacent to (b) pencil type copper gold porphyry systems.

Trundle Park prospect

At the Trundle Park target, Kincora’s initial drillhole (TRDD001) returned 51m @ 1.17 g/t gold and 0.54% copper from 39m, including 20.5m @ 1.94 g/t gold and 1.18% copper from 57.6m, and intersected multiple deeper level skarn horizons.

As a follow up and to test the southern strike extent of TRDD001, hole TRDD008 was stepped out 80m south and intersected broad garnet-bearing skarn intervals. Results included: 87.7m @ 0.65 g/t Au and 0.18% Cu from surface (0m), including: 18.0m @ 1.51 g/t Au and 0.20 % Cu from surface, and 8.0m @ 1.63 g/t Au and 0.57 % Cu from 66m down hole depth, and 19.0m @ 0.43 g/t Au and 0.21 % Cu from 388m down hole.

TRDD008 demonstrated that: (a) the skarn mineralization from hole TRDD001 (80m due north) continues towards the south (b) broad and multiple horizons of skarn exist at Trundle Park, (c) indications from the alteration and skarn-replacement along the greywacke and volcano-clastic rocks that copper gold mineralization can be lateral along the bedding which also dips towards the south, suggesting potential for further skarn-horizons to be located by subsequent drilling collar step-outs towards the south and drilling back across bedding towards the northwest.

The average depth of prior explorer drilling at the Trundle Park prospect is only 28 metres with only two diamond core drill holes to moderate depths. Geological interpretation of Kincora’s new deeper core drilling has led to a change in drill hole orientation towards the northwest post the completion of TRDD008.

To follow up the encouraging mineralisation in TRDD001 and TRDD008, and factoring down-hole geochemistry vectors from prior drilling, TRDD011 was designed to extend the mineralized skarn horizon to the northwest of TRDD001 and was followed up by a 50 metre step back to the south-east with TRDD012, which is a 80 metre step out to the south of TRDD001.

Hole TRDD011 intersected intense structurally controlled near surface mineralization. Assay results from nearer surface intervals for TRDD011 returned 74 metres @ 0.40% copper and 0.37 g/t gold from surface including 42 meters @ 0.64% copper and 0.58 g/t gold from 32 metres which included a high grade interval of 4 metres @ 4.98% copper and 3.36 g/t gold from 68 metres.

Hole TRDD012 sought to intersect the down-dip extension of previously intersected higher grade, near surface intervals, and to better understand the width potential of the skarn horizons. TRDD012 was drilled to 581 metres, and was extended beyond the original target depth of 400 metres.

Broad and multiple skarn horizons intersected within TRDD012 provide encouragement for expanding the footprint size potential of the at/near surface skarn system along strike and to depth. Primary bornite, chalcopyrite and molybdenum, and observations of discrete monzodiorite intrusions in TRDD012 provide encouragement for the Company’s current working geological model for the central Trundle Park prospect and that the source of the at or near surface mineralisation intersected to date is from a porphyry intrusive system.

Drill hole TRDD015 was a 50m step-out to the southeast from the collar of previous hole TRDD012 along the same easterly cross-section with holes TRDD001 and TRDD011. The hole has significantly improved our understanding of geology, alteration and mineralisation along this east cutting section noting the following from visual logging (assay results pending):

  • Observations of the timing of felsic intrusions, with: (1) an early monzodiorite, cut by (2) quartz-monzodiorite and in turn by (3) later aplite dykes;
  • Confirmation of the presence of quartz veins with pyrite and traces of molybdenite occurring in both holes TRDD012 and directly underneath in hole TRDD015, hosted also by both monzodiorite and quartz-monzodiorite;
  • Observation of at least two intervals with skarn (garnet-prehnite-magnetite) replacing the bedding of the volcanoclastic rocks, in turn cut by quartz-carbonate-pyrite veins with traces of chalcopyrite;
  • Confirmation of a low-angle fault (thrust) from 491 to 521.8 metres down hole depth and along the eastern section of the Trundle Park prospect, and;
  • Observation of younger fossiliferous calcareous sedimentary units occurring in the footwall of the thrust fault from 532m to the end of hole at 549.6m down hole depth.

A key advancement for the Trundle Park prospect from TRDD015 has been confirmation of multiple mineralising phases of a targeted intrusion. Given the mineral endowment intersected in the nearer surface skarn the intrusions from TRDD015 are not expected to be the causative source but provides support for the teams exploration concepts and model. Testing for the porphyry copper-gold potential associated with felsic intrusions like the monzodiorite and quartz-monzodiorite intrusions at Trundle Park remains open to the south, west and north at this prospect.

The focus of the ongoing program is to expand the scale of the near surface ore grade skarn mineralisation by stepping out along strike, both the north and south.  Drilling is also designed to test for the causative porphyry intrusive source of the mineralisation in the skarn, which may be strong porphyry mineralisation, similar to what drives skarn mineralisation at such famous porphyry systems as Cadia, Grasberg and Ok Tedi.

Encouragement to the northern strike is provided from recent assay results from TRDD007, a 150-metre step out to north of TRDD001. Despite limited visual encouragement, in part because lack of skarn development and indications of intrusions and intersecting a major fault zone, dipping steeply to the west and sub-parallel to the NNE-SSW striking Tullamore Thrust Zone, assay results returned various mineralized intervals including 8 metres @ 0.96g/t gold and 0.34% copper from 158m and 39.3m @ 0.21g/t gold and 0.03% copper from 2.6 metres. The potentially ore grade interval, further supports the northerly extension and targeting for mineralization, both skarn and porphyry. 

Mordialloc prospect

A cluster of pencil porphyries is the target at Mordialloc. The Mordialloc target area hosts large coincident magnetic and IP chargeability high features coupled with anomalous copper, gold and molybdenite surface geochemistry. Assay results from previous historic drilling, and recent deeper Kincora drilling, and independent and internal expert geological assessment all support strong halo indicators of a mineralized porphyry intrusion system at this prospect, to be further drill tested.

Kincora’s first hole at the Mordialloc target (TRDD002) intersected favourable alteration and anomalous metal levels between 721-790.25 metres (end of hole), with 2m intersections up to 0.29% copper and 272ppm molybdenum.  For this hole, expert mineral petrographer, Dr Tony Crawford commented: “the well defined inner- to outer propylitic style hydrothermal alteration, preservation of hydrothermal magnetite at the base of the hole indicate a passage into typically ore-proximal potassic- or calc-potassic alteration, and the late, probably structurally controlled phyllic overprint at 711.5m with minor anhydrite, all strongly support the presence of a mineralizing porphyry copper gold system at the Mordialloc prospect”.

The Company’s second drill hole at this target (TRDD005) at this target was a step out approximately 150m south of TRDD002 and returned multiple broad zones of anomalous copper, gold and molybdenum, including localized moderate to higher-grade intervals. This included a relatively shallow previously unidentified interval of skarn altered volcano-clastic rocks (including 12m at 0.33g/t gold and 0.29% copper from 138m, including 2m at 1.4g/t gold and 1% copper from 142m) with the hole interpreted to have tested the eastern margin at the southern end of the Mordialloc prospect porphyry complex.

TRDD006 was drilled to the west from TRDD002 to a depth of 962m and returned broad and multiple zones of anomalous copper gold predominately within a coarse quartz monzonite porphyry. The scale of porphyry mineralization is particularly encouraging indicating a large-scale system with vectors to, and ample room for the targeted higher-grade core and cluster of pencil type porphyry intrusions. Results included:

  • 42m @ 0.07% copper & 0.04g/t gold (from 62m in volcanic-sandstone);
  • 306m @ 0.10% copper, 0.06g/t gold & 18ppm molybdenum (from 144m in quartz monzonite porphyry);
  • 98m @ 0.11% copper, 0.07g/t gold & 18ppm molybdenum (from 466m in volcano-clastic rocks); and,
  • 2m @ 0.02% copper, 0.98g/t gold & 2ppm molybdenum (from 880m in volcano-clastic rocks).
  • Deepening of drill hole TRDD002, and additional step-out holes, testing up-dip and moderate depth targets are planned as part of the vectoring for the core of a targeted porphyry copper gold system at the Mordialloc target.
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THE FAIRHOLME PROJECT

FAIRHOLME PROJECT
Target Epithermal gold-base metal style mineralization.
Size 169km2 (two adjacent licenses).
Location 440km west of Sydney and 45km northeast of West Wyalong in Central West NSW.
Less than 15km north and along strike from the 5 structurally controlled gold deposits and mill at Cowal (existing endowment greater than 12Moz gold).
New Concept Previous exploration drilling has been focused on copper porphyry potential, not shallow epithermal “Cowal-like” gold-base metal mineralization.

Background:

Despite Kincora’s drill targets being less than 15km along strike from the five epithermal gold deposits that comprise the Cowal mine (targeted endowment of 15Moz gold2), few of the 62,768 metres of prior explorer drilling at the Fairholme Project have tested the potential for near surface gold-base metal epithermal deposits, similar to that at Cowal.

In Kincora’s opinion, Evolution Mining has been extremely successful building resource inventory and implementing production plans following the acquisition of Cowal from Barrick. Since the last field program of exploration at Fairholme, Evolution has increased resources at Cowal from 3.4Moz to 9.6Moz gold2 Evolution is expanding gold production from around 250,000oz/pa to a planned 350,000oz/pa operation at Cowal2.

At the Gateway prospect on the Fairholme Project there is encouraging potential for gold and base metals based on the presence of coincident gold, copper, zinc, arsenic and bismuth geochemical anomalism in past explorer scout drilling along the interpreted northern extension of structures from the Cowal gold corridor. Furthermore, observations of strong sericite alteration preceding deformation suggest good potential for intermediate-high sulfidation epithermal type gold-base metal mineralisation possibly similar in type to the Cowal gold deposits. The Cowal-like gold-base metal model has not previously been tested on the Fairholme licenses.

Exploration strategy:

Kincora has designed a maiden drill program that will for the first time be focused on testing the potential for shallow to moderate depth structurally controlled “Cowal-like” gold-base metal style mineralization at:

  1. the Gateway prospect: target testing diamond drilling along the strike continuation of anomalous gold-copper identified over a 400m strike north-south length with a favourable structural setting – the intersection of NNW and NE faults, and;
  2. build a pipeline of gold-copper prospects from follow-up aircore drill testing stepping out from previously identified single point anomalies to expand the potential discovery footprint. Prospects include Gateway, Driftway C, Anomaly 2, Manna Creek, Glencoe and Kennel.

The latter program is analogous to the original Geopeko shallow reconnaissance RAB drilling to bedrock program over targets largely selected on the basis of geophysical data. This program defined an approximate area of 7.5 x 2 km of greater than 0.1g/t gold along the western margin of Lake Cowal that was identified for follow up, which ultimately led to the discovery of the Cowal gold deposits.

Kincora is in the process of gaining permits to undertake a maiden drilling program at the Fairholme Project with a key use of funds proposed to support this program.

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THE NORTHERN JUNEE-NARROMINE BELT PROJECTS

Northern Junee-Narromine Belt Projects (Nyngan and Nevertire licenses)
Target Porphyry-related gold copper mineralisation.
Size 1,144km2 (two licenses).
Location 525 to 575km north-west of Sydney in Central NSW.
Northern undercover extension of the Junee-Narromine belt, which hosts the following mines to the south: Tomingley (150km); Northparkes (215km); and, Cowal (280km).
New Concept Similar to the recent Boda discovery in the northern undercover extension of the parallel Molong belt, Kincora’s exploration concepts is that the Nyngan-Nevertire region has the potential to host a large high-grade porphyry complex(s) in the northern undercover extension of the Junee-Narromine belt.

Background:

The Company’s wholly owned Nyngan and Nevertire licenses cover 1,144km2 a large portion of what is interpreted by Kincora to be the most prospective and shallow to moderate covered part of the commonly accepted northwards extension of the Junee-Narromine Belt of the Macquarie Arc. Kincora was an early mover into the region, which is within a jog in the Junee-Narromine belt.  This jog favourably comparable to the Lachlan Transverse Zone and other NW-SE lineaments that have often been interpreted as fundamental controls on the formation of the porphyry related mineralized systems in the Macquarie Arc (eg Cadia, Northparkes, Boda and Cowal-Marsden).

The broad region was previously the focus of St Barbara Ltd’s Big Gold Lachlan Project-Marra Joint Group project that covered various separate license areas across an 80km strike. St Barbara interpreted “the area to contain the largest volcano-intrusive centre of the Ordovician-Early Silurian Macquarie Arc, which to the south hosts the Northparkes and Cadia Valley mines.”3

Outside of the Nyngan and Nevertire licenses, the northern section of the Junee-Narromine belt has attracted significant recent interest with majors and juniors alike pegging ground resulting in greater than 35% increase of tenure in the region since Kincora moved in. Inflection Resources and FMG Resources are both currently undertaking stratigraphic and target testing drilling programs within the region.

Despite Kincora’s large portfolio area, only three prior exploration drill holes with diamond drill core have intersected basement on the Nyngan license. Newcrest’s drill hole ACDNY002 was the most notable, reaching basement at 280 metres within what is now within the Nyngan license (EOH 339.5 metres). The hole intersected copper and gold mineralization within calcite-bornite-chalcopyrite bearing amygdales and minor carbonate-pyrite-bornite bearing veins in rounded volcaniclastic conglomerate clasts.

Subsequent litho-geochemistry has matched to the well-defined Late Ordovician shoshonitic Macquarie Arc basalts and andesites that are associated with the main mineralized systems in the LFB. No subsequent exploration drilling has taken place across either license area.

Exploration strategy:

With non-dilutive cooperative funding grant support from the NSW Government in place, Kincora is planning a maiden drilling program testing two copper gold porphyry targets at our Nyngan Project, amongst other activities in this prospective but underexplored region.

Exploration success by Kincora, or others currently drilling in this northern section of the Junee-Narromine Belt has scope to add significant value to tenure in this part of the Macquarie Arc and support not dissimilar activities to the acceleration of drilling and increased corporate activities of juniors around the recent Boda porphyry discovery in the northern and similarly underexplored section of the Molong Belt.

1 RIU Resurgence Conference, Dr Chris Yeats - Executive Director Geological Survey of NSW, September 15th 2020.

2 Evolution Mining Investor Webinar, September 2020.

3 St Barbara Ltd, open file report "Nyngan JV annual report for the period ending June 2012", August 2012.

For further details please refer to:

  • March 1st, 20212 Kincora pathfinder prospectus including independent technical report on the Mongolian portfolio: www.kincoracopper.com
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