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.
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.
LAND GRAB, INCREASED EXPLORATION AND CORPORATE ACTIVITIES
“If the Paterson Province was the hottest exploration destination in 2018, New South Wales Lachlan Fold Belt is the hot spot of this year” - Mining Journal, December 2019
Macquarie Arc: >25% increase in exploration tenure since September 2019
- >35% increase in the northern Junee-Narromine region since Kincora’s application for the Nyngan project, including entry of a new major with applications adjacent now to two of Kincora’s licenses.
- New major applying for ground adjacent to Kincora’s Trundle and over the Cundumbul projects
- Inflection Resources: July’20 C$3.5m IPO on the Canadian CSE exchange and C$30m market cap to fund early stage exploration across ~5500km2 of tenure
- Existing ASX junior refocused on the region:
- Magmatic: shareholder approvals to divest Macquarie Arc assets but refocus on region has seen 23x in market cap (not a typo)
Outside of the Macquarie Arc: New listed juniors predominately focused on the LFB outside of the Macquarie Arc
- Krakatoa: A$2.4m Jul’20 raising to fund drilling at Turon & Belgravia projects (latter testing targets on the license boundary to Kincora’s Cundumbul project)
- Kaiser Reef: A$4.5m Feb’20 raising/IPO to fund exploration at the early stage Stuart Town gold project, located off the Macquarie Arc
- Kincora’s Cundumbul project (previously the focus of a $3m asset level deal) is located ~20km west of Kaiser Reef’s project but on the Macquarie Arc (~30km south of the Boda discovery)
- Godolphin Res.: A$7.5m Dec’19 raising/IPO to fund exploration across ~2000km2 of tenure in LFB, predominately outside of the Macquarie Arc
Another key reason for the increased activities in the belt is the demonstrated profitability of the existing large mines and current significant expansions.
Cadia is the largest - a cluster of porphyry orebodies, a clear Tier 1 and giant size project, producing over 900,000 ounces of gold pa, at an All In Sustaining Capital Cost of only US$130/oz, after copper credits.
Newcrest is Australia’s largest gold miner and Cadia is its cash cow – currently accounting for approximately 100% of cash flow.
Cowal is another Tier 1 asset, an epithermal gold mine with over 12Moz endowment and the cornerstone asset for Evolution Mining.
A more copper rich porphyry is Northparkes. Northparkes was acquired by China Moly from Rio Tinto at the bottom of the last cycle, so significant details are not available in the public markets, but the project has enjoyed: significant resource growth; mine life extension, life now about 100 years based on existing resources; and, a current All In Sustaining Capital Cost of only US$1.35/lb after gold credits.
The Northparkes series of deposits, like the Cadia cluster of porphyry systems, provides an illustration of exploration success and a template for exploration in the Macquarie Arc.
Since the first hit by Alkane at Boda, a peer group of 8 exploration groups focused on this region have raised approximately $100 million. There have been three successful IPO’s and various new entrants. These 8 groups have seen an average share price increase of 5.8x (July 23rd, 2020).
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
STRATEGIC POSITION AND PORTFOLIO IN THE MACQUARIE ARC
Having secured applications over the Nyngan and Nevertire projects, Kincora looked to expand its foothold in the Macquarie Arc. A number of highly prospective opportunities were identified.
On January 30th, 2020, the Company entered into an agreement with RareX Limited (“RareX”) to acquire a 65% interest in 6 mineral leases covering 587 km2 in the Lachlan Fold Belt. This transaction closed on March 19th, 2020 (Click Here), which coupled with the Nyngan and Nevertire licenses, supports a district scale land package and industry leading proposition of copper-gold targets.
RareX is listed on the Australian Securities Exchange (“ASX”) with the ticker “REE”, formerly known as Sagon Resources and Clancy Exploration Limited. RareX is now focused on the development of its Cummins Range rare earths project in Western Australia.
The RareX project portfolio provides Kincora a controlling interest in six advanced to early stage copper-gold projects. These projects have demonstrated strategic appeal, with various previous asset level partners:
- Trundle project: High Powered Exploration (“HPX”), total prior explorer drilling of 2,208 holes for 61,146 metres
- Fairholme project: Kaizen Discovery (a sister company to HPX), total prior explorer drilling of 641 holes for 62,768 metres
- Cundumbul project: Mitsubishi Materials Corp., total prior explorer drilling of 10 holes for 844 metres
- Condobolin project: Ramelius Resources., total prior explorer drilling of 487 holes for 12,556 metres
- Jemalong project: no-JV partner, total prior drilling 64 holes for 7,701 metres
All JV partners left at bottom of the cycle 2015/16, and no exploration of note has taken place at any of the RareX projects until Kincora’s involvement.
Kincora believes there are largely untested targets that were identified by Typhoon geophysical surveys undertaken by HPX and Kaizen at the Trundle and Fairholme projects respectively. Generation of additional targets is also expected with:
- advancements in modern exploration techniques;
- new regional datasets;
- improvement in the understanding of the mineral systems in the Lachlan Fold Belt;
- increased acceptance of a deeper horizon for copper-gold porphyry exploration, particularly in the LFB following Alkane’s recent discovery at Boda;
- lack of prior exploration at Fairholme testing the potential for Cowal style of structurally controlled gold mineralization despite being on the “Cowal” block of the Macquarie Arc and being 10-20km on strike; and,
- expansion of first quartile cost operations at both Northparkes and Cadia at such target depth profiles.
The Trundle project was quickly identified as a priority for drilling as a systematic review and ranking of targets at other licenses was undertaken across the full license portfolio.
Kincora’s review of the Trundle project and RareX portfolio benefits from knowledge and previous exploration success in the belt from Technical Committee chairman and board member John Holliday being a principal discoverer and site manager of the Tier 1 Cadia and Marsden porphyry gold-copper deposits in this belt, formerly Chief Geoscientist of Newcrest Mining Limited and is still based in the region.
The Company’s review and due diligence of the Trundle project has also benefitted from access to extensive prior exploration records and data, including prior drill core, with both John Holliday and Barry de Wet (Kincora’s consultant geophysics) having previously worked on the Trundle project.
THE TRUNDLE PROJECT
The Trundle project is located 30km west of the China Molybdenum Company Limited (CMOC) operated Northparkes copper-gold project, which is Australia’s second largest porphyry mine (behind Cadia, also located in the Macquarie Arc).
CMOC acquired an 80% interest in Northparkes 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 Corp, paid US$550m to secure streaming rights over certain gold and silver production from Northparkes (Click here for further details: Click Here)
Trundle hosts the inferred westerly rift of the Northparkes Igneous Complex with extensive evidence of porphyry and skarn-style copper-gold mineralisation across a 12.5km strike associated with Ordovician intrusive centres similar to the Northparkes and Cadia deposits and mines.
On April 22, 2020, Kincora announced drilling had commenced at the Trundle project.
A first phase drilling program is planned for six holes and 3,800 metres, testing three known mineralized targets seeking to discover a new cluster of porphyry deposits. The Company’s strategy was to drill two holes at each target, the second to vector of improvement knowledge from the first hole, confirm our geological concepts, leave a >$1m cash balance post the end of the program and acknowledging the uncertain nature of capital markets and health conditions entering the first wave of COVID-19 in Australia.
Extensive porphyry and skarn-style copper-gold mineralisation and informal mining activities are associated with several Ordovician intrusive centres across the full Trundle license, which is located within a prolific mining and infrastructure district.
However, there is a clear lack of drilling to depths that host the core high-grade deposits at Cadia and Northparkes. Significant geological vectors, industry leading geophysical analysis and the team’s track record of exploration success underpin current drilling program at Trundle.
John Holliday, Chairman of Kincora’s Technical Committee, and Peter Leaman, Senior Vice-President of Exploration, commented: “Modern systematic exploration at Trundle has utilised industry leading Induced Polarisation survey's, including HPX’s proprietary Typhoon system, and magnetic modelling which has been insufficiently followed up by drilling.
Existing significant drill intersections supports vectoring to very compelling targets at three existing mineralised systems within a brownfield environment to Northparkes, Australia’s second largest porphyry mine where five deposits are defined.
BROWNFIELD SETTING: TRUNDLE AND NORTHPARKES – CONCEPTUAL RESTORATION
Share the same mineralized complex
Trundle is the only brownfield porphyry project held by a listed junior in the Macquarie Arc, Australia’s foremost porphyry region
- The Raggatt volcanics at Trundle are the stratigraphic equivalent to the Goonumbla volcanics that host the deposits at Northparkes
- Aeromagnetics illustrate key regional structures and geological features with the Trundle project located on the interpreted western rift of the Northparkes Igneous Complex within the Junee-Narromine Ordovician volcanic belt of the Macquarie arc
- Recent new license application from FMG Resources Pty Ltd for the adjacent southern ground
Sealed and unsealed roads traverse most of the license area, which hosts the town of Trundle.
On the adjacent western license sits Clean TeQ Holdings Limited’s (“Clean TeQ”), Westella limestone development project associated with its flagship Sunrise nickel-cobalt-scandium battery materials complex located 30 km to the north-west. Clean TeQ has recently announced it is undertaking further drilling at the Sunrise project to test the potential for further high-grade platinum mineralization (Click here for further details).
A prolific mining and infrastructure district
Trundle sits between Northparkes, Australia’s second largest porphyry mine, and CleanTeQ’s large, low cost, long life Sunrise development stage battery materials complex, and close to existing infrastructure.
Active regional exploration groups include China Moly, Fortescue, CleanTeQ, Alkane and Kincora.
At Trundle, surface geological mapping, geochemistry, magnetic, gravity and Induced Polarisation (“IP”) coverage, coupled with structural and basement interpretations have been positive, indicative of multiple levels and phases of large mineralised copper and gold systems.
Past drilling has been extensive with the completion of 2208 holes for 61,146 metres but drilling utilising the modern exploration techniques, and deeper drilling to basement and target depth has been inadequate.
Over 92% of prior drilling has been to less than 50 metres depth with just 11 holes beyond 300 metres (0.5% of holes drilled). Existing significant drill intersections supports vectoring to very compelling targets at three existing mineralised systems that have not been drilled since industry leading Induced Polarisation survey's, including HPX’s proprietary Typhoon system, and magnetic modelling.
Significant intercepts not followed up include:
- 60m @ o.54g/t Au from 1m
- 56m @ 0.88g/t Au, 0.35% Cu from 34m , including:
- 2m @ 20g/t Au, 6.97% Cu and 81g/t Ag from 64m
- 39m @ 0.55 g/t Au, 0.14% Cu from surface
- 35m @ 0.55 g/t Au, 0.25% Cu from 12m
- 51m @ 0.58 g/t Au, 0.14% Cu from 33m
- 58m @ o.44 g/t Au, 0.17% Cu from 22m , including:
- 4m @ 1.19g/t Au and 0.41% Cu from 28m
Kincora outline of the recently complete first phase drilling program at Trundle and stage two plans focused on testing two known mineralized porphyry targets analogous to the five deposits at Northparkes
2 primary targets for phase 2 drilling: Trundle Park in the south; &, Mordialloc in the north following positive phase 1 results.
Favourable and untested end-of-hole geochemistry and geophysics support large target zones that offer the potential for new clusters of mineralized porphyry related deposits
Surface and end-of-hole geochemical anomalies over MVA magnetics at the northern Mordialloc and southern Trundle Park prospect areas
THE TRUNDLE PARK TARGET
The first hole drilled by Kincora at Trundle commenced at the Trundle Park prospect (which sits within the southern portion of the license) where prior activities have intersected very high-grade localised zones within a large lower grade skarn mineralization, similar in style to the Big and Little Cadia skarns that is peripheral to the Cadia porphyry copper-gold deposits.
Prior to Kincora’s activities, the average depth of prior drilling at Trundle Park was only 28 metres. No drilling has tested below these mineralised holes where geophysics and relogging of historic drilling has indicated proximity to a porphyry source. Encouragingly the prior drilling provides vectors and supports subsequently defined underlying geophysical at shallow to moderate depth targets.
As announced on July 6th, 2020, Kincora’s first drill hole (TRDD001) intersected multiple significantly mineralized skarn zones at the Trundle Park target:
– 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, including;
o 8m @ 3.07 g/t gold and 1.95% copper from 57.6m, and
o 2.2m @ 4.32 g/t gold and 2.43% copper from 75.9m
– 18m @ 0.53 g/t gold and 0.05% copper from 284m, including;
- 3m @ 1.80 g/t gold and 0.18% copper from 284m
Hole TRDD001 also intersected the targeted adjacent porphyry intrusion system with broad anomalous mineralization, including:
– 21.1m @ 0.25 g/t gold and 0.03% copper from 664m to end of hole1
Assay results support the most significant mineralized intervals to date at the Trundle project and the targeted setting of a high-grade gold-copper skarn and adjacent porphyry intrusion.
Highly mineralized and multiple skarn zones intersected at Trundle Park Targeted geological setting of adjacent porphyry to near surface skarn confirm in first hole
– photos of selected intervals which are not representative of the mineralization hosted on the whole property but are of the lithology’s intersected in the mineralized zones in this drill hole
The skarn and porphyry intrusion system setting is analogous to Cadia where the Big and Little Cadia skarns have produced an estimated 140,000t of high-grade copper (5-7%) and greater than 1.5Mt iron ore2, and were important to the discovery of multiple adjacent deposits that make up the largest porphyry system in Australia.
Potential vectors and analogues to Cadia underpin favorable geological setting
Skarn alteration at Big and Little Cadia helped focus exploration at Cadia toward the largest porphyry system in Australia
Very attractive grades at shallow depths at the Trundle Park target Supporting the skarn being a standalone target at depths and intervals often mined by both open cut and underground methods
Implications of first hole - Multiple positive developments
Knowledge from TRDD001
- Grade and nature of skarn mineralisation:
- Thicker zone of near surface moderate to higher grade mineralised skarn than previously intersected and expected
- Multiple zones of mineralised skarn (including native copper, chalcocite, chalcopyrite and black chlorite, and chalcopyrite and bornite)
- Extent of magmatic fluids associated with the interpreted adjacent porphyry intrusive system
- A higher grade skarn being a potential secondary target (eg production/grade from the Little and Big Cadia skarns)
- Skarn vectors: Lateral zonation within the skarn itself (eg from garnet-magnetite-hematite, etc) supports the presence of, and being used to imply the proximity to, the interpreted underlying porphyry target at depth and/or laterally – the skarn systems were important to the discovery of multiple adjacent porphyry systems at Cadia
- Adjacent porphyry: An adjacent monzonite and monzodiorite intrusion has been intersected, with disseminated chalcopyrite and pyrite, supportive of proximity to a potential higher grade porphyry system/core significance
- Conceptual model: Targeted geological setting of adjacent intrusion(s) and potential cluster of new porphyry deposits to multiple skarn horizons confirmed in first hole, analogous to Cadia and multiple other world-class porphyries
- Exploration approach: proof of concept for exploration methodology adopted and vectors for follow up drilling
- Scale of target zone: significantly expanded to the west with multiple new large untested targets for follow up
The results of the first hole supports the skarn being a standalone target at depths and intervals often mined by both open cut and underground methods, but the high-grade zones within broader moderate mineralised zones are very importantly illustrating significant magmatic fluids associated with the adjacent porphyry intrusion system, which is a much larger target.
The Company has appointed Mining Associates to undertake an independent review of the skarn system to assist determine an exploration target based on the current database, and if favorable, an indicative scope of work and pathway to potentially progress to a resource and PEA.
Copper discovery benchmarks - How does hole 1 at Trundle rank?
Reported grades, intervals and depths of recent select copper discoveries in Australia and global porphyries
Recent gold and copper discoveries - Good new exploration results in Australia are being well rewarded
Seven companies with recent exploration success stories have re-rated 4.7x and created over A$2.6 billion in shareholder value*
Kincora’s second follow up drill hole (TRDD004) was drilled 269 metres to the west of TRDD001, a considerable step out, and was completed to 694 metres targeting a blind finger porphyry and not targeting the previously intersected high-grade skarn mineralization in TRDD001. TRDD004 did not intersect any skarn alteration and is interpreted to have intersected volcanics intruded by monzodiorite and monzonite across a fault block with minor potassic alteration at the bottom of the hole. Such a fault setting is not uncommon in other Ordovician age porphyry systems in the Macquarie Arc and TRDD004 has assisted understanding of the fault blocks and potential preservation levels within the Trundle Park target.
Following the seasonal lambing season and unencumbered access, high priority drilling at Trundle Park in September recommenced, initially test the northern and southern strike of alteration and mineralization intersected in TRDD001 within the same interpreted fault block. These holes will seek to test both the standalone near surface gold rich skarn and underlying finger porphyry potential at the Trundle Park target.
For further details please refer to the following associated press releases:
- September 3rd, 2020: Kincora provides update on expanded drilling program at Trundle
THE MORDIALLOC TARGET
On September 3rd, 2020, Kincora announced that drill holes TRDD002, TRDD005 and TRDD006 provide further encouragement for the discovery of an economic copper-gold porphyry deposit within the known northern porphyry system at the Mordialloc prospect.
Assay results from Kincora’s first hole (TRDD002) at the Mordialloc target confirmed historical drilling results and returned metal grades comparable to the distal zones of the Northparkes and Cadia-Ridgeway porphyry deposits within inner- to outer propylitic style hydrothermal alteration - see July 23rd, 2020 press release for further details.
TRDD002 is proposed to be reopened and extended as interpretation of the alteration and assay results suggest these may represent the halo of a mineralized porphyry intrusion system.
Positive indicators for targeted mineralized finger porphyry intrusion systems
Independent expert petrographic review “strongly supports the presence of a mineralizing porphyry copper-gold system at the Mordialloc prospect”
Extending TRDD002 proposed
Extending NC371 at Cadia-Ridgeway played a key role in its discovery hole
These results together with previously untested industry-leading “Typhoon” induced polarization (IP) and magnetic surveys completed by previous explorer High Powered Exploration (HPX), and anomalous and increasing copper, gold and molybdenum grades towards the end of CTD006 (hole ending at 524 metres) encouraged Kincora to step out approximately 150 metres south of TRDD002 with drill hole TRDD005 (the second Kincora hole at the Mordialloc target).
TRDD005 was drilled to 958 metres and returned multiple broad zones of anomalous copper, gold and molybdenum, including localized moderate to higher grade intervals.
Significantly, a relatively shallow previously unidentified skarn was also intersected in TRDD005 (including 12m at 0.33g/t Au and 0.29% Cu from 138m, including 2m at 1.4g/t Au and 1% Cu from 142m). While returning anomalous and encouraging mineralization and alteration, the drill hole is interpreted to have been drilled to the east away from the targeted mineralized quartz monzonite porphyry complex.
Cross section of current drilling at the Mordialloc target
Alteration and mineralisation returned in TRDD006, TRDD005 and CTD006 provide strong encouragement for close proximately for the targeted high-grade potassic core of a Macquarie Arc “finger” or “pencil” porphyry target
The favorable higher-grade results from TRDD005, coupled with significant grades from prior drill hole CTD006 (44 metres @ 0.15% Cu, 0.12g/t Au, 41ppm Mo) encouraged Kincora to drill TRDD006 to the west. Propylitic alteration and surface mineralization have also been identified at surface in this area, and rock chip samples were collected and are currently being assayed. Together with the results from TRDD005 and TRDD006, this supports the concept of multiple mineralizing positions, phases of intrusions, with the potential for the discovery of a near surface finger porphyry deposit.
As at the last update to market, drill hole TRDD006 is ongoing at 727 meters depth with encouraging alteration and visual sulphides (including chalcopyrite) having been intersected, supporting the concept of close proximity to a potassic and higher grade core of the targeted system.
Further drilling in addition to the ongoing TRDD006 and the extension of TRDD002 is proposed to aggressively test the targeted finger porphyry setting and potential clustering of associated mineralized systems across a significant strike where anomalous surface and end of hole geochemistry, and geophysics are complementary.
Similar vectoring from drill hole alteration indicators was the exploration approach that was the key to the discovery of Cadia-Ridgeway, the majority of the Northparkes deposits and also Alkane Resource’s recent discovery at Boda.