Kincora Copper (TSX-V: KCC) / (ASX: KCC) / (OTCQB: BZDLF) continues to make excellent progress exploring Australia’s foremost porphyry Cu-Au belt in New South Wales (“NSW”). So much work is getting done behind the scenes, culminating in the three high-profile drill programs we’re seeing today.
CEO Sam Spring, non-exec. chairman Cameron McRae, technical director John Holliday, SVP Exploration Peter Leaman, Operations Mgr. Sam McRae, Principle Geologist Murray Booker, and Exploration Mgr. Dr. Paul Cromie are very experienced in Australia, and in Cu-Au porphyries.
I happen to be very bullish on intermediate-to-long-term copper prices. Even at US$4/lb., companies like Kincora can make hay while the sun shines. If mgmt. can deliver a few exciting discoveries, US$4/lb. would be fantastic, but I believe we will see US$5-$6+/lb. within five years.
Copper is one of the very few metals that directly & substantially benefits from; the EV revolution (incl. charging stations), new power plants (especially renewable facilities), [essentially, everything related to massive decarbonization efforts], new infrastructure build outs & replacements of old, damaged or destroyed infrastructure, wireless phone/internet growth (towers/base stations — 5G, 6G, 7G…), the “internet of things,” and new, upgraded & replacement electrical grids (Africa will need a staggering amount of copper).
Kincora is fully-funded into 2022, and is prudently / actively conducting three drill campaigns (at Trundle, Nyngan & Fairholme — see map below) in the famous, prolific Macquarie Arc in NSW.
To find out more, I turned once again to its hard-working CEO & director, Sam Spring. Please continue reading to consider the merits of Kincora Copper’s high risk / high reward opportunities.
Until recently, the Trundle project had been the sole focus of your drilling activities in NSW. Please expand upon results at the Trundle Park & Mordialloc targets.
Since Kincora’s activities in NSW commenced in April of last year, we’ve completed 22 holes for 14,452 m at Trundle Park & Mordialloc, which are ~8.5 km apart.
Drilling at Trundle Park has focused on simultaneously testing near-surface skarn mineralization, with the strike now extended > 500 m, and the underlying causative intrusive porphyry source — the latter being a much larger-scale target.
A recent highlight has been hole #22. It returned the best confirmation to date of our targeted ‘brownfield’ Northparkes-style setting for a series of intrusive porphyry systems.
Northparkes, the second largest porphyry mine in NSW, hosts > 5.5M ounces gold & > 4.5M tonnes copper — in the eastern part of the same mineralized complex — in a cluster of finger porphyry deposits.
We’re very keen to follow up on hole #22 to test if we’re indeed proximal to the interpreted & targeted core of one of these finger porphyry intrusive systems, which visual logging of core suggests.
In the northern section of the project, we’ve completed a total of six holes at the central Mordialloc prospect and confirmed a large multiple-phase intrusive complex with significant intervals of low-grade copper & molybdenum.
There’s a big system at Mordialloc. Drilling is testing targets on the northeastern & southwestern sections, following up on coincident geochemical & geophysical anomalies on the peripheries of the system — thought to host a more favorable structural setting and higher grade potential.
In summary, more drilling is needed and ongoing at Trundle with the targeted geological setting confirmed at both targets, particularly at Trundle Park, where there’s now significant encouragement that we’re potentially close to a significant discovery.
What should readers know about the Nyngan project? Describe the goals of the current Nyngan drill program?
The goals for drilling at Nyngan are very different from that of Trundle & Fairholme. The latter have hallmarks of, and are adjacent to, existing world-class mines that host > 20M ounces gold, plus > 5M tonnes copper. Success at Trundle & Fairholme would be returning intervals of economic mineralization in existing proven large-scale systems, and confirming new globally significant discoveries.
Nyngan is a lot earlier stage, so success would be identifying a mineral system, and the project hosting a meaningful portion of the interpreted & under-explored northern extent of the Macquarie Arc (the key region in Australia for porphyries).
Kincora was an early mover into this area. Inflection Resources is drilling to the west, south and east of our Nyngan project. Fortescue Metals has pegged adjacent ground. Success by us, or others, would have positive implications for the prospects of this region.
We’ve drilled one hole at Nyngan, with dollar-for-dollar direct drilling grant support from the NSW government. The hole was a geological success — intersecting basement volcanics in-line with targeted depth. We’re currently waiting for age-dating of the fossils, which will have implications for both the target drilled and a second hole we’re doing.
What should readers know about the Fairholme project? Explain the goals for the current Fairholme drill program.
We’ve commenced a maiden drill program at Fairholme, at the Gateway prospect. Gateway is 15 km on trend from the Cowal mine “gold corridor,” which hosts a 13.7M ounce gold endowment across a 7 km strike, and is the flagship project of Evolution Mining, Australia’s third largest gold miner.
Gateway has analogous mineral tenure, alteration, geochemical zonation, structure & scale potential to the Cowal gold corridor. Our program is seeking to confirm & expand previous significant broad, high-grade intervals.
For example, our first hole follows up on [123 m @ 0.62 g/t Au + 0.12% Cu] from 44 m, incl. [4 m @ 2.39 g/t Au], [8 m @ 1.07 g/t Au], and [5 m @ 8.21 g/t Au + 0.85% Cu].
No drilling has taken place at Fairholme since Evolution Mining’s nearby acquisition. Previous explorers underestimated the gold-base metal corridor scale potential at the Cowal & Fairholme projects. Instead they focused on deeper copper porphyry potential.
We have permits for up to 39 holes & 6,000 m of drilling at Fairholme. The immediate goal is to test a 400 m strike for ‘Cowal-style’ widths & grades.
Has there been any meaningful drilling successes or new discoveries on third-party properties that have implications for Kincora?
Yes, ASX-listed junior Sultan Resources is drilling on the license boundary to our Cundumbul project with a program that’s returning encouraging results, with a second phase expected soon. We’re keenly watching their progress as they test their Big Hill target that continues across onto our ground.
As mentioned, exploration successes by Inflection or FMG in the northern under-explored region of the Macquarie Arc would have significant implications for the prospectivity of that part of the belt and our ground including the Nyngan, Nevertire & Mulla projects.
I see you have picked up a new project in the region. How important might the Mulla gold-copper porphyry project be?
Yes, when drafting our cooperative funding drill grant application for our Nevertire project, and looking to potentially drill on the western margin of it in 2022.
We noticed there was open ground with a regionally significant, multiple-phase intrusive complex confirmed by limited drilling, indicated by an extensive gravity low, a setting not dissimilar to Northparkes & Cowal to the south in the same belt, yet minimal past drilling.
Hence the application for the Mulla license, which builds up our project pipeline (extremely cheaply). Drilling within the Nevertire/Mulla portfolio is being planned as a 2022 event.
Are there other targets in or around the Lachlan Fold Belt region?
We continue an active project generation function, both on new opportunities in the region that have walk-up drill targets, and value accretive deals for projects we have in our pipeline. We don’t want to be land-bankers.
I should add that we expect Resilience Mining to lodge a prospectus fairly soon to seek an ASX IPO with our Mongolian assets. Kincora will retain a free carried interest at the asset / project level to certain material milestones and we will own 9.9% of the listed company. Drilling in Mongolia is planned soon after the listing, effectively a fifth project being drill-tested that we have exposure to.
Four months ago, Kincora Copper started trading on the Australian Securities Exchange. How has that worked out? Have you received any research coverage out of Australia?
The dual listing on the ASX has proven to be a very good move, liquidity improved significantly. We’ve seen nine times the dollar value traded on the ASX vs. the TSX-V. We had an oversubscribed A$10M raising with a number of high-quality domestic institutions & family offices.
We’ve had excellent support from both joint lead managers to the IPO, Morgans (and their wide retail network) and Bridge Street Capital, who are providing detailed research coverage from Dr Chris Baker, one of the most knowledgeable analysts in the sector. (see July 2021 Bridge Street report).
In the coming months would you rather see US$2,000/oz. gold, or US$5/lb. copper?
As our name suggests, it would have to be US$5/lb. copper. We’re looking to position ourselves as the leading pure-play porphyry explorer in Australia’s foremost copper belt. New copper projects are increasingly being advanced in difficult jurisdictions.
$5 copper would further highlight the attractive medium-to-longer-term outlook, driven by slow advancement of existing development-stage copper projects, coupled with structural demand growth from decarbonization and the tens of trillions of dollars of COVID-19 related economic stimulus spending coming this decade.
Unlike in the gold space, there’s a shortage of listed junior copper plays with assets in Tier-1 jurisdictions.
Thank you Sam, exciting stuff going on with drill results from multiple projects expected in coming months.
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