Kincora Copper

Primary ticker: TSXV:KCC
Stage of development: Exploration
Commodity: Copper, Gold
Project to promote: The Trundle Project
Project location: Australia, Mongolia
Company presentation: Click here
Company video: The Assay TV Interview | Proactive Investors Interview 

Live financials

CAD$3.5M (31 Dec 2019)
Debt: NIL

Major shareholders:
LIM Advisors – 24%
New Prospect Capital – 10%
Other institutions – 17%
RareX – 9%
Management Ownership – 6%

Kincora Copper is an active explorer and project generator focused on world-class copper-gold discoveries. The Company has assembled an industry leading technical team who have made multiple Tier 1 copper discoveries, have “skin in the game” equity ownership and are backed by a strong institutional shareholder base.

Kincora’s portfolio includes district scale and strategic landholdings in Australia and Mongolia’s foremost copper-gold porphyry belts, the Macquarie Arc of the Lachlan Fold Belt and Southern Gobi respectively.

Drilling will shortly commence at the flagship Trundle project, the only brownfield project held by a listed junior in the Lachlan Fold Belt. Trundle sits within the same system as Australia’s second largest porphyry do mine (Northparkes) demonstrated similar and extensive mineralization, and drilling to test three large and mineralized porphyry targets.

Management Profile

Sam Spring, President & CEO

Sam Spring, President & CEO, and member of the Technical Committee. He has lead Kincora’s exploration and expansion strategy since 2012. Over this time the Company has been one of the most active copper groups in Mongolia, completed 4 M&A transactions, established an industry leading technical team, restructured the board/shareholder register and lead the entry into the Lachlan Fold Belt in the last 6 months.

Sam is a CA and CFA Charterholder, and prior to Kincora was recognized as one of the leading European Metals and Mining research analysts, having won the Association of Mining Analysts (UK) Equity Mining Analyst of the Year.

In 2017, Sam was nominated for CEO of the Year – Exploration award, at Mines & Money, London.

Cameron McRae, Chairman

Cameron McRae was appointed Chairman of the Board in August 2018. Mr. McRae is a seasoned CEO and mining executive, having led the full mining development cycle in four countries and across three continents. Cameron served a 28-year career with Rio Tinto, and in Mongolia was President of Oyu Tolgoi LLC and Rio Tinto’s country director.

In that role he led the construction and start-up of the then US$6 billion Oyu Tolgoi copper-gold mine, located in the Southern Gobi, ahead of schedule, which at peak of construction had over 15,000 people employed on site.

Mr. McRae was responsible for all aspects of the project including safety, strategy, operations, growth initiatives and chair of the technical committee. For the majority of the period post Oyu Tolgoi, Cameron has been an Advisor to Kincora, providing a significant contribution to stakeholder relations, strategic direction and operations.

What is your rationale for taking part in 121 Mining Investment?

To provide an update having just consolidated a district and strategic scale position in Australia’s foremost porphyry belt and to outline our plans for high impact, value add, near term drilling at the brownfield Trundle project

What recent news would you like to highlight to investors attending?

April 22nd – Kincora drilling underway at brownfield Trundle project, NSW

April 20th – Lachlan Fold Belt Drilling to Commence Targeting Large Scale Copper Gold Porphyry Systems

April 7th – 121 interview with Richard Schodde and John Holliday regarding activities in the Lachlan Fold Belt, the regions prospectivity, recently (post Kincora’s entry) becoming the newest hot spot for global exploration and Kincora’s upcoming drilling program at the brownfield Trundle project.

March 19th – completed the definitive agreement with RareX Limited to consolidate a 1,732km2 land position in the key belts of the Macquarie Arc, with confirmed strategic appeal and pipeline of targets being systematically advanced including the drill ready Trundle project.

What are your key goals for the next 3, 6 and 12 months?

3 Months

– Drilling at the Trundle project seeking to confirm a new discovery in the same mineralised system as Australia’s second largest porphyry mine (Northparkes owned by China Moly)
– New license issuance in the Macquarie Arc

6 Months

– Results of phase 1 drilling at Trundle
– Systematic advancement of the rest of the Macquarie Arc portfolio pipeline
– Mining license conversion for Bronze Fox
– Seeking to close the valuation gap and discount to our Macquarie Arc peers

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Key risks for Kincora include: geological risk (confirmation or otherwise of our more advanced geological models) and, as an exploration company there is always funding risk. The health/safety and capital markets implications of COVID-19 is an emerging situation we are closely and proactively monitoring.

What do you think makes your company such a compelling investment?

In summary: “Team, Location, and Targets”. With a favourable cash position, entry into the Macquarie Arc just complete and consolidated/sophisticated shareholder register, the Company is in the strongest position since its formation. A high impact, value add drilling program at the Trundle project provides clear near term catalysts to close our valuation discount to peers.

Analyst Insight – provided by Independent Investment Research

Kincora Copper is a TSX-V-listed exploration company, with a total of eight prospects within the highly prospective Devonian Oyu Tolgoi Copper/Gold Belt in Southern Mongolia, as well as newly-granted acreage in the Lachlan Fold Belt in NSW, Australia.

Kincora’s 100%-owned district-scale portfolio in Mongolia covers 800 sq km and lies along strike and in between the Oyu Tolgoi mine and the Tsagaan Suvarga deposit. A major project focus is the Brown Fox target. There is a large-tonnage exploration target at the West Kasulu prospect of 416 Mt to 428 Mt grading 0.26% to 0.30% copper, for up to 2,437Mlb of copper and 0.84Moz gold –  ranking it as one of the largest potential in-situ copper-gold systems in Mongolia and with only modest drilling.

Extensive geological and geophysical work identified new high-grade targets in two underexplored and highly prospective zone. These targets sit within a very large and deep seated preserved portion of the interpreted porphyry system across a key regional fault – a setting not previously appreciated by Kincora or Ivanhoe Mines when both completed limited previous drilling.

A second major project focus is the East Tsagaan Suvarga prospect, where a number of Tier-1 scale brownfield targets are drill-ready. These are less than 15km from the existing privately owned open-pit development project at Tsagaan Suvarga.

During November 2019, Kincora was granted a new exploration license covering 762 sq km known as the Nyngan project, within the Lachlan Fold Belt of central New South Wales, Australia. The issued direct license application area followed a review of prospective underexplored undercover terrains in Australia by Kincora’s Technical Committee and various new project opportunities. The Kincora team has previous Tier 1 discovery successes in the LFB. The Nyngan project was selected based on its stratigraphic-structural setting and right rocks, with previous favourable results of the last drilling program by Newcrest Mining Limited inadequately followed up. The Nyngan project provides the company an opportunity to explore for porphyry-related gold-copper mineralisation within a relatively under-explored section of a proven and highly prospective belt. The licence is one of the largest in what is Australia’s leading porphyry belt.